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3 - Developing a business case

Published online by Cambridge University Press:  08 June 2018

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Summary

Before a project can start, it will usually be necessary to prepare a business case, to obtain management commitment and approval for investment in the project. The business case provides a framework for the planning and management of the business change; it also provides a tool for monitoring the viability of the project. This chapter looks at what the business case needs to include and suggests some strategies for ensuring success.

A library is not a luxury but one of the necessities of life.

(Henry Ward Beecher)

Content

The business case is the one document that encapsulates all aspects of the project's rationale – the what, how, why, when and where. Not all projects will have a business case but many have some type of rationale for the new library or re-modelling programme. It is crucial to check that the proposed project is clearly described, together with the benefits to the organization of the proposal. The business case should further clarify:

  • ■ that benefits of the project are consistent with the library's or parent organization's strategy

  • ■ that systems be established to measure success of outcomes, e.g. increase in visitor numbers, satisfaction rates

  • ■ that where there are options, the preferred option is clear, with reasons given, for example, the choice between a new library or a major refurbishment

  • ■ that where there is external procurement, the sourcing option is clear, with reasons given

  • ■ how necessary funding will be put in place

  • ■ how benefits will be realized

  • ■ any potential risks in the project and how these would be addressed. It may be necessary to undertake a high-level risk assessment in the business case, detailing the major risks of undertaking the project.

  • The business case should include five areas of information:

  • ■ strategic fit

  • ■ options appraisal

  • ■ commercial aspects

  • ■ affordability

  • ■ achievability.

  • The strategic fit should describe how the project will contribute to the organization's business strategy. Key objectives should highlight why the project is needed at this point, the key benefits and critical success factors, including the ways in which these will be measured.

    An options appraisal, a means of considering several possible ways of achieving the goals of the organization, should be carried out to look at a minimum of three possibilities. The financial costs, benefits and risks of each option can then be compared and checked against issues of practicality and suitability.

    Type
    Chapter
    Information
    Better by Design
    an introduction to planning and designing a new library building
    , pp. 19 - 26
    Publisher: Facet
    Print publication year: 2008

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