Business Case in Order system

• Why Business Case fits in an Order System (Cynefin Complicated and Clear domains}
  • Business case assumes predictability, linearity, and control
  • Business case specifies an idealistic future state that can be reached following a linear roadmap or blueprint
    • Milestones and KPIs measure progress towards set targets

• • Clear Domain
    • Cause and effect are obvious
    • Business case works because inputs and outputs are known knowns and predictable
    • Example: Installing a new production line with known efficiency gains

• • Complicated Domain
    • Cause and effect require expert analysis but are still discoverable
    • Deal with known unknowns
      • Identify as a risk and statistically assign a Frequency and Severity metric
    • Business case is valid here because experts can model scenarios, calculate NPV, ROI, IRR, and provide evidence-based recommendations
    • Example: Implementing a new CRM system with estimated costs and forecasted benefits

Business Case approach, while widely used in decision-making, has faced several criticisms:

1. Narrow Focus on Financial Returns – Critics argue that the Business Case approach often prioritizes short-term financial gains over broader social, environmental, or ethical considerations.
2. Lack of Flexibility – Some studies suggest that business cases tend to be rigid, assuming a fixed solution rather than allowing for adaptive strategies that respond to evolving challenges.
3. Overemphasis on Measurable Outcomes – The approach tends to favor quantifiable benefits, making it difficult to justify investments in areas like diversity, sustainability, or employee well-being, which may have long-term but less tangible impacts.
4. Potential for Bias – Business cases are often developed by internal teams with vested interests, leading to selective data presentation that supports predetermined conclusions rather than objective analysis.
5. Failure to Address Systemic Issues – Some critics argue that the Business Case approach focuses on individual projects rather than addressing broader systemic challenges, such as inequality or climate change