Executive Approval Memo Template – Free Word Download

Introduction

In the corporate world, the most brilliant project ideas often die not because they are flawed, but because they are communicated poorly to the people holding the purse strings. The Executive Approval Memo is the vehicle for decision-making. Unlike a Project Charter, which is a detailed governance document, or a Business Case, which is a comprehensive financial model, the Executive Memo is a persuasive summary designed for one specific purpose: to get a signature.

Executives are time-poor. They do not have the bandwidth to read a 50-page technical specification. They need the “Bottom Line Up Front” (BLUF). They need to know what you want, why you want it, how much it costs, and what happens if they say no. This document is the bridge between the detailed planning of the project team and the strategic decision-making of the C-Suite.

This template is structured to guide you through the art of executive communication. It forces you to distill complex information into clear, actionable insights. It covers the strategic alignment, the financial ask, the risk profile, and the alternatives considered.

Writing this memo requires a shift in mindset. You are no longer a Project Manager reporting status; you are a salesperson pitching an investment. You must demonstrate that the value of the project exceeds the cost and that the risks are managed. Use this template when seeking approval for a new project, a significant change in scope (Change Request), or an authorization for additional budget.

Section 1: The Executive Summary

Instructions:

This is the most important section of the document. Many executives will read only this section. It must be a standalone summary that contains the “Ask” and the “Why.”

1.1 The “Ask”

Instructions:

State clearly and immediately what you are requesting. Do not bury the lead. Use bold text for the money figures.

Example:

“This memo seeks approval for a capital investment of $1.5 Million to acquire and implement the new ‘Global HRIS’ software platform. We request authorization to sign the vendor contract by October 31st to secure Q4 pricing incentives.”

1.2 The Business Justification (The “Why”)

Instructions:

In 2-3 sentences, explain the primary driver. Is it to save money? To comply with a new law? To capture a new market?

Example:

“The current legacy HR system is reaching End-of-Life (EOL) in December, posing a severe risk to payroll continuity. The new platform will mitigate this risk, ensure compliance with new GDPR regulations, and reduce annual operating costs by 15% through automation.”

Tips for Success:

Avoid technical jargon here. Do not talk about “server latency” or “API integrations.” Talk about “risk,” “revenue,” and “cost.” Speak the language of the boardroom.

Section 2: Background and Problem Statement

Instructions:

Provide the context. How did we get here? Assume the reader has no prior knowledge of the project’s history.

2.1 Current Situation (The “As-Is”)

Instructions:

Describe the pain. What is broken? What is the opportunity cost of the current state?

• Operational Pain: [e.g., “Our sales team currently spends 4 hours a week manually entering data into Excel. This totals 20,000 lost productivity hours annually.”]
• Financial Impact: [e.g., “We are paying $200k annually in maintenance fees for a system that crashes weekly.”]
• Risk Exposure: [e.g., “The current manual process has a 5% error rate, leading to frequent customer billing disputes.”]

2.2 The Trigger Event

Instructions:

Why are we asking for this now?

• Trigger: [e.g., “The vendor has announced they will stop supporting our current version on Jan 1st,” or “Our competitor just launched a mobile app, and we are losing market share.”]

Guidance:

Creating a sense of urgency is critical. If the executive thinks this decision can wait until next quarter, they will defer it. You must explain why delay is dangerous or costly.

Section 3: The Proposed Solution

Instructions:

What are we buying or building? Keep this high-level but specific enough to be tangible.

3.1 Scope Summary

Instructions:

List the primary deliverables.

• Deliverable 1: [e.g., Implementation of the Workday ERP module.]
• Deliverable 2: [e.g., Migration of 5 years of historical financial data.]
• Deliverable 3: [e.g., Training for 500 finance staff users.]

3.2 Key Benefits (Tangible and Intangible)

Instructions:

What does the organization get in return?

Table 3.1: Benefit Realization

Benefit Category	Description	Metric / KPI
Hard Savings	Reduction in server hosting fees.	$50,000 / year saved.
Productivity	Faster financial close process.	Close time reduced from 10 days to 5 days.
Compliance	Automated audit trails.	Zero audit findings.

3.3 Strategic Alignment

Instructions:

Link the project to the company’s annual goals. This proves the project is not a “pet project” but a strategic necessity.

• Corporate Goal: [e.g., “Digitize the Customer Experience.”]
• Project Contribution: [e.g., “This project launches the mobile portal, directly supporting the digitization goal.”]

Section 4: Financial Analysis

Instructions:

This is the section the CFO will scrutinize. You must be precise with your numbers. Distinguish clearly between CAPEX (Capital Expenditure) and OPEX (Operational Expenditure).

