Bring Your ‘A’ Game: Making a Business Case in Cannabis
“Don’t raise your voice, improve your argument.” Desmond Tutu
I’ve encountered hundreds of frustrated cannabis sales, marketing, HR and IT managers (not to mention scorned consultants and bankers) lamenting their boss's refusal to approve a new breakthrough strategy, market domination plan or disruptive innovation.
Maybe the problem is not the strategy, idea or plan. Rather, the blame could lay with the champions who are not making a strong enough business case or ‘selling’ it effectively.
For the moment, we’ll suspend reality where cash is tight, meaningful differentiation is tough to achieve and companies could have other, more pressing priorities.
I work a lot with cannabis teams on building their skills and competencies, especially around strategy development and change management.
Below is what a good business case looks like.
There is…
1. Strategic value
The proposed strategy or investment significantly drives one or (hopefully) more key priorities of the firm such as profitable growth, brand-building or cost reduction, and are tracked through aligned metrics. Unmeasurable benefits or off-strategy ideas will be non-starters to hard-nosed, embattled leaders.
2. A financial justification
Demonstrated through achieving target ROI, IRR or payback within 18 months.
3. Alignment with your organization’s mission, purpose and values,
Jeff Bezos nails it: “You cannot make a business case that you should be who you are not.”
4. An implementation plan with clear milestones and go/no go decision points.
The famous geo-political strategist, Henry Kissinger, lived by this maxim, “If you do not know where you are going, every road will get your nowhere.”
5. A codified, succinct and jargon-free recommendation.
According to advertising guru David Ogilvy, ” If you’re trying to persuade people to do something, or buy something, it seems to me you should use their language.”
Making better business cases comes down to improving your work, thinking and pitch:
> As a manager, honing your competencies is your responsibility. Quickly upload the necessary tools like financial math, business writing and strategy development & planning.
> Your superior won’t agree to the business case if they don’t see you as persuasive or credible. Aristotle knew a bit about persuasion: “Character may almost be called the most effective means of persuasion.” Get some allies to support you, your recommendation and plan.
> You’ll likely be asked for more data or to consider other angles. Take this feedback seriously, park your ego and up your argument.
#strategy #planning #businesscase #ROI #investment