Business Case Theme Flashcards
What is the definition of a “business case”?
The description of the reasons for the project and the justification for its undertaking.
It should provide a clear statement of the benefits that are expected from the project and the costs, risks and timescale that are entailed in achieving those benefits.
The business case enables the Project Board to judge whether the project is desirable, viable and achievable. What does that mean?
- Desirable: the cost/benefit/risk analysis is valid
- Viable: the project can deliver its products
- Achievable: the product can provide the benefits
Who achieves change in business as usual?
The users, who use outputs to change the way they operate
What are dis-benefits?
Outcomes perceived as being negative by one or more of the stakeholders
What are the minimum requirements for PRINCE2 projects regarding the business case? (4)
- Create and maintain a business justification
- Review and update the justification in response to decisions and events that affect the desirability, viability and achievability of the project
- Define the management actions to ensure the outcomes are achieved and benefits are realized
- Define and document the roles and responsibilities for the business case and benefits management
The business case is developed at the beginning of the project, maintained throughout the life of the project, verified by the Project Board and confirmed throughout the period that benefits accrue. What does that mean?
- Maintain means updating the business caae with the latest information about costs and benefits
- Verify means assessing whether the project is worthwhile and remains so
- Confirm means assessing whether the intended benefits have been, or will be, realized.
What are the two products associated with the business case theme?
- Business case
2. Benefits management approach
What is the benefits management approach?
It defines the actions and benefits reviews that are required to ensure that the outcomes and benefits are achieved and is prepared during the initiating a project process.
In programmes, it may be contained in the programme benefits realization plan
What are the main sections PRINCE2 suggests should be included in a business case? (9)
- Executive summary (key points, return on investment)
- Reasons (and how the project helps us achieve corporate strategies)
- Business options (including recommendation of what to do)
- Expected benefits (identified and described)
- Expected dis-benefits
- Timescale
- Costs (including for future maintenance, if applicable)
- Investment appraisal (compares aggregated benefits and dis-benefits with costs)
- Major risks
Whose responsibility is it to ensure that the project’s objectives, costs and benefits are aligned with the business strategy or programme objectives?
The executive’s
How is a business case developed?
- Starting up: information from the project mandate is used to develop the information required for the outline business case
- Initiating a project: business case is fully developed
When must the Project Board review the business case?
- At the end of starting up a project to authorize the initiation
- At the end of the initiating a project process in order to authorize the next stage and continuation of the project
- In tandem with the exception plan to authorize the revised stage and the continuation of the project in the event of an exception at stage or project level
When will the Project Manager review the business case?
- As part of the impact assessment of any new issue or risk
- At the end of each stage to determine if any of the costs, timescales, risks and benefits need to be updated
- During the final stage to assess the project’s performance against its requirements
