In the context of PRINCE2 7, the principle of **Continued Business Justification** is the primary driver for project success, ensuring that a project has a valid, documented reason for existence from start to finish. It prevents resources from being wasted on projects that are no longer viable or d…In the context of PRINCE2 7, the principle of **Continued Business Justification** is the primary driver for project success, ensuring that a project has a valid, documented reason for existence from start to finish. It prevents resources from being wasted on projects that are no longer viable or do not align with organizational strategy.
To apply this principle effectively at the Practitioner level, three criteria must be met:
1. There must be a justifiable reason to start the project.
2. The justification must remain valid throughout the life of the project.
3. The justification must be documented and approved.
Practitioners must understand that the Business Case is dynamic, not static. It must be updated at every stage boundary (during the *Managing a Stage Boundary* process) with actual costs and revised forecasts. This allows the Project Board to make data-driven 'Go/No-Go' decisions. If the justification ceases to exist—perhaps due to market shifts, legislative changes, or spiraling costs—the project should be stopped to prevent the 'sunk cost' fallacy.
In PRINCE2 7, justification is not strictly financial (Return on Investment). It can be compulsory (legal compliance), strategic (market positioning), or driven by sustainability goals. When tailoring this principle, the format of the justification can vary significantly based on complexity and context (e.g., a simple email for a low-risk task vs. a comprehensive financial model for a major infrastructure build). However, regardless of the format, the Project Management Team must constantly ask: 'Is the expected benefit still worth the risk, cost, and effort?'
Applying the Principle: Continued Business Justification in PRINCE2 Practitioner v7
Understanding the Principle In PRINCE2, the principle of Continued Business Justification defines that a project must have a justifiable reason to start, the justification must remain valid throughout the life of the project, and the justification must be documented and approved. This is the single most important principle; if a project cannot justify its existence, it should be stopped immediately to prevent wasted resources.
Why is it Important? Projects consume limited organizational resources (time, money, people). This principle ensures that: 1. The project aligns with business strategy. 2. There is a clear return on investment (ROI) or a necessity for compliance. 3. 'Pet projects' (projects driven by ego rather than need) are avoided. 4. The organization does not continue to fund a project that has lost its value due to market changes or increased costs.
How it Works in Practice Applying this principle involves more than just writing a document. It requires active management throughout the lifecycle:
1. Pre-Project (Starting Up): An Outline Business Case is created to justify the initial investment of planning the project. 2. Initiation: A detailed Business Case is developed. This compares the project against the 'do nothing' option. 3. During Stages: The justification is not static. At every Stage Boundary, the Business Case is updated with actual costs and revised forecasts. The Project Board must re-verify that the project is still desirable, viable, and achievable before authorizing the next stage. 4. Closing: A final review confirms if the project delivered the expected output and if benefits are likely to be realized.
Compulsory Projects: Even if a project is mandatory (e.g., regulatory compliance), this principle still applies. The justification shifts from 'profit' to 'best value for money' (choosing the most efficient way to comply).
How to Answer Practitioner Questions In the PRINCE2 Practitioner exam, you will be given a scenario. You must determine if the principle is being upheld or violated.
Look for these red flags (Violations): - The Business Case was written at the start and filed away, never to be looked at again. - Costs have doubled, but the Project Board approves the next stage without reviewing if the benefits still outweigh the costs. - The project is continuing simply because 'we have already spent so much money' (the sunk cost fallacy). - There is no clear link between the project's outputs and the corporate strategy.
Look for these positive indicators (Adherence): - The Executive stops the project because the market changed, even though the project was on schedule. - The Business Case is updated to reflect a delay in benefits realization. - Justification is documented for a mandatory project by analyzing different implementation options.
Exam Tips: Answering Questions on Continued Business Justification Tip 1: It's not just about money. While ROI is common, justification can be strategic or compliance-based. If a question asks why a non-profit project is justified, look for answers relating to 'strategic alignment' or 'value for money,' not necessarily financial profit.
Tip 2: The Executive owns it. If an exam question asks who is responsible for securing funding and ensuring the project remains justified, the answer is the Executive (representing the business interest), not the Project Manager.
Tip 3: Check the link. In 'Is this principle being applied?' questions, check if the scenario explicitly links the project's benefits to the user's business operations. If the project produces a product but the business cannot use it to generate value, the principle is being compromised.