Crafting a Compelling Case for Change

This guide will walk you through creating a powerful argument for change using the Five-Case Model and Investment Logic Mapping (ILM) to secure the support and resources you need to succeed.

In brief

• Use the Five-Case Model - the model helps structure a persuasive business case by covering strategic alignment, economic viability, procurement strategy, financial feasibility, and management planning

• Investment Logic Mapping (ILM) - a tool to help explain the reasoning behind an investment by mapping out the problem, benefits, responses, changes, and required assets, ensuring a clear rationale for the proposal

• Clear Problem Definition - clearly articulate and support the problem with data to create a strong foundation for the business case, ensuring alignment with organisational goals

• Collaborate with Decision-Makers - Engage decision-makers throughout the process to gain consensus on the problem and solutions, securing necessary approvals and increasing the likelihood of success

Related references

1. Investment Logic Mapping - BA Wiki

2. The Green Book: appraisal and evaluation in central government [gov.uk]

3. Better Business Case: [treasury.govt.nz]

Investment Logic Mapping

Investment Logic Mapping is a handy tool that visually explains the reasoning behind an investment. It helps clarify how the proposed change will deliver benefits and how these advantages align with organisational strategies.

The ILM is used during the initial evaluation phase of a potential investment—whether it's a project, purchase, or initiative—to determine if it warrants further investigation. This step precedes formal project initiation, business case development, and project charter creation.

The core purpose of the ILM is to address four key questions:

1. What is the problem driving the need for this investment (including both causes and effects)?

2. Is there evidence supporting the existence and impact of this problem?

3. Does the operating environment introduce uncertainties that could affect the problem or the need for change?

4. What benefits can the organisation anticipate from addressing this problem?

Structure of an Investment Logic Map

An ILM is organised into up to five columns, which may vary depending on the specific entity or context. The columns generally include:

1. Problems: These are external pressures or forces that necessitate the investment

2. Benefits: These are the advantages or value that the investment will provide to the organisation or its customers. Each benefit must be supported by key performance indicators (KPIs) that demonstrate the investment's impact.

3. Responses: These are potential strategic actions that could address the identified KPIs. Each response should offer multiple solution possibilities and contribute to the achievement of the KPIs.

4. Changes: These are the internal organisational changes needed to realise the benefits.

5. Assets: This column represents the necessary assets—both physical (e.g., equipment or buildings) and non-physical (e.g., financial investments)—required to achieve the benefits. Assets may be current (consumed within a year) or non-current (consumed over a longer period).

Unlocking the Potential of the Five-Case Model

The Five-Case Model is a solid framework tailored to help business leaders craft a convincing and credible argument for change. It dives into five critical areas to validate the integrity and alignment of your proposal with the overall organisational goals.

Strategic Case: This component demonstrates how the proposed change aligns with your organisation’s strategic objectives. It answers the question: Why is this change necessary? It’s crucial to show how your initiative will support broader organizational goals and add strategic value. No clearly defined problem = no case for change.

Economic Case: Here, you conduct a cost-benefit analysis to justify the investment. This section evaluates the financial benefits and the overall value for money of the proposed change. Decision-makers need to see that the benefits outweigh the costs and that the investment is economically sound.

Commercial Case: This case focuses on the procurement strategy and market considerations. It outlines how you plan to acquire the necessary resources and services, and it addresses any commercial risks associated with the project.

Financial Case: This component assesses the affordability of the proposed change. It includes funding options and financial projections to ensure that the organisation can bear the financial burden without jeopardising fiscal health.

Management Case: Finally, this case details the governance, risk management, and delivery plans. It provides a clear roadmap for how the change will be managed and executed, addressing potential risks and mitigation strategies.

Considerations for your Business Case

1. Clear Problem Statements: Begin by articulating the problem clearly. A well-defined problem statement sets the stage for a persuasive business case. Avoid ambiguity and ensure everyone understands the issue at hand.

2. Consensus on Issues: Before diving into solutions, gain agreement from decision-makers on the problem. This step is crucial for fostering a shared understanding and commitment to addressing the challenge.

3. Solutions Alignment: Make sure your solutions align with organisational principles and strategic goals. This alignment shows that the proposed change is not only necessary but also strategically important.

Roadmap for Developing a Convincing Case

The following pathway provides a way for project managers and business analysts to uncover, articulate, and get business support on a change initiative. Each step should be conducted in collaboration with decision-makers, and you should not move forward until approval is given.

1. Defining the Problem: Clearly outline the problem you want to solve, supporting your arguments with data.

2. Completing the ILM: Create a comprehensive Investment Logic Map covering problem statements, benefits, strategic responses, and solution options to present a clear rationale for the investment. This can be done over 1 to 3 workshops.

3. Crafting the Strategic Case: Align your proposal with organisational goals, showing how the change supports broader strategic goals and contributes to organisational success.

4. Constructing the Economic Case: Conduct a thorough cost-benefit analysis to justify the investment by demonstrating that the benefits outweigh the costs and offer value for money.

5. Complete the remaining cases: Outline your sourcing approach and market analysis, detail funding mechanisms and financial projections, and develop a sound governance, risk management, and execution strategy.

Conclusion

Building a solid case for transformation requires a methodical approach and clear communication.

Investment Logic Mapping and the five-case Better-Business-Case Model allows you to create a strong business case that resonates with decision-makers, securing the necessary resources for your projects.

This strategic approach will enhance your chances of success and drive meaningful organisational change. For more guidance on creating impactful business cases or to explore consultation services to assist in this process, please contact our team.