The Business Case Lifecycle in PRINCE2 7 is a continuous process that ensures the project remains viable and justified throughout its duration. It operates through four key stages: Develop, Verify, Maintain, and Confirm.
Develop: During the pre-project and initiation stages, the Business Case is cā¦The Business Case Lifecycle in PRINCE2 7 is a continuous process that ensures the project remains viable and justified throughout its duration. It operates through four key stages: Develop, Verify, Maintain, and Confirm.
Develop: During the pre-project and initiation stages, the Business Case is created. Initially, an outline Business Case is produced during the Starting Up a Project process, capturing preliminary information about expected benefits, costs, risks, and timescales. This is then refined into a detailed Business Case during the Initiating a Project process, providing comprehensive justification for the project investment.
Verify: At each stage boundary, the Business Case is reviewed to ensure the project continues to be worthwhile. The Project Board assesses whether the expected benefits still outweigh the costs and risks. If the Business Case is no longer viable, the project may be stopped, preventing unnecessary expenditure on a project that will not deliver value.
Maintain: Throughout the project lifecycle, the Business Case must be kept current. As circumstances change, costs fluctuate, or new information emerges, the Business Case is updated to reflect the current reality. This ensures decision-makers always have accurate information when making choices about the projects future.
Confirm: After the project closes, the organization reviews whether the anticipated benefits have been realized. This often occurs through post-project benefits reviews, which may take place weeks or months after project completion, as some benefits only materialize over time.
The Business Case is owned by the Executive, who is accountable for ensuring the project delivers value for money. This lifecycle approach ensures that projects are not just started with good intentions but are continuously monitored to guarantee they remain aligned with organizational objectives and deliver the promised return on investment. The Business Case serves as the primary driver for all major project decisions.
Business Case Lifecycle in PRINCE2 Foundation v7
Why is the Business Case Lifecycle Important?
The Business Case Lifecycle is fundamental to PRINCE2 because it ensures that a project remains viable and continues to deliver value throughout its duration. It serves as the primary mechanism for keeping the project aligned with organizational objectives and provides the justification for continued investment of resources, time, and money.
What is the Business Case Lifecycle?
The Business Case Lifecycle refers to the continuous development, maintenance, and verification of the Business Case document from the very beginning of a project through to its completion and beyond. In PRINCE2, the Business Case is not a static document created once and forgotten; it is a living document that evolves as the project progresses.
The lifecycle consists of four key stages:
1. Develop The Business Case is first outlined during the Starting up a Project process and then fully developed during the Initiating a Project process. This establishes the initial justification for the project.
2. Verify At each stage boundary, the Business Case is verified to ensure the project remains desirable, viable, and achievable. The Project Board reviews whether continuing the project is still justified.
3. Maintain Throughout the project, the Business Case must be updated to reflect any changes in costs, timelines, benefits, or risks. This ensures the document remains accurate and relevant.
4. Confirm During project closure and post-project review, the actual benefits achieved are compared against the expected benefits outlined in the Business Case. This confirms whether the investment was worthwhile.
How Does the Business Case Lifecycle Work?
The Business Case Lifecycle operates in conjunction with the PRINCE2 processes:
- During Starting up a Project, an outline Business Case is created to provide initial justification - During Initiating a Project, the detailed Business Case is developed as part of the Project Initiation Documentation - During Managing a Stage Boundary, the Business Case is reviewed and updated at each stage transition - During Controlling a Stage, any changes that affect the Business Case trigger updates - During Closing a Project, the Business Case is reviewed to assess benefit realization - Post-project, benefits reviews are conducted to confirm actual benefits against projections
The Executive owns the Business Case and is accountable for ensuring the project delivers value. However, the Project Manager is responsible for keeping it updated.
Key Elements Reviewed During the Lifecycle:
- Expected benefits and dis-benefits - Costs and timelines - Risks affecting viability - Investment appraisal information - Major assumptions
Exam Tips: Answering Questions on Business Case Lifecycle
Tip 1: Remember the Four Stages Memorize the sequence: Develop, Verify, Maintain, Confirm. Questions often test whether you understand when each activity occurs.
Tip 2: Know the Ownership The Executive owns the Business Case. This is a frequently tested point. The Project Manager maintains it, but the Executive is accountable for its accuracy and validity.
Tip 3: Understand Stage Boundaries Questions may ask when the Business Case is reviewed. Remember that verification happens at every stage boundary, making it a continuous process throughout the project.
Tip 4: Link to Continued Business Justification The Business Case Lifecycle supports the PRINCE2 principle of continued business justification. If asked about how this principle is applied, the lifecycle is the practical mechanism.
Tip 5: Post-Project Benefits Remember that benefit confirmation often occurs after the project closes. Some benefits take time to materialize, requiring post-project reviews.
Tip 6: Watch for Trap Answers Avoid answers suggesting the Business Case is only created once or remains unchanged. PRINCE2 emphasizes the dynamic nature of project justification.
Tip 7: Context Matters When given scenario-based questions, identify which stage of the lifecycle is being described and match it to the appropriate activity or responsibility.