1. Business cases, portfolio, and strategy

Strategy as a business case:

• Defines organizational issues if environmental changes are ignored
• Articulates the organizational vision
• Defines options to achieve vision and purpose… with costs, risks, and expected outcomes

Strategy as a change agent for a portfolio. Strategies define initiatives that will change the portfolio; each should have its own business case: different funding sources, individual rather than collective measurement, stakeholders can choose the most valued option, may reject a strategy but implement elements

Business cases should reflect the strategy structure: design a business case for each initiative or scenario for comparative purposes

2. Quantify the value of a strategy

Value of a strategy is how well it supports the purpose and vision and enables the achievement of the desired outcome

Business case shows how the organization achieves its vision, purpose…

Document the following:

• Costs: capital investments, operational expenses, resource utilization, technology costs, compliance costs, innovation/R&D costs, partnership/supplier costs
• Risks: detail negative risks, impact and treatment for assessment by stakeholder
• Returns and benefits: result of a strategy investment (cost subtracted from benefit). Difficult to define non-financial costs and benefits
• Opportunity costs: enable comparison of one option to another; impact to the organization if the business case is rejected or another option is chosen (include financial and non-financial aspects)

3. Communicating the business case

Communicating the strategy to stakeholders who are expected to implement it is different from communicating the business case to those who are expected to fund it

Ensure the right person gets the right information

4. Intended audience

Business cases enable key decision makers to approve, reject or modify a course of action, not to raise general awareness of the strategy

The audience of business cases should include:

• Stakeholders who are expected to fund the initiative
• Advisors to those stakeholders

The audience is defined by the scope of the initiative or strategy

5. Timing

Reflect the timing of initiatives and the strategy review cycles

Business cases must indicate the start and finish of the initiative and the measurable checkpoints in between

Each business case must be reviewed each time the strategy is reviewed

If a business case is rejected, the strategy will need to be changed to reflect that

Always review business cases after the initiative has already shown operational success

6. Format

Executive summary: high-level view of the business case

Introduction

Statement of the problem: clear, straightforward statement of the problem being solved

Analysis: situation behind the problem, provide sufficient details to educate the reader

Discussion of possible options: identify potential solutions to the problem described:

• Benefits: why it would be a good idea to do it
• Cost: including resource requirements
• Likely timescale for the project
• Anticipated return on investment with an explanation
• Risk: possible negative outcomes, factors that might prevent successful implementation

Recommendations: for the project and how it is to be conducted

Details of the chosen option

Conclusion: reminder of why it is essential to address the problem

7. Obtain and manage feedback

Challenging a business case means challenging the strategy upon which it is based

Ensure that stakeholders are involved in defining the strategy in the first place, or in amending it after a business case has been rejected

8. Dealing with resistance

Develop all strategies in concert with one another

Clearly outline the dependencies of other strategies or initiatives on your strategy

Influence, cooperation and education are essential… and often times, not enough

The organization change management practice recommends:

• Education and awareness programs
• Reassuring employees of their continued employment
• Creation of safe working environments
• Negotiation
• Creating incentives to support the program
• Reskilling programs

Ensure the most senior executive is seen as the initiator

Go back to ITIL 4 Strategic Leader Certification Course: Creating a Digital Strategy to finish this chapter or to the main page ITIL 4 Strategic Leader Certification Course.