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CBAP · Question #387

A team of business analysts (BAs) were assigned to review an enhancement request that would involve changes in a stockroom and the inventory of products. The changes will impact several groups of…

The correct answer is A. Create a business case. Before presenting a process improvement to management for approval, a business case must be created first to formally justify the initiative with financial and operational evidence.

Strategy Analysis

Question

A team of business analysts (BAs) were assigned to review an enhancement request that would involve changes in a stockroom and the inventory of products. The changes will impact several groups of people and the amount of savings is in excess of $1 million dollars. The recommended process improvement will be presented to management for approval. What should the team do first?

Options

  • ACreate a business case
  • BProduce an organizational model
  • CDefine the change strategy
  • DValidate the cost savings

How the community answered

(55 responses)
  • A
    80% (44)
  • B
    4% (2)
  • C
    5% (3)
  • D
    11% (6)

Why each option

Before presenting a process improvement to management for approval, a business case must be created first to formally justify the initiative with financial and operational evidence.

ACreate a business caseCorrect

A business case is the foundational document that captures the problem, proposed solution, expected benefits (such as $1M+ in savings), costs, and risks needed for management to make an informed approval decision. It precedes all other planning activities because it establishes whether the initiative is worth pursuing. Without it, there is no formal justification to present to decision-makers.

BProduce an organizational model

An organizational model depicts the structure of roles and reporting relationships and is not the primary deliverable needed before seeking management approval of a process improvement.

CDefine the change strategy

Defining the change strategy describes how the change will be executed and is developed after management has approved the business case, not before it.

DValidate the cost savings

Validating cost savings is an input to the business case rather than a standalone first step - it supports the business case but does not replace it.

Concept tested: Business case development before management approval

Source: https://www.iiba.org/career-resources/a-business-analysis-professionals-first-choice-for-knowledge/babok/

Topics

#business case#change strategy#cost-benefit analysis#stakeholder impact

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