ACCA SBL Syllabus H. Innovation, Performance Excellence & Change Management - Designing the Project - Notes 5 / 12
A project needs a business case
Building a business case:
To obtain funding
To compete with other projects
To improve planning
To improve project Management
Contents of a Business Case
| Heading | Content |
|---|---|
| Introduction | Sets the scene and explains reasons behind the project |
| Executive Summary | The key considerations; The options considered; Reasons behind the choice made and the key numbers |
| Current Situation | Strategic and operational assessment including a SWOT analysis |
| Options | Assessment of each and reasons why not chosen |
| Cost / benefit analysis | Detail in the appendices; tangible and intangible (customer satisfaction etc) items; Appraisal techniques numbers also |
| Impact | Impact on the cultural web |
| Risk Identification and management of each risk | Contingency planning |
| Recommendations | Justification for the chosen path |
| Appendices | Detailed cost/benefits and appraisal technique numbers |
Cost / Benefits of a Project
Project Costs
Investment Cost - Include IT costs and project specific assets
Development Costs - Include potential future development costs (as an estimate)
Centrally allocated costs - For use of premises and services (personnel, accounting etc)
External Consultancy costs
Resource costs - for ongoing (incremental) staffing costs and material costs
Quality costs - Training, reworking, monitoring
Flexibility costs - IT equipment for home use; lower batch sizes etc
Disruption costs - loss of productivity during changeover
Project Benefits
Some benefits are more worthy than others - here’s the scale
Financial (cost reductions / revenue increases)
Quantifiable (now and forecastable before the project)
Measurable (now but not forecastable until after the project)
Observable (e.g. Improvements in morale)