Thursday 31 January 2013

Business Case: Figures or understanding?

It's time for development and improvement of Business Cases in Danish companies. Some are working on the first edition others with version 8 +. The trend is clear: More and more conditions must be assessed and included in the final conclusion and recommendation.

Regardless of the stage of development, it should be remembered that the figures are something else than understanding. It may well be that the numbers look good, but do we really agree on what exactly is going to happen? Why we believe that A leads to B? Why the project delivery should give the promised effect?

The person developing the business case has a number of images (and maybe even dreams) in the brains, and all figures are based on these. How do we ensure that decision makers have the same images? One thing is certain: The numbers do not increase understanding. On the contrary blurs often misunderstandings. The figures are so lovely clear with their conclusions with decimal places - maybe even many - but they take us away from all the potential misunderstandings.

A good business case should have a section of text and one of figures. Text section must focus more closely on and explain exactly why we believe that A leads to B. The figure section should then show whether that is good business.

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