PRINCE2 describes three distinct levels of Business Case that align with different program or project management structures. The first is the Programme Business Case, which presents the justification for an entire program of work and multiple related projects. It provides the overarching strategic context and benefits expectation for all subsequent projects. The second level is the Project Business Case, which focuses on the justification for a single project. This document demonstrates the value, viability and achievability of a specific project initiative, showing how it contributes to organizational objectives. The third level is the Stage Business Case, which divides the Project Business Case into management stages, allowing for more detailed justification and continuous evaluation at key decision points throughout project delivery. A critical PRINCE2 principle is that projects proceed only when they remain viable, which is why the Business Case is reviewed and potentially updated at the end of each management stage. These different levels allow organizations to maintain strategic alignment while breaking down larger business goals into manageable components. The Business Case at each level answers key questions about why the work should be done, what the expected benefits are, how they will be realized, and whether the investment represents good value. This hierarchical approach creates a clear line of sight from organizational strategy down to specific project activities, ensuring that all work contributes meaningfully to broader business objectives while providing appropriate checkpoints for decision-making at each level.

The Business Case in PRINCE2 follows a specific development path that evolves throughout the project lifecycle. Initially, in the Starting Up a Project process, an outline Business Case is created containing a general understanding of the reasons for the project, expected benefits, risks, costs, and timeframes. This early version informs the decision on whether to initiate the project. During the Initiating a Project process, this outline is developed into a more detailed, refined Business Case with comprehensive analysis of benefits, costs, risks, and timelines. At this point, it becomes a key component of the Project Initiation Documentation (PID). As the project progresses through management stages, the Business Case undergoes regular reviews and updates to reflect changing circumstances, new information, and evolving assumptions. This happens during the Managing a Stage Boundary process at the end of each management stage. The Project Board uses the updated Business Case to determine whether the project remains viable and should continue to the next stage. In the Closing a Project process, a final review of the Business Case occurs to confirm the project has achieved its objectives and that arrangements are in place for realizing post-project benefits. This development path ensures that the Business Case remains a living document throughout the project, continually informing decision-making rather than becoming a static document created once and then forgotten. The progressive elaboration of the Business Case allows for greater accuracy and relevance as more information becomes available during project execution.

The Benefits Review Plan is a specialized management product within PRINCE2's Business Case Theme that focuses specifically on how and when measurement of achievement of the project's benefits will be conducted. Unlike other aspects of the project that conclude at project closure, many benefits can only be realized after the project has delivered its products and disbanded its team. The Benefits Review Plan addresses this challenge by defining a structured approach to measuring benefits realization both during the project (for those benefits achievable within the project lifecycle) and after project closure (for longer-term benefits). The plan identifies each expected benefit, establishes measurable criteria for successful realization, specifies who is responsible for measuring each benefit, determines the timing and method of measurement, and outlines resources required for benefits review activities. The Project Manager develops the Benefits Review Plan during project initiation, with the Executive (as the senior business representative on the Project Board) taking ultimate ownership. This document represents PRINCE2's answer to the common problem of projects delivering outputs but organizations failing to realize anticipated benefits. By formalizing benefits measurement in a separate plan that extends beyond the project timeline, PRINCE2 creates accountability for benefits realization and provides a mechanism to evaluate whether the investment delivered the expected value. The Benefits Review Plan also supports organizational learning by documenting which interventions successfully created business value, informing future investment decisions and project approaches. This focus on benefits measurement and realization distinguishes PRINCE2 from methodologies that focus primarily on project outputs rather than business outcomes.

The Business Case content refers to the specific elements that must be included in a PRINCE2 Business Case to ensure it effectively communicates the project's justification. A comprehensive Business Case contains several key components: an executive summary providing a quick overview; reasons outlining why the project is needed; business options (do nothing, do minimum, do something); expected benefits categorized as measurable, attributable, and time-bound; expected dis-benefits identifying negative outcomes; timescale showing when benefits will be realized; costs including both development and ongoing operational costs; investment appraisal using financial assessment techniques like ROI, NPV, or IRR; major risks that might threaten the project's viability; and a conclusion summarizing the case for investment. PRINCE2 emphasizes that the Business Case should evolve throughout the project lifecycle, starting with an outline version during project initiation, which is then refined and updated at each subsequent stage boundary. The content should be appropriate to the scale and complexity of the project, allowing for tailoring while ensuring sufficient detail for decision-makers to judge the project's viability. The Business Case content should also explicitly link to the organization's strategic objectives, demonstrating how the project will contribute to these broader goals and provide value for money. This approach ensures the Business Case serves as both a decision-making tool and a baseline against which actual benefits can later be measured.

