July 13, 2025 • 17 mins
Tell us what you thought of the episode and any topics you would like us to cover!
Strategic decision-making in game development demands more than creative intuition—it requires structured analysis and thorough planning. This deep dive explores how game studio leaders can create effective business cases that balance creative vision with financial sustainability.
Making decisions that shape your studio's future involves navigating complex terrain where the stakes couldn't be higher. Poor choices can drain resources, delay releases, and damage reputations, while data-backed decisions minimize risk and drive sustainable growth. The key lies in mastering three critical components: due diligence, cost analysis, and understanding opportunity costs.
Due diligence serves as your foundation—researching market trends using tools like Steam Charts and Twitch Analytics, benchmarking competitors, validating technical feasibility through prototyping, and conducting financial projections. Cost analysis requires categorizing expenses (direct, indirect, variable, and fixed), creating comprehensive budgets, analyzing historical project data, and calculating ROI. Perhaps most overlooked is opportunity cost assessment—quantifying what you're giving up by choosing one path over another, which means deliberately listing alternatives and assigning clear values to each option.
Armed with these insights, you can build business cases that feature executive summaries, detailed analyses, transparent financials, risk assessments, and actionable recommendations. The process should involve cross-functional collaboration, standardized templates, structured reviews, and consistent measurement. Beware of confirmation bias, overly optimistic projections, and insufficient stakeholder input—these common pitfalls undermine even the most promising decisions.
Ready to elevate your leadership? Start by evaluating your current decision-making process, implementing these actionable frameworks, and fostering a culture that values transparency and data-driven strategy. Your team, stakeholders, and studio's future will thank you for building decisions on solid, well-structured foundations rather than intuition alone.
Join Our DISCORD!
Wishlist Shadow City Mysteries: A Clockwork Noir on Steam!
Pre-Order Shadow City Mysteries: The Roleplaying Game on Backerkit!
Link to my FREE ebook: 5 Heroic Leadership Skills
Music by: Joey the Mad Scientist
Hit subscribe/follow and be sure to check out: https://pressstartleadership.com/
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:01):
Press Start Leadership.
Hey there, press Starters andwelcome to the Press Start
(00:23):
Leadership Podcast, the podcastabout game-changing leadership,
teaching you how to get the mostout of your product and
development team and become theleader you were meant to be
Leadership coaching and trainingfor the international game
industry professional.
Now let me introduce you toyour host, the man, the myth,
(00:46):
the legend, christopher Mifsud.
Speaker 2 (00:50):
Hey there, press Starters, and welcome back to
another awesome edition of thePress Start Leadership Podcast.
On this week's episode, we'llbe discussing creating effective
business cases fordecision-making in the video
game industry a leader's guideto due diligence, cost analysis
and evaluating video gameindustry.
A Leader's Guide to DueDiligence, cost Analysis and
Evaluating Opportunity Costs forSmarter Strategic Choices.
(01:10):
Leading a video game studiomeans navigating a complex
landscape of decisions, each ofwhich can profoundly impact the
direction, profitability andsuccess of your projects.
As a leader, making informeddecisions requires much more
than intuition or creativepassion.
It demands rigorous evaluation,careful analysis and thorough
(01:31):
planning.
Central to this process is thecreation of effective business
cases for decision making.
In this guide, we'll explorehow leaders in the video game
industry can createcomprehensive business cases
that ensure clarity, minimizerisks and maximize returns.
(01:51):
We'll cover why due diligence,detailed cost analysis and
consideration of opportunitycosts are essential tools in
your leadership arsenal.
Throughout, we'll provideactionable steps you can
implement immediately, helpingyou make decisions that foster
both creative success andfinancial sustainability.
Why video game leaders needbusiness cases for
decision-making.
Whether you're launching a newIP, choosing between features to
(02:11):
implement or deciding if apartnership is viable, each
decision carries potentialopportunities and hidden
pitfalls.
