The Business Case is a fundamental practice in PRINCE2 7 that maintains a strong relationship with the core principles of the methodology. This practice ensures that every project remains justified throughout its lifecycle by demonstrating continued business viability and value delivery.
The Busin…The Business Case is a fundamental practice in PRINCE2 7 that maintains a strong relationship with the core principles of the methodology. This practice ensures that every project remains justified throughout its lifecycle by demonstrating continued business viability and value delivery.
The Business Case connects directly to the principle of 'Continued Business Justification,' which states that a valid reason must exist for starting and continuing a project. The Business Case document captures this justification by outlining expected benefits, costs, risks, and timelines. If at any point the Business Case becomes invalid, the project should be stopped or redirected.
The relationship extends to the principle of 'Learn from Experience' as the Business Case evolves based on lessons from previous projects and ongoing project activities. Historical data about benefits realization helps create more accurate forecasts and assumptions.
Regarding 'Define Roles, Responsibilities, and Relationships,' the Business Case clarifies who is accountable for benefits delivery. The Executive owns the Business Case and is responsible for ensuring the project delivers value to the organization.
The principle of 'Manage by Stages' connects with the Business Case through regular reviews at stage boundaries. Each stage gate provides an opportunity to reassess whether the Business Case remains viable before committing additional resources.
The 'Manage by Exception' principle allows escalation when Business Case tolerances are threatened, enabling timely decisions about project continuation.
The Business Case also supports 'Focus on Products' by linking deliverables to specific benefits and outcomes. This ensures that what the project produces aligns with organizational value expectations.
Finally, 'Tailor to Suit the Project' applies to the Business Case practice itself, allowing organizations to scale the documentation and review processes according to project complexity and organizational needs. This ensures appropriate governance while maintaining flexibility.
Business Case and Principles Relationship
Why is this Important?
Understanding the relationship between the Business Case and PRINCE2 principles is fundamental to passing the PRINCE2 Foundation V7 exam. The Business Case practice does not operate in isolation; it is deeply interconnected with the seven PRINCE2 principles. Examiners frequently test whether candidates can identify how the Business Case supports and demonstrates these principles in action.
What is the Business Case and Principles Relationship?
The Business Case practice provides the mechanism through which several PRINCE2 principles are applied throughout a project. The most significant relationships include:
Continued Business Justification: This is the most critical connection. The Business Case is the documented evidence that justifies the project's existence. It must be maintained and reviewed throughout the project lifecycle to ensure ongoing viability. If the Business Case becomes invalid, the project should be stopped.
Learn from Experience: The Business Case incorporates lessons from previous projects when estimating costs, benefits, and risks. Historical data and organizational experience inform realistic projections.
Defined Roles and Responsibilities: The Executive is responsible for the Business Case. The Project Board uses it to make decisions, and the Project Manager maintains it on behalf of the Executive.
Manage by Exception: The Business Case defines tolerances for costs and benefits. Deviations beyond these tolerances trigger exception procedures.
Manage by Stages: The Business Case is reviewed at each stage boundary to confirm continued justification before authorizing the next stage.
Focus on Products: The products delivered must align with the benefits identified in the Business Case.
Tailor to Suit the Project: The level of detail in the Business Case should be appropriate to the project's size, complexity, and risk profile.
How Does This Work in Practice?
At project initiation, an outline Business Case is developed. This is refined into a detailed Business Case during the Initiation Stage. At each stage boundary, the Business Board reviews the Business Case to confirm the project remains viable. The Business Case is updated to reflect actual costs and revised forecasts. Post-project, benefits reviews verify whether the Business Case projections were accurate.
Exam Tips: Answering Questions on Business Case and Principles Relationship
1. Remember the Executive owns the Business Case: Questions about accountability for the Business Case always point to the Executive, not the Project Manager.
2. Link Continued Business Justification to every stage: The principle requires ongoing validation, not just initial approval. Look for answers emphasizing regular review.
3. Stage boundaries are key decision points: Questions about when the Business Case is reviewed should lead you to stage boundaries and project closure.
4. Stopping a project can be a positive outcome: If the Business Case is no longer valid, terminating the project demonstrates good governance, not failure.
5. Watch for trap answers: Incorrect options may suggest the Business Case is only created once or that it belongs to the Project Manager.
6. Connect benefits to justification: The Business Case exists to demonstrate value. Benefits realization is central to proving continued justification.
7. Tailoring applies to the Business Case: For small projects, a simpler Business Case may be appropriate. Do not assume every project needs the same level of detail.
8. Read questions carefully: Distinguish between creating, maintaining, and approving the Business Case, as different roles have different responsibilities for each activity.