Expect the Serious Critic at Your Business Case Review. Be Prepared!

Captain’s Log, Entry 8325.1—Your business case critic comes with the turf. You can avoid a potentially damaging critique at your business case review if you take steps to prevent it. Anticipate the critic and prepare for the expectable criticisms.

No matter when or how you prepare your business case, there will be a sinister, uninvited guest  in the room when you present it for review: the business case critic. You can’t bar this person from the meeting and  speaking to everyone present.

Know for certain the critic will be there, working against you. This person “comes with the turf,” whenever you project future business results. The critic’s name is The Credibility Question. Your critic is the moving force behind questions like these: Continue reading “Expect the Serious Critic at Your Business Case Review. Be Prepared!”

Opportunity Cost, Avoided Cost. Are They Real?

Captain’s Log, Entry 8322.4Avoided costs and opportunity costs can all play an important role in business planning, budgeting and decision support. Nevertheless, some financial specialists do not grant these costs legitimacy for the business case. Is this exclusion justified? 

I spoke recently with a project manager whose project funding proposal had just failed.

The Project Management Office—and the company CFO in particular—turned thumbs down on the manager’s Stage-0 business case. Why? Where was the red flag? Avoided costs! Continue reading “Opportunity Cost, Avoided Cost. Are They Real?”

Business Case-Builder: Be Ready for “Question Time.”

Captain’s Log, Entry 8316.1Business Case Analysis is center stage almost everywhere for business planning and decision support. Nevertheless, few  really know how to analyze and build convincing business case proof.  Learn why business case results are trustworthy only when they include: Cash flow forecasts, Quantitative risk analysis, and Reasoning that “makes the case” for action. Cash flow forecasts alone are not a business case.

Decision makers rely on business case analysis to build the understanding and confidence they need to take action. You know this already if you have recently submitted a funding request or project proposal. You know this also if you serve on committees for budgetary planning, capital spending, or strategy. Continue reading “Business Case-Builder: Be Ready for “Question Time.””

The Business Case Is Mandatory, Not Optional!

Captain’s Log, Entry 8304.3Business people everywhere are hearing something like this from management: The business case is not optional! 

When do you know you need a business case? You know it when your management sends messages like these:
  • We can’t afford to fund every new project or development proposal anymore. We have to find a better way to prioritize proposals, decide which to continue, and which to drop.
  • Starting this year, any request for non-budgeted funds is non-starter without a strong cost/benefit analysis behind it.”
  • New government policy says we have to have to show financial justification before going forward with major capital projects.”

In brief, the business case is no longer optional in more and more places. Continue reading “The Business Case Is Mandatory, Not Optional!”

Business Case Master Class Seminar, Washington DC

When:
Next offering with availability:
Wed-Fri, 20-22  February 2020

Where:
Hilton Springfield,
6550 Loisdale Road, Springfield VA   22150 USA

Places available as of today!

Seminars also in New York CityLondon

The Business Case is No Longer Optional

Business people today are rapidly losing tolerance for management error. They are also demanding real accountability for decisions and plans. And, everywhere, the competition for scarce funds is increasing. Continue reading “Business Case Master Class Seminar, Washington DC”

The Principle-Driven Business Case: Pursue Principles, Not Process

Captain’s Log, Entry 8289.3—Some managers see the business case simply as a tool for securing project authorization and funding. Experienced project managers, however, understand that a principle-driven case has substantial additional value to exploit throughout the project lifecycle.

A principle is a fundamental truth or proposition that serves as the foundation for a system of belief or behavior or for a chain of reasoning.

Very few business cases built today qualify as principle driven cases. A principle driven case manifests in short, concise documents that don’t need exhaustive descriptions to take into account every eventuality. Case building with a principle driven approach is efficient,  and case usage is clear and straightforward. And, principle driven cases have proven uniquely effective in improving project performance and delivering business value for the organization.

Continue reading “The Principle-Driven Business Case: Pursue Principles, Not Process”

Is Activity Based Costing Worth the Extra Time and Effort?

Captain’s Log, Entry 8286.5 — Cost accountants know that traditional costing can skew the measure of product production costs. Thus, many firms turn instead to Activity-Based-Costing for a truer picture of product costs and gross profits. However, ABC is notoriously labor intensive. Many ask: Is ABC worth the extra effort?

