In the context of the PRINCE2 7 'Starting Up a Project' process, the activity to 'Prepare the Outline Business Case' is pivotal for establishing the preliminary justification for the project. Its primary purpose is to verify that there is a sufficient business reason to move the project into the in…In the context of the PRINCE2 7 'Starting Up a Project' process, the activity to 'Prepare the Outline Business Case' is pivotal for establishing the preliminary justification for the project. Its primary purpose is to verify that there is a sufficient business reason to move the project into the initiation stage, preventing the waste of resources on non-viable initiatives.
The Executive is ultimately responsible for the Business Case, ensuring it aligns with corporate strategy and sustainability goals, although the Project Manager typically performs the detailed work of gathering data and drafting the document. At this early stage, the Business Case is 'outlined,' meaning the information is high-level rather than granular. It bridges the gap between the initial Project Mandate and the detailed Business Case developed later during the 'Initiating a Project' process.
Key components of the Outline Business Case include the reasons for the project, the business options considered (e.g., do nothing, do the minimum, do something), and the expected benefits and dis-benefits. It also outlines major risks and provides rough estimates for costs and timescales. Under PRINCE2 7, specific attention is given to sustainability targets and tolerance levels regarding project impact.
This document forms part of the Project Brief. The Project Board uses it during the 'Directing a Project' process to authorize the initiation stage. If the Outline Business Case demonstrates that the project is desirable, viable, and achievable, the project proceeds; otherwise, it is terminated before significant investment occurs.
Prepare the Outline Business Case: Prince2 Practitioner v7 Guide
Introduction to the Activity In the context of the Starting Up a Project process, the activity to Prepare the Outline Business Case is critical. It serves as the initial justification for the project. Before significant resources are spent on planning in detail (the Initiating a Project process), the organization must verify that there is a valid business reason to proceed. It is typically derived from the Project Mandate and developed into the Project Brief.
Why is it Important? This activity ensures compliance with the core Prince2 Principle of Continued Business Justification right from the start. Its importance lies in: 1. Preventing Waste: It filters out projects that are not desirable, viable, or achievable before money is spent on initiation. 2. Defining Value: It establishes what value the project is expected to deliver, including benefits, costs, and risks. 3. Justifying Initiation: It specifically justifies the investment required for the Initiation Stage (not necessarily the whole project yet, but it gives a view of the whole).
How it Works While the Project Manager typically does the legwork and drafting, the Executive owns the Business Case and is ultimately responsible for it. The process involves: 1. Reviewing the Mandate: Understanding the trigger for the project. 2. Developing Options: The Business Case must compare different ways to achieve the outcome. Prince2 requires at least three options to be considered: Do Nothing (business as usual), Do Minimum, and Do Something. 3. Summarizing Expectations: Outlining the expected benefits, dis-benefits, timescales, costs, and major risks. 4. Sustainability: In Prince2 v7, there is an increased emphasis on sustainability; this activity checks if the project aligns with organizational sustainability goals.
Exam Tips: Answering Questions on Prepare Outline Business Case When facing Practitioner scenarios regarding this activity, keep the following rules in mind: 1. Identify the Owner: If a question asks who is responsible for the business case or who makes the decisions regarding its viability, the answer is almost always the Executive. The Project Manager creates it, but the Executive owns it. 2. Differentiate Detail Levels: Do not confuse the Outline Business Case (Starting Up) with the Detailed Business Case (Initiating a Project). In this activity, figures are likely estimates or ranges, not precise quotes. 3. The 'Do Nothing' Option: Exam questions often test whether the 'Do Nothing' option was considered. If a Business Case lacks a comparison to the status quo, it is incomplete. 4. Location: Remember that the Outline Business Case becomes part of the Project Brief. If a question asks where to find the initial justification, look for the Project Brief. 5. Timescales and Funding: Ensure the outline includes the time and funding specifically required for the initiation stage, as this is the immediate funding approval being sought from the Project Board.