This PPT slide, part of the 105-slide How to Develop a Business Case PowerPoint presentation, focuses on the critical role of assumptions in developing a business case. It emphasizes that assumptions should be clearly stated as they often require subjective judgment and may not be immediately apparent to stakeholders. This clarity is essential, especially when assumptions are contentious or uncertain; a conservative approach is recommended to mitigate potential disputes.
Three primary reasons for making assumptions are outlined: to predict, simplify, and clarify business case elements. The "Predict" section indicates that assumptions are necessary to forecast business inputs that may fluctuate. Examples provided include future sales volumes, pricing changes, and anticipated performance improvements. These predictions are vital for creating a robust business case that can adapt to evolving conditions.
The second reason, "Simplify," suggests that assumptions help streamline complex scenarios, making them easier to analyze and communicate. While specific examples for this section are not visible, one can infer that simplifying assumptions might include generalizations about market trends or operational efficiencies.
The "Clarify" section explains that assumptions also serve to elucidate other inputs used in the business case calculations. This could involve baseline costs, tax implications, or depreciation rates. By clarifying these elements, stakeholders gain a clearer understanding of the underlying factors influencing the business case.
Overall, the slide underscores the importance of transparency in assumptions, which can significantly impact decision-making and stakeholder buy-in. A well-articulated set of assumptions not only enhances the credibility of the business case, but also prepares the organization for potential challenges ahead.
This slide is part of the How to Develop a Business Case PowerPoint presentation.
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