In PRINCE2 7, the Business Case is the driving force behind a project, serving as the primary documented justification for the investment. It answers the fundamental question, "Why are we doing this?" by validating that the project is—and remains—desirable (the balance of costs/benefits), viable (t…In PRINCE2 7, the Business Case is the driving force behind a project, serving as the primary documented justification for the investment. It answers the fundamental question, "Why are we doing this?" by validating that the project is—and remains—desirable (the balance of costs/benefits), viable (the solution can be delivered), and achievable (the benefits can be realized).
Practitioners must treat the Business Case not as a static bureaucratic hurdle, but as a dynamic management tool. It is developed incrementally: starting as a rough mandate, evolving into an Outline Business Case during the 'Starting Up a Project' process, and becoming a detailed Business Case in the 'Initiating a Project' process. Crucially, it must be updated at every Management Stage Boundary to reflect actual progress, current risks, and revised forecasts. It serves as the primary basis for the Project Board's 'Go/No-Go' decisions throughout the lifecycle.
The document structure typically analyzes business options (specifically 'do nothing', 'do the minimum', and 'do something') and details the reasons for the project, estimated costs, timescales, and major risks. A critical component is the Investment Appraisal, which compares the total costs against the expected benefits (measurable improvements) and dis-benefits (perceived negative outcomes). PRINCE2 7 specifically enhances this practice by requiring alignment with organizational sustainability goals and ESG (Environmental, Social, and Governance) targets.
While the Project Manager handles the drafting and updating, the Executive is ultimately accountable for the Business Case, ensuring it aligns with corporate strategy and secures necessary funding. By the 'Closing a Project' process, the Business Case is used to assess the project's final success against the original justification, before transitioning ownership to corporate management for post-project benefits realization.
Business Case Document Guide - PRINCE2 Practitioner v7
Introduction to the Business Case Document In PRINCE2 v7, the Business Case is the heartbeat of the project. It is the document that records the justification for the undertaking of the project based on the estimated costs (of development, implementation, and operation) against the anticipated benefits to be gained and offset by any associated risks. It is central to the Business Case Practice.
Why is it Important? The Business Case document is vital because it ensures the project aligns with the principle of Continued Business Justification. A project must not only start with a valid reason but must remain desirable, viable, and achievable throughout its lifecycle. If the Business Case is no longer valid, the project must be stopped to prevent wasted investment.
What is it? It is a baseline document that provides the reasoning for the project. It evolves from a high-level outline to a detailed document and includes: 1. Executive Summary: Highlights for senior management. 2. Reasons: The trigger for the project (e.g., compliance, market demand). 3. Business Options: Analysis of Do Nothing (mandatory base case), Do Minimum, and Do Something. 4. Expected Benefits and Dis-benefits: Measurable improvements and perceived negative sides. 5. Timescales and Costs: Summary of project duration and budget. 6. Investment Appraisal: Comparison of aggregated benefits and costs (e.g., ROI, Net Present Value). 7. Major Risks: Risks that specifically impact the viability of the business case.
How it Works The Business Case is not static; it is dynamic: 1. Developed: The Outline Business Case is created in the Starting Up a Project process. It is refined into the full Business Case during the Initiating a Project process. 2. Verified: It is reviewed by the Project Board at each Stage Boundary to ensure the project remains viable. 3. Maintained: It is updated by the Project Manager with actual costs and revised forecasts at the end of every stage. 4. Confirmed: During Closing a Project, the final document is used to assess which benefits have been realized and to plan for post-project benefit reviews.
Exam Tips: Answering Questions on Business Case Document In the PRINCE2 Practitioner exam, you will need to analyze the Business Case in the context of a given scenario.
1. Distinguish Outputs, Outcomes, and Benefits: Questions often trick candidates by listing an outcome as a benefit. Output: The specialist product delivered (e.g., a new CRM system). Outcome: The result of the change (e.g., sales teams can access data faster). Benefit: The measurable improvement (e.g., sales revenue increases by 5%). Tip: If the Business Case lists 'New System' under benefits, it is incorrect.
2. The 'Do Nothing' Option: If a question asks you to critique a draft Business Case, check if the Business Options section includes 'Do Nothing'. If it is missing, the Business Case is defective. This is a mandatory baseline for comparison.
3. Viability vs. Desirability vs. Achievability: Desirable: Balance of costs/benefits/risks (is it worth it?). Viable: Can we deliver it? Achievable: Will the resulting benefits actually be realized? When answering questions about updating the Business Case, consider if new risks or cost increases render the project unviable.
4. Sustainability Context (v7 Update): In v7, sustainability is a key element. Look for justifications regarding environmental, social, and governance (ESG) targets within the Business Case justification.