Think Like An Executive (Understand Risk & Uncertainty)
Presenting a business case or cash flow model with a single outcome is a recipe for disaster. It provides the decision makers the ability to challenge your assumptions and shoot arrows at a big target. On the other hand, a business case including scenario and sensitivity analysis provides a structure that can be used to demonstrate the risks involved in an investment. Demonstrate you have thoroughly analyzed the project. Present a best, expected, and worst case scenario while discussing the assumptions behind each. In my experience, this pillar has allowed me to step back and think like the person I want to convince, which is an extremely valuable exercise.
...And Now Some Remarkable Examples:
The Qlik Visual Analytics Platform is being used by over 2,500+ Financial Services firmsacross the globe including 46 of the Top 50 Financial Services firms on the Forbes 2000 List across the Americas and EMEA. The value achieved by our clients is truly remarkable and here are a few examples that would generate an impressive discounted cash flow model:
There are many challenges to calculating the value and measuring the risks of an investment. Keep these three pillars in mind as you create your business case and calculate the financial impact of your potential investment to create credibility for both you and the investment thesis.