Failed projects and investments can be avoided, says Business Case Pro of its "Business Case Checklist." An excerpt of this checklist is found in the Knowledge Network.
The checklist argues that bad business cases can waste billions of dollars. Business Case Pro says there are three main afflictions when it comes to bad business cases.
- They are underused. Fewer than half of companies use business cases for all investments. A CFO magazine survey of CFOs in 2006 found that only 6 percent apply formal return-on-investment analysis to most or all of their investments. And 30 percent have no formal approach to evaluating ROI.
- They are unbelievable. PA Management Consultants found that only 40 percent of survey respondents believed the business cases presented to them. Over optimism about benefits is rampant.
- They are poorly argued. Business cases are too often couched in technical terminology, lack a unifying argument, and rely on slight evidence and suspect ROI calculations.
To help companies make sounder investments and quality business cases, its checklist includes 12 questions to ask of any business case, an investment score to guide your decision, a business case grade to improve your investment process, and 73 best practices for implementation.