Crafting Compelling Investment Cases That Sell

When financial analysis alone isn't enough to convince your audience

Over the last few years of reduced economic activity, finances have taken the spotlight within decision making. This is no less true in a year where many products are being repriced or rethought in order to stay cashflow positive or profitable.

Product leaders today need to become much more commercially savvy, analysing revenue and cost levers with minutia of detail to ensure every product and technology investment is made with the greatest return with shortest payback.

Often, we must continually create and communicate business cases or impact assessments, to justify strategic priorities. Without it, we may face a swift axe of layoffs decided by a ruthless management board!

So how does one create investment cases that not only capture the attention from senior executives, but also secures the funding you need for your next product initiative?

One way is to tell business cases not only through numbers and analysis, but through an emotional customer-focussed narrative. Daniel Kahneman explores this further through his story of “The Elephant and the Rider”.

The Rider, The Elephant, System 1 and 2

Psychologist and Nobel laureate, Daniel Kahneman, introduced the concept of "The Elephant and the Rider" in his book "Thinking, Fast and Slow."

Thinking Fast and Slow - Daniel Kahneman. Check it out on GoodReads!

Kahneman’s metaphor represents the interplay between two systems in our minds:

• The emotional, impulsive "Elephant"; and

• The rational, controlled "Rider”. Imagine a young boy sitting on that impulsive Elephant.

Kahneman argues that while the rider (synonymous for our rational thinking) can guide the elephant to some extent, the elephant's emotions often dominate decision-making.

A brilliant example of success in branding, is Nike:

• Rational Approach: A rational approach might emphasize the technical features of Nike's athletic shoes, such as advanced cushioning or high-tech materials.

• Emotional Approach: Nike's "Just Do It" campaign doesn't focus on the technical aspects but appeals to the emotional side, inspiring people to overcome challenges and achieve greatness. It creates a sense of empowerment and motivation.

Emotional stories can have a massive impact in pitching business cases because they engage the elephant, making the information more memorable and persuasive. Narratives are key.

Here are 5 steps I like using to create compelling narratives that wrap around my business and investment cases. Let’s dive in.