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BUILDING A BUSINESS JUSTIFICATION


PRESENTER

Scott Sanders

Director, Financial and Assortment Planning Support

Sears Holdings

Building a Business JustificationScott Sanders

Director of Planning Systems, Sears Holdings

Thursday, February 25, 2016

ABOUT ME

• Director of Financial and Assortment Planning Support for Sears Holdings

(Sears, Kmart & Lands End)

• Currently leads a team responsible for the user support as well as the

technical, reporting and process solutions for the Financial, Assortment, Size

Pack Optimization & Analytic applications

• In my 28 years at Sears, I have worked in the stores, in IT and in business

support with a primary focus on Planning Systems; design, implementation,

integration, training, adoption and support

Sears Holdings Corporation is a leading integrated retailer with full-line

and specialty retail stores in the United States and Canada and the

• Home of Shop Your Way, a social shopping experience

• The leading home appliance retailer as well as a leader in tools, lawn and garden,

fitness equipment and automotive repair and maintenance

• Key proprietary brands include Kenmore, Craftsman and DieHard, Lands' End, Jaclyn

Smith and Joe Boxer, as well as Sofia by Sofia Vergara

• The nation's largest provider of home services, with more than 14 million service and

installation calls made annually

• Recently named Mobile Retailer of the Year

• Recipient of the ENERGY STAR " Partner of the Year - Sustained Excellence Award"

• Named one of the Top 20 Best Places to Work for Recent Grads

“Look what I found in the dumpster!

A perfectly good business justification!”

So, what are we talking about…?

At last you found it, the perfect software solution to meet the demands of your business.

Now, how do you convince your company and its leaders to spend the money to bring it in-house and reap the business benefit?

How do you build a compelling business justification?

How should you think-through, communicate, and overcome this common business roadblock?

* Author unknown

Shall We Play a Game?Building a Business Justification

– The Game –

Spread the

Word


What’s the

Gap?

Possible

Solutions

Prove The

ValueConfirm

Assumptions

Find

CollaboratorsWhammy!

The

Audience

is?

Gain

AlignmentMisstep

Bring it

Home

Your

StoryBuilding a Business Justification

– The Game –

“FIRST THINGS FIRST, BUT NOT NECESSARILY IN

THAT ORDER”

• Rules - How to play the game

• How this begins

This process often starts off informally

Sometimes this process will begin before you realize it has started

Your leadership gives you direction

Don’t look now, but you might see something at SGF

• What I outline is likely much of what you do already


What’s the

Gap?

Possible

Solutions

Prove The

ValueConfirm

Assumptions

Find


Spread the

Word

The

Audience

is?

Gain

AlignmentMisstep

Bring it

Home

Your


– The Game –

WHAT ARE YOU REALLY TRYING TO SOLVE?

• Here is where you really begin

• Understanding the business or technical gap -OR- is there

something that can just be done better

• What is the cause? The root cause?

• Can this challenge be solved with a change in

Process?

Behavior?

Ownership?

Hardware / Horsepower

• If these questions can not be answered with quick, in-house

solutions, then…

What’s the

Gap?


What’s the

Gap?

Possible

Solutions

Prove The

ValueConfirm

Assumptions

Find


Spread the

Word

The

Audience

is?

Gain

AlignmentMisstep

Bring it

Home

Your


– The Game –

WHAT ARE ALL ‘POSSIBLE’ SOLUTIONS?

• Now that you completely understand the issue, the next step is to

outline all possible solutions, no matter how outlandish or unlikely

Add manpower?

Building a solution internally?

Commercial solutions available in this space?

• Compile all your options

• Research and define the likely costs, timelines, risks and level of

favorability with the outcome

• Even if your choice seems clear – understand ALL your options

Possible

Solutions


What’s the

Gap?

Possible

Solutions

Prove The

ValueConfirm

Assumptions

Find


Spread the

Word

The

Audience

is?

Gain

AlignmentMisstep

Bring it

Home

Your


– The Game –

IDENTIFY ‘THE’ SOLUTION AND UNDERSTAND ITS

VALUE

• Settle on your choice (don’t throw out the runners-up)

• Determine the value this choice will provide

Increase productivity?

Decrease markdowns?

Speed to market?

Reduce costs?

Remediate legacy systems?

Mitigate un-suportability or technical risks?

Relevancy

• Uncover the warts – If you don’t they will

Prove The

Value


What’s the

Gap?

Possible

Solutions

Prove The

ValueConfirm

Assumptions

Find


Spread the

Word

The

Audience

is?

Gain

AlignmentMisstep

Bring it

Home

Your


– The Game –

VALIDATE YOUR ASSUMPTIONS

• Your reasoning is now taking shape

• Your course seems clear

• Before you take your new proposal out for a drive… validate/review

your assumptions and thinking

Validate your financials with finance

Consult with counterparts outside your company or vertical

Place a conservative value on the benefit, but don’t sandbag

What are the true risks

Reach out to the industry experts - Software consultants

Scope is aligned with your benefits

Industry benchmarks

• Time to test the waters…

Confirm

Assumptions


What’s the

Gap?

Possible

Solutions

Prove The

ValueConfirm

Assumptions

Find


Spread the

Word

The

Audience

is?

Gain

AlignmentMisstep

Bring it

Home

Your


– The Game –

ASSEMBLE YOUR TEAM

• Find an executive sponsor

• Find business teams that believe in this vision

• Find a project manager

• There is safety and success in numbers

• You are looking for more than a short term commitment… you are

looking for partners

• Start to establish trust

Find

Collaborators