Clearly defining a project’s intended benefits at
the outset can help project teams actively advance
the organization’s strategy. According to PMI’s
recent Pulse of the Profession® report, The Strategic
Impact of Projects: Identify Benefits to Drive Business Results, organizations that frequently identify
benefits before the start of a project see 74 percent
of initiatives meet goals and business intent. In
comparison, only 48 percent of projects deliver
similar results when organizations don’t have this
practice in place.
Incorporating a business-case template into the
initiation process can help project teams gather the
information they need to make the right decisions
as projects move forward. At the global financial
research firm MSCI, for instance, “a business case
is part of the due diligence process,” says Jayant
Patil, PMP, vice president, MSCI, Mumbai, India.
“By measuring the benefits, costs and risks associ-
ated with the investment being made, you can best
assess and evaluate the options available to solve the
business issue.”
At MSCI, the business-case template relies on
information gathered to address several issues,
including explaining why the project is necessary,
recommending business solutions, defining orga-
nizational benefits, determining how much money,
resources and time are necessary, identifying risks
and measuring the financial impact.
“A solid business case for a potential project
helps secure funding and a committed sponsor for
it,” Mr. Patil says. “It also helps in correct prioriti-
zation of the projects. This is a mechanism through
which organizations decide and implement their
business strategy.”
But project leaders by themselves can’t define
how business cases are developed. Formalizing and
implementing a standardized template requires
cooperation from sponsors and other key stake-
holders, as well as strong collaboration between
project managers and business analysts. Introducing
a template that engages players across the organiza-
tion adds time to the process, but ultimately leads
to a stronger business case that produces better
results, says Ken Watson, PMP, business-case team
leader for the U.S. Department of Transportation’s
Federal Aviation Administration (FAA), Atlanta,
Georgia, USA.
“Going with the
opinions of a few peo-
ple would certainly be
quicker, but the con-
clusions you come to
may not be the best,”
Mr. Watson says. “It’s
amazing how differ-
ently everyone views
the project when you
have a strong business-
case process in place.”
Collaborative con-
versations with key
stakeholders help
ensure all project needs
and risks are identified
and give the team a
“A business
case is part
of the due
diligence
process.”
—Jayant Patil, PMP, MSCI,
Mumbai, India
project that closes on time, on budget and
within scope isn’t an instant success.
Strategic alignment is another key piece of
the puzzle—one project teams can lose
sight of as they dive into the daily details.
“When
stakeholders
take the
time to talk
through every
aspect of
the project,
everyone
agrees on the
assumptions
about project
outcomes
before you
begin.”
—Newman Serrano,
PMP, Unisys Brazil, Belo
Horizonte, Brazil