Poor decision-making can coststudios millions, delay releases
and damage reputations.
Conversely, structured,data-backed decision-making
processes empower you tomitigate risks and consistently
choose pathways that lead tolong-term growth.
(02:31):
Creating a robust business casefor decision-making involves
clearly defining a problem oropportunity, evaluating
potential solutions, forecastingimpacts financial and otherwise
and articulatingrecommendations transparently.
Such disciplined analysis isessential because it allows for
better alignment, ensuringdecision support, overall studio
(02:54):
goals, improved transparency,creating clear documentation
that allows stakeholders tounderstand your reasoning.
Risk mitigation, identifyingpotential hurdles early reducing
the chance of costly errors.
Resource optimization, ensuringmoney, talent and time are
allocated efficiently.
To achieve this, you mustmaster three essential
(03:15):
components of sound decisionmaking Due diligence, cost
analysis and understandingopportunity costs.
Due diligence the foundation ofreliable business cases.
Due diligence is acomprehensive process of
research and validationconducted before making
significant decisions.
In the context of the videogame industry, due diligence
(03:38):
encompasses examining internalresources, external market
conditions, technologyfeasibility and competitor
strategies.
Why do diligence matter forgame leaders?
The video game industry isnotoriously volatile.
Technologies shift rapidly,player preferences evolve and
markets can become saturatedovernight.
Conducting rigorous duediligence helps you anticipate
(04:01):
these fluctuations and respondstrategically.
Proper due diligence includesevaluating market trends,
assessing the competitivelandscape, confirming technical
feasibility, validating audiencedemand, examining financial
stability and here's some actualsteps for effective due
diligence.
(04:21):
Market research and trendanalysis Identify current
industry trends using platformslike Steam Charts, twitch
Analytics or reports fromreputable research agencies such
as Newzoo.
Use player surveys or communityfeedback to validate
assumptions.
Competitive benchmarkingCompile a competitive analysis
matrix highlighting strengths,weaknesses, pricing strategies
(04:43):
and performance metrics ofsimilar games.
Consider potentialdifferentiators your game could
introduce.
Technical feasibilityassessment.
Conduct early prototyping orproof-of-concept demos.
Consult experienced developersor technical directors to
estimate risks and resourcerequirements realistically.
Financial health checks.
Forecast financial impact usinghistorical project data,
(05:06):
budgeting tools and revenueprojections based on comparable
projects.
Engage your financial teamearly in the decision-making
process.
Cost analysis the crucialcomponent of sound decisions In
the high-stakes environment ofvideo game production.
Accurately assessing costs,both tangible and intangible, is
pivotal.
Thorough cost analysis ensuresresources are utilized wisely,
(05:30):
project scope remains manageableand profitability goals are met
.
The types of costs leaders mustconsider Direct costs, salary,
software licenses, outsourceassets.
Indirect costs Overheads likestudio rent, utilities,
administrative expenses,variable costs, server costs,
scaling with player numbers,ongoing content creation, fixed
(05:52):
costs, equipment purchases,licensing fees, initial
development setup.
Some actual steps forconducting detailed cost
analysis Create a comprehensivebudget breakdown List all
identifiable expenses associatedwith your decision.
Categorize them clearly intodirect, indirect, fixed and
variable costs.
Forecast cash flow and expenses.
(06:14):
Build a detailed spreadsheetoutlining expected monthly
expenditures.
Factor in potential variancesor unexpected expenses as
contingency.
Analyze historical project data.
Review similar past projects tounderstand actual versus
projected costs.
Adjust current estimates basedon historical deviations to
improve accuracy.
(06:35):
Incorporate cost-benefitanalysis Clearly.
Weigh project expenses againstanticipated revenue or strategic
benefits.
Calculate return on investment,roi and break-even point to
assess financial viability.
Understanding and calculatingopportunity costs Opportunity
costs represents the value ofthe next best alternative you
(06:56):
forego when making a decision.
