Business Case

Question 1

The ever present decision regarding the business case is whether the project can still be justified. What factors is this decision based on?

Answer 1

whether the project is

• desirable (the cost/benefit/risk balance)
• viable (the project can deliver the products)
• achievable (the products can provide the benefits)

Question 2

How would you define a project’s output?

Answer 2

Any of the project’s specialist products (whether tangible or intangible)

Question 3

How would you define a project’s outcome?

Answer 3

The result of the change derived from using the project’s outputs

Question 4

How would you define a project benefit?

Answer 4

A benefit is the measurable improvement resulting from an outcome that is perceived as an advantage by one or more stakeholders

Question 5

What is an example of an output, and outcome and a benefit

Answer 5

Output: new sales system
Outcome: Sales orders are processed more quickly and accurately
Benefits: Costs are reduced by 10%, volume of sales orders increased by 15% and revenue increased by 10% annually

Question 6

What are the key facts about a business case? (7)

Answer 6

• If there isn’t one at the beginning - don’t start
• If it becomes invalid stop
• Maintain throughout the project
• Owned by the Executive
• Reviewed and updated at stage boundaries
• If something changes check the effect on the Business case
• Consider which heading of the Business Case would be updated during a Stage Boundary

Question 7

Name the 9 key contents of a business case

Answer 7

• Executive Summary
• Reasons
• Business Options
• Expected benefits
• Expected dis-benefits
• Timescale
• Costs
• Investment appraisal
• Major risks

Question 8

What are the three basic business options concerning any investment?

Answer 8

1. Do nothing
2. Do the minimum
3. Do something

Question 9

At the most basic level, what does the business case do?

Answer 9

It describes the reasons for the project based on estimated costs, risks and expected benefits.

Question 10

What are the 6 elements of a benefits review plan?

Answer 10

• Scope - what benefits are to be measured
• Who - is accountable for the expected benefits
• How will they be measured and when
• What - resources are needed to do the review
• Baselines - from which the benefits can be measured
• How - will the project’s product be reviewed

Question 11

When is a benefits review plan created and what it is updated to line up with?

Answer 11

The benefits review plan is created during initiating a project and kept updated in line with the Business Case.

Question 12

What is a benefits review plan used to define?

Answer 12

It is used to define how and when measurement of the achievement of the project’s benefits, expected by the Senior User, can be made.