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BUSINESS CASE
<PROJECT NAME>

COMPANY NAME STREET ADDRESS CITY, STATE ZIP CODE

DATE

Business Case Template !P"#$e%tMana&ementD#%s!%#m

TABLE O' CONTENTS

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$ssue ...................................................................................................................................................... * 'nticipated +utcomes ............................................................................................................................ * (ecommendation ................................................................................................................................... , .ustification ........................................................................................................................................... , B#&$/!&& C'&! '/'0)&$& T!'M.......................................................................................P(+B0!M D!1$/$T$+/ .......................................................................................................Problem &tatement ................................................................................................................................. +rganizational $mpact............................................................................................................................ 2 Technology Migration ........................................................................................................................... 2 P(+.!CT +%!(%$!W ..........................................................................................................3 Project Description ................................................................................................................................ 3 4oals and +bjecti5es ............................................................................................................................. 6 Project Performance............................................................................................................................... 6 Project 'ssumptions .............................................................................................................................. 7 Project Constraints................................................................................................................................. 7 Major Project Milestones ....................................................................................................................... 7 &T('T!4$C '0$4/M!/T ....................................................................................................8 C+&T B!/!1$T '/'0)&$& ..................................................................................................8 '0T!(/'T$%!& '/'0)&$& ............................................................................................... 9 'PP(+%'0&.....................................................................................................................

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Business Case Template !P"#$e%tMana&ementD#%s!%#m

(! E)ECUTI*E SUMMARY
This section should pro5ide general information on the issues surrounding the business problem and the proposed project or initiati5e created to address it. #sually: this section is completed last after all other sections of the business case ha5e been written. This is because the e;ecuti5e summary is e;actly that: a summary of the detail that is pro5ided in subse<uent sections of the document. This business case outlines how the Web Platform =WP> Project will address current business concerns: the benefits of the project: and recommendations and justification of the project. The business case also discusses detailed project goals: performance measures: assumptions: constraints: and alternati5e options. (!(! Issue This section should briefly describe the business problem that the proposed project will address. This section should not describe how the problem will be addressed: only what the problem is. Because of an e;panding client base: &mith Consulting has mo5ed to a de?centralized business model o5er the last * years. 's we continue to support more clients in more locations: the administration of our wor@force has become more difficult. #ntil now: many of our internal re<uirements such as reporting: payroll acti5ities: and resource management ha5e been done 5ia legacy mainframe systems. 's our wor@force e;pands in numbers and area: these legacy mainframe systems ha5e become inade<uate to effecti5ely manage these administrati5e acti5ities. This inade<uacy is manifested in higher costs and increased employee turno5er which we ha5e seen o5er the last * months. $n order to more effecti5ely manage our administration: reduce costs: and impro5e employee turno5er: &mith Consulting must mo5e to a web?based application as outlined in this business case for the WP Project. By doing so: employees will assume a greater role in managing their administrati5e issues: ha5e access to timesheets securely online: and the company can manage its administration from one central and common platform. (!+! Anti%ipate, Out%#mes This section should describe the anticipated outcome if the proposed project or initiati5e is implemented. $t should include how the project will benefit the business and describe what the end state of the project should be. Mo5ing to a centralized web?based administrati5e platform will enable &mith Consulting to manage its employee payroll systems and administrati5e functions in a seamless and consolidated manner. This technology migration will reduce o5erhead costs associated with the large wor@force currently re<uired to manage these tas@s. De? centralized employees will ha5e more autonomy to manage their payroll elections: training: reporting: and 5arious other administrati5e tas@s. The company will also benefit from more timely and accurate financial reporting as a result of our regional managersA ability to enter and continuously update their financial metrics. This real time

