Financial Benefit Assessment: Top-Down vs. Bottom-Up PPT

This PPT slide, part of the 105-slide How to Develop a Business Case PowerPoint presentation, presents an overview of 2 distinct approaches for determining expected financial benefits: the top-down and bottom-up methods. The top-down approach relies on macro-level data and assumptions. It emphasizes the use of analogies or comparisons to establish benefits, especially when detailed client data is unavailable. This method is characterized by a range of benefits that reflect a high degree of uncertainty, making it suitable for scenarios where precise metrics cannot be established.

Conversely, the bottom-up approach focuses on improvements in specific business process metrics. This methodology is preferred as it allows for a more granular analysis, leading to more accurate estimations of financial benefits. The slide suggests that this approach is generally more reliable when detailed data is accessible, enabling a clearer understanding of the financial implications of operational activities.

The accompanying diagram visually represents the relationship between business goals, key performance indicators (KPIs), and the estimated size of the opportunity. It illustrates how both approaches funnel into a structured analysis, ultimately guiding business decisions and operational activities. The flow from broad objectives to specific metrics highlights the importance of aligning strategic goals with measurable outcomes.

For executives considering this document, the insights provided here can serve as a foundation for understanding how to effectively assess financial benefits. The choice between these approaches may depend on the availability of data and the specific context of the business case being evaluated. This slide effectively encapsulates critical methodologies that can inform decision-making processes.

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Business Case Development Key Performance Indicators Business Case KPI