In the context of PRINCE2 7, aligning products to business objectives is fundamental to the 'Business Case' practice and the principle of 'Continued Business Justification.' This alignment is achieved by establishing a clear logic trail, often referred to as the 'Chain of Causality' or the benefits…In the context of PRINCE2 7, aligning products to business objectives is fundamental to the 'Business Case' practice and the principle of 'Continued Business Justification.' This alignment is achieved by establishing a clear logic trail, often referred to as the 'Chain of Causality' or the benefits dependency network.
The process begins with the project **Output** (the specialist product or deliverable). However, a product alone does not represent value; it is merely an enabler. The alignment process requires mapping how the product will be utilized by the business to create a change, resulting in an **Outcome**. An outcome is the result of the change derived from using the project's outputs (e.g., 'Staff can process orders 50% faster').
These outcomes must then translate into **Benefits**, which are the measurable improvements perceived as positive by stakeholders (e.g., 'Reduced operational costs by $100k'). Crucially, these benefits must map directly to the organization’s **Corporate or Programme Objectives**. If a project delivers a product that yields benefits irrelevant to the organization's strategic goals, the project lacks alignment and validity.
In PRINCE2 7, the Business Case must explicitly demonstrate this linkage. If the chain breaks—where a product does not lead to a desired outcome, or an outcome does not yield a strategic benefit—the project is not viable. Therefore, aligning products to objectives involves rigorous analysis to ensure that every feature of the specialist product contributes to a chain of events that ultimately advances the organization's strategic strategy.
Aligning Products to Business Objectives
Introduction In PRINCE2 v7, the primary driver for any project is the Business Case. A project is only justified if the products it delivers eventually result in measurable value that supports the organization's strategic goals. Aligning products to business objectives is the process of mapping the technical deliverables (outputs) to the ultimate strategic gains.
Why is it Important? Projects consume resources and capital. If a project creates a high-quality product that nobody uses, or if the usage of that product does not result in any advantage for the organization, the project has failed from a business perspective. Aligning products to objectives ensures Business Justification remains valid throughout the project lifecycle. It prevents the 'solution looking for a problem' scenario.
What is it? The Chain of Value To understand alignment, you must understand the sequence of cause and effect defined in the Business Case practice: 1. Output: The specialist product delivered by the project (e.g., a new CRM software). 2. Outcome: The result of the change derived from using the output (e.g., sales staff can access customer data faster). 3. Benefit: The measurable improvement resulting from the outcome (e.g., sales revenue increases by 5% due to better data access). 4. Strategic Objective: The organizational goal the benefit supports (e.g., To become the market leader in the retail sector).
How it Works During the Initiating a Project process, the Project Manager and the Executive draft the Business Case. They must demonstrate the 'Golden Thread' linking the project's deliverable to the corporate strategy.
This involves: Identification: Identifying the benefits and dis-benefits (negative consequences). Selection: Choosing which benefits to pursue based on alignment with objectives. Definition: Quantifying the benefits and agreeing on how they will be measured (documented in the Benefits Management Approach).
How to Answer Questions on this Topic In the Practitioner exam, you will likely be presented with a scenario where a project is underway, and you must evaluate if the Business Case is strong or if the products are correctly aligned.
Exam Tips: Answering Questions on Aligning Products to Business Objectives 1. Differentiate Output vs. Outcome vs. Benefit: This is the most common trap. Remember: Output = A tangible thing (noun). Outcome = A change in behavior or state (verb/transition). Benefit = A measurable value, usually financial or quantifiable (metric).
2. Check the Linkage: If a question asks why a Business Case is weak, look for a break in the chain. Does the output actually lead to the outcome? Does the outcome actually generate the promised benefit? If the product works but doesn't solve the business problem, it is not aligned.
3. Strategic Context: Always look at the 'Project Scenario' provided in the exam papers. If the corporate objective is 'Cost Cutting,' but the project benefits are purely 'Service Expansion' with high operational costs, the product is not aligned with business objectives, even if the project is successful.
4. Dis-benefits matter: A product might align with one objective but destroy another (a dis-benefit). You must assess the net value. If the dis-benefits outweigh the benefits, the alignment is negative, and the project is not viable.