The Business Case Document is a fundamental component of the PRINCE2 7 methodology, serving as the primary justification for initiating and continuing a project. This document captures the essential information that demonstrates why a project is worthwhile and should receive organizational investme…The Business Case Document is a fundamental component of the PRINCE2 7 methodology, serving as the primary justification for initiating and continuing a project. This document captures the essential information that demonstrates why a project is worthwhile and should receive organizational investment.
The Business Case contains several key elements. First, it outlines the Executive Summary, providing a brief overview of the project's purpose and expected value. The Reasons section explains why the project is needed, addressing the problem or opportunity being pursued.
Business Options are documented to show alternative approaches considered, including the do nothing scenario, do the minimum option, and the recommended solution. This demonstrates that proper analysis has been conducted before committing resources.
The Expected Benefits section details the measurable improvements the organization will gain upon project completion. These benefits should be quantifiable where possible and linked to specific business objectives. Conversely, Expected Dis-benefits acknowledge any negative consequences that may result from the project.
Timescales indicate when benefits will be realized, while Costs provide a comprehensive view of the investment required, including development, operational, and maintenance expenses. The Investment Appraisal section presents financial analysis such as return on investment, net present value, or payback period.
Major Risks are summarized to ensure decision-makers understand potential threats to achieving the projected value. The document evolves throughout the project lifecycle, being created during the Starting Up phase, refined during Initiation, and reviewed at each stage boundary.
The Project Board uses the Business Case to make continued viability decisions. If circumstances change and the Business Case becomes invalid, the project should be stopped to prevent wasteful spending. This ensures projects remain aligned with organizational strategy and deliver genuine value rather than continuing simply because they started.
Business Case Document - Complete Guide
What is the Business Case Document?
The Business Case Document is the primary document that captures and maintains the justification for a PRINCE2 project. It answers the fundamental question: Why should this project be undertaken? The document evolves throughout the project lifecycle, starting as an outline during project initiation and being refined and updated as the project progresses.
Why is the Business Case Document Important?
The Business Case Document serves several critical purposes:
• Justification: It provides evidence that the project is worthwhile, desirable, viable, and achievable • Decision-making: It enables the Project Board to make informed go/no-go decisions at key points • Alignment: It ensures the project remains aligned with corporate, programme, or customer objectives • Investment appraisal: It documents the costs, benefits, risks, and timescales to support investment decisions • Ongoing validity: It acts as a living document that is regularly reviewed and updated to confirm continued justification
Contents of the Business Case Document
The Business Case Document typically includes:
• Executive summary: A brief overview of the key information • Reasons: Why the project is needed and the problems or opportunities it addresses • Business options: Options considered including doing nothing, doing the minimum, and doing something • Expected benefits: Measurable improvements resulting from project outcomes • Expected dis-benefits: Negative consequences that stakeholders perceive as undesirable • Timescales: When benefits will be realized • Costs: Project costs, ongoing operations, and maintenance costs • Investment appraisal: Comparison of costs against benefits • Major risks: Summary of key threats and opportunities
How the Business Case Document Works
The Business Case Document follows a development path through the project:
1. Pre-project: An outline Business Case is created as part of the Project Brief
2. Initiation Stage: The outline is developed into a detailed Business Case and becomes part of the Project Initiation Documentation (PID)
3. During the Project: The Business Case is verified and updated at the end of each management stage and when Exception Plans are produced
4. Project Closure: The Business Case is reviewed to confirm expected benefits and plan for post-project benefits reviews
The Executive is responsible for the Business Case throughout the project, though the Project Manager typically maintains the document.
Exam Tips: Answering Questions on Business Case Document
• Remember ownership: The Executive owns the Business Case - this is frequently tested
• Know the timing: Questions often ask when the Business Case is created, updated, or reviewed. Remember it starts as an outline and evolves throughout the project
• Distinguish benefits from dis-benefits: Benefits are positive improvements; dis-benefits are negative but accepted consequences
• Understand the three options: Do nothing, do minimum, and do something are the standard business options to consider
• Link to decision points: The Business Case is verified at each end stage assessment to confirm continued justification
• Connect to principles: The Business Case supports the continued business justification principle - a project must remain justified throughout its life
• Watch for role questions: The Project Manager maintains the document, but the Executive is accountable for ensuring justification
• Benefits realization: Remember that most benefits are realized after the project closes, which is why benefits reviews are planned
• Read carefully: Exam questions may test whether you understand the difference between the Business Case document and the Business Case practice