Business Case

Question 1

What is the purpose of the business case principle?

Answer 1

A business case justifies the project and keeps the rationale alive - ensures continued business justification

Question 2

What should a business case include?

Answer 2

• Executive summary
• Reason and justification
• Benefits
• Cost
• Risks
• Timescales
• Sustainability targets

Question 3

What is the purpose of the business case principle?

Answer 3

The purpose of the business case is to document the business justification for the project.

Question 4

What are the key aspects of the business case principle?

Answer 4

• Project brief
• Business case
• Benefits management approach
• Sustainability management approach

Question 5

What is the business case lifecycle?

Answer 5

First made in SP, it is refined in IP. It is reviewed at every MSB by the PB

Question 6

Who judges the business case?

Answer 6

The project board judges the business case in terms of whether the cost/benefit/risks are valid, whether the project is viable or whether it is achievable.

Question 7

What are the project outputs?

Answer 7

Projects deliver outputs to change the way a business operates.

Question 8

What is a project outcome?

Answer 8

This is the result of the change from the project

Question 9

What are dis-benefits?

Answer 9

Dis-benefits are the measurable decline from an outcome which detract from business adjectives. This is a negative consequence.

Question 10

What is the business case technique?

Answer 10

1. Check
2. Develop
3. Maintain
4. Confirm

Question 11

What happens under the ‘check’ stage of the business case technique?

Answer 11

This means the business case is continually assessed against the desirability, viability and achievability – it looks at changed risks, timescales, benefits, etc

Question 12

What does ‘achievable’ mean?

Answer 12

Where the use of the products is likely to result in the envisaged outcomes and resulting benefits

Question 13

What happens under the ‘develop’ stage of the business case technique?

Answer 13

It is assessed against options such as ‘do nothing’, ‘do something differently’

Question 14

When do the project board check the business case?

Answer 14

In SP, the revised one in IP, and at MSB, ‘Closure’ and when assessing an exception plan

Question 15

When does the PM check the business case?

Answer 15

At MSB to ensure it is still justified, when assessing new risks, during ‘Closing’ to see how the project performed

Question 16

When is it ‘maintained’?

Answer 16

By the PM at MSB process - benefits, risks and costs all get updated

Question 17

What happens at the ‘confirm’ stage?

Answer 17

The PB look at everything and see whether the benefits have been realised or not - senior user

Question 18

What is the benefits management approach?

Answer 18

Part of the 9 management approaches in the PID. This records expected benefits. It is prepared in the IP stage. It is an iterative incremental approach. Reviewed in MSB

Question 19

What is the sustainability management approach?

Answer 19

Part of the 9 management approaches in the PID. It will have sustainability targets and tolerances with allowed deviations

Question 20

What are the key points in the business case?

Answer 20

• Executive summary
• Reasons – the reason for the project – problem or opportunity to be seized
• Business options – analysis and recommendations of each option
  o ‘Do nothing’, ‘do something’
• Expected benefits and disbenefits
• Sustainability targets – including tolerances
• Time – actual project duration
• Costs – summary of the project costs from the project plan, ongoing operations plans/funding arrangements
• Investment appraisal – benefits and disbenefits of the costs of the project (e.g ROI)
• Major risks – summary of key risks, impact and responses
• References – any associated documents e.g. project brief with outline business case