The Update Business Case activity is a critical component of the Managing a Stage Boundary process in PRINCE2 7. This activity ensures that the project remains viable and continues to deliver value to the organization throughout its lifecycle.
During stage boundaries, the Project Manager is respon…The Update Business Case activity is a critical component of the Managing a Stage Boundary process in PRINCE2 7. This activity ensures that the project remains viable and continues to deliver value to the organization throughout its lifecycle.
During stage boundaries, the Project Manager is responsible for reviewing and updating the Business Case to reflect current circumstances. This involves assessing whether the project's expected benefits still justify the investment of time, money, and resources. The update takes into account any changes that have occurred during the previous stage, including actual costs versus planned costs, revised timelines, and any modifications to the expected benefits.
The updated Business Case must incorporate lessons learned from the completed stage. If risks have materialized or new risks have been identified, their potential impact on costs and benefits must be factored into the revised projections. Similarly, any changes to the external environment, market conditions, or organizational priorities should be reflected in the update.
The Project Manager compares the original baseline Business Case with current performance data to determine if the project remains on track to deliver its promised value. This comparison helps identify variances and enables informed decision-making about whether to proceed to the next stage.
Key elements that require updating include the costs section (reflecting actual expenditure and revised estimates for remaining work), the benefits profile (adjusting timing and magnitude of expected benefits), and the risk assessment (incorporating newly identified threats and opportunities).
The updated Business Case forms part of the End Stage Report and is submitted to the Project Board for review. This enables the board to make an informed authorization decision about whether the project should continue into the next stage. If the Business Case no longer demonstrates sufficient value, the Project Board may decide to modify the project approach, reduce scope, or in extreme cases, terminate the project prematurely to prevent further investment in an unviable endeavor.
Update Business Case - Managing a Stage Boundary Process
The Update Business Case activity is a critical component of the Managing a Stage Boundary process in PRINCE2 v7. This guide will help you understand its importance, mechanics, and how to tackle exam questions effectively.
What is Update Business Case?
The Update Business Case activity involves reviewing and revising the Business Case to reflect the current status of the project at each stage boundary. This ensures that the project remains viable and continues to justify the investment of time, money, and resources.
The Project Manager is responsible for updating the Business Case, which is then reviewed by the Project Board as part of their authorization decision for the next stage.
Why is it Important?
• Continued Justification: Projects must remain justified throughout their lifecycle. The Business Case may change as new information emerges or circumstances alter.
• Informed Decision Making: The Project Board needs current, accurate information to decide whether to proceed with the next stage.
• Benefits Tracking: Updating allows for revised benefit projections based on actual progress and any changes that have occurred.
• Cost Accuracy: Actual costs can be compared with forecasts, and future cost estimates can be refined.
• Risk Assessment: The risk profile may have changed, affecting the overall viability of the project.
How it Works
During the Managing a Stage Boundary process, the Project Manager performs the following activities related to the Business Case:
1. Review Current Status: Assess what has been achieved versus what was planned in the current stage.
2. Update Costs: Record actual costs incurred and revise estimates for remaining work based on experience gained.
3. Revise Benefits: Update expected benefits based on any changes to the project's products or timeline.
4. Reassess Timescales: Adjust projected completion dates if necessary.
5. Review Risks: Consider how the risk profile has changed and its impact on the Business Case.
6. Document Changes: Record all updates clearly in the Business Case document.
The updated Business Case becomes part of the End Stage Report and supports the Stage Plan for the next stage.
Key Elements to Update
• Expected benefits and dis-benefits • Projected costs (actual and forecast) • Timescales • Return on investment calculations • Major risks affecting viability • Any options that have been reconsidered
Exam Tips: Answering Questions on Update Business Case
Tip 1: Remember that updating the Business Case is the Project Manager's responsibility, not the Project Board's. The Board reviews and approves it.
Tip 2: Know that this activity occurs at every stage boundary, not just at the end of the project.
Tip 3: Understand the connection between the Business Case update and the End Stage Report - they work together to inform the Project Board's decision.
Tip 4: Questions may test whether you know what triggers a Business Case update. The answer is reaching a stage boundary or when an exception situation occurs.
Tip 5: Be clear that the purpose is to confirm continued business justification. If a project is no longer viable, this update would reveal that fact.
Tip 6: Look for questions about who uses the updated Business Case. The primary audience is the Project Board for their authorization decision.
Tip 7: Remember that the Business Case is a living document - it evolves throughout the project and is not static after initiation.
Tip 8: When facing scenario questions, consider whether the situation described shows a need to reassess project viability - this often points to updating the Business Case.