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Build the Better Business Case
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The Business Case Delivers Proof, Builds Confidence, Lowers Risk
How to Build a Compelling Business Case in 6 Steps

Foundations of the modern business case came from 19th century paris

business Case Analysis began in 1853, in Paris, when Jules Dupuit showed how to measure value in a government public works project—the optimum charge for crossing a toll bridge. His rationale and methods survive in modern business case analysis in government, private industry, and non-profits everywhere.

Your business case must score high in credibility, accuracy, and practical value.

What is Business Case Analysis?

Businesspeople everywhere are losing patience with management error. They also demand real accountability for decisions and plans. And, everywhere, the competition for scarce funds is increasing.

No surprise then, that many organizations now require business case support for project, product, investment, and capital acquisition proposals.

Business Case Definition

Even though everyone talks about the business case, surprisingly few really know what that means. Few understand the full business case definition correctly:

The Business Case is an analysis, meant to produce two kinds of results. A successful case delivers
  • Forecasts. The business case asks "What happens if we take this or that action?" The case answers in business terms: business costs, business benefits, business risks.
  • Proof. Reasoning and evidence make the case for choosing one action over another. The case proves in compelling terms why the chosen action is the better business decision.

Businesspeople sometimes call BCA by other names, probably to highlight the particular focus of a study. They may call it Financial Justification, Cost-Benefit Analysis (CBA), Total Cost of Ownership Analysis (TCO), or even Return on Investment Analysis (ROI). In any case, what they mean with these terms usually fits the two-part BCA definition above.

Decision makers and planners rely on solid business case analysis to build the understanding and confidence they need to take action. They need credible forecasts, but they also need trustworthy proof they are choosing the best course of action.

Five Reasons to Write a Business Case: What's the Purpose?

Business Case Delivers Cash Flow Forecasts and business case proof.

Business case results serve at least five different purposes when they deliver cash flow forecasts, financial metrics, and tactical advice for actions and investments. A professional quality case builds a compelling rationale that turns business case results into convincing proof.

Businesspeople turn to business case analysis to meet a variety of business needs.

  • Financial Justification.

    The justification case demonstrates that an action meets one of three criteria. The proposed action:
    • Earns enough to cover its costs ("pays for itself").
    • Is more profitable than other available options.
    • Is the lowest cost solution available.
  • The analyst must designate one of these as the meaning of justification for a given proposal.
  • Decision Support

    Given two or more possible courses of action, the business case provides objective, quantitative measures for deciding which action is the better business decision. The case also shows whether or not business risks with possible actions are acceptable. Capital review committees, for instance, rely on business case analysis to help prioritize and choose from among incoming funding proposals.
  • Business Planning.

    The business case can deliver accurate forecasts of future spending needs and incoming revenues.
  • Management and Control.

    For project and program managers, the case reveals critical success factors and contingencies they must manage to target levels. For business investments of all kinds, the business case provides practical guidance for minimizing costs, maximizing returns, and mitigating risk.
  • Accountability.

    A solid case shows directors, regulators, and government authorities that decisions were made responsibly, with sound judgment, conforming to laws and policies.

The case builder may start with one of these roles in mind, several roles, or all five.

Who Builds the Business Case?

Businesspeople find that business case is no longer a job for Finance in the back office. Financial knowledge helps in the case building process, but the most useful BCA knowledge lies elsewhere. Those best prepared to build the case are those who

  • Know the details of day-to-day operations in the business unit.
  • Understand the drivers for employee and group performance.
  • Have a successful track record managing projects and programs.

As a result, case-building responsibility today rests squarely on those who propose and those who take action. Product managers, engineers, consultants, project managers, IT directors, strategists, business development managers, line managers, and others "in the trenches," know that meeting business case needs means building the case themselves.

Success Begins in the Eye of the Beholder

Not everyone understands the meaning of business case success alike. To the manager seeking project funding, funding approval might seem like a success. To the salesperson, a BCA that helps close a sale seems like success. Granted, any decision in the case builder's favor feels like success. Nevertheless, case builders better serve their interests—and their organization's interests—by defining business case success in terms of these three criteria.

  • Credibility.
    A case is credible if everyone with a stake in the results believes the case rationale and case predictions.
  • Practical value.
    • The case gives decision makers and planners confidence to act.
    • It enables them to manage the action for optimum results.
    • It discriminates clearly between proposals to implement and those to reject.
  • Accuracy.
    The case predicts accurately what happens.

