5.9. Presenting the Business Case to Stakeholders

Effectively presenting the business case for Application Portfolio Management (APM) is as important as creating it. A strong presentation ensures stakeholders understand the value, urgency, and feasibility of APM while addressing their concerns and securing their support. Tailoring the delivery to resonate with diverse audiences, such as executives, IT leaders, and business units, is critical for achieving buy-in and driving action.

5.9.1 Key Objectives of the Presentation

• Educate Stakeholders: Clearly explain what APM is, why it matters, and how it benefits the organization.
• Build Trust and Confidence: Use data, examples, and a well-structured narrative to demonstrate thorough planning and alignment with organizational goals.
• Secure Commitment: Convince stakeholders to approve the APM initiative by addressing their priorities and concerns.

5.9.2 Preparing for the Presentation

• Know Your Audience
  • Understand the priorities and pain points of each stakeholder group:
    • Executives: Focus on strategic alignment, cost savings, and ROI.
    • IT Leaders: Highlight operational efficiencies, reduced technical debt, and streamlined processes.
    • Business Units: Emphasize improved alignment with business goals and enhanced agility.
• Customize the Narrative
  • Tailor the presentation to address the specific concerns of the audience. For example:
    • CFO: Detailed cost analysis and ROI projections.
    • CIO: Governance strategies and risk mitigation.
    • Business Leaders: Benefits to customer experience and innovation.
• Use Clear and Concise Visuals
  • Incorporate charts, graphs, and diagrams to illustrate key data points, such as cost savings, application inventory breakdown, and implementation timelines.
  • Use infographics to simplify complex concepts, such as the APM lifecycle or governance structure.
• Practice Delivery
  • Rehearse the presentation to ensure clarity, confidence, and timing.
  • Anticipate potential questions or objections and prepare concise, evidence-backed responses.

5.9.3 Structure of the Presentation

• Introduction (5-10 minutes)
  • Set the Stage: Briefly describe the organization’s current challenges related to application management.
  • State the Purpose: Explain the goal of the presentation—to secure buy-in for APM.
  • Preview the Agenda: Outline what will be covered, such as benefits, costs, risks, and implementation plans.
• The Problem (10 minutes)
  • Clearly articulate the pain points, such as:
    • Rising IT costs and inefficiencies.
    • Security vulnerabilities and compliance risks.
    • Poor alignment between IT and business goals.
  • Use data or specific examples to validate the problem (e.g., “30% of applications are redundant, costing $500,000 annually”).
• The Solution: APM (15 minutes)
  • Define APM and explain how it addresses the identified challenges.
  • Highlight its key components: application inventory, rationalization, governance, and continuous improvement.
  • Showcase examples of APM success stories or industry benchmarks to build credibility.
• Benefits and ROI (10-15 minutes)
  • Present tangible and intangible benefits, emphasizing financial savings, risk reduction, and strategic value.
  • Use clear ROI calculations or projections to demonstrate the initiative’s value (e.g., “APM will deliver a 150% ROI within two years”).
• Cost Analysis (10 minutes)
  • Break down the costs into initial, ongoing, and contingency categories.
  • Highlight scalability and affordability by presenting options for phased implementation.
• Risks of Inaction (5-10 minutes)
  • Communicate the consequences of not implementing APM, such as:
    • Escalating costs and inefficiencies.
    • Increased technical debt and compliance risks.
    • Missed opportunities for innovation and growth.
• Implementation Plan (10 minutes)
  • Present a high-level roadmap with key milestones, deliverables, and timelines.
  • Highlight the phased approach to reduce disruption and ensure manageable progress.
  • Emphasize the roles and responsibilities of stakeholders in the implementation process.
• Call to Action and Next Steps (5 minutes)
  • Summarize the problem, solution, benefits, and urgency.
  • Clearly state what is needed from the audience (e.g., budget approval, resource allocation, executive sponsorship).

5.9.4 Engaging Stakeholders During the Presentation

• Encourage Questions and Feedback
  • Create opportunities for stakeholders to ask questions or express concerns.
  • Actively listen and provide thoughtful, evidence-backed responses.
• Use Storytelling and Real-World Examples
  • Share success stories or case studies that demonstrate APM’s impact in similar organizations.
  • Use relatable scenarios to make abstract concepts more tangible.
• Highlight Quick Wins
  • Emphasize short-term benefits or low-hanging fruit that can be achieved quickly, such as reducing redundant applications.
  • This reassures stakeholders that APM will deliver value early in the process.
• Address Objections Proactively
  • Anticipate common concerns, such as budget constraints or perceived complexity, and address them directly with data or solutions.

5.9.5 Follow-Up After the Presentation

• Provide Supporting Materials
  • Share a concise summary of the business case, including key data points, visuals, and the implementation roadmap.
  • Include FAQs or additional resources to address lingering questions.
• Schedule Follow-Up Discussions
  • Arrange one-on-one or small-group meetings with key stakeholders to address specific concerns or finalize decisions.
• Monitor and Communicate Progress
  • Once the initiative is approved, maintain engagement by regularly updating stakeholders on milestones and successes.

5.9.6 Example Presentation Narrative

Introduction: “Currently, 40% of our IT budget is spent maintaining legacy applications, many of which are redundant or underutilized. This growing inefficiency not only drives up costs but also slows our ability to innovate.”

Problem: “For example, one application we maintain costs $50,000 annually, yet its functionality is duplicated in two other systems. Without APM, we risk continuing this inefficiency indefinitely.”

Solution: “APM provides a structured approach to rationalizing and optimizing our application portfolio. By identifying redundant applications and streamlining governance, we can save costs, reduce risks, and improve alignment with our business goals.”

Call to Action: “To move forward, we are requesting $200,000 to fund the initial phases of this initiative. Within 12 months, we project savings of $500,000, demonstrating a clear ROI and positioning our IT organization for future success.”

5.9.7 Conclusion

Presenting the business case for APM is about more than delivering information—it’s about persuading stakeholders to act. By tailoring the presentation to the audience, using clear and engaging visuals, and emphasizing the benefits and urgency of APM, organizations can build the trust and confidence needed to secure support. A strong presentation ensures stakeholders leave with a clear understanding of the value of APM and the critical role it plays in driving organizational success.