Every company that produces and sells products must understand product costs accurately and in detail. This kind of information is essential for planning operations, pricing, and evaluating business margins. For product cost data, management relies on the firm’s cost accountants. But how, precisely, do the accountants develop this information? Continue reading “Is Activity Based Costing Worth the Extra Time and Effort?”

Trust the Vendor’s ROI and TCO Promises?

Captain’s Log, Entry 8281.3The internet is awash with sellers asking you to believe their own ROI figures. You know this very well if you are currently shopping for costly assets. Vendors know that ROI and TCO are central in purchase decisions for large IT systems, vehicles, production machines, and lab equipment.  Should you believe the vendor’s predictions?

Vendor-produced ROI figures are also center-stage when sellers submit customer ROI and TCO figures along with the sales proposal. Many vendors seem to believe that sale closing will follow faster when they show customers the attractive ROI and TCO results they can expect. Continue reading “Trust the Vendor’s ROI and TCO Promises?”

Business Case Master Class: Join Us at London Trafalgar Square

London Business Case Seminar: Join Us at Trafalgar Square!

When:
Next offering with availability:
Tuesday-Thursday 26-28  February 2020

Where:
Hilton Trafalgar Square, 2 Spring Gardens, London UK
Places still available as of today!

Seminars also in New York City &  Washington DC

The Business Case is No Longer Optional Continue reading “Business Case Master Class: Join Us at London Trafalgar Square”

Does The CFO Approve? How to Get a Yes! From the CFO

Captain’s Log, Entry 8253.5—In some minds, a successful business case is a case that brings CFO approval for a funding request. For those submitting proposals, CFO success is what matters!

For many case builders, CFO approval is the very definition of business case success. However, participants in our Business Case seminars tell us that this kind of success can have a short life. Continue reading “Does The CFO Approve? How to Get a Yes! From the CFO”

Business Case Figures Don’t Lie! However, …

Captain’s Log, Entry 8247.3Can you produce business case results showing anything you want to show?
“Figures don’t lie but liars figure.”
– Attributed to Mark Twain and others

One reason that business case results do not always receive support, no doubt, is this. Many believe that case results can be made to show anything the author wants them to show.

Is that belief really valid? Continue reading “Business Case Figures Don’t Lie! However, …”

Project Tracking Process Control – When You Must Finish On Time

Captain’s Log, Entry 8243.3Sometimes a late project finish is unthinkable. Project managers can apply process control methods to project tracking to help avoid a late finish. Process control for the project provides (1) Early warning of a likely late finish, (2) up-to-the-minute comparisons of actual progress with planned progress, and (3) visual updates on schedule gains and losses, easily understood by everyone.

The process control project progress chart (also known as a Schmidt Chart) is similar to statistical process control charts for manufacturing quality control. Because the chart puts current performance into historical context, everyone with an interest in the project can see immediately how actual progress compares to the original plan. Continue reading “Project Tracking Process Control – When You Must Finish On Time”

Business Case vs. Business Plan: Do You Know the Difference?

Captain’s Log, Entry 8203.4Business Case, Business Plan. Do the Terms Mean the Same Thing? It’s a question you may have to answer many times for your colleagues. In brief, the case is organized around an action, while the plan is organized around the business.

Many people ask:  What’s the difference between a Business Case, on the one hand, and a Business Plan on the Other? Surprisingly few people in business are prepared to answer such questions in clear terms. It’s a question that  participants bring to our business case seminars.

People often use the terms interchangeably or ask for one of them when they mean the other.  Why? Continue reading “Business Case vs. Business Plan: Do You Know the Difference?”

Will They Believe Your Business Case? Build in Self-Evident Validity

Captain’s Log, Entry 8209.1Above all, business case credibility comes from built-in self-evident validity. The case itself must deliver the means to judge the quality and magnitude of the results. You cannot always count on ROI templates, tools, methods, and business case consultants to put a high priority on building that ability into the case.

Will they believe your business case? Your case speaks with authority only if you know how to build in credibility.An engineering manager in one of our business case seminars defined business case “success” in a way that many others would agree with:

The business case was successful! My proposal was funded!

Continue reading “Will They Believe Your Business Case? Build in Self-Evident Validity”

Where’s the Case For Building Your Business Case?

