Continued Business Justification
Continued Business Justification is one of the seven fundamental principles in PRINCE2 methodology that ensures a project remains viable throughout its lifecycle. This principle emphasizes that a project must have a valid business reason to start, and this justification must remain valid throughout the project's duration. If at any point the business justification ceases to exist, the project should be reconsidered or terminated. The business case document serves as the primary record of the justification, containing information about expected benefits, estimated costs, timeframes, and investment appraisal. This document isn't static but evolves as the project progresses, with regular reviews at decision points such as the end of each management stage. The project board holds the ultimate responsibility for ensuring continued business justification, but the project manager prepares and maintains the business case. This principle prevents organizations from wasting resources on projects that no longer contribute to business objectives. It also forces stakeholders to explicitly define why they're undertaking the project and what business value they expect to achieve. By constantly revisiting the justification, PRINCE2 ensures that changing circumstances or new information can trigger a reassessment of the project's viability. This principle connects directly to the business case theme within PRINCE2 and supports the 'manage by exception' approach by providing clear criteria against which performance and viability can be assessed. In essence, this principle ensures that organizational resources are used effectively by maintaining focus on delivering business value throughout the project lifecycle.
Continued Business Justification: A Comprehensive Guide
What is Continued Business Justification?
Continued Business Justification is one of the seven fundamental PRINCE2 principles. It establishes that a project should have a valid reason to start, and this justification must remain valid throughout the project's lifecycle. If at any point the business justification becomes invalid, the project should be reconsidered or terminated.
Why is Continued Business Justification Important?
The importance of this principle lies in ensuring that projects deliver value to the organization. By maintaining focus on business justification:
- Resources are only invested in viable ventures
- Projects align with strategic objectives
- Decision-making remains tied to business benefits
- The organization avoids wasting resources on projects that no longer serve their purpose
- Stakeholders maintain confidence in the project's value
How Continued Business Justification Works
The principle operates through several key mechanisms:
1. The Business Case
At the heart of this principle is the Business Case document, which:
- Outlines why the project is needed
- Details expected benefits, costs, timeframes and risks
- Gets developed in the Starting Up a Project process
- Is refined during Initiating a Project
- Requires formal approval to proceed
2. Regular Reviews
The Business Case undergoes assessment at key decision points:
- At stage boundaries
- When major issues arise
- During exception situations
- At project closure
3. Responsibility Structure
- The Executive is ultimately responsible for the Business Case
- The Project Board makes go/no-go decisions based on Business Case viability
- The Project Manager maintains the Business Case with current information
How to Answer Exam Questions on Continued Business Justification
Key Concepts to Remember:
1. Ongoing Validity: Understand that justification must remain valid from project inception to completion
2. Business Case Document: Know that the Business Case is the formal documentation of business justification
3. Review Points: Recognize stage boundaries and exception points as key moments for reviewing justification
4. Roles and Responsibilities: Be clear about who is responsible for developing, maintaining and approving the Business Case
5. Premature Closure: Acknowledge that projects should close early if justification ceases to exist
Exam Tips: Answering Questions on Continued Business Justification
1. Focus on the 'why': Remember that this principle addresses why we do projects, not just how
2. Link to other principles: Connect this principle to 'Learn from Experience' and 'Defined Roles and Responsibilities' in your answers when relevant
3. Emphasize review points: Highlight that justification is assessed at stage boundaries and exception points
4. Know the impacts: Be prepared to explain what happens when justification is no longer valid
5. Understand documentation flow: Recognize that the Business Case evolves from outline to detailed to verified
6. Remember governance aspects: The Project Board makes decisions based on continued justification
7. Watch for distractors: Some answer options may address valid project management practices but fail to connect to business justification
8. Apply the principle to scenarios: Be ready to identify when justification is being maintained or violated in scenario-based questions
When answering exam questions, always come back to the core concept: a project must have valid justification to proceed at every stage of its lifecycle.
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