In the fast-paced gamingindustry, ignoring opportunity
costs can severely limit yourability to capitalize on better
market opportunities or allocateresources more effectively.
Why opportunity costs matter?
Consider this scenario.
Why opportunity costs matterConsider this scenario your
(07:17):
studio decides to dedicate itsbest team to a new AAA title
instead of developing smaller,potentially profitable
indie-style games.
The opportunity cost here isthe revenue and visibility that
smaller titles might havegenerated, possibly at lower
risk.
Carefully weighing opportunitycosts means deliberately
considering what you're givingup and making informed decisions
that maximize strategicalignment and profit potential.
(07:40):
Actual steps for evaluatingopportunity cost Identify
potential alternatives Beforemaking decisions explicitly.
List viable alternativeopportunities.
Quantify and rank eachalternative based on strategic
goals.
Quantify opportunity costsclearly.
Use projected revenues orgrowth metrics to assign a clear
monetary value to eachalternative opportunity.
(08:01):
Document these calculationstransparently to facilitate
decision making.
Use decision matrices toevaluate trade-offs.
Employ simple matrices tocompare options directly,
including potential upside risksand strategic alignment.
Involve your team in thisprocess to gain diverse
perspectives.
Conduct regular opportunityreviews.
(08:23):
Schedule quarterly or biannualreviews to reassess decisions
made and opportunity costsincurred.
Use insights from each of thesereviews to inform future
decision-making and businesscase improvements.
Bring it all together, creatinga comprehensive business case
Armed with thorough duediligence, detailed cost
(08:43):
analysis and clear opportunitycost calculations.
You can now build a compellingbusiness case that guides your
team toward confident, informeddecisions.
Key components of a businesscase document the executive
summary Briefly state theproblem and opportunity,
proposed solution and expectedbenefits.
Detailed analysis Includes yourdue diligence findings,
(09:05):
competitive analysis and marketvalidation clearly Financial
overview.
Present your cost analysis,projected revenues and ROI
calculations transparently.
Risk assessment Highlightpotential risks identified
during due diligence andsuggested mitigation strategies.
Recommendation and next stepsClearly articulate your decision
(09:26):
recommendation, timelines andrequired resources.
And here's some actual steps tobuild your business case.
Gather cross-functional input.
Collaborate with stakeholdersacross finance, production,
marketing and development forholistic insights.
Create clear documentationtemplates.
(09:46):
Use standardized business casetemplates for consistency and
ease of understanding.
Conduct structured reviews.
Present your business case toleadership in structured review
meetings to gather feedback andrefine your approach.
Implement and measure Onceapproved.
Ensure clear implementationtimelines, responsible parties
(10:07):
and ongoing measurements forsuccess metrics.
Common pitfalls to avoid inbusiness case development
Despite the clear benefits,creating a business case isn't
without challenges.
Leaders often fall into commonpitfalls that undermine
decision-making effectiveness,and here's how to avoid them.
Confirmation bias Leaders mayunintentionally seek data
supporting their existingbeliefs, neglecting
(10:27):
contradictory evidence.
Assign a devil's advocate toexplicitly challenge assumptions
and conclusions in yourbusiness case review meetings.
Advocate to explicitlychallenge assumptions and
conclusions in your businesscase review meetings.
Overlooking opportunity costsLeaders frequently neglect the
potential value of options theyreject when choosing a path
forward.
Mandate explicit documentationof opportunity cost calculations
in every business case toensure they're considered
(10:49):
systemically Incomplete oroverly optimistic.
Cost analysis Budgetprojections often underestimate
complexity or potential delays,causing unrealistic financial
expectations.
Introduce a standard buffer of10-20% in financial forecasts to
account for unforeseencontingencies.
Insufficient stakeholder inputBusiness cases developed without
(11:14):
cross-team input risk blindspots and limited buy-in.
Formalized feedback loops.
Regular meetings or workshopsto incorporate diverse
perspectives early in thebusiness case process.
