Business Case Theme

Question 1

What is the PRINCE2 definition of a Business Case?

Answer 1

The purpose of the knowledge in the Business Case Theme is to provide a structure to judge whether the Business Case is desirable, viable, achievable and worth the continued investment that is made during the project.

Question 2

What does a Business Case do for the Project?

Answer 2

The Business Case gathers the information to allow the management to judge if a project is desirable, viable and achievable and therefore worthwhile to invest in.

Question 3

What question is the Project Manager constantly asking in regards to the Business Case?

Answer 3

“Is the the continued investment in this project still worthwhile?”

Question 4

What terms does PRINCE2 use to describe what you get from a Project?

Answer 4

Output, Outcome and Benefits

Question 5

What is the definition of Outputs?

Answer 5

The outputs of a project are the products that the Users will use.

Question 6

What is the definition of Outcome?

Answer 6

An Outcome is the result of a change derived from using the projects outputs.

Question 7

What is the definition of Benefits?

Answer 7

Benefits are the measurable improvement, resulting from an outcome that is perceived as an advantage by one of the stakeholders.

Question 8

What question