Understand, Build, and Deliver a Successful Business Case

Sections below focus on two themes

  • First, the origins, definition, and standardization of the business case concept. 

    The modern business case evolved from a nineteenth-century concept, benefit-cost analysis for government public works projects.  The twenty-first-century version of the concept still lacks universal standards. There is an emerging consistency, however, in the local business case standards now turning up in government and private industry.
  • Second, a step-by-step guide to writing a successful business case.

    The 6D Business Case Framework appearing here has proven uniquely successful achieving case results that meet the two-part business case definition (above), while meeting business needs for decision support, planning, management and control, and accountability reporting.


Contents and Resources

Additional resources and in-depth coverage.

For more practical help and to read more on related subjects, see Case Building Resources.

Case Building Resources

Related Topics

Birth of the Business Case Concept
Government Benefit-Cost Analysis Becomes the Modern Business Case

Business Case Origins: Economics, Civil Engineering, Government Works

The US government has over many years awarded contracts on the basis of demonstrated value delivered

business Case Required by US Government. Under the Flood Control Act of 1936 and the WPA program of the 1930's, the United States Government brought business case analysis into mainstream awareness. The Government announced that public works contracts would go only to builders who prove they can deliver value to the public.

Evolution of the modern business case began in nineteenth-century Paris, when the government tackled a special public policy problem: finding the optimum toll for using a toll bridge.

The solution came from Jules Dupuit (1804–1866), Chief Engineer for the City of Paris and later Inspector-general of the Corps des Pont et Chaussees. Dupuit was by training a civil engineer, but also a talented self-taught economist. The modern business case has roots in his 1844 Paper, On Tolls and Transport Charges.2 Re-published and elaborated in 1894, this work sets up several issues that are rightly seen as foundation concepts for the twenty-first-century business case:

  • How to identify, measure, and value benefits.

    In Dupuit's terms, this value is relative utility. His term for this kind of study was benefit-cost analysis.
  • The efficiency and distribution of benefits.
  • The definition of consumer surplus.

    This is the difference between the total amount consumers would willingly pay for a good or service, and the market price they actually pay.
  • Consumer demand and price discrimination

Dupuit focused on government public works and he wrote extensively on the government role in railways, bridges, and road systems. The focus on public works spawned a legacy mandate that is alive and well today for government organizations everywhere:

The government business case measures benefits in terms of "value delivered" to a given population.3

What Is the Business Case Role in Business Today?

Business case applications today have moved well beyond the classical focus on government public works. Companies, governments, and non-profits alike, either recommend or require business case support in quite a few formal process areas:

  • Board of Directors governance.
  • Planning strategy.
  • Targeting strategic objectives.
  • Managing projects.
  • Managing & evaluating programs.
  • Product management.
  • Planning & evaluating business models.
  • Business model planning.
  • Choosing & managing investments.
  • Prioritizing capital acquisitions.
  • Managing asset life cycle.
  • Choosing & evaluating pricing models.
  • Reporting environmental compliance.
  • Budgeting and funding approval.
  • Forecasting revenue and costs.
  • Selecting vendors, vendor services, products.
  • Delivering sales proposals.
  • Establishing and reporting accountability.
  • Negotiating partnerships and alliances.
  • Negotiating labor contracts.

Notice especially that business case requirements do not by themselves add value to a process. Business case requirements are worthwhile and enforceable only where there are business case standards. Standards are indispensable wherever organizations require the BCA.

Where Are the Business Case Standards?

Business Case Analysis often appears under other names. The writer may call it Financial Justification, Cost-Benefit Analysis (CBA), Total Cost of Ownership Analysis (TCO), or Return on Investment Analysis (ROI). What people mean with any of these terms usually agrees with the twofold Business Case definition above.

Everyone should know, however, that none of these terms—including business case—has widely-agreed standards. Consequently, organizations must write their own rules for case content and the case-building process. Remember, however, that cases written elsewhere, under other local standards, can be very different.

Standards are necessary wherever business case requirements are in force. The reason is that case builders and decision makers must ultimately agree that cases either are or are not acceptable. Reaching agreement is difficult or impossible, absent standards that are clear, objective, and testable.

