In my career spanning close to two decades, I have done scores of presentations and been an audience to several more. An effective presentation is one that leaves little scope for ambiguity or seeks more clarifications. For precisely this reason, I’m a huge admirer of Business Cases, which I call “Persuasive Documentation”. Some of you would have a question about how is a Business Case different from a Business Plan, those of you who have been through B-School would have ground to dust. Every entrepreneur worth his mettle would know the difference.

Difference between B-Plan and B-Case

A Business Plan offers an idea for starting a new business, replete with timelines and long-term growth agenda. It is largely based on a vague notion of how the picture will pan out in the future, with not a fair understanding of future market trends and economic scenario. Hence, it’s mainly the germ of the idea and the plan to drive it in an unknown future. Nothing to undermine the B-Plan, why most new businesses have to start with one.

However, a Business Case is something more mature- in that it sticks to an aspect of the business already in function. A business case pitches for an idea or an investment in a project in an existing business and tries to convince why it should be undertaken immediately, at times scoring over other competing ideas and projects.

Let’s understand with an example

A Business Plan is a plan to start a business, like a Mithun’s Beer Brewery at a privately owned vineyard. It makes sense of this proposition through analysis of current market, product highlights, potential market, funds, people, marketing, etc. It is, however, based on several hypothesis and presumptions.

A Business Case would be developed for a project in an existing brewery, maybe to replace existing equipment or introduce new ones, to bring in new technology or people, to invest in specific marketing activity and the like.

Now you get the difference. A Business Case speaks for a specific goal or objective in the nearest future with specific returns in mind.

Software upgrades, replacing old machines with new ones, so that by enabling quicker and better output, we can achieve better customer satisfaction.

To sum it all, a Business Case is one that-

Offers a compelling case about an investment, implementation of an idea or a project
It needs to show how it will fare before, during and after the implementation so that it allows you to evaluate once it’s completed
It gives a glimpse of the tangible and intangible objectives and how they are achieved through the implementation
When is a Business Case needed?
Absolutely not when we’re planning a new venture, for that’s when a Business Plan comes into the picture. A Business case is needed in the following circumstances, though this list is just indicative

When you’re proposing a change in system or process that involves approval from the board
When you want to show how a change will add value to the existing business
When you intend to outsource or change the way a particular unit of business is already bein done
When you intend to change location or area of operation
When you vying for a piece of the same pie of funds and are convinced that your case would yield the maximum benefits for all, over the other proposals that also need funds.
A well documented data-driven Business Case works in favor of your proposal and enhances the chances of being implemented.

Why is a Business Case needed?

As with most aspects of business, a compelling proposal as to why something should be done is of utmost importance when it comes to making decisions. It is also a good corporate practice where the people initiating a project or presenting an idea are themselves convinced about the feasibility of the outcome and hence pitch in on behalf of the same. It also determines the value that it will bring to the already existing business. Hence, if a B-Plan is all about strategic planning, a B-Case is all about Tactful planning. The success of every project depends on key factors like

It’s alignment to the achievement of company vision and goals
Responsible leadership and its absolute backing
Active participation from all stakeholders
A reasonable timeline for planning, implementation and delivery
A perfect fit of available talent with that required
A clear understanding of objectives and ground realities including clear and potential opportunities and risks
Periodic evaluation and course correction
Proper understanding about how it will benefit the customer and the company
One must understand that all of this is possible in the light of the three classic constraints of time, cost and scope.

A Business Case aims to address the above issue by giving clear and precise answers for questions such as:

What is it – is it possible to implement without shaking the system
For whom is it- how will stakeholders benefit from it. This also involves the company along with the key beneficiaries – the customers.
How will it be done- do we have a concrete plan and have we preempted the pros and cons. One must ensure that what we’re set to do has not already been done and that all other options have already been tapped.
In how much time- will it be reasonable time within which the project will be drafted and implemented as per the plan.
How will it benefit- to all those involved by adding value. At this point, you answer the ‘Why’ part of the case and others can intervene if they feel it does not justify the resources being utilized. It always helps to plug in gaps at the beginning rather than later.
What will be the cost- are the expenses justified through the enhanced returns- either monetarily or through enhanced customer satisfaction, increased market share and the like
What will be the outcome – will it better our current way of functioning
How will it add value – to the company and also to the stakeholders as compared to what and how it is presently being done
Who will be responsible for the same – the team behind the implementation and their level of dedication (of course this can only be perceived and not quantified)
A project is a solution to some current or potential problem or unmet need. It is a known fact that most projects fail because they lack accuracy in the form of answers to the above questions.

So right from the time you present the Business Case to the time you evaluate its implementation, you move from answering “what do you want to do and how” to “Have you justifiably achieved what you wanted to do by utilizing the time and resources required for it”.

Though the two questions seem a logical extension of one another, it takes accountability and planning to an all-new level in doing so.