Captain’s Log, Entry 8206.3How long should a business case analysis take? How much labor does the case require? Is there a business case for building the business case? Those involved in doing the work and their managers naturally want to know: Is it worth the time and labor it takes to build and deliver  them?

A serious business case analysis may require serious project effort, especially when the subject of the case has major impacts in a complex business environment, and when the subject has not been analyzed before. Participants in our business case seminars say that professional labor requirements can easily range anywhere from several person days at the low end to several person weeks on the high end. Continue reading “Where’s the Case For Building Your Business Case?”

Your Business Case Delivers Proof, Builds Confidence, Lowers Risk

Captain’s Log, Entry 8200.3Business people everywhere are hearing something like this from management: The business case is not optional! 

When do you know you need a business case? You know it when your management sends messages like these:

  • We can’t afford to fund every new project or development proposal anymore. We have to find a better way to prioritize proposals, decide which to continue, and which to drop.
  • Starting this year, any request for non-budgeted funds is non-starter without a strong cost/benefit analysis behind it.”
  • New government policy says we have to have to show financial justification before going forward with major capital projects.”

In brief, the business case is no longer optional in more and more places. Continue reading “Your Business Case Delivers Proof, Builds Confidence, Lowers Risk”

Clear the Hurdle—Or Forget About Funding Your Proposal

Your funding request must pass the hurdle rate test—or you can forget about funding and approval! Learn how to get in shape for the financial hurdle rate event, and how to ensure you pass the test: Continue reading “Clear the Hurdle—Or Forget About Funding Your Proposal”

Business Case Competency: Think Program, Not Point Solution

Captain’s Log, Entry 8194.9What does it take to build high level business case competency in real-world business? Training? Templates and software? Directives? The answer is: All of the Above. Business Case competency for the organization calls for a program, not a point-solution.

“We are going to stop making bad decisions and we are going to stop now!”

The statement was the opening line at the Vice President’s weekly staff meeting. It sounded like the voice of a leader who is decisive and impulsive by nature: Continue reading “Business Case Competency: Think Program, Not Point Solution”

Is IRR a Case of the Emperor’s New Clothes? Internal Rate of Return

Captain’s Log, Entry 7959.3Most business professionals outside of finance admit they do not really understand the meaning or use of internal rate of return (IRR). However, many of the same finance people who require IRRs with incoming proposals are themselves unable to explain the meaning of IRR in practical terms.

 

Nevertheless, many are required  by their CFOs or other financial specialists to deliver internal rate of return IRR figures to support funding requests, business case results, or proposals for projects, acquisitions, or other actions.It is surprising, however, that many of the same finance people who require IRRs with incoming proposals are themselves unable to explain in practical terms:
  • The meaning of IRR % values.
  • How IRR compares to other financial metrics such as NPV or ROI.

Continue reading “Is IRR a Case of the Emperor’s New Clothes? Internal Rate of Return”

Why Did the Business Case Fail?

Captain’s Log, Entry 8186.1 — Why did the business case fail? It may predict excellent results yet still fail to “make the case.” Everyone asks: Why did the Business Case Fail? 

In our business case seminars we see project managers, IT directors, sales people, and others who have just had a painful experience: Their business case analysis failed.

Some of them predicted great cash flow, high ROI, and short payback, but still got a thumbs down from top leaders. Continue reading “Why Did the Business Case Fail?”

Business Case Credibility: Capitalize On Your Second Team

Captain’s Log, Entry 8i83.5The most important step you can take to ensure business case success is to recruit and use effectively a cross-functional, cross-organizational Reference Group. Never approach case-building as a “Do It Yourself” project.

The moment it is clear that decisions or plans call for a business case, an insidious, deadly temptation begins to operate on the project manager, product manager, consultant, or salesperson responsible for delivering the business case. Even CFOs are not immune. The tempter sends this pernicious message:

“Do it Yourself!”

The temptation has a seductive logic. If you build the Continue reading “Business Case Credibility: Capitalize On Your Second Team”

Your Business Case Critic: How to De-Claw the Cat.

Captain’s Log, Entry 8180.3Prepare for the Worst—your  critic. If you don’t want nasty surprises from the hostile business case critic at your own case review then don’t surprise your audience!

