In the context of the PRINCE2 7 Managing a Stage Boundary (SB) process, updating the Business Case is a mandatory activity performed by the Project Manager. Its primary purpose is to verify that the project remains desirable, viable, and achievable before the Project Board commits to the next manag…In the context of the PRINCE2 7 Managing a Stage Boundary (SB) process, updating the Business Case is a mandatory activity performed by the Project Manager. Its primary purpose is to verify that the project remains desirable, viable, and achievable before the Project Board commits to the next management stage. This ensures that the project is not just sticking to the plan, but is still worth doing based on the most current data.
This update occurs at the end of every management stage (except the final one) because the Business Case is a dynamic document, not a static one. During the execution of a stage, variables change: actual costs may differ from estimates, timelines may shift, risks may fluctuate, and the external business environment may evolve.
To update the Business Case effectively, the Project Manager performs the following actions:
1. **Update Costs and Timescales:** They aggregate the actual costs and time used in the finishing stage, the detailed forecast for the upcoming stage (from the Next Stage Plan), and the high-level forecast for the remainder of the project (from the updated Project Plan). This provides a realistic total cost of ownership.
2. **Review Benefits:** They assess the Benefits Management Approach to determine if any benefits have already been realized and if the remaining expected benefits are still attainable and quantifiable.
3. **Assess Risks:** They evaluate how the current risk profile (summarized in the Risk Register) impacts the project's overall viability.
The updated Business Case is then presented to the Project Board as part of the End Stage Report. It provides the governing body with the necessary information to make a 'Go/No Go' decision. If the updated Business Case shows that the Return on Investment (ROI) has dropped below the agreed tolerance, the Project Board must consider closing the project prematurely to prevent wasting organizational resources.
Update the Business Case (Managing a Stage Boundary)
What is 'Update the Business Case'? This is a specific activity performed by the Project Manager within the Managing a Stage Boundary (SB) process. In PRINCE2, the Business Case is not a static document; it is a dynamic instrument that must be kept up-to-date to reflect the current reality of the project. As a management stage comes to an end, the Project Manager must revise the Business Case to reflect the actual costs and time used in the current stage, and the revised forecasts for the next stage and the remainder of the project.
Why is it Important? This activity is the practical application of the principle Continued Business Justification. Before the Project Board authorizes the next stage, they must be assured that the project is still: • Desirable: The balance of costs, benefits, and risks is still favorable. • Viable: The project can still be delivered. • Achievable: The benefits can still be realized. Without this update, the Project Board would be making investment decisions based on outdated information.
How it Works The Project Manager performs this activity in conjunction with creating the Next Stage Plan. The process involves: 1. Collating Actuals: Recording the actual cost and time spent in the stage just finishing. 2. Forecasting: Using the Next Stage Plan to predict costs for the immediate future, and updating estimates for the rest of the project. 3. Risk Assessment: Reviewing the Risk Register to see if aggregated risks impact the overall value for money. 4. Benefits Update: Updating the Benefits Management Approach with the results of any benefit reviews undertaken during the stage.
Exam Tips: Answering Questions on Update Business Case To score well on PRINCE2 Practitioner questions regarding this topic, look for the following clues and logic: • The Trigger: If the scenario describes the end of a stage and asks what document needs revising to justify continuing, the answer is the Business Case. • The Sequence: Remember that the Project Plan is usually updated before the Business Case. You cannot update the Business Case costs without first knowing the plan for the next stage. • Differentiation: Do not confuse this with the Closing a Project process. At the stage boundary, we update the Business Case to get authorization to proceed. At project closure, we update it to show the final position against the original baseline. • Sustainability: In PRINCE2 v7, look for options that mention checking sustainability targets or tolerance levels within the Business Case update.