Dupuit's 1844 benefit-cost analysis had specific methods and criteria for evaluating the legitimacy of a given benefit-cost study. With just a few exceptions, the same is not true for most business case systems available today. Two exceptions are the British Government's Better Business Case, and the Solution Matrix 6D Business Case Framework (appearing below). Versions of both systems serve successfully as local business case standards for:

  • Government organizations: The US Department of Defense, the UK National Health Service, The US Postal Service, California Sonoma County, Washington State Government (USA), NASA (USA), the Danish Ministry of Finance, and the Ghana National Communications Authority, and many others.
  • Multinational corporations: Ericsson, IBM, Airbus, Allianz Group, Cisco Systems, and Petronas, and many others.
  • Educational and Non-profit organizations: Baylor University (US), University of Pennsylvania (US), University of Otago (NZ), Sprott School of Business (CA), CARE, and many others.


2. Dupuit, Arsène Jules Étienne Juvénal (1844): De la mesure de l’utilité des travaux publics, Annales des ponts et chaussées, Second series, 8.

3. For more on the history of business case and cost-benefit analysis—including the role of the US Army Corps of Engineers and the WPA Program—see Cost-Benefit Analysis. For advice and examples on assigning value to financial and non-financial benefits, see Business Benefits. The article Building the Government Business Case explains the special problem of valuing benefits in the non-profit or government business case

How to Write a Successful Business Case
Six Steps to Compelling Results


Six sections below guide you through the steps of the Solution Matrix 6D case-building process. For each step, the case builder'-s task is to complete several business case "building blocks." Think of the completed business case as a wall, or structure, built from these blocks. The structure either stands or falls, depending on the builder's skill in arranging blocks so that they support each other.

Steps and Building Blocks Have a Natural Order

The next sections present case-building steps and building blocks in a particular order. Notice especially that the prescribed step sequence is vital, but the ordering of blocks within each step is also crucial.

  • Step order is vital for building a seamless, logically sound rationale. The rationale makes the case: "These results follow from this action!"
  • Order is crucial because later blocks depend on earlier blocks. The cost model, for instance, requires already-completed subject, purpose, and scope statements.
Business Case 6D Framework: Define Design Develop Decide Deploy Deliver

Six steps in the 6D Business Case Framework. Case report structure mirrors case process structure, exactly.

Build the 6D Business Case Framework
Step 1 Define the Business Case

Step 1 business case design begins with

Business Case Step 1. The case builder must define the case carefully, so that case results meet the information needs of C-level managers and business case stakeholders. The case's reason for being is to build confidence and meet information needs of this audience.

The case builder defines the case before taking any other steps.

This step begins by taking inventory—or summarizing—the information needs of primary stakeholders and managers who have an interest in the case. Usually this means identifying first the business objectives they expect the subject of the case to address. These objectives might include, for instance, reducing costs, improving employee productivity, or increasing sales revenues.

Case definition continues when the case builder proposes specific actions to address these objectives. The case may consider acts such as funding a project, making a capital acquisition, launching a product or service, or making a financial investment. The proposed action becomes the business case subject.

Describing all available courses of action when case building starts, helps identify the different business case scenarios the case will examine.

Case definition is complete when the case builder and stakeholders describe the purpose of the case. Before designing the case (Step 2), the case builder must first answer "purpose" questions like these: Why is the case being built? Who will use it? For what purpose? What information do they need to meet that purpose?

Step 1 Directions for Defining the Case

  • Write the subject statement.
    • Describe proposed actions and scenarios to analyze.
    • Also, Identify the business objectives the case addresses.
  • Write the purpose statement.
    • Explain who will use the case and for what purpose.
    • Also, describe information the case must deliver to meet the purpose.
  • Explain why these objectives are important to the organization.
  • Also, show how these objectives align with business strategy.
  • Also, explain how current strengths, threats, constraints, and opportunities that impact action choice.

Build the 6D Business Case Framework
Step 2. Design the Business Case

Step 1 business case design begins with

Business Case Step 2. Design the case framework in a proven architecture. Case design begins with design of "building blocks" for the 6D Framework: cost model, benefits rationale, and core assumptinos.

Clear descriptions of key assumptions and methods help the case builder ensure that all scenarios build by the same rules. As a result, case builder and stakeholders know that different scenario results are comparable.

Clear and complete design statements are necessary, so that stakeholders and others who rely on business case results can see for themselves where business case results come from.

Step 2 (Design) creates the "architectural blueprint" for a structure that makes this transparency possible. Design information here serves as the necessary Methods Section of the business case report.