There are some things you just do not want to hear at your business case review. You are trying, after all, to build confidence that supporting your proposal is a wise business decision.

At your case review, however, certain remarks from business-case critics can dismantle that confidence—if you are not ready for them. One hard-hitting question from a devious skeptic can undermine the credibility you work so hard to build—unless you know in advance how to turn it to your advantage.

Continue reading “Your Business Case Critic: How to De-Claw the Cat.”

What’s A Government Business Case? Government is Not in Business!

Captain’s Log, Entry 7560.3Professionals in Government or Non-Profits who must produce a business case or cost/benefit analysis face a special challenge. That challenge is completely unknown to their counterparts in private industry. They must prove that proposed actions deliver tangible, measurable business value.  That’s not always easy to do, when you’re not in “business.”

Businesspeople in Government and Non-profits ask questions like these:

How do you . . .

  • Write a business case if you are not in business?
  • Find financial benefits for a government organization besides cost savings?
  • Use financial metrics such as NPV, IRR, or ROI when you don’t have financial benefits?

Continue reading “What’s A Government Business Case? Government is Not in Business!”

Does Business Case Proof Really Prove Anything?

Captain’s Log,  Entry 8175.5Make no mistake: Every business case is meant to prove something. Case authors may as well open with the line: I’m going to prove my project proposal is a good business decision. Or, I’m going to prove financial justification for my proposal. Or, we are acting responsibly when we take action!

Case builders intent on proving something often go on to produce the return on investment (ROI), internal rate of return (IRR), or net present value (NPV) they expect from their proposals. Their financial metrics may be attractive, but for some reason, they just don’t “make the case” with CFOs, review boards, or other senior managers. There may be doubts all around that anyone can proved anything with a business case. Continue reading “Does Business Case Proof Really Prove Anything?”

Do Soft Benefits Belong in a Serious Business Case?

Captain’s Log, Entry 8172.5Non-financial outcomes from an investment or action deserve value and a place in the business case—when they help meet important business objectives.

Non financial benefits belong in the business case when they contribute to meeting business objectives.

Important benefits from an action are sometimes hard to value in financial terms.  Case builders struggle especially in assigning value to non-financial outcomes—the so-called “intangibles.”

Are these benefits soft benefits? Or, real business benefits that belong in the business case? Continue reading “Do Soft Benefits Belong in a Serious Business Case?”

Maturity Level for the Business Case Matters. What’s Your Level?

Captain’s Log, Entry 8169.4—Everyone involved with the business case wants to know up front how many hours and how much labor the case will require. They also want to know if the results will be worth the time and effort.  Answers to these questions depend directly on the Business Case Maturity Level of the organization.

Business Case Maturity Level matters because everyone involved with your business case is likely to have serious questions about the case-building process. As a result, the project manager, outside consultant, and senior managers all want to know what they are in for! And they want to know if the results are going to be worth the effort.
Continue reading “Maturity Level for the Business Case Matters. What’s Your Level?”

Build in Business Case Quality. Your Proposal Depends On It.

Captain’s Log, Entry 7833.3Build in Quality When You Build Your Business Case.  Your Proposal Depends on it.

Continue reading “Build in Business Case Quality. Your Proposal Depends On It.”

Reaching Objectives Has Value! Even With So-Called Intangibles

REACHING OBJECtIVES HAS VALUE! EVEN WITH SO-CALLED “INTANGIBLES”
Reaching Objectives Has Value. The principle is true in sports and it is true in business. The principle is the starting point for learning to make tangible and value business benefits of all kinds—financial and non-financial. Continue reading “Reaching Objectives Has Value! Even With So-Called Intangibles”

Business Case Analysis Professional Seminar, New York City

When:
Monday – Wednesday,  22-24  January  2020

Where:
Hilton Times Square,
234 West 42nd Street, New York NY   10036 USA

Places still available as of today!

Seminars also in Washington DCLondon

The Business Case is No Longer Optional

Business people today are rapidly losing tolerance for management error. They are also demanding real accountability for decisions and plans. And, everywhere, the competition for scarce funds is increasing. Continue reading “Business Case Analysis Professional Seminar, New York City”

Annual Report Insider’s Guide: What Are They Trying to Tell Me?

Captain’s Log, Entry 8079.4 — The modern Annual Report to Shareholders does not look like a dreary financial report. Instead, it looks more like a glossy marketing brochure. In fact, annual reports do have a marketing purpose.

