A follow up to yesterday’s thoughts around planning and predicting the future:
From today’s edition of “THE MANAGEMENT TIP OF THE DAY: Harvard Business Review”
September 11, 2013
Consider the Risks in Your Business Case
A good business case addresses the question, “What happens if we take this course of action?” But chances are that not everything will go as planned. Be sure to consider the risks to what you are proposing and what will happen to the project’s value if you’ve made the wrong assumptions. Most people focus on threats: What if the vendor doesn’t deliver on time? What if the cost of raw materials goes through the roof? What if you aren’t able to hit the launch date? But you also need to consider opportunities: How can you get a higher return on investment or a faster payback? Can you complete the project sooner? Can you put your best team on it? Think about each assumption you’ve made and how it could change.