Advanced tools and techniquesfor strengthening your business
cases Enhancing your businesscase methodology with advanced
analytical tools cansignificantly elevate
(11:35):
decision-making quality.
Scenario planning Scenarioplanning allows your studio to
evaluate different possiblefutures based on industry trends
, technology advances orcompetitive shifts.
Create three distinct scenariosoptimistic, moderate,
pessimistic and clearlyarticulate the decision impacts,
allowing leaders to visualizepossible outcomes.
(11:56):
Sensitivity analysis thistechnique assesses how different
variables affect overalloutcomes, identifying those with
the greatest impact.
Identify critical variablessuch as market adoption rate,
average revenue per user,developmental timeline and
calculate outcomes under variousscenarios to highlight key
(12:18):
risks and opportunities.
Monte Carlo simulations MonteCarlo simulations Monte Carlo
simulations use probabilitydistributions to calculate
outcomes under varyingconditions, delivering
data-driven insights.
Employee software tools, exceladd-ins or dedicated programs.
Simulate thousands of possibleoutcomes, providing a more
robust understanding of projectrisks.
(12:39):
Balance scorecards Balancescorecards ensure your business
case reflects financial andnon-financial impacts, such as
team morale, innovation capacityor brand reputation.
Develop standardized scorecardstailored to your studio,
ensuring decisions supportbroader strategic objectives
alongside financial goals.
(13:01):
Measuring the success of yourbusiness case decisions To know
if your business cases fordecision-making truly add value,
it's critical to measure theeffectiveness regularly Consider
tracking these key metrics.
Decision success rate thedefinition is percentage of
decisions yielding expectedoutcomes profitability,
engagement, market share.
Implement quarterly or biannualdecision reviews to track
(13:24):
accuracy and updatemethodologies based on lessons
learned.
Project cost variance sodefinition of this is actual
costs versus estimated costs fordecision made.
Maintain accurate recordscomparing projected budgets to
real expenditures, adjustingfuture estimations accordingly.
Projected budgets to realexpenditures, adjusting future
(13:46):
estimations accordingly.
Opportunity cost accuracyDefinition here is reviewing
retrospective assessments ofchosen versus forgone options.
Schedule regular opportunitycost reviews to ensure accurate
forecasting and adjustments.
Team satisfaction and alignmentDefinition here is how clearly
your team understands andsupports the rationale behind
significant decisions.
Conduct anonymous surveysquarterly to gauge internal
(14:08):
transparency, alignment andconfidence in leadership
decision-making process.
Embedding business casediscipline in the studio culture
Creating successful businesscases should not be a sporadic
event, but embedded deeplywithin your studio's culture.
And here's how toinstitutionalize the discipline.
Step one leadership modeling.
Leaders must visibly championrigorous decision making,
(14:31):
demonstrating the willingness todelay or change decisions based
on strong business caseevidence.
Step two consistent trainingand development.
Consistent training anddevelopment, regular training
sessions, workshops and externalcourses ensure your entire team
understands and can contributeeffectively to structured
decision-making.
Step three centralizeddocumentation system.
(14:52):
Maintain an accessible centralrepository, either a wiki,
confluence or SharePoint,housing all business case
templates, examples andsupporting documentation,
enhancing transparency andcollective learning.
And step four recognition andreward.
Acknowledge and reward teamswhose rigorous business case
analysis significantlycontributed to studio success,
(15:14):
reinforcing the importance andvalue of discipline practices.
Final thoughts Leading withconfidence through effective
business cases.
Navigating complex decisions inthe video game industry is never
simple, but a robust approachto developing business cases for
decision-making significantlyreduces uncertainty and enhances
outcomes.
By embedding comprehensive duediligence, precise cost analysis
(15:38):
and careful evaluation ofopportunity costs into your
leadership toolkit, you set yourstudio on a path towards
sustained success in financialhealth.
Adopting these methodologiesisn't merely administrative.
