The Business Case in PRINCE2 follows a specific development path that evolves throughout the project lifecycle. Initially, in the Starting Up a Project process, an outline Business Case is created containing a general understanding of the reasons for the project, expected benefits, risks, costs, an…The Business Case in PRINCE2 follows a specific development path that evolves throughout the project lifecycle. Initially, in the Starting Up a Project process, an outline Business Case is created containing a general understanding of the reasons for the project, expected benefits, risks, costs, and timeframes. This early version informs the decision on whether to initiate the project. During the Initiating a Project process, this outline is developed into a more detailed, refined Business Case with comprehensive analysis of benefits, costs, risks, and timelines. At this point, it becomes a key component of the Project Initiation Documentation (PID). As the project progresses through management stages, the Business Case undergoes regular reviews and updates to reflect changing circumstances, new information, and evolving assumptions. This happens during the Managing a Stage Boundary process at the end of each management stage. The Project Board uses the updated Business Case to determine whether the project remains viable and should continue to the next stage. In the Closing a Project process, a final review of the Business Case occurs to confirm the project has achieved its objectives and that arrangements are in place for realizing post-project benefits. This development path ensures that the Business Case remains a living document throughout the project, continually informing decision-making rather than becoming a static document created once and then forgotten. The progressive elaboration of the Business Case allows for greater accuracy and relevance as more information becomes available during project execution.
Business Case Development Path in PRINCE2 Foundation
What is the Business Case Development Path?
The Business Case Development Path in PRINCE2 is a structured sequence that outlines how a Business Case evolves throughout a project's lifecycle. It defines the progressive development of the Business Case from an initial concept through to project completion and benefits realization.
Why is the Business Case Development Path Important?
The Development Path is crucial because it: • Ensures the project remains viable and aligned with organizational objectives • Provides a framework for continuous justification assessment • Helps track whether the project remains a worthwhile investment • Supports informed decision-making at key points in the project • Creates accountability for benefits realization
How the Business Case Development Path Works
The Development Path follows these stages:
1. Starting Up a Project (SU) • The Executive develops the outline Business Case • This contains high-level justification for the project • Helps decide if the project is worth initiating
2. Initiating a Project (IP) • The Executive refines the Business Case with more detailed analysis • Project Manager contributes with estimates and schedules • The detailed Business Case is created including costs, benefits, and risks
3. Managing Stage Boundaries (SB) • The Business Case is updated at the end of each management stage • New information and project performance influence updates • The Project Board uses the updated Business Case to decide whether to proceed
4. Closing a Project (CP) • Final review of the project performance against the Business Case • Assessment of benefits already achieved • Plan for measuring post-project benefits
5. Benefits Review Plan • Extends beyond the project to track and measure benefits realization • Ensures the organization achieves projected benefits
Key Roles in the Development Path:
• Executive: Responsible for the Business Case • Project Manager: Maintains the Business Case with input from relevant stakeholders • Project Board: Reviews and approves the Business Case at key decision points
Exam Tips: Answering Questions on Business Case Development Path
1. Know the stages: Memorize the progression from outline to detailed Business Case through the PRINCE2 processes.
2. Understand role responsibilities: Be clear that the Executive owns the Business Case while the Project Manager maintains it.
3. Focus on timing: Remember when the Business Case is developed (SU), refined (IP), updated (SB), and finalized (CP).
4. Recognize approval points: The Project Board approves the Business Case at stage boundaries to authorize work to continue.
5. Connect with other themes: Understand how the Business Case relates to Risk, Change, and Progress themes.
6. Be aware of common question types: • Sequencing questions about development stages • Role responsibility questions • Questions about when updates occur • Scenario-based questions about Business Case decisions
7. Remember the principle: Questions often link to the "Continued Business Justification" principle.
8. Benefits focus: Pay attention to questions about benefits measurement and the Benefits Review Plan.
When answering exam questions, always consider the context of the project lifecycle stage mentioned in the question, as this often provides clues about the correct state of the Business Case at that point.