What do Business Objectives help to calculate?

Business objectives play a critical role in determining expected benefits because they serve as the foundation for what an organization aims to achieve through different initiatives or projects. By clearly defining these objectives, businesses can identify the desired outcomes and the value they seek to create. This, in turn, helps in quantifying the expected benefits of a project or change initiative, as the benefits are usually tied to these overarching goals.

For example, if a business objective is to increase revenue by a specific percentage, the expected benefits would include projected sales growth, increased customer acquisition, or improved market share that aligns with that objective. This alignment ensures that the values generated from the project are directly related to the goals of the organization, allowing for a comprehensive understanding of the project's potential impact.

In contrast, while expected costs, potential risks, and stakeholder engagement are essential elements of project evaluation and management, they are not directly derived from or calculated based on business objectives in the same way that expected benefits are. Expected costs might include all expenses related to a project, potential risks focus on uncertainties that could affect the project, and stakeholder engagement deals with how to involve relevant parties. However, these elements would typically be analyzed after establishing the business objectives and expected benefits.