The Business Objectives

in tutelage •  3 months ago

The objectives of the business case should clearly and precisely describe what the project is expected to deliver.


THE BUSINESS CASE OBJECTIVES


he objectives of the business case should clearly and precisely describe what the project is expected to deliver.

They include such items as

  • products, services, or technologies to be developed or utilized
  • problems or issues resolved
  • barriers to growth that will be overcome
  • increased volume of domestic or export sales
  • new partnerships or linkages created

Each objective should be Specific, Measurable, Achievable, Realistic, and Timely (SMART).

It should be clear how each objective relates to predefined organizational goals and corporate strategy.

Such hard data verifies the value of the project and makes it an attractive investment to the decision makers.

For example, you could give data on the increase in turnover that will result from the installation of a new order processing system.

Objectives must communicate information about the project simply and clearly. A manager examines a document that lists a number of proposed objectives for a project to develop a traffic bypass. Some were used, but others were rejected as unsuitable:

the new bypass will create an annual savings of $300,000 in maintenance on other roads

This is unsuitable. It is not relevant to the project and should not be included.

the new bypass will reduce travel time required to reach the main highway by five minutes

This objective is usable - it describes an issue that will be resolved.

the new bypass will reduce traffic flow using other routes by 25%

This is a benefit that is not directly related to the project, so it should not be listed as an objective.

the new bypass will attract new industry that will provide 150 new jobs

This objective is measurable and should be included.

QUESTION

Darren works for Earthfarm. He is writing a business case to seek funding for a new project.

Darren works at Earthfarm, a food manufacturing company. He is writing a business case to develop a specialized organic food supplement for the growing health food market.

At the moment a number of Earthfarm's customers are purchasing a similar supplement from one of Earthfarm's main competitors. The marketing department has expressed concern over this issue. Although Earthfarm's customers are loyal, there is a concern that the company may start losing customers to rival firms, especially if the rival firms can offer a complete range of products, and in so doing remove the need for the customer to have to order from two separate outlets. Darren believes that if Earthfarm starts manufacturing the supplement, this issue will be addressed.

In fact, Darren is so confident of the demand for the supplement that he has forecast that the new supplement will increase company turnover by $2 million in the first six months of its release.

Darren believes that the increased turnover will be beneficial to the company in a number of ways. For example, some of the increased profit can be re-invested in the research and development department.

Also, Darren believes that the project may help to improve staff morale in a number of areas. Some staff will receive training to work on the project, allowing them to up-skill. If the project generates sufficient profits it may be possible to pay the staff a bonus.

Which of the following examples are valid objectives for the project?

  1. The new supplement will reduce the number of customers who are ordering a similar supplement from competing firms
  2. The new supplement will increase turnover by $2 million
  3. The increased profits that the company will earn from the supplement can be invested in the Research and Development Department
  4. Developing the supplement may increase staff morale in a number of areas

The first objective describes an issue that will be resolved.

the second objective is measurable.

The third objective is not relevant to the project and should not be included.

The fourth objective is a benefit that is not directly related to the project, and, as such, it should not be included in the objectives.


I have been teaching and training agents, team leaders, supervisors, managers and admins of call centers and other businesses in BPO related fields. This series, comes as a result of that experience. I have more than 4,000 modules that I plan on sharing here. This is # 006-19

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