A Business Case can be a powerful tool in obtaining the funds you need to drive change in achieving optimally performing systems. We explore 9 common components of a well written proposal.
Navigating the world of submissions and proposals can sometimes feel like a juggling act. With your day to day workload and an ever changing industry it may be difficult to secure capital for investments to return long term benefits.
Although procurement of funds for requirements such as preventative maintenance may be easier to obtain through OPEX, the focus has traditionally been on short term benefits. Whereas in the longer term, capital investment can provide performance and economic benefits that outweigh short term gains.
While maintenance is a necessary ongoing cost, advancements in technology such as fault detection, isolation and restoration offer the possibility of reliability improvements for larger and longer-term benefits to utilities and consumers.
Maximise the impact of your business case with these key elements:
Overview
An executive summary should provide the following:
A brief snapshot of the problem that you are addressing
An overview of possible solutions to achieve cost and performance benefits
Include contributors and people that you have consulted to reflect internal support and provide the decision maker with further confidence in your Business Case
Business Strategy & Goals
Be aware of your organisation’s overall strategy and goals. If your proposal is counter intuitive to these goals gaining approval for funds can become more difficult. Keeping in line with your organisation’s strategy shows a clear path to how your project can help the business achieve its targets.
It is important to have an understanding of whether or not your Business Case requires a philosophy shift in the way your organisation is structured and/or operated. Taking into account a broader view that looks at the ripple effect outside of the short term expense of your project can add more credibility and substance to your proposal, as well as assist in understanding where change is needed.
Project Outline
A concise and informative project outline based on reliable data can add weight to your Business Case. These fundamentals will help the reviewer gain a better understanding of your proposal:
Clearly state why you are proposing the project, making sure business needs are addressed
Include a clear analysis of the problem
If reviewers fail to understand the problem they will not connect to why resolving it is necessary, which in turn can limit the success of your Business Case.
Provide data that shows urgency of the problem
Define what areas of the business are being affected
Include options to resolve the problem and relate the remaining sections of the proposal to these options
If you are including a status quo option, one that requires no change from the current situation, it is important to address the impact of doing so, especially in terms of how it will or will not address the problem being faced
Include details of alternate timelines if the options have different schedules2
Reference industry standards and guidelines that your project aligns with as this can have a positive effect on cost savings
Utilise visual tools where necessary to ensure the project will be clearly understood
Economic Costs
For a comprehensive proposal it is imperative to ensure all costs are detailed clearly and concisely. Quantifiable costs relating to CAPEX can be categorised into one or more of the following:
Reliability
Security
Performance Improvement
Safety
Non-quantifiable costs such as credibility and reputation should be acknowledged ideally in terms of how they impact quantifiable costs and benefits.
Recommendations
Present your final recommendation and why you have come to this conclusion. Highlight the benefits and costs involved, and ensure the recommended solution clearly shows the greatest ROI. Easy to understand formats such as tables are powerful tools in relaying your point to the reviewer. As most of the detail has already been covered, you can present this information in a summary format.
Summary
The concluding summary is your opportunity to emphasise the crucial parts of your Business Case that you want decision makers to remember. It should include:
The problem and business need - why you are putting forward your Business Case
Benefits and risks of the options - solutions to the problem
Return on investment - what the overall gain will be to the business
Final recommendation - based on the information presented
Business Case Tools
The links below have been referenced in this article and provide further information on Business Case models within the energy sector.
ABB Building a Business Case – Capital investments in grid reliability
Energy Efficiency Exchange – Writing your Business Case proposal
HBR Guide – Building your Business Case
