Aligning Strategy with a Business Case That Actually Works

I’ve reviewed—and written—hundreds of business cases. I also developed an investment case framework for a top 100 university that invests over $400 million annually. What I’ve learned? The challenge isn’t just the framework—it’s how you implement it, drive culture change, and ensure transparency and accountability.

A business case should align with strategy, manage risk, and set up an investment for success. Yet, many cases fail because they fall into common traps: misaligned objectives, over-optimistic financials, a lack of clear accountability, and poor risk management.

A well-structured business case needs to answer three fundamental questions:

1. Why this? – Does the investment align with strategic priorities and create real value?

2. Why now? – Is this the right time, and what are the risks or opportunity costs?

3. Why this way? – Have different options been explored, including staged investment or alternative approaches?

   
   

Here’s what I’ve seen go wrong time and time again, and how to get it right:

1. Strategic Alignment: Business Cases as a Growth Lever

A business case is not just a funding request—it’s a strategic decision. Every investment should be explicitly linked to the organisation’s long-term goals.

The Common Pitfall: Button-drawer work. Too many business cases dust off old ideas and repackage them without fresh thinking. If the case isn’t explicitly linked to a current strategic priority, it’s just noise.

What Works: Start by framing the problem in a way that connects directly to organisational strategy. Every business case should articulate how it advances core objectives, rather than just justifying an isolated project.

2. Scenario Planning: The Art of Realism

The best business cases are built on multiple scenarios with stress-tested assumptions. Over-optimism is a key reason why business cases fail post-investment.

The Common Pitfall: Financial engineering to make the numbers look good. I’ve seen too many cases where revenue forecasts are exaggerated, costs are conveniently underestimated, or risk is downplayed to make approval easier.

What Works: A robust business case quantifies uncertainty. This means:

• Running multiple financial scenarios (best case, base case, downside).

• Being transparent about risks and cost drivers.

• Stress-testing assumptions—if a single factor breaking down derails the whole case, the case isn’t strong enough.

  
  

3. Risk Management: No Sky-Is-Falling Fear Tactics

Every investment carries risk. The question is whether risk is identified, understood, and managed appropriately.

The Common Pitfall: Two extremes—either risk is minimised (“it’ll be fine!”), or it’s exaggerated (“if we don’t invest, the sky will fall!”). Both lead to poor decision-making.

What Works: A structured risk framework that:

• Identifies risks objectively.

• Defines risk-mitigation actions before approval.

• Assigns accountability for monitoring and escalation.

• Aligns risk appetite with strategic priorities—some investments require higher risk tolerance than others.

4. Exploring Alternatives: Not Just One Way Forward

Any major investment should consider multiple options, including lower-cost or phased approaches.

The Common Pitfall: The single-option trap—where a case is written as if it’s the only viable path forward. It’s a red flag when a case doesn’t explore alternatives.

What Works: A strong case presents:

• A primary recommendation with clear justifications.

• Alternative paths (e.g., partnerships, staged investment, different funding models).

• Exit strategies—what happens if things don’t go as planned?

5. Phased Investment: Smart Capital Deployment

Large investments should be phased to reduce risk, enable iterative learning, and preserve capital flexibility.

The Common Pitfall: All-in investment without checkpoints. Too many projects jump straight into full-scale execution without validation stages.

What Works:

• Start small, validate assumptions, then scale.

• Use stage-gate approvals—release funding in tranches based on performance.

• Build in natural pivot points to course-correct if needed.

6. When ROI Doesn’t Exist: Understanding Value Over Financial Return

Not every investment delivers a direct financial return, but that doesn’t mean it’s not valuable. Universities, in particular, invest in research, teaching infrastructure, community programs, and student support—areas that are critical but don’t always generate immediate revenue.

The Common Pitfall: Defaulting to financial ROI as the only measure of success. This leads to either forcing unrealistic financial models into cases or deprioritising essential investments because they don’t generate direct revenue.

What Works: A strong business case for non-financial investments must:

• Clearly define the intended impact—whether academic, societal, reputational, or operational.

• Compare the investment against competing priorities—not just in isolation, but in the context of the university’s strategic needs.

• Establish measurable outcomes that demonstrate value even if they’re not financial (e.g., student experience improvements, research impact, sustainability goals).

For universities, investment decisions need to be made based on greatest value impact, not just financial return. This means balancing revenue-generating projects with those that enhance institutional reputation, student experience, or long-term strategic positioning.

7. Accountability and KPIs: Execution is Everything

Execution matters more than approval. If success isn’t defined upfront, failure is almost guaranteed.

The Common Pitfall: Business cases that get approved but have no clear accountability for delivery or performance measurement. Without real KPIs, projects drift, and results are hard to track.

What Works:

• Assign a clear owner (not a committee).

• Define measurable KPIs for impact (financial, operational, strategic).

• Establish regular reviews—not just one post-implementation check but ongoing accountability for results.

Bringing it Together: Culture Drives Success

A great business case isn’t just a document—it’s part of a decision-making culture.

Too many organisations see business cases as bureaucratic hurdles. The reality? When done well, they’re powerful tools that align strategy, enable smart investment, and drive long-term success.