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Promotion Optimization Institute • Fall Summit 2014 • Dallas, TX

TPM-TPO-

Collaborat ive

Market ing

is BIGGER

in Dallas!

Collaborat ive Promot ion Opt imizat ion & Cont inuous Improvement Summit

Speaker: Jim Maholic VP, Management Consulting Consumer Products & Retail Industries Hitachi Consulting Dallas, TX


TPM-TPO-Collaborat ive Market ing

is BIGGER in Dallas!

© Copyright 2014 Jim Maholic All Rights Reserved

Presentation Topics

• Quick Bio

• What is a Business Case?

• Justifying Capital Projects

• Three Vital Questions

• The H.E.A.R. Method

• The Seven Deadly Sins of Failed Business Cases




• Twice a CIO for Consumer Goods Manufacturers

• 20+ years in IT Strategy • Published author • Book was featured in CIO Magazine

(Oct 2013) • Book awarded Bronze Medal in 2014

Axiom Business Book Review


Quick Biography




© Copyright 2014 Jim Maholic All Rights Reserved Refer to chapter 51

What is a Business Case?

• It presents the justification for a capital project in business terms

• Makes the case for change

• Tells the whole story (from pain to gain)

• Conveys urgency without hysteria





Justifying a Capital Project

• Increase revenue

• Reduce expenses

• Optimize assets

• Improve productivity

Proposal must align with corporate business drivers





Non-financial Justification

• Strategic imperative

• Regulation compliance

• Business continuity

• Security

• Risk mitigation

Financial justifications are always best





Three Vital Questions

• Why do anything?

• Why is your proposal the best solution?

• Why must we act now?





The H.E.A.R. Method

• Hypothesis

• Evidence

• Analysis

• Recommendation

Listening is a critical skill for successful business case development




Seven Deadly Sins


1. Overemphasizing your spreadsheet

2. Assuming approval

3. Exhibiting hubris

4. Bypassing gaps

5. Overselling exploration

6. Blindly trusting your intuition

7. Confusing justification with negotiation

Refer to chapter 6





1. Overemphasizing Your Spreadsheet • It represents, but does not

make your case by itself

• It is one aspect of your business case (like one witness in a court case)

• It is common to rely too heavily on this at the expense of more important evidence





2. Assuming Approval

• Benefits are projected, but not guaranteed

• Your proposal is subject to your biases

• Executives have experience in picking apart weak business cases





3. Exhibiting Hubris

• Skeptics are not magically converted

• At least one approver has no idea what the issues are or what the potential impact is of your proposal

• At least one approver wants to reject your proposal to advance one of their own





4. Bypassing Gaps

• Certain companies are private about their financials

• Certain business areas may not accurately know their costs

• Without numbers you cannot prepare a thorough business case





5. Overselling Exploration

• The more you dig, the more you subtract

• The more you dig, the better you confirm

• The more you dig, the more you improve the credibility of your numbers (even if smaller)





6. Blindly Trusting Intuition

• Don’t assume every proposal pays for itself

• Benefits must outweigh costs

• Numbers carry much more weight than mere words





7. Confusing Justification with Negotiation

• Just because the business case shows value in the proposal, that does not mean that the company is willing to pay a higher fee to implement it





In Summary

• Business cases need not be confusing

• Business cases require careful thought and planning

• A well done business case paves the way for a successful project











Wrap Up

• Books are available in the back.

• Reach out to me on LinkedIn (be sure to mention this conference so I know who you are)

• Questions? Comments?





Seven Deadly Sins





Seven Deadly Sins





Seven Deadly Sins





Seven Deadly Sins

Documents

Collaborative Promotion Optimization · 2020-03-01 · P URPRWLRQ2SWLPL]DWLRQ, QVWLWXWH ) DOO6 XPPLW 'DOODV 7 ; TPM- TPO - Collaborative Marketing is BIGGER in Dallas! Collaborative