It's transformative.
As leaders, your responsibilityextends beyond creative passion
to include careful stewardshipof resources, accurate
(15:59):
forecasting of potentialoutcomes and thoughtful
alignment with strategicobjectives.
Through disciplined businesscase processes, you can approach
each critical decision withclarity, confidence and a
structured path forward.
Now take the first step.
Evaluate your currentdecision-making process.
Begin implementing theactionable steps outlined during
(16:19):
this podcast.
Encourage transparency,accountability and continuous
learning within your studioculture.
By doing so, you'll not onlysafeguard your studio's future,
but also inspire your team,stakeholders and industry peers
through thoughtful, strategicleadership built on solid,
well-structured foundations.
All right, and that's thisweek's episode of the Press
(16:42):
Start Leadership Podcast.
Thanks for listening and, asalways, thanks for being awesome
.
Thank you.
Press Start Leadership.
Hey there, press Starters andwelcome to the Press Start
(00:23):
Leadership Podcast, the podcastabout game-changing leadership,
teaching you how to get the mostout of your product and
development team and become theleader you were meant to be
Leadership coaching and trainingfor the international game
industry professional.
Now let me introduce you toyour host, the man, the myth,
(00:46):
the legend, christopher Mifsud.
Speaker 2 (00:50):
Hey there, press Starters, and welcome back to
another awesome edition of thePress Start Leadership Podcast.
On this week's episode, we'llbe discussing creating effective
business cases fordecision-making in the video
game industry a leader's guideto due diligence, cost analysis
and evaluating video gameindustry.
A Leader's Guide to DueDiligence, cost Analysis and
Evaluating Opportunity Costs forSmarter Strategic Choices.
(01:10):
Leading a video game studiomeans navigating a complex
landscape of decisions, each ofwhich can profoundly impact the
direction, profitability andsuccess of your projects.
As a leader, making informeddecisions requires much more
than intuition or creativepassion.
It demands rigorous evaluation,careful analysis and thorough
(01:31):
planning.
Central to this process is thecreation of effective business
cases for decision making.
In this guide, we'll explorehow leaders in the video game
industry can createcomprehensive business cases
that ensure clarity, minimizerisks and maximize returns.
(01:51):
We'll cover why due diligence,detailed cost analysis and
consideration of opportunitycosts are essential tools in
your leadership arsenal.
Throughout, we'll provideactionable steps you can
implement immediately, helpingyou make decisions that foster
both creative success andfinancial sustainability.
Why video game leaders needbusiness cases for
decision-making.
Whether you're launching a newIP, choosing between features to
(02:11):
implement or deciding if apartnership is viable, each
decision carries potentialopportunities and hidden
pitfalls.
Poor decision-making can coststudios millions, delay releases
and damage reputations.
Conversely, structured,data-backed decision-making
processes empower you tomitigate risks and consistently
choose pathways that lead tolong-term growth.
(02:31):
Creating a robust business casefor decision-making involves
clearly defining a problem oropportunity, evaluating
potential solutions, forecastingimpacts financial and otherwise
and articulatingrecommendations transparently.
Such disciplined analysis isessential because it allows for
better alignment, ensuringdecision support, overall studio
(02:54):
goals, improved transparency,creating clear documentation
that allows stakeholders tounderstand your reasoning.
Risk mitigation, identifyingpotential hurdles early reducing
the chance of costly errors.
Resource optimization, ensuringmoney, talent and time are
allocated efficiently.
To achieve this, you mustmaster three essential
(03:15):
components of sound decisionmaking Due diligence, cost
analysis and understandingopportunity costs.
Due diligence the foundation ofreliable business cases.
Due diligence is acomprehensive process of
research and validationconducted before making
significant decisions.
In the context of the videogame industry, due diligence
(03:38):
encompasses examining internalresources, external market
conditions, technologyfeasibility and competitor
strategies.
Why do diligence matter forgame leaders?