Business Case Template !P"#$e%tMana&ementD#%s!%#m

access reduces errors: impro5es cycle time: and is readily a5ailable to any authorized user. (!-! Re%#mmen,ati#n This section summarizes the approach for how the project will address the business problem. This section should also describe how desirable results will be achie5ed by mo5ing forward with the project. %arious options and alternati5es were analyzed to determine the best way to le5erage technology to impro5e the business processes and reduce the o5erhead costs within &mith Consulting. The approach described herein allows us to meet our corporate objecti5es of continuously impro5ing efficiency: reducing costs: and capitalizing on technology. The recommended WP Project will methodically migrate the data and functions of our current mainframe system to our new web?based platform in order to preser5e data integrity and allow ade<uate time to train all employees and managers on their responsibilities and respecti5e administrati5e functions. The web?based platform is compatible with all other current $T systems and will impro5e the efficiency and accuracy of reporting throughout the company. &ome of the ways that this technology will achie5e its desired results are: !mployees will be able to enter and edit their timesheet data at any time from any location instead of phoning their data to their regional manager for entry into the mainframe system Timesheet and payroll data will be immediately accessible for <uality control and reporting purposes which will reduce the need for staff in non?billable positions to gather: analyze and compile data !mployees will ha5e the ability to register for training which reduces the burden on managers and training staff (!.! Justi/i%ati#n This section justifies why the recommended project should be implemented and why it was selected o5er other alternati5es. Where applicable: <uantitati5e support should be pro5ided and the impact of not implementing the project should also be stated. The migration of payroll and other administrati5e functions from the legacy mainframe system to the web?based platform will result in greater efficiency with regards to company resources and business processes. The WP Project is also aligned with corporate strategy and objecti5es since it uses technology to impro5e the way we do business. While other alternati5es and the status <uo were analyzed: the WP Project was selected for proposal in this business case because it pro5ides the best opportunity to realize benefits in an e;pedited manner while also allowing for the greatest impro5ement in efficiency and cost reduction. +ther alternati5es assumed greater ris@: pro5ided less benefits: were too difficult to define: or were not suitably aligned with current corporate strategy andBor objecti5es. $nitial estimates for the WP Project are:

Business Case Template !P"#$e%tMana&ementD#%s!%#m

2C reduction in o5erhead costs in the first * months 9C decrease in employee turno5er in the first * months 29C immediate decrease in time to generate wee@ly and monthly financial reports *2C immediate decrease in the amount of time it ta@es to resol5e payroll issues

+! BUSINESS CASE ANALYSIS TEAM

This section describes the roles of the team members who de5eloped the business case. $t is imperati5e that participants and roles are clearly defined for the business case as well as throughout the life of the project. The following indi5iduals comprise the business case analysis team. They are responsible for the analysis and creation of the WP Project business case.
Role Description Name/Title

Executive Sponsor Technology Support Process Improvement Project #anager Soft%are Support

Provide executive support for the project Provides all technology support for the project dvises team on process improvement techni!ues #anages the $usiness case and project team Provides all soft%are support for the project

John Doe, VP Operations Jane Smith, VP Information Technology Jim Jones, Process Team "ead Steve Smith, Project #anager my &hite, Soft%are 'roup "ead

-! PROBLEM DE'INITION
-!(! P"#0lem Statement This section describes the business problem that this project was created to address. The problem may be process: technology: or productBser5ice oriented. This section should not include any discussion related to the solution. &ince its inception: &mith Consulting has relied upon a mainframe system to manage payroll and other administrati5e employee functions. 's the number of employees grows: so does the burden placed upon head<uarters to effecti5ely manage the companyAs administration at acceptable le5els. $n the last two years &mith Consulting has hired 2 employees into o5erhead positions to help manage and run the day to day administration operations. These positions pro5ide little or no return on in5estment as they are not billable positions and only maintain the status <uoD they do nothing to impro5e the management of the companyAs administration. 'dditionally: employees must currently call their regional managers to enter their wor@ hours and raise any concerns regarding payroll and administrati5e tas@s. This places a large burden on managers who much balance these re<uirements with their day to day billable tas@s.
-

