The Business Case Practice in PRINCE2 7 serves a fundamental purpose of establishing and maintaining the justification for a project throughout its entire lifecycle. This practice ensures that every project undertaken delivers genuine value to the organization and remains aligned with strategic obj…The Business Case Practice in PRINCE2 7 serves a fundamental purpose of establishing and maintaining the justification for a project throughout its entire lifecycle. This practice ensures that every project undertaken delivers genuine value to the organization and remains aligned with strategic objectives.
The primary purpose is to provide a structured mechanism for assessing whether a project is worthwhile, viable, and achievable. It enables decision-makers to evaluate the investment required against the anticipated benefits, ensuring resources are allocated to initiatives that offer the best return.
The Business Case Practice establishes clear accountability for benefit realization. It defines who is responsible for achieving the projected outcomes and creates a framework for measuring success. This accountability extends beyond project completion, as benefits often materialize after the project has closed.
Another key purpose is to support informed decision-making at critical points during the project. At each stage boundary, the business case is reviewed to confirm continued justification. If circumstances change or benefits become unattainable, the practice provides a basis for stopping or redirecting the project, preventing wasteful expenditure.
The practice also facilitates communication between stakeholders by documenting costs, benefits, risks, and timescales in a consistent format. This transparency helps secure and maintain commitment from sponsors and other key parties.
Furthermore, the Business Case Practice integrates with other PRINCE2 practices, particularly Risk and Plans. It considers uncertainties that might affect benefit delivery and incorporates cost and time estimates from planning activities.
The practice supports the PRINCE2 principle of continued business justification, which states that a valid business case must exist throughout the project. If justification disappears, the project should be closed. This ensures organizational resources are never committed to endeavors that cannot demonstrate clear value and alignment with business strategy.
Business Case Practice Purpose - Complete Guide
Introduction
The Business Case practice is one of the seven practices in PRINCE2 7th edition (V7) and serves as the foundation for project justification throughout the project lifecycle. Understanding its purpose is essential for the PRINCE2 Foundation exam.
What is the Business Case Practice?
The Business Case practice provides a structured approach to determining whether a project is and remains desirable, viable, and achievable. It documents the justification for undertaking a project based on the estimated costs, risks, and expected benefits.
The Purpose of the Business Case Practice
The purpose of the Business Case practice is to establish mechanisms to judge whether the project is and remains desirable, viable, and achievable. This means:
• Desirable: The project outcomes are worth having and align with organizational objectives • Viable: The project can deliver products that will achieve the expected benefits • Achievable: The project can be delivered within acceptable constraints
Why is the Business Case Practice Important?
1. Investment Decision Support: It helps decision-makers determine if the project represents a worthwhile investment
2. Continued Justification: The business case is reviewed at key decision points to ensure the project remains justified
3. Alignment with Strategy: It ensures the project supports organizational objectives and strategic goals
4. Accountability: It provides a clear basis for measuring project success against planned benefits
5. Risk-Benefit Analysis: It allows comparison of expected benefits against costs and risks
How the Business Case Practice Works
The business case is developed progressively through the project:
1. Pre-project: An outline business case is created during the Starting Up a Project process
2. Initiation: The business case is detailed during the Initiating a Project process
3. Throughout the project: The business case is maintained and verified at each stage boundary
4. Post-project: Benefits are reviewed to confirm the business case was achieved
Key Elements of the Business Case
• Executive summary • Reasons for the project • Options considered • Expected benefits and dis-benefits • Timescales • Costs • Investment appraisal • Major risks
Exam Tips: Answering Questions on Business Case Practice Purpose
Tip 1: Remember the three key words: desirable, viable, and achievable. These frequently appear in exam questions about business case purpose.
Tip 2: The business case is owned by the Executive, who is accountable for project justification. Do not confuse ownership with other roles.
Tip 3: Understand that the business case is a living document that evolves and is verified throughout the project, not just created once at the start.
Tip 4: When asked about the purpose of the Business Case practice, look for answers that mention judging or assessing project justification rather than answers about planning or controlling work.
Tip 5: The business case supports the continued business justification principle. Questions may test your understanding of how these connect.
Tip 6: Be careful to distinguish between the Business Case practice purpose (why it exists) and the business case document (what it contains).
Tip 7: If an answer option mentions the business case being created only at the start and never updated, this is incorrect. The business case must be reviewed and updated at stage boundaries.
Common Exam Question Types
• Identifying the purpose statement for the Business Case practice • Understanding who is responsible for the business case • Knowing when the business case is created, reviewed, and updated • Recognizing how the business case supports decision-making at stage gates