Step 2 Directions for Designing the Case

  • Designate case scope and boundaries.
    • Explain whose costs and whose benefits belong in the case.
    • Also, stipulate the analysis period in view (starting date and duration).
  • Identify assumptions essential for forecasting costs and benefits.
  • Develop reasoning to legitimize outcomes as benefits.
    • Show how specific outcomes contribute to meeting business objectives.
    • Explain metrics that make non-financial outcomes tangible.
  • Explain how the analysis assigns values to non-financial outcomes.
  • To make scenarios comparable, present a single cost model that covers all scenarios.
    • Identify all relevant cost categories for the case.
    • Identify individual cost items for each cost category.
    • Explain methods for estimating costs

Build the 6D Business Case Framework
Step 3. Develop the Business Case

Step 3 in Step 3, the developer forecasts cash inflows and outflows for each scenario.

Business Case Step 3. In Step 3, the case builder forecasts cash inflows and outflows under each scenario. The analyst further analyzes and interprets these forecasts in Steps 4, 5 and 6.

In Step 3, the case builder forecasts cash inflows and outflows for each case scenario. The result is a cash flow statement for each. In this step, the case builder presents summaries and analyses objectively and directly, keeping interpretations and explanatory text to a minimum.

The Step 3 cash flow results are data for further analysis and interpretation in steps 4, 5 and 6.

Step 3 Directions for Developing the Case

  • Forecast each scenario's likely costs and benefits as cash flow events.
  • Also, forecast impacts on non-financial key performance indicators (KPIs).
  • Summarize each scenarios's cash inflow, cash outflow, metrics results, in a scenario-specific cash flow statement.
  • Also prepare an incremental cash flow statement for each scenario. Incremental cash flow is the difference between Expected cash flow in a full-value cash flow statement, and expected cash flow in a baseline scenario ("business as usual" scenario).

Build the 6D Business Case Framework
Step 4. Decide the Business Case

Step 4 Business case results predict the future, and that means they come with some level of uncertainty, or risk.

Business Case Step 4. Business case results predict the future. This means that all case results come with some level of uncertainty. Build stakeholder confidence by taking steps to minimize uncertainty and measure what remains.

In business—as in gambling—the wise investor or wise bettor knows that choosing an action option requires more than a knowledge of projected returns, or ROI. Those figures show only what happens if returns appear as investor hopes.

The wise choice, however, is based on a comparison of (1) potential returns with (2) the likelihood (probability) that they appear.

Step 4 Directions for Deciding the Case

  • Analyze and compare financial metrics from each scenario.
  • Compare impacts on Important KPIs and other tangible non-financial measures.
  • Show how underlying assumptions impact business results.
  • Measure the likelihood of different outcomes.
  • Identify significant risks.
Business case proof derives from scenario comparisons

Results of Monte Carlo with the business case financial model show that the probably of exceeding budget with the proposal action is 0.44.

Build the 6D Business Case Framework
Step 5. Deploy the Business Case

Step 5 Business case results are communicated and practical guidance deployed to those who implement the action.

Business Case Step 5. In business case step 5, analyst and case builder distill practical guidance from financial results and risk analysis. They communicate that advice to those who implement the action or project.

Building blocks in step 5s address the most substantial issues appearing initially in the introductory sections of the business case report. The material in Steps 3 and 4 intends to “let the numbers speak for themselves.” In Steps 5 and 6, however, the case writer interprets the numbers and connects them to objectives, decisions, and actions.

Step 5 Directions for Deploying the Case

  • Recommend one scenario for action, referring to likely (1) incremental financial results, (2) impacts on important non-financial measures, and (3) risk and sensitivity analysis results.
  • Set targets for critical success factors and contingencies to manage.
  • Provide tactics for lowering costs, increasing gains, and accelerating gains.
  • Identify risks to monitor over time.
  • Provide tactics for mitigating risks.

Build the 6D Business Case Framework
Step 6. Deliver the Business Case

Step 6 includes benefit realization.

Business Case Step 6. Deliver benefits. Step 6 continues for the life of the project, investment, or action. During this lifespan, owners hope to reap the benefits of investing wisely, proposing smart projects, or taking prudent actions.

In many organizations, the active role of the business case ends with the submission of a case report, a formal case review, or a decision to fund a proposal. That is unfortunate because the business case analysis, when complete, can provide extremely valuable practical guidance to management during the implementation of the proposal or the life of the investment—guidance for maximizing returns, minimizing costs, and minimizing risks.

