Business case effectiveness: the critical role of the organization

Abstract

PurposeLiterature indicates that the business case for projects is difficult to use and suggests that there are organizational factors that can facilitate effective use of the business case. This paper aims to identify such facilitators, measure their presence and importance, and relate them to the actual practice of business case processes.Design/methodology/approachA cross sectional quantitative method was used, with data on facilitators and business case process usage gathered through an online questionnaire.FindingsThe findings for the 43 organizational facilitators are that each one is considered more important than its presence in the respondents' organizations. High correlations emerge between the presence of the facilitators and the use of business case processes, indicating the pivotal role of the facilitators.Research limitations/implicationsThe research was conducted for business IT projects implemented by organizations based in South Africa. It furthers our understanding of project business cases and suggests additional research avenues in this area.Practical implicationsThe findings indicate that organizations could improve key facilitators at an affordable cost. Such improvement would enable more effective use of the business case throughout the project's lifetime – from initial concept until planned benefits have been substantially realized. Better use of the business case would also support governance and increase the success rate of business IT projects.Originality/valueOrganizational facilitators of business case processes are identified and categorized for the first time, leading to measurements of their perceived importance and presence in organizations. Hence, the relationship between these facilitators and actual business case usage is determined, suggesting areas of optimum impact.