Business Case Flashcards
What does the business Case provide?
The justification for undertaking a project, in terms of evaluating the benefit, cost and risk of alternative options and rationale for the preferred solution.
What is the purpose of the Business Case
To obtain management commitment and approval for investment in the project.
How often should the business Case be reviewed?
At least at the start of each project life cycle to confirm the project is achieving its objectives.
Who owns the business Case?
The project Sponsor
What must be communicated as a key part of the business Case?
The communication of the resources, commercial strategy and capital investment necessary to realize the business benefits.
What should be included in the executive summary of the business Case?
description of project scope; key reasons for proceeding; conclusions of cost/benefit study; recommended option; outputs (also known as deliverables)
Business Case Structure: What does the strategic Case describe?
WHY the project is required. Covers details of issues to be addressed, or the opportunity that has arisen.
Business Case Structure: Which three financial aspects should be addressed when considering a new project?
q. Business as usual (no project to invest in); Mission critical (Deliver absolute minimum of benefits to solve the problem) Comprehensive Change( A decision that will lead to a fully scoped project)
Business Case Contents: What are the benefits (advantages of undertaking a project?
Return on investment; improved productivity; lower maintenance costs; safer operations; providing essential services; training for increased productivity; enhanced customer experience.
Business Case Contents: Why does it make sense to make benefits SMART?
It will facilitate decision making and, in time, assist with the benefits realisation analysis.
Business Case Content: Disadvantages must also be made clear. Give 3 examples of possible dis-benefits.
Disruption to the organisation; drop in productivity; Capital expenditure required.
Business Case content: Name the 4 parts of the timescale that must be outlined.
Initiation stage; planning stage; Execution stage; Closeout/handover.
Business case Contents: What does the cost and performance analysis contain?
A comparison of the benefits and dis-benefits compared with the risks and costs of the project, along with any ongoing operational or maintenance costs.
Business case Contents: Why is it important to include a section on Resources
If existing resources are insufficient to deliver the project, proposal must be made to recruit or acquire additional/external resources to complete the work. This can have a major impact on the viability of the project.
