Capturing the Attention of Purchasing Authorities Requires a Convincing Business Case
Autumn 2010
As the President of a global organization, I am inundated on a regular basis with requests, pitches and propositions. Queries are received daily from vendors and suppliers trying to sell all sizes and description of services and products. I regularly receive solicitations from media outlets seeking executive viewpoints on business news stories relevant to our industry. Adding to the myriad requests I receive from employees and members of my own organization seeking my approval for expenditures on a wide range of products and services which, each external and internal requestor assures me, will yield cost savings and improve the way we operate our business .
Needless to say, I find myself in the position of saying “no” with far more regularity than I say, “yes” to most of these requests. After all, any organization would be quickly shuttered if its leaders were to say “yes” to even one third of the sales pitches fielded in a given year. However, like any organization in any industry vertical, we certainly make regular purchases of goods, services, materials and supplies. So clearly, some of the propositions I absorb are finding their mark. I am constantly wondering what separates those denied from those explored and ultimately accepted?
Ultimately, the opportunities that capture my attention have two things in common. The first and obvious criterion is the source of the proposition. Naturally, those that come from within our organization –product or service purchases suggested by trusted team members – are automatically given greater weight in my mind than those proffered by a salesperson or other outsider. However familiarity alone does not nearly ensure that I will agree to the proposed purchase. I need to be convinced of the benefits any purchase will yield for the organization as a whole. I want to see research and analysis of any potential buy to arrive at a clear and certain understanding of the benefits and liabilities involved. Nothing is more effective at providing clarity than a well-conceived business case.
The business case demonstrates to me that the person(s) proposing the purchase has engaged in a significant amount of thought and research on the matter. They have taken the time to contemplate all the ways in which the proposed purchase can add value to the organization and help to achieve stated business goals. A good business case will contain a cost-benefit analysis and/or return on investment (ROI) calculation. To make the case even more persuasive, some attention should be paid to analysis of how the acquisition would be assimilated into the existing organization in terms of implementation, integration, adoption and change management. If the business case makes a compelling argument in all these areas, I am always willing to take the steps required to more fully investigate the potential buy and escalate the proposed initiative. Requests for authorization to make significant purchases of services or products that come without a business case are rarely, if ever, entertained.
Knowing how to produce a compelling business case is something that may not be at the top of most people’s list of qualifications. This is especially true for the engagement of a complex service like a managed service program for services procurement or human capital; even for professionals with experience in generating business case documents. This is why we recently completed a white paper detailing how to produce a business case for engaging a MSP for services procurement and human capital. Visit the white paper library at our website to request your free copy. Might I also suggest the companion paper, “Calculating ROI in a Managed Services Program for Contingent Workforce Procurement”? Together, these two documents are all you need to create a convincing case to present to purchasing authorities within your organization. You can be assured, a well reasoned and factually supported request will be met with gratitude!