Business Case Template !P"#$e%tMana&ementD#%s!%#m

(eporting is another problem area associated with the legacy mainframe system. 'll wee@ly and monthly financial reports must be generated manually which allows for a high probability of error and re<uire significant amounts of time. These manual tas@s further add to the burden and e;pense of the company. -!+! O"&ani1ati#nal Impa%t This section describes how the proposed project will modify or affect the organizational processes: tools: hardware: andBor software. $t should also e;plain any new roles which would be created or how e;isting roles may change as a result of the project. The WP Project will impact &mith Consulting in se5eral ways. The following pro5ides a high?le5el e;planation of how the organization: tools: processes: and roles and responsibilities will be affected as a result of the WP Project implementation: Tools: the e;isting legacy administration platform will be phased out completely as the WP Project is stood up and becomes operational. This will re<uire training employees on the WP tools and their use in support of other organizational tools. Processes: with the WP Project comes more efficient and streamlined administrati5e and payroll processes. This impro5ed efficiency will lessen the burden on managers and pro5ide autonomy to employees in managing their administrati5e and payroll tas@s and actions. (oles and (esponsibilities: in addition to the WP Project allowing greater autonomy to employees and less burden on managers: the manpower re<uired to appropriately staff human resources and payroll departments will be reduced. While we greatly 5alue our employees: the reduction of non?billable o5erhead positions will directly reflect in our bottom line and pro5ide an immediate return on our in5estment. The new platform will be managed by the $T group and we do not anticipate any changes to $T staffing re<uirements. EardwareB&oftware: in addition to the software and licensing for the project: &mith Consulting will be re<uired to purchase additional ser5ers to accommodate the platform and its anticipated growth for the ne;t 9 years. -!-! Te%2n#l#&3 Mi&"ati#n This section pro5ides a high?le5el o5er5iew of how the new technology will be implemented and how data from the legacy technology will be migrated. This section should also e;plain any outstanding technical re<uirements and obstacles which need to be addressed. $n order to effecti5ely migrate e;isting data from our legacy platform to the new Web? based platform: a phased approach has been de5eloped which will result in minimalBno disruption to day to day operations: administration: and payroll acti5ities. The following is a high?le5el o5er5iew of the phased approach:

Business Case Template !P"#$e%tMana&ementD#%s!%#m

Phase $: EardwareB&oftware will be purchased and the WP system will be created in the web?based en5ironment and tested by the $T de5elopment group. Phase $$: $T group will stand up a temporary legacy platform in the technology lab to be used for day to day operations for payroll and administration acti5ities. This will be used as a bac@up system and also to archi5e all data from the company mainframe. Phase $$$: The web?based platform will be populated with all current payroll and administrati5e data. This must be done in conjunction with the end of a pay cycle. Phase $%: 'll employees will recei5e training on the new web?based platform. Phase %: The web?based platform will go li5e and the legacy mainframe system will be archi5ed and stood down.

.! PROJECT O*ER*IE4
This section describes high?le5el information about the project to include a description: goals and objecti5es: performance criteria: assumptions: constraints: and milestones. This section consolidates all project?specific information into one chapter and allows for an easy understanding of the project since the baseline business problem: impacts: and recommendations ha5e already been established. The WP Project o5er5iew pro5ides detail for how this project will address &mith ConsultingAs business problem. The o5er5iew consists of a project description: goals and objecti5es for the WP Project: project performance criteria: project assumptions: constraints: and major milestones. 's the project is appro5ed and mo5es forward: each of these components will be e;panded to include a greater le5el of detail in wor@ing toward the project plan. .!(! P"#$e%t Des%"ipti#n This section describes the approach the project will use to address the business problem=s>. This includes what the project will consist of: a general description of how it will be e;ecuted: and the purpose of it. The WP Project will re5iew and analyze se5eral potential products to replace &mith ConsultingAs legacy payroll and administration mainframe system with a web?based platform. This will be done by determining and selecting a product which ade<uately replaces our e;isting system and still allows for growth for the ne;t 9 years. +nce selected: the project will replace our e;isting system in a phased implementation approach and be completed once the new system is operational and the legacy system is archi5ed and no longer in use. This project will result in greater efficiency of day to day payroll and administrati5e operations and reporting: significantly lower o5erhead costs: and reduced turno5er as a result of pro5iding employees with greater autonomy and fle;ibility. 'dditionally:

Business Case Template !P"#$e%tMana&ementD#%s!%#m

managers will once again be focused on billable tas@s instead of utilizing a significant portion of their time on non?billable administrati5e tas@s. &mith Consulting will issue a (e<uest for $nformation in order to determine which products are immediately a5ailable to meet our business needs. +nce the product is ac<uired: all implementation and data population will be conducted with internal resources. .!+! 5#als an, O0$e%ti6es This section lists the business goals and objecti5es which are supported by the project and how the project will address them. The WP Project directly supports se5eral of the corporate goals and objecti5es established by &mith Consulting. The following table lists the business goals and objecti5es that the WP Project supports and how it supports them:
Business Goal/Objective Description

Timely and accurate reporting Improve staff efficiency +educe employee turnover +educe overhead costs

