Key Assumptions for Effective Business Case Development PPT

This PPT slide, part of the 105-slide How to Develop a Business Case PowerPoint presentation, focuses on the importance of developing assumptions within a business case framework. It emphasizes that assumptions must be clearly articulated, as they often require nuanced business judgment that may not be immediately apparent to stakeholders. The slide outlines 3 primary reasons for making assumptions: to predict, simplify, and clarify.

Under the "Predict" section, the slide indicates that assumptions are essential for forecasting business case inputs that are subject to change. It highlights that these inputs may evolve due to new circumstances, which necessitates a proactive approach to forecasting future sales volumes, prices, or performance improvements.

The "Simplify" section stresses the need to streamline business case inputs for easier management. However, it cautions against oversimplification that could compromise accuracy. This balance is crucial for maintaining the integrity of the business case while making it more digestible for decision-makers. Examples provided include using average values instead of detailed itemized data, which can help in presenting a clearer picture without overwhelming the audience.

Lastly, the slide addresses the need to clarify other inputs that contribute to the overall understanding of the business case. This ensures that all relevant factors are considered, enhancing the robustness of the analysis. The slide suggests that a conservative approach should be adopted when assumptions are contentious, to mitigate potential disputes and foster consensus.

Overall, this slide serves as a guide for executives to understand the critical role of assumptions in business case development, ensuring that they are both explicit and well-structured for effective decision-making.

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