Note: This is part of 1 of a two-part series. Read part 2 here.
I have a confession to share.
I don’t like business cases.
At least, I don’t like the traditional way I’ve been taught to prepare a business case.
The conventional approach to pursuing a new product idea in an organization is to first prepare a business case. This is what we’ve always been told.
It’s what we’re taught in business school.
There are even competitions organized around it.
And it’s been reinforced every time we need IT and implementation resources for a new idea — the only way I could get those resources was by having a business case.
And this usually meant writing a big document, preparing a multi-slided presentation, or filling out some cumbersome form.
Now, I’ve written many business cases in my career. Some good, some excellent, many bad ones. Over the years, I’ve gotten pretty good at it.
But every time I did it, I hated it.
Here are just three reasons:
1. I always felt it was a time consuming exercise in guesswork.
For example, I’d be asked to estimate (guestimate?) market size and put multi-year financial projections. This is an exercise in future prediction. Something we’re not good at. No one is. I’m certainly not.
2. No one reads it.
People are busy. They don’t have time. Most want the elevator pitch.
I can’t count how many pitches I’ve been in where the execs flip to the end or simply ask you for the bottom line: what’s the opportunity, how much do you need, why do you need it, when do we see return. 60 seconds. Go.
This means a business case is nothing more than a 20, 50, or 100-page paperweight. Steven Blank famously called a business plan “a document investors make you write that they don’t read.” The same could be said for the traditional business case:
3. Selling the business case is hard.
This is especially true in larger organizations. Lots of opinions. Lots of approvals. Competing agendas.
So ensuring internal stakeholder alignment and support is a big challenge. Lack of stakeholder support can be the biggest impediment to your product idea.
It’s important to capture and address stakeholder concerns as early as possible to ensure continued buy-in, and that everyone is on the same page. This is time consuming.
Part of that has to do with the realities of coordinating schedules. But also I’ve found this experience to be very ad hoc and messy. There has to be a better way.
Now, maybe the way I’ve gone about creating and selling my business cases has been wrong. Maybe my situation is unique. Maybe others don’t find this process so wasteful. Maybe they’re more brilliant than I am in creating awesome business cases that always get approved. Maybe they work in organizations that have streamlined the process to pursue a new product idea.
Maybe I could test that hypothesis.
So I did.
I set about to find out what other product management folks’ experiences have been with the traditional business case process.
Over a three week period, I spoke with over 24 product professionals in companies across a range of industries, from small 50-person companies to Fortune 100 organizations.
All had experienced preparing and selling a business case for a new product idea. They had an average of 7 years PM experience, and had titles ranging from Product Manager to VP of Product Management.
Here’s what I found out.
Getting buy-in was rated as the #1 problem by every person except one. And that person rated it as a very close #2.
75% of them validated that maintaining stakeholder support and alignment is important, but a real challenge. Only 3 out of 8 pursed doing this in any kind of systematic manner. Most agreed it was pretty ad hoc.
Furthermore, creating the business case was acknowledged as time consuming, and a “necessary evil”.
Necessary evil? Whoa.
When I probed deeper into their feelings about the actual act of preparing a business case, I uncovered an outpouring of vitriolic frustration.
Here’s what some of them had to say:
- “It’s a necessary evil. But it’s a wasteful process.”
- “It’s a joke.”
- “It’s just a lifeless Powerpoint deck.”
- “It’s a manager fighting with an Excel spreadsheet for a month.”
- “I’m forced to project revenues out of thin air. Putting revenue projections is a nonsensical exercise.”
- “Financial analysis – it’s really just pretend.”
“Lifeless”. “Nonsensical.” “Pretend.” “A joke.”.
And my favorite comment:
“You are describing my life!”
I feel safe to say this feedback clearly validated my entire hypothesis.
So what’s the solution?
This is not so easy to answer.
It seems to me we need a different way to pursue new product opportunities within our organizations.
One that will provide a systematic process to create validated business cases.
And one that provides us with tools and resources needed to obtain that validation.
One that will enable us to more systematically build and maintain critical internal support.
And one that allows us to spend more time with customers testing and developing product ideas than writing paperweights, while also providing an effective means to communicate progress internally for continued engagement, feedback and buy-in.
What has your experience been with business cases? How have you pursued a new product idea in your organization? Please share your frustrations or joys in the comments below!