Business Case Theme

Question 1

1) When should the Business case be routinely updated?

2) When is business case reviewed

3) What does a Business case enable the project board to judge x3

Answer 1

1) At each stage end

2) By project board during end stage/exception assessments

3) Enables PB to judge whether the project is:
a) Desirable (Balance of costs, benefits and risks)
b) Viable - Able to deliver the products
c) Achievable - whether the use of the products is likely to result in the envisioned outcomes and resulting benefits.

Question 2

x4 Minimum Requirements of Prince2 (Not Crucial to know…).

Answer 2

a) Create and maintain a business justification, usually a business case
b) Review and update the justification in response to decision and events that affect the projects: desirability, viability and achievability.
c) Define the management actions to ensure the outcomes are achieved and the benefits realised.
d) Define and document the roles and responsibilities for the business case and benefits management.

Question 3

Business justification is developed at the beginning of the project, maintained throughout the life of the project, verified by project board and confirmed throughout period benefits accrue.

Verify =
Develop=
Maintain=
Confirm=

Answer 3

A) Verify - Assess whether the project is worthwhile (verify the outline and detailed business case)
B) Develop - Getting/gathering the right information (develop BC)
C) Maintain - Updating the business case with the latest information about costs and benefits
D) Confirm - Assessing whether the intended benefits have/will be realised.

Question 4

1) What are the two products associated with the BC theme. They are x2:

2) What are they both

Answer 4

1) A) Business Case
B) Benefits management approach

2) a) is a major control document that is referenced on a regular basis to ensure and confirm that the project remains viable.

The purpose of the business case theme is to establish mechanisms to judge whether the project is, and remains, desirable, viable and achievable as a means to support decision making in its continued investment.

b) Defines the actions and benefit reviews that are required to ensure that the outcomes and benefits are achieved.

Prepared during initiating a project (Maybe contained in programme benefits realisation plan if part of project, is executed after the project has finished, maintained by corporate or programme management).

Question 5

Main sections that Prince2 state should be in a business case x9 Erbee Thinks Cassie is Mad.

E
R
B
E
E
T
C
I
M

Answer 5

Executive Summary
Reasons
Business Options
Expected Benefits
Expected Dis-benefits
Timescale
Costs
Investment
Major Risks

Question 6

Explanation of x3

Executive Summary

Reasons

Business Options

Answer 6

A) Executive summary is an easy to read overview of the key points in the business case, including major reasons, important benefits and return on investment (ROI).

B) Reasons, describes the reason for the projects (e.g. problem to be resolved or opportunity to be achieved). Should also explain how the project will enable the achievement of corporate strategies an achievements.

C) Business Options, this includes the analysis and well reasoned recommendations for the base businesss options of: Do nothing, do the minimum or do something. Other options may be included as required.

Question 7

Explanation of x3

Expected Benefits

Expected Dis-benefits

Timescale

Answer 7

A) Expected Benefits, where the benefits you’re expecting to accrue are identified and described (qualitative/quantitative). Tolerances should be set for each benefit and for the aggregated benefit. Requirements for benefits realisation should be stated.

B) Expected Dis-benefits, are those outcomes perceived as being negative by one or more of the stakeholders. Should be valued and included in investment appraisal.

C) Timescale, refers to actual project duration from the creation of the project plan, to the period of the benefits realisation. This information feeds into the preparation of the project plan, stage plan and benefits management approach.

Question 8

Explanation of x3

Costs

Investment Appraisal

Major Risks

Answer 8

A) Costs, Summary of the project costs from the project plan. Costs also include the ongoing costs of operations and maintenance and their funding arrangements.

B) Investment appraisal, compares the aggregated benefits and disbenefits with the costs of the project and ongoing operational and maintenance costs. Many techniques to use to develop IA e.g. ROI. net present value, sensitivity analysis etc.

C) Major Risks, Summary of the major risks of the project. Should include a view of the aggregated risk and if appropriate, a summary risk profile.