Case or Plan?
What are the major differences between a business case and a business plan? How might a business case spearhead a new idea or project?
The major differences between a business case and a business plan could be summed up with scope, focus and direction.
The scope of a business case would be business practices and processes, whereas the scope of a business plan would be the extension of business or market share.
As a business case explores the possible opportunities available through new approaches to existing situations, the focus of the case should hone in on the essence of a problem or opportunity and aim to apply the proper resources to alleviating or taking advantage of it. Considering the nature of this focus, business cases are inwardly directed; optimizing, and trying to increase efficiency. This approach can often be the driving force behind a business taking steps to implement new ideas. Identifying an opportunity and, through analysis, offering actionable solutions will gain buy-in and support from those stakeholders must affected by it.
Compare these ideas to the focus and direction of a business plan. In an effort to extend, create and expand on market share, business plans focus on gathering resources to generate new business in order to capture the market. Long term plans of this nature must be based in market strategy and a thorough understanding of the business environment: both future and existing. By definition, the main direction of a business plan would be outward - to competition, and possible future customers.
Though the three variables of scope, focus and direction may tend to overlap between a business case and a business plan, understanding the differences can help better solidify when someone would choose to develop one over the other.
Wow! This is something I'm very slowly, very slowly trying to understand...Ok If I have it right a business case is where you ask yourself what will happen if we take one course of action over another. A business plan is mapping out a course of action over a period of time. Even with me saying this I have a difficult time with comparing these ideas.
This will come out a little confused but I think I got it into decent shape…
I view a case as lens through which we mentally test scenarios and try to infer outcomes using the work of others and events. If we’re lucky, the analysis gives us something to grab onto, mentally measure/gusstimate outcomes, and use the results as evidence during a decision. Opposing this is the plan—which I view a as an artifact of such an analyses. Once all the analysis is done and the debates settle, the artifacts and evidence of analysis inspire a creative plan addressing a need.
Beyond that, it’s far more complex since leadership, process management, and a slew of other factors emerge. Nonetheless, I see the dividing line between the two as a way to illustrate a process leading into the creative solution of a problem or need.
Hopefully that made sense.
Steve