4.1 Cost Breakdown

Table 4.1: Estimated Investment

Cost Component	Year 1 (Implementation)	Year 2 (Run)	Year 3 (Run)	Total
CAPEX (Hardware/Licenses)	$500,000	$0	$0	$500,000
OPEX (Maintenance/Cloud Fees)	$50,000	$100,000	$100,000	$250,000
Implementation Labor (Consultants)	$200,000	$0	$0	$200,000
Internal Staff Costs (Backfill)	$50,000	$0	$0	$50,000
TOTAL REQUEST	$800,000	$100,000	$100,000	$1,000,000

Guidance:

• CAPEX: Usually one-time costs that can be depreciated (an asset). Executives often prefer CAPEX because it doesn’t hit the P&L (Profit and Loss) statement all at once.
• OPEX: Ongoing costs. Executives dislike OPEX because it hurts EBITDA immediately. Be clear about the split.

4.2 Return on Investment (ROI)

Instructions:

Show the math. Is this a good investment?

• Payback Period: [e.g., 18 Months. (We will earn back the $1M cost in 1.5 years).]
• Net Present Value (NPV): [e.g., $450,000 over 5 years.]
• ROI %: [e.g., 120%.]

Tips for Success:

If the project does not have a hard financial return (e.g., a Regulatory Compliance project), state this clearly. “The ROI for this project is risk avoidance, specifically the avoidance of potential fines up to $10M.”

Section 5: Options Analysis

Instructions:

Executives want to know that you considered alternatives. Presenting only one option looks like you are forcing their hand. Present at least three options.

Table 5.1: Alternative Scenarios

Option	Description	Pros	Cons	Recommendation
Option 1: Do Nothing	Keep using the current legacy system.	Zero upfront cost.	High risk of crash; 5% annual cost increase; non-compliance.	Reject
Option 2: The Proposal	Implement the new Cloud Platform.	Scalable; Compliant; ROI in 18 months.	High upfront cost ($1M).	Recommended
Option 3: Partial Fix	Upgrade the existing server (Patch).	Lower cost ($200k).	Short-term fix only; problem returns in 2 years.	Reject

Guidance:

“Option 1: Do Nothing” is mandatory. You must always explain the consequence of inaction. Often, the cost of doing nothing (fines, lost sales) is higher than the cost of the project, which is a powerful argument.

Section 6: Risk Assessment

Instructions:

Show that you are realistic. Every project has risks. Acknowledging them builds credibility.

6.1 Top 3 Risks

Table 6.1: Key Risks and Mitigations

Risk Description	Impact	Mitigation Strategy
Scope Creep	Project cost could balloon if new features are added.	Strict Change Control Board (CCB) governance implemented.
Adoption Failure	Staff may refuse to use the new complex tool.	$50k allocated specifically for Change Management and Training.
Vendor Delay	Vendor may miss the Q4 deadline.	Contract includes penalty clauses for late delivery.

Tips for Success:

Focus on business risks, not just technical risks. Executives worry about “Reputation” and “Business Continuity” more than “Software Bugs.”

Section 7: Implementation Timeline

Instructions:

When will they see results? Provide a high-level roadmap.Opens in a new windowGetty Images Project Schedule Calendar Timeline

7.1 Key Milestones

• Approval Date: [Oct 31]
• Kick-off: [Nov 15]
• Design Complete: [Jan 30]
• UAT (Testing) Start: [Apr 15]
• Go-Live: [Jun 1]

7.2 Resource Requirements

Instructions:

Does the approval include headcount? Or just money?

• Internal Staff: [e.g., “We require 50% of the Finance Director’s time for 3 months.”]
• New Hires: [e.g., “We request approval to hire 1 full-time Project Manager.”]

Section 8: Recommendation and Next Steps

Instructions:

Bring it home. Summarize the pitch and define the immediate next action.

8.1 Final Recommendation

“Based on the financial analysis and risk assessment, the Project Team recommends Option 2. This option provides the best balance of long-term stability and financial return. It solves the immediate compliance risk while positioning the company for future growth.”

8.2 Immediate Next Steps

If approved, the team will:

1. Sign the contract with [Vendor Name] by [Date].
2. Issue the Purchase Order for the hardware.
3. Mobilize the project team and schedule the Kick-off.

Section 9: Approval Signatures

Instructions:

This section formalizes the decision. Ensure the right people are listed.

Approved By:

__________________________________ Date: ______________

[Name], Chief Information Officer (CIO)

Endorses technical feasibility and IT budget.

__________________________________ Date: ______________

[Name], Chief Financial Officer (CFO)

Approves financial expenditure and ROI model.

__________________________________ Date: ______________

[Name], Project Sponsor / VP of Operations

Endorses business need and outcome.

Conclusion – Executive Approval Memo Template – Free Word Download

The Executive Approval Memo is a test of clarity. If you cannot explain why you need $1 million in two pages, you probably don’t understand the project well enough to spend it.

This document serves as the “Green Light.” Once signed, it should be stored in the project’s permanent governance file. It becomes the baseline against which the project is measured. If, six months from now, the project is over budget, the auditors will look at this memo to see what was originally promised.

Therefore, accuracy is paramount. Do not over-promise on benefits just to get approval. Do not under-estimate costs just to make the ROI look better. Be honest, be direct, and use this memo to build a shared understanding of success between the project team and the executive leadership.

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Meta Description:

A persuasive Executive Approval Memo template designed to secure project funding and authorization, covering business justification, financial analysis (ROI/NPV), risks, and options.

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