Measure and Value So-Called Soft Benefits in the Business Case
"Soft" or non financial benefits are not always treated as respectable business benefits in the business case.
"Soft" or non financial benefits are not always treated as respectable business benefits in the business case.
Are Soft Benefits Truly Business Benefits?
Sometimes the important benefits from an action are difficult to measure in financial terms. Are these "soft benefits?" Do they qualify as real business benefits that belong in the business case?
The answer to such questions is an emphatic "Yes!" if outcomes from a proposed action satisfy two conditions:
- Outcomes can be measured (made tangible).
- Outcomes contribute towards meeting important business objectives.
Everyone involved with the business case should understand that the term "financial" does not appear in conditions (1) or (2) above.
(For more on non-financial benefits, see Encyclopedia entry Business Benefit or the in-depth coverage in Business Case Essentials.)
Never say Soft! Don't Touch Intangibles!
It is very important that case-builders understand the proper handling of two dangerous and potentially damaging terms: "Intangibles" and "Soft Benefits."