| 1 of X | | 1 of 10 | © Product Focus

Lies, damn lies and … business cases

Ian Lunn

Product Focus

| 2 of 10 | © Product Focus Lies, damn lies and business cases

Product Focus

The UK’s leading product management & product marketing training business with a focus

on Telecoms and IT

Our mission is to help individuals and business deliver world class product management

‘Very useful in making me reflect on the product management role and how I perform that function in my organisation’ ‘Insightful and well structured. Duration was ideal’

‘Practical breakout sessions got the groups talking and thinking.’

‘I’d recommend the course, not only to product management associates but also

to department heads’

| 3 of 10 | © Product Focus Lies, damn lies and business cases

Journal & contact details

| 4 of 10 | © Product Focus Lies, damn lies and business cases

Business Cases are a waste of time!

You know the numbers will be wrong

You know the numbers will be made to say whatever the author wants them to say

The really important projects get fast-tracked anyway without a business case

When agility and speed to market counts – business cases just slow you down

Did the great entrepreneurs spend their time doing business cases?

| 5 of 10 | © Product Focus Lies, damn lies and business cases

Approaches to business cases

| 6 of 10 | © Product Focus Lies, damn lies and business cases

Forecasting the future

Source: Based on Construx : Software development best practice

Business Case ?

The Cone of Uncertainty

| 7 of 10 | © Product Focus Lies, damn lies and business cases

Showing sensitivity drivers

ROI (%)0 +10 +20-10

Forecast ROI

Launch date

6 months late 2 months early

Cost change

+15% -5%

-20% +10%

Price change

Based on best estimates and highlighting those factors

that need close monitoring

| 8 of 10 | © Product Focus Lies, damn lies and business cases

The value to the business

Enforces a discipline and structure around investment decisions - a process that everyone understands

The best opportunity for a thorough and rigorous analysis of a product and proposition – before significant funds are committed

An impartial view on investment decisions

| 9 of 10 | © Product Focus Lies, damn lies and business cases

The value to a product manager

The opportunity for a thorough evaluation of your product, proposition and the market

A formal process that gives you permission, resources and a reason to talk to all affected areas within the business and get their buy-in

The opportunity to pull together material that will be useful in later phases e.g. proposition, plans

The opportunity to get a formal commitment from the business to the future of your product

| 10 of 10 | © Product Focus Lies, damn lies and business cases

Business Case Challenges

A Product Manager’s key motivation is to make sure their product passes through the business case stage gate as smoothly as possible

Businesses reward product managers who have successful products but they also need to know when an idea is not a good investment

Does your business foster an environment where an objective view is rewarded?

How many product managers get promoted after producing a business case to say their product idea should be canned?