A credible business case doesn’t just ask for funding—it shows why the investment is worth it.
Now that you’ve grounded your proposal in strategic context, internal baselines, and external benchmarks, it’s time to model the investment and make your case. This is where you quantify the value of action and help decision-makers weigh risk, reward, and return—not just approve a number.
Cost-benefit modeling is more than math. It’s an exercise in perspective-building that shows:
How your investment delivers measurable return
What trade-offs exist between scope, timing, and outcomes
Why this proposal deserves priority over others
At its core, the Benefit-Cost Ratio (BCR) is a way to summarize ROI in strategic terms:
BCR = Total Present Value of Benefits ÷ Total Present Value of Costs
A BCR greater than 1.0 indicates a net positive return.
The higher the ratio, the greater the value created for every dollar spent.
Example:
Option | Total Costs | Total Benefits | BCR |
A | $100,000 | $120,000 | 1.20 |
B | $150,000 | $190,000 | 1.27 ✅ |
C | $200,000 | $230,000 | 1.15 |
Option B delivers the strongest benefit-to-cost ratio—even if not the highest total benefit.
Pro Tip: Pair BCR with a short summary of the operational or strategic value gained, not just financial math.
Rather than present one “take it or leave it” plan, offer tiered scenarios that give decision-makers a way to say yes:
Option A: Minimum Viable Path
Focused on immediate risk reduction or audit requirements
Lower cost, lower benefit, higher urgency
Option B: Strategic Coverage
Addresses current risks and improves future readiness
Balanced cost and long-term value (often best BCR)
Option C: Future-Forward Investment
Builds capabilities ahead of curve (e.g., AI governance, automation)
Higher cost, greater complexity, but strong growth ROI
This builds credibility and shows financial discipline—you’re not asking for the moon. You’re offering strategic choices.
Return on investment should include—but not be limited to—risk reduction. Expand your model to include:
Time savings – Fewer manual hours, faster access provisioning, audit prep, etc.
Cost avoidance – Reduced risk of breach, fines, or SLA penalties
Operational acceleration – Faster onboarding, improved uptime, smoother compliance
Business enablement – Ability to launch new capabilities securely (e.g., AI, remote work, M&A)
Insight: The ROI isn’t just in preventing bad outcomes. It’s in enabling better execution.
Cost-benefit analysis isn’t a close-ended science. Your numbers should inform the decision, not dictate it.
Present both the quantitative model (BCR, ROI)
And the qualitative impact (speed, credibility, reputation, resilience)
Let leadership weigh trade-offs using both views
When your case includes rigor + flexibility, it’s much more likely to win support.
This section becomes your executive summary, pitch narrative, and leave-behind:
One-pager showing options, BCRs, and outcomes
Visuals to support trade-off discussions
Talking points tied to business language (not just control maturity)
What three investment scenarios (minimal, strategic, future-ready) can you credibly present—and how do they differ in cost, risk, and benefit?
What are the measurable benefits in time, efficiency, or acceleration—and how can you tie them to business KPIs?
How can you frame the decision using both financial ratio (BCR) and business impact—without forcing a single answer?