The video game industry isnotoriously volatile.
Technologies shift rapidly,player preferences evolve and
markets can become saturatedovernight.
Conducting rigorous duediligence helps you anticipate
(04:01):
these fluctuations and respondstrategically.
Proper due diligence includesevaluating market trends,
assessing the competitivelandscape, confirming technical
feasibility, validating audiencedemand, examining financial
stability and here's some actualsteps for effective due
diligence.
(04:21):
Market research and trendanalysis Identify current
industry trends using platformslike Steam Charts, twitch
Analytics or reports fromreputable research agencies such
as Newzoo.
Use player surveys or communityfeedback to validate
assumptions.
Competitive benchmarkingCompile a competitive analysis
matrix highlighting strengths,weaknesses, pricing strategies
(04:43):
and performance metrics ofsimilar games.
Consider potentialdifferentiators your game could
introduce.
Technical feasibilityassessment.
Conduct early prototyping orproof-of-concept demos.
Consult experienced developersor technical directors to
estimate risks and resourcerequirements realistically.
Financial health checks.
Forecast financial impact usinghistorical project data,
(05:06):
budgeting tools and revenueprojections based on comparable
projects.
Engage your financial teamearly in the decision-making
process.
Cost analysis the crucialcomponent of sound decisions In
the high-stakes environment ofvideo game production.
Accurately assessing costs,both tangible and intangible, is
pivotal.
Thorough cost analysis ensuresresources are utilized wisely,
(05:30):
project scope remains manageableand profitability goals are met
.
The types of costs leaders mustconsider Direct costs, salary,
software licenses, outsourceassets.
Indirect costs Overheads likestudio rent, utilities,
administrative expenses,variable costs, server costs,
scaling with player numbers,ongoing content creation, fixed
(05:52):
costs, equipment purchases,licensing fees, initial
development setup.
Some actual steps forconducting detailed cost
analysis Create a comprehensivebudget breakdown List all
identifiable expenses associatedwith your decision.
Categorize them clearly intodirect, indirect, fixed and
variable costs.
Forecast cash flow and expenses.
(06:14):
Build a detailed spreadsheetoutlining expected monthly
expenditures.
Factor in potential variancesor unexpected expenses as
contingency.
Analyze historical project data.
Review similar past projects tounderstand actual versus
projected costs.
Adjust current estimates basedon historical deviations to
improve accuracy.
(06:35):
Incorporate cost-benefitanalysis Clearly.
Weigh project expenses againstanticipated revenue or strategic
benefits.
Calculate return on investment,roi and break-even point to
assess financial viability.
Understanding and calculatingopportunity costs Opportunity
costs represents the value ofthe next best alternative you
(06:56):
forego when making a decision.
In the fast-paced gamingindustry, ignoring opportunity
costs can severely limit yourability to capitalize on better
market opportunities or allocateresources more effectively.
Why opportunity costs matter?
Consider this scenario.
Why opportunity costs matterConsider this scenario your
(07:17):
studio decides to dedicate itsbest team to a new AAA title
instead of developing smaller,potentially profitable
indie-style games.
The opportunity cost here isthe revenue and visibility that
smaller titles might havegenerated, possibly at lower
risk.
Carefully weighing opportunitycosts means deliberately
considering what you're givingup and making informed decisions
that maximize strategicalignment and profit potential.
(07:40):
Actual steps for evaluatingopportunity cost Identify
potential alternatives Beforemaking decisions explicitly.
List viable alternativeopportunities.
Quantify and rank eachalternative based on strategic
goals.
Quantify opportunity costsclearly.
Use projected revenues orgrowth metrics to assign a clear
monetary value to eachalternative opportunity.
(08:01):
Document these calculationstransparently to facilitate
decision making.
Use decision matrices toevaluate trade-offs.
Employ simple matrices tocompare options directly,
including potential upside risksand strategic alignment.
Involve your team in thisprocess to gain diverse
perspectives.