&e$ $ased tool %ill allo% real(time and accurate reporting of all payroll and administrative metrics )e%er *+ and payroll staff re!uired for managing these activities %ill improve efficiency 'reater autonomy and flexi$ility %ill address employee concerns and allo% managers to focus on $illa$le tas,s )e%er staff re!uired %ill reduce the company-s overhead

.!-! P"#$e%t Pe"/#"man%e This section describes the measures that will be used to gauge the projectAs performance and outcomes as they relate to @ey resources: processes: or ser5ices. The following table lists the @ey resources: processes: or ser5ices and their anticipated business outcomes in measuring the performance of the project. These performance measures will be <uantified and further defined in the detailed project plan.
Key Resource/Process/Service Performance Measure

+eporting

The %e$($ased system %ill reduce reporting discrepancies .duplicates and gaps/ and re!uire reconciliation every 0 months instead of monthly1 Eliminate managers- non($illa$le %or, $y allo%ing employees to enter their data directly1 Decrease in cost and staff re!uirements as system maintenance %ill $e reduced from once every month to once every 0 months %ith the ne% system1 Elimination of 3 staff positions in *+ and payroll %hich are no longer re!uired as several functions %ill no% $e automated1

Timesheet2 dmin data entry Soft%are and System #aintenance Staff +esources

Business Case Template !P"#$e%tMana&ementD#%s!%#m

.!.! P"#$e%t Assumpti#ns This section lists the preliminary assumptions for the proposed project. 's the project is selected and mo5es into detailed project planning: the list of assumptions will most li@ely grow as the project plan is de5eloped. Eowe5er: for the business case there should be at least a preliminary list from which to build. The following assumptions apply to the WP Project. 's project planning begins and more assumptions are identified: they will be added accordingly. 'll staff and employees will be trained accordingly in their respecti5e data entry: timesheet: and reporting tas@s on the new web?based system 1unding is a5ailable for training 1unding is a5ailable for purchasing hardwareBsoftware for web?based system 'll department heads will pro5ide necessary support for successful project completion Project has e;ecuti5e?le5el support and bac@ing .!7! P"#$e%t C#nst"aints This section lists the preliminary constraints for the proposed project. 's the project is selected and mo5es into detailed project planning: the list of constraints will most li@ely grow as the project plan is de5eloped. Eowe5er: for the business case there should be at least a preliminary list from which to build. The following constraints apply to the WP Project. 's project planning begins and more constraints are identified: they will be added accordingly. There are limited $T resources a5ailable to support the WP Project and other: ongoing: $T initiati5es. There are a limited number of commercial off the shelf =C+T&> products to support both payroll and administrati5e acti5ities. 's implementation will be done internally and not by the product de5elopers or 5endors: there will be limited support from the hardwareBsoftware pro5iders. .!8! Ma$#" P"#$e%t Milest#nes This section lists the major project milestones and their target completion dates. &ince this is the business case: these milestones and target dates are general and in no way final. $t is important to note that as the project planning mo5es forward: a base?lined schedule including all milestones will be completed. The following are the major project milestones identified at this time. 's the project planning mo5es forward and the schedule is de5eloped: the milestones and their target completion dates will be modified: adjusted: and finalized as necessary to establish the baseline schedule.

Business Case Template !P"#$e%tMana&ementD#%s!%#m Milestones/Deliverables Target Date

Project 4harter Project Plan +evie% and 4ompletion Project 9ic,off Phase I 4omplete Phase II 4omplete Phase III 4omplete Phase IV 4omplete Phase V 4omplete 4loseout2Project 4ompletion

56256275xx 58256275xx 58265275xx 5:263275xx 50263275xx 5;263275xx 65263275xx 67263275xx 67286275xx

7! STRATE5IC ALI5NMENT
'll projects should support the organizationAs strategy and strategic plans in order to add 5alue and maintain e;ecuti5e and organizational support. This section pro5ides an o5er5iew of the organizational strategic plans that are related to the project. This includes the strategic plan: what the plan calls for: and how the project supports the strategic plan. The WP Project is in direct support of se5eral of &mith ConsultingAs &trategic Plans. By directly supporting these strategic plans: this project will impro5e our business and help mo5e the company forward to the ne;t le5el of maturity.
Plan Goals/Objectives Relations ip to Project

75xx Smith 4onsulting Improve record ,eeping Strategic Plan for Information and information #anagement management <tili=e ne% technology to 75xx Smith 4onsulting support company and Strategic Plan for Information department missions #anagement more effectively 75xx Smith 4onsulting Strategic Plan for *uman 4apital Engage the %or,force and improve employee retention