Yes, the mandatory financials, notes, and auditor’s opinion are all there. These are usually in black and white and small print.  But the “financials ” have to sandwich in between many glossy pages with striking images, creative typography, colorful graphs, and artful prose from the Board, CEO and other officers Continue reading “Annual Report Insider’s Guide: What Are They Trying to Tell Me?”

Financial Leverage: Seductive But Risky!

Financial Leverage is the art of earning with borrowed funds. No doubt about it, the promise of increased earning power is seductive. Leverage works—but only when the economy is good and earning performance is strong. When the economy turns sour, or when the high-leverage firm delivers a year of net-losses, leverage bites back, showing the true meaning of “double-edged sword.” Earning power shrinks, and the firm struggles to service debt, cover expenses, and pay dividends from meager profits. All the rewards and risks that leverage provides, pass on directly to the firm’s owner-investors. Continue reading “Financial Leverage: Seductive But Risky!”

Value All Business Benefits—Even the “Untouchables”

Reaching Objectives Has Value. The principle is true in sports, and it is true in business. The principle is the starting point for learning to make tangible and value business benefits of all kinds—financial and non-financial.

The business benefit concept is central in strategic planning, cost/benefit studies, and business case analysis. For these tasks, business analysts evaluate investments and actions by anticipating likely cost and benefit outcomes. People new to these activities learn quickly, however, that some kinds of benefits are easier to measure and value than others.

Most business readily accept positive financial outcomes as business benefits. These are easy to measure in terms of cost savings, revenue growth, cash inflows, or profits.

Many , however, are uncertain about how to measure or value contributions to business objectives they define in non-financial terms. These may include, for instance, changes in key performance indicators for goals having to do with:

Download Business Case Ebook Resources Today


Business Case Essentials

The Most Frequently Cited Business Case Authority
Business Case Essentials Ebook

by Marty Schmidt
ISBN 978­1929500031

5th Ed 2018
Published by Solution Matrix Ltd
PDF ebook 110 pages
US$ 39

 

 

The concise, complete introduction to business case content and structure.

Essentials is written for those who must learn case building quickly—those who must deliver a compelling professional quality case in the shortest possible time.

Continue reading “Download Business Case Ebook Resources Today”

Financial Metrics Pro, Handbook, Tutorial Templates

Financial Metrics Pro

Business Case Templates for case building success
.
  • 4th Edition, 2018
  • ISBN 978­1929500079
  • by Solution Matrix Ltd
  • Excel-based ebook handbook, templates  US$49.

 

Orders process through PayPal. Purchase with any AMEX, VISA, MC or  PayPal account.

Metrics Handbook, Tutorial, Templates—In One Excel Ebook

Financial Metrics Pro is a handbook, tutorial, and templates system that meets the needs of first-time analysts as well as those with vast backgrounds in finance and accounting. Learn how to analyze cash flow and financial statement data with the same metrics that analysts, investors, and financial experts rely on. Metrics Pro includes:

  • Complete coverage of cash flow metrics, including IRR, NPV, ROI, CAGR, Break Even, and Payback Period.
  • Comprehensive coverage of financial statement metrics (ratios), including Current Ratio, Inventory Turns, Return on Assets, and Earnings per Share.
  • Metrics explained in context with detailed financial statements.
  • A complete working Du Pont System analysis linked to the same statements.
  • Live working examples and templates for 160 important metrics.
  • New in 4th Edition: Analyst Workbench and Chairman’s View.

Continue reading “Financial Metrics Pro, Handbook, Tutorial Templates”

Financial Modeling Pro. The Living Model Makes Your Case!

Financial Modeling Pro

Business Case Templates for case building success
.
  • 4th Edition, 2108
  • ISBN 9781929500086
  • by Solution Matrix Ltd
  • Excel-based system  US$49

 

Orders process through PayPal. You can purchase with any AMEX, VISA, MC or  PayPal account.

Learn to Build the Financial Model!
Build a Professional Quality Model in the Shortest Possible Time!

Build Your Financial Model in the Shortest Possible Time

Financial Modeling Pro is a complete teaching tutorial and handbook, complete with live examples and templates you can copy for your own models. Learn to build, analyze, and present the model for cost/benefit estimates and business case scenarios. Learn in the shortest possible time!