Conduct regular opportunityreviews.
(08:23):
Schedule quarterly or biannualreviews to reassess decisions
made and opportunity costsincurred.
Use insights from each of thesereviews to inform future
decision-making and businesscase improvements.
Bring it all together, creatinga comprehensive business case
Armed with thorough duediligence, detailed cost
(08:43):
analysis and clear opportunitycost calculations.
You can now build a compellingbusiness case that guides your
team toward confident, informeddecisions.
Key components of a businesscase document the executive
summary Briefly state theproblem and opportunity,
proposed solution and expectedbenefits.
Detailed analysis Includes yourdue diligence findings,
(09:05):
competitive analysis and marketvalidation clearly Financial
overview.
Present your cost analysis,projected revenues and ROI
calculations transparently.
Risk assessment Highlightpotential risks identified
during due diligence andsuggested mitigation strategies.
Recommendation and next stepsClearly articulate your decision
(09:26):
recommendation, timelines andrequired resources.
And here's some actual steps tobuild your business case.
Gather cross-functional input.
Collaborate with stakeholdersacross finance, production,
marketing and development forholistic insights.
Create clear documentationtemplates.
(09:46):
Use standardized business casetemplates for consistency and
ease of understanding.
Conduct structured reviews.
Present your business case toleadership in structured review
meetings to gather feedback andrefine your approach.
Implement and measure Onceapproved.
Ensure clear implementationtimelines, responsible parties
(10:07):
and ongoing measurements forsuccess metrics.
Common pitfalls to avoid inbusiness case development
Despite the clear benefits,creating a business case isn't
without challenges.
Leaders often fall into commonpitfalls that undermine
decision-making effectiveness,and here's how to avoid them.
Confirmation bias Leaders mayunintentionally seek data
supporting their existingbeliefs, neglecting
(10:27):
contradictory evidence.
Assign a devil's advocate toexplicitly challenge assumptions
and conclusions in yourbusiness case review meetings.
Advocate to explicitlychallenge assumptions and
conclusions in your businesscase review meetings.
Overlooking opportunity costsLeaders frequently neglect the
potential value of options theyreject when choosing a path
forward.
Mandate explicit documentationof opportunity cost calculations
in every business case toensure they're considered
(10:49):
systemically Incomplete oroverly optimistic.
Cost analysis Budgetprojections often underestimate
complexity or potential delays,causing unrealistic financial
expectations.
Introduce a standard buffer of10-20% in financial forecasts to
account for unforeseencontingencies.
Insufficient stakeholder inputBusiness cases developed without
(11:14):
cross-team input risk blindspots and limited buy-in.
Formalized feedback loops.
Regular meetings or workshopsto incorporate diverse
perspectives early in thebusiness case process.
Advanced tools and techniquesfor strengthening your business
cases Enhancing your businesscase methodology with advanced
analytical tools cansignificantly elevate
(11:35):
decision-making quality.
Scenario planning Scenarioplanning allows your studio to
evaluate different possiblefutures based on industry trends
, technology advances orcompetitive shifts.
Create three distinct scenariosoptimistic, moderate,
pessimistic and clearlyarticulate the decision impacts,
allowing leaders to visualizepossible outcomes.
(11:56):
Sensitivity analysis thistechnique assesses how different
variables affect overalloutcomes, identifying those with
the greatest impact.
Identify critical variablessuch as market adoption rate,
average revenue per user,developmental timeline and
calculate outcomes under variousscenarios to highlight key
(12:18):
risks and opportunities.
Monte Carlo simulations MonteCarlo simulations Monte Carlo
simulations use probabilitydistributions to calculate
outcomes under varyingconditions, delivering
data-driven insights.
Employee software tools, exceladd-ins or dedicated programs.
Simulate thousands of possibleoutcomes, providing a more
robust understanding of projectrisks.