In PRINCE2's Business Case Theme, understanding the relationship between outputs, outcomes, and benefits is crucial for demonstrating project value. Outputs are the specialist products delivered by the project—tangible deliverables such as a new IT system, building, or process. These are what the project directly creates and are controlled through the project's product descriptions. Outcomes represent the resulting change from using the project's outputs—such as staff working differently after implementing a new system or increased capacity after building expansion. While outputs are within the project's control, outcomes may depend on operational factors outside project boundaries. Benefits are the measurable improvements resulting from outcomes that justify the project investment—like reduced costs, increased revenue, or enhanced regulatory compliance. PRINCE2 emphasizes that benefits must be measurable, have clear ownership, and be realistically achievable. The chain of causality flows from outputs through outcomes to benefits, with each link requiring careful management. Project teams must define this chain during initiation and monitor it throughout the project lifecycle. PRINCE2 recommends using a benefits map to visualize these relationships, helping stakeholders understand how project activities translate to organizational value. This clarity supports investment decisions and establishes a framework for post-project benefits measurement, ensuring the project maintains its business justification throughout its lifecycle and delivers the expected value.

PRINCE2's Business Case Theme assigns specific roles and responsibilities to ensure effective development, maintenance, and verification of the Business Case throughout the project lifecycle. The Executive, as the key business decision-maker on the Project Board, is ultimately responsible for the Business Case and must ensure it remains valid, aligned with corporate or programme objectives, and continues to provide a sound value proposition. The Executive secures funding and represents the business interests that will benefit from the project. The Senior User represents those who will use the project's products and is responsible for specifying benefits and subsequently realizing them. The Senior User must commit to achieving the benefits outlined in the Business Case and provide resources for benefits reviews. The Senior Supplier represents those designing and delivering the project's products and must assess whether the proposed solution can deliver the benefits within constraints. The Project Manager is responsible for developing and documenting the Business Case under the Executive's direction, ensuring it contains all required elements and remains updated. The Project Manager also coordinates impact assessments for any changes that might affect the Business Case. The Programme Management or Project Portfolio roles (outside the project organization) typically specify the project's objectives and requirements for the Business Case. This clear delineation of responsibilities ensures proper ownership of the Business Case throughout its lifecycle, supporting informed decision-making at each stage and maintaining focus on business justification as the primary driver for the project.

The Benefits Management Approach is a crucial component of the PRINCE2 Business Case Theme, providing a structured framework for how benefits will be identified, tracked, measured, and realized throughout the project lifecycle. This document is created during the initiation stage and serves as a reference point that defines the mechanisms for ensuring that the project delivers its intended benefits. The Benefits Management Approach outlines not only what benefits are expected but also establishes clear accountability for who will be responsible for measuring and tracking them. It includes details on when and how measurements will be taken, creating a timeline for benefits realization that may extend beyond the project's completion. The approach helps stakeholders understand how benefits will be categorized (financial, non-financial, tangible, intangible), when they can expect to see them, and what baseline measurements will be used to demonstrate improvement. This document is particularly important because it connects the project outputs to the business objectives, providing justification for the investment of resources. As the project progresses, the Benefits Management Approach guides the ongoing assessment of whether the anticipated benefits remain achievable, supporting the continued business justification of the project. The Executive is ultimately responsible for ensuring benefits realization, but the Benefits Management Approach provides the blueprint for how this will be accomplished in practice, making it an essential element of effective business case management.

Within the PRINCE2 Business Case Theme, understanding the different types of business justification is fundamental to establishing and maintaining project viability. PRINCE2 recognizes that business justification can take various forms depending on the nature of the project and organizational context. Compulsory projects are driven by regulatory or legal requirements, where the business justification centers on compliance and avoiding penalties rather than traditional return on investment. In contrast, non-profit projects focus on delivering benefits to beneficiaries rather than financial returns to the organization. For projects with evolving requirements, emergent business justification is appropriate, allowing the business case to develop progressively as more information becomes available. Some projects are justified based on their necessity for business continuity or as foundational components for future initiatives without immediate direct benefits. PRINCE2 also acknowledges that business justification may be driven by strategic alignment with organizational objectives, even when tangible benefits are difficult to quantify. By recognizing these different types of business justification, PRINCE2 enables organizations to apply appropriate evaluation criteria and development approaches to their business cases, rather than forcing all projects into a one-size-fits-all model of justification. This flexibility ensures that the focus remains on whether the project is desirable, viable, and achievable within its specific context, supporting more nuanced decision-making about project investment.

Value for Money Assessment is a critical concept within the PRINCE2 Business Case Theme, focusing on determining whether a project represents an optimal use of organizational resources. This assessment goes beyond simple financial calculations to consider the relationship between total project investment (including time, money, resources, and opportunity costs) and the total expected benefits. PRINCE2 recommends employing various financial analysis techniques as part of this assessment, including Return on Investment (ROI), Net Present Value (NPV), Internal Rate of Return (IRR), and payback period calculations. These methods help quantify the financial aspects of value for money by accounting for the time value of money and establishing how quickly an investment will be recovered. However, a comprehensive Value for Money Assessment also incorporates qualitative factors that may not be easily expressed in monetary terms, such as strategic alignment, reputation enhancement, improved customer satisfaction, and organizational learning. The assessment requires careful consideration of risk, examining how potential threats to benefit realization or cost increases might impact the overall value proposition. The concept emphasizes proportionality, suggesting that the depth and complexity of the assessment should be appropriate to the scale and importance of the project. Throughout the project lifecycle, the Value for Money Assessment should be regularly reviewed and updated to reflect changing circumstances, ensuring that the project continues to represent good value for money and maintaining its business justification. This ongoing evaluation supports informed decision-making about continued investment in the project.