This project %ill allo% for real(time information and data entry, increased information accuracy, and a consolidated repository for all payroll and administrative data >e% technology %ill allo% many payroll and administrative functions to $e automated reducing the levels of staff re!uired to manage these systems This project allo%s the employee to ta,e an active role in managing his2her payroll and administrative elections

8! COST BENE'IT ANALYSIS

Many consider this one of the most important parts of a business case as it is often the costs or sa5ings a project yields which win final appro5al to go forward. $t is important to <uantify the financial benefits of the project as much as possible in the business case. This is usually done in the form of a cost benefit analysis. The purpose of this is to illustrate the costs of the project and compare them with the benefits and sa5ings to determine if the project is worth pursuing.

Business Case Template !P"#$e%tMana&ementD#%s!%#m

The following table captures the cost and sa5ings actions associated with the WP Project: descriptions of these actions: and the costs or sa5ings associated with them through the first year. 't the bottom of the chart is the net sa5ings for the first year of the project.

!ction

!ction Type

Description

"irst year costs #$ in%icates anticipate% savings&

Purchase &e$($ased product and licenses

4ost

Initial investment for &P Project 4ost for IT group to install ne% soft%are and for the training group to train all employees n immediate reduction in overhead e!ual to the annual salary of 8 *+ specialists and 7 payroll analysts1 6; regional managers currently average 60 hours per %ee, non($illa$le time1 It is anticipated that this num$er %ill $e reduced to no more than 7 hours per %ee,1 t an average of ?80155 per hour this results in .?80155 x 6: hours2%, reduced non($illa$le time x 6; managers/ ?@5A7155 increased revenue per %ee,1 "ess fre!uent use of IT resources %or,ing on non(value added tas,s results in approximately ?:7,555 savings per year1 Savings in cost to out(process exiting employee and recruit, hire, and train ne% employees is approximately ?35,555 in the first year1

?:55,555155 ?655,555155

Soft%are installation and training 4ost +educe *+ and payroll staff $y 3 Savings employees

(?6;8,:@3155

#anagers no longer re!uired to %or, non($illa$le payroll and administrative tas,s

Savings

(?:A6,A::155

System maintenance re!uired every 0 months instead of monthly +educe employee turnover $y 65B Net "irst 'ear Savings

Savings

(?:7,555

Savings

(?35,555 ()*+,)-./00

Based on the cost benefit analysis abo5e we see that by authorizing the WP Project: &mith Consulting will sa5e F*-6:*,8.99 in the first year alone. This represents a significant impro5ement in our operating costs and is a clear indicator of the benefit this project will ha5e on the company.

9! ALTERNATI*ES ANALYSIS
'll business problems may be addressed by any number of alternati5e projects. While the business case is the result of ha5ing selected one such option: a brief summary of considered alternati5es should also be includedGone of which should be the status <uo: or doing nothing. The reasons for not selecting the alternati5es should also be included. The following alternati5e options ha5e been considered to address the business problem. These alternati5es were not selected for a number of reasons which are also e;plained below.

Business Case Template !P"#$e%tMana&ementD#%s!%#m

No Project #Status 1uo&

Reasons "or Not Selecting !lternative

9eep the mainframe legacy system in place

<nnecessary expenditure of funds for increased staffing levels 4ontinued occurrence of a high num$er of data errors Poor and untimely reporting "ac, of automation

!lternative Option

Reasons "or Not Selecting !lternative

Outsource the implementation of a %e$($ased platform

Significantly higher cost Expertise already exists in house Vendor-s lac, of familiarity %ith our internal re!uirements

!lternative Option

Reasons "or Not Selecting !lternative

Develop soft%are internally

"ac, of !ualified resources Significant cost associated %ith soft%are design Timeframe re!uired is too long

:! APPRO*ALS
The business case is a document with which appro5al is granted or denied to mo5e forward with the creation of a project. Therefore: the document should recei5e appro5al or disappro5al from its e;ecuti5e re5iew board The signatures of the people below indicate an understanding in the purpose and content of this document by those signing it. By signing this document you indicate that you appro5e of the proposed project outlined in this business case and that the ne;t steps may be ta@en to create a formal project in accordance with the details outlined herein.
!pprover Name Title Signature Date

Clac,, J1 Cro%n, 1

President and 4OO Executive VP

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