(12:39):
Balance scorecards Balancescorecards ensure your business
case reflects financial andnon-financial impacts, such as
team morale, innovation capacityor brand reputation.
Develop standardized scorecardstailored to your studio,
ensuring decisions supportbroader strategic objectives
alongside financial goals.
(13:01):
Measuring the success of yourbusiness case decisions To know
if your business cases fordecision-making truly add value,
it's critical to measure theeffectiveness regularly Consider
tracking these key metrics.
Decision success rate thedefinition is percentage of
decisions yielding expectedoutcomes profitability,
engagement, market share.
Implement quarterly or biannualdecision reviews to track
(13:24):
accuracy and updatemethodologies based on lessons
learned.
Project cost variance sodefinition of this is actual
costs versus estimated costs fordecision made.
Maintain accurate recordscomparing projected budgets to
real expenditures, adjustingfuture estimations accordingly.
Projected budgets to realexpenditures, adjusting future
(13:46):
estimations accordingly.
Opportunity cost accuracyDefinition here is reviewing
retrospective assessments ofchosen versus forgone options.
Schedule regular opportunitycost reviews to ensure accurate
forecasting and adjustments.
Team satisfaction and alignmentDefinition here is how clearly
your team understands andsupports the rationale behind
significant decisions.
Conduct anonymous surveysquarterly to gauge internal
(14:08):
transparency, alignment andconfidence in leadership
decision-making process.
Embedding business casediscipline in the studio culture
Creating successful businesscases should not be a sporadic
event, but embedded deeplywithin your studio's culture.
And here's how toinstitutionalize the discipline.
Step one leadership modeling.
Leaders must visibly championrigorous decision making,
(14:31):
demonstrating the willingness todelay or change decisions based
on strong business caseevidence.
Step two consistent trainingand development.
Consistent training anddevelopment, regular training
sessions, workshops and externalcourses ensure your entire team
understands and can contributeeffectively to structured
decision-making.
Step three centralizeddocumentation system.
(14:52):
Maintain an accessible centralrepository, either a wiki,
confluence or SharePoint,housing all business case
templates, examples andsupporting documentation,
enhancing transparency andcollective learning.
And step four recognition andreward.
Acknowledge and reward teamswhose rigorous business case
analysis significantlycontributed to studio success,
(15:14):
reinforcing the importance andvalue of discipline practices.
Final thoughts Leading withconfidence through effective
business cases.
Navigating complex decisions inthe video game industry is never
simple, but a robust approachto developing business cases for
decision-making significantlyreduces uncertainty and enhances
outcomes.
By embedding comprehensive duediligence, precise cost analysis
(15:38):
and careful evaluation ofopportunity costs into your
leadership toolkit, you set yourstudio on a path towards
sustained success in financialhealth.
Adopting these methodologiesisn't merely administrative.
It's transformative.
As leaders, your responsibilityextends beyond creative passion
to include careful stewardshipof resources, accurate
(15:59):
forecasting of potentialoutcomes and thoughtful
alignment with strategicobjectives.
Through disciplined businesscase processes, you can approach
each critical decision withclarity, confidence and a
structured path forward.
Now take the first step.
Evaluate your currentdecision-making process.
Begin implementing theactionable steps outlined during
(16:19):
this podcast.
Encourage transparency,accountability and continuous
learning within your studioculture.
By doing so, you'll not onlysafeguard your studio's future,
but also inspire your team,stakeholders and industry peers
through thoughtful, strategicleadership built on solid,
well-structured foundations.
All right, and that's thisweek's episode of the Press
(16:42):
Start Leadership Podcast.
Thanks for listening and, asalways, thanks for being awesome
.
Thank you.
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Follow now to get the latest episodes of Dateline NBC completely free, or subscribe to Dateline Premium for ad-free listening and exclusive bonus content: DatelinePremium.com
The Breakfast Club
The World's Most Dangerous Morning Show, The Breakfast Club, With DJ Envy, Jess Hilarious, And Charlamagne Tha God!