For that reason, the 6D Business Case Framework does not end with Step 5, Deploy. The framework has an active role through one more stage, Step 6: Deliver the Business Case. This stage is complete only when the initiative or the investment life ends.

Step 6 Directions for Delivering the Case

  • Plan and implement the recommended action scenario.
  • Monitor stakeholder success in tracking changes in key assumptions, and adjusting control actions when necessary. Let the Step 4 risk and sensitivity analyses and Step 5 recommendations guide real-time investment control. show stakeholders how to maximize investment performance: Minimize costs, maximize gains, accelerate accelerate gains.
  • Validate and update significant assumptions continuously.
  • Validate and update the business case financial model continuously as assumptions change and tasks reach completion.
  • Validate incoming costs and benefits, continuously, and update business case forecasts when necessary.

Business Case vs. Business Plan
How Are They Different? How Are They Related?

Case builders may be called on to clarify the difference between business case and business plan.

Business Case vs Business Plan. Both look forward in time, but the business case is about an action or investment, while the business plan is about the business.

Some business people use the terms business case and business plan more or less interchangeably. And, some use one term when they mean the other.

As a result, prudent case builders take care to be sure that everyone involved with the case understands these terms precisely.

In fact, the critical distinction between them is clear, simple, and easy to summarize.

The business case is about an action, while the business plan is about the business.

Questions For the Business Plan

The business plan addresses issues like these:

  • What will the business look like in one year? In three years? In other words, what will financial position and earnings look like then?
  • How can the business achieve those results?
  • What sales, margins, and revenues can we expect next year?
  • How long will it take for a start-up company to earn a profit?

The business plan answers such questions by providing:

  • Predictions and target objectives for future financial results.
  • Important risk factors that would bring different business results. The plan also presents strategies for dealing with threats and reducing risks.
  • A business model. The model shows where and how the company expects to spend money, bring in revenues, and earn margins.
  • Fundamental assumptions and trends for projecting business results. These may focus on business volume, market demand, and competitor actions. Management tracks these factors carefully and updates them when necessary.
  • Guidance for setting and prioritizing business objectives.
  • Spending and revenue forecast for budgeting and planning.

Questions for the Business Case 

The business case focuses on a single action or decision. The business case addresses issues like these:

  •  What financial outcomes followif we choose option X?
  • Are there significant non-financial outcomes we expect under option X? 
  • What is the capital budget impact if we buy service vehicles instead of leasing them?
  • How do we justify the investment in new phone technology? Is there a positive ROI?

The business case addresses such questions by projecting cost and benefit cash flows that follow from the action. Also, the business case also anticipates non-financial impacts on crucial key performance indicators.

Comparing the Business Case to the Business Plan

The table below summarizes and contrasts critical differences between the business case and business plan.

A Business Case... A Business Plan...
Is organized around: A single action or single decision and its alternatives. An organization or the whole enterprise. Also, the plan may cover a single product or product line.
Predicts: Cash flow results and critical non-financial impacts that follow from the action. Business performance of the organization. These are the main sections of the Income statement. And, the plan may also include Pro-forma Balance sheets for future years.
Focuses on: Business objectives for the action Business objectives for the organization.
Is based on: A cost model and a benefits rationale. These are designed specifically for the case. The company business model. This model shows where and how the company earns margins. It also indicates likely trends, competitor actions.
Measures: Financial metrics such as NPV, IRR, ROI, payback, and TCO, based on projected cash flows. Case results also include critical non-financial impacts. Business performance in terms such as sales, margins, and profits. Also, The plan measures business "health" concerning Balance sheet categories.
In a non-profit or government organization: The scope of the case includes benefits and costs to the organization. And, it may also include the population served. The plan may focus on funding and budgetary needs. The emphasis is on these needs because staying within the operating budget is a primary objective.

Business Case Building Resources

For a complete introduction to business case analysis and case building, see the Solution Matrix Ltd. ebooks:

For more on financial metrics and financial modeling, please see the spreadsheet-base apps:

For quality professional training in case building, we invite you to join a Solution Matrix seminar. Our flagship event is the 3-day course "Building the Business Case Master Class." Public offerings meet several times each year in New York City, London, and Washington DC. Private offerings meet in all months, worldwide. For more on the premier business case seminars, see