Understand how to establish and maintain business justification.
Covers the business case practice including key management products: project brief, business case, benefits management approach, and sustainability management approach. Focuses on understanding outputs, outcomes, benefits, dis-benefits, and business objectives. Includes the business case lifecycle, aligning products to business objectives, establishing business justification, and using tolerances.
5 minutes
5 Questions
The Business Case Practice is one of the seven practices in PRINCE2 7 and serves as the foundation for determining whether a project is worthwhile and remains viable throughout its lifecycle. It provides the justification for undertaking a project by documenting the reasons, expected benefits, costs, risks, and timescales involved.
The Business Case captures the investment appraisal and answers the fundamental question: Why should the organization invest in this project? It establishes a baseline against which the project's continued viability can be assessed at key decision points.
Key components of a Business Case include:
1. Executive Summary - A brief overview of the key information
2. Reasons - Why the project is needed
3. Business Options - Alternative approaches considered
4. Expected Benefits - The measurable improvements the project will deliver
5. Expected Dis-benefits - Any negative consequences that may result
6. Timescales - When benefits will be realized
7. Costs - The investment required including development and operational costs
8. Major Risks - Key threats and opportunities affecting viability
9. Investment Appraisal - Financial analysis comparing costs against benefits
The Business Case is developed iteratively through the project lifecycle. It starts as an outline during the Starting Up a Project process, is refined during Initiation, and is verified and updated at each stage boundary. This ensures the project remains justified as circumstances change.
The Project Board uses the Business Case to make informed decisions about continuing, modifying, or stopping the project. It provides accountability for the investment and ensures resources are allocated to projects that deliver genuine value.
In PRINCE2 7, the emphasis is on maintaining a living document that reflects current understanding rather than a static justification created at the start. This supports adaptive delivery approaches where requirements and solutions may evolve during the project.The Business Case Practice is one of the seven practices in PRINCE2 7 and serves as the foundation for determining whether a project is worthwhile and remains viable throughout its lifecycle. It provides the justification for undertaking a project by documenting the reasons, expected benefits, cost…