Case Great at Amazon
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As a manager or leader in an organisation, prospects are that you will find yourself in the position sooner or later when you are asked to manufacture a business case. It might be for example to: o Secure investment for a new piece of equipment o Get support for an increase in your staffing establishment o Get aid for a new product or service For numerous managing directors and leaders, the thought of fabricating a business case fills them with worry. By following a systematic step by step procedure set out below, you may develop a winning business case and get the outcome you desire. State the current position The initial thing you need to do is provide a brief summary of the current position for the area being addressed. By far the most effective way is to focus on the difficulties being formulated or the probabilities missed. For example: o If bidding for new instrumentation you might talk with regards to the capacity constraints or efficacy gains o If bidding for new staff you might focus on the revenue your contenders have that is low hanging fruit and could effortlessly come to you with galore staff investment o If it is a new product or service, you may focus on the gap in the offerings and how what you are proposing will fill it The underlying message here is to manufacture a case why the current position is less than ideal. Make your case There are two main things to consider in making your case. 1. Operational or business case 2. Financial case It is necessary that your case is robust in both of these areas; other than as supposed or expected you run the risk of getting shot down in flames. When making the operational case, in truth focus on the benefits. Questions to ask your self include: o How will this affect on our sales volumes o How will it bestow to processing efficiencies o How will it give an edge over competitors o How will it affect on client/customer satisfaction o How will it affect on employees o How will it bestow to environmental issues o How will it bestow to social responsibilities In making the financial case, think about: o How long the investment will take to get compensate back, normally measured in years. o The projected share return on the investment, normally measured as a percentage. Some businesses have a minimum part return on investment so find this out o The affect on profitability, as a result of increased sales revenue and/or cost reduction In doing this it is best to fabricate summary tables in the main body of the business case and the detail in an appendix Produce a gains realisation plan One of the areas oftentimes neglected is the gains realisation area. You may be intimate with this. A case is made promising the world but it never materialises. Clearly state the gains that will be delivered and how you will measure achievement. Make sure that your gains are very specific and measurable. For example, increase client gratification scores by 10% equated to 2006 by the end of December 2007 is specific. Increase client gratification is not specific or measurable. Produce a danger management plan The business case is based on the best selective information that you may access at the time. Chances are that some risks will show up. Include a simple peril matrix showing the: o Risk o Proposed handling strategy o Estimated financial affect if the risk materialises This will demonstrate to any decision makers that not only are you thinking in regards to downside risks but also pro-actively managing them. Develop a performance monitoring framework It is all too easy to fall into the trap of taking your eye of the ball when you get the green light for the financial support. Avoid this at all costs. Put in place a strong framework for monitoring progress and manufacturing any reports that are required. At the end of the day, your capacity to secure investment is down to you being capable to present a well structured and thought out case. Use this simple step by step approach to give you a flying start. |
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