At the heart of every serious cost/benefit estimate lies a financial model. The model is the vehicle for making cost and benefit impacts concrete, for analyzing cash flow, and for recommending action. The model:

  • Shows everyone exactly where your cost and benefit figures come from.
  • Enables “What if?” questions about important assumptions for financial estimates.
  • Provides the basis for measuring and minimizing risks.

As a result, the case for choosing one action over another is made with the financial model, and without it, the case all but disappears. Continue reading “Financial Modeling Pro. The Living Model Makes Your Case!”

The Business Case Guide-The Recognized Authority

The Business Case Guide 3rd Ed

CFO approval is often the primary objective for the business case
.
  • 3rd Edition ISBN  978­-1929500147
  • by Marty Schmidt
  • Solution Matrix Ltd 2018
  • PDF ebook, 424 pages  $64

 

Orders process through PayPal. You can purchase with any AMEX, VISA, MC or  PayPal account.

The Recognized Standard. Everything You Need to Know About the Business Case in private industry, government, or non profit organizations.

The Classic “How To” Guide

Written with the depth and detail that finance and business planning professionals require, the Guide is also rich in practical help and examples for those with little or no background in those areas. The latest edition of the Business Case Guide provides clear, practical answers to questions like these:

Business Case Templates Make Your Case

Business Case Templates Package

Templates 2019: Because sometimes a back-of-the-envelope ROI just won’t do. Because … 

Sometimes You Need a Real Business Case!

Business Case Templates for case building success
.
  • 2019 Edition
  • by Solution Matrix Ltd
  • Excel, Word, PowerPoint, PDF Package.

 

Orders process through PayPal. Purchase with any AMEX, VISA, MC or  PayPal account.

The Business Case Templates 2019 package will guide you to a professional quality business case quickly and easily. Build your case in the shortest possible time, free of uncertainty about case structure and content.

Complete the Word, Excel, and PowerPoint templates in the package to build a professional quality business case report, ready for presentation and review. Also, know that your case will stand up to critical scrutiny from financial professionals, analysts, and skeptical managers.

Templates 2019 have a proven track record in companies, non-profits, and governments, worldwide, since 2004. Templates 2019 get results because they focus above all on the reasoning and evidence that “make the case.” Continue reading “Business Case Templates Make Your Case”

Business Case Essentials: Build A Compelling Case

Business Case Essentials. The Best-Selling Case-Building Authority.

Business Case Essentials ebook

Business Case Essentials

  • 5th Edition ISBN 978­1929500031
  • by Marty Schmidt
  • Published by Solution Matrix Ltd 2018
  • PDF ebook, 110 pages

 

Orders process through PayPal. Purchase with any AMEX, VISA, MC or  PayPal account.

The Best-Selling Authority in Print

The concise, complete introduction to case building and business case analysis. Essentials is written for those who must learn quickly what belongs in a business case and why—those who must build a compelling case in the shortest possible time.

Since its First Edition in 1998, Business Case Essentials has helped thousands of professionals in all lines of business answer questions like these: Continue reading “Business Case Essentials: Build A Compelling Case”

Finish Projects on Time With Process Control

Project Progress Pro 2019

CFO approval is often the primary objective for the business case
.

Project tracking with Process Control

  • Published by Solution Matrix Ltd
  • ISBN 978­929500019 2018
  • Excel-based tracking and charting US$ 49

 

Orders process through PayPal. Purchase with any AMEX, VISA, MC or  PayPal account.

When Your Project Has to Finish on Time—Take Control!

Project Progress Pro brings the power of statistical process control to project tracking. Project Progress Pro:

  • Gives early warning signals when the risk of a late finish rises.
  • Compares actual progress to the original project plan, continuously.
  • Provides visual updates on schedule gains and losses, easily understood by everyone.

Project Progress Pro shows project progress by plotting actual progress in time against the original plan critical path. Control lines automatically appear in the plotting space to signal high or low probabilities for completing the project on schedule.

  • When Actual Progress crosses a low probability control line, managers may decide to increase project effort and resources to bring the project back on schedule.
  • Crossing a high probability control line means an early finish is very likely.

Track Progress With Process Control Continue reading “Finish Projects on Time With Process Control”