What is the preferred time scope for a business impact statement?

Question

Options

• AWhatever number of years makes the cost the lowest.
• BThe longest time you can get a agreement from the customer to maximize chances for a high
• COne company's fiscal year
• DA duration for which costs and benefits can be estimated,and as aligned to the customer's

• A
  2% (1)
• B
  3% (2)
• C
  2% (1)
• D
  94% (59)

Explanation

Option D is correct because a business impact statement needs to cover a timeframe where realistic cost and benefit data can be estimated - too short and you miss long-term value, too long and projections become speculative. Crucially, aligning to the customer's planning horizon (e.g., their budget cycle or strategic plan period) ensures the analysis is meaningful and actionable for the decision-maker.

Why the distractors fail:

• A is wrong because the goal is accuracy and alignment, not minimizing costs - cherry-picking a timeframe to lower costs is misleading and undermines credibility.
• B is wrong because maximizing agreement length to inflate perceived benefit is manipulative; longer isn't better if estimates become unreliable.
• C is wrong because one fiscal year is often too short to capture multi-year investments or returns, and it ignores the customer's actual planning context.

Memory tip: Think "D = Duration that's Defensible and Deliberately aligned." The best time scope is one you can defend with real data and one that speaks the customer's language - their planning cycle, not yours.

No community discussion yet for this question.