procurement leaders need to build a business case to compel
executive management to fund a procurement improvement
initiative. A business case will include a description of the
project, the amount to be invested, and the expected financial
benefit to the organization.
Just having a business case won't guarantee approval of your
plans. You'll likely face many questions and have to defend
your business case. Be prepared and know...
1. Your alternatives with a fraction of the funding. Skeptical
executives may view your business case as an idealistic one
that hasn't been scrutinized for waste. Even if they like
your ideas, they may only authorize 70% of the money you
propose spending. How would you respond if you were asked
what could be accomplished with 70% of the funding?
2. The timeframe in which benefits will accrue. With an
upfront investment, executives will want to know when they
will start seeing financial benefits as a result. More
importantly, when will those financial benefits exceed the
investment? Many executives will not consider investments
with a time-to-ROI of over 12 months.
3. The importance of timing. You're likely not the only
employee requesting funding. So, executives are forced to
differentiate between what the organization has to do today
and what it can defer until "better times." Can you
articulate the consequences of waiting?
4. Multiple options for success. Most executives got to their
level by making good decisions and like to think of
themselves as good decision-makers. So let them make a
decision. And not just a "yes" or "no" decision. Present
two or three recommended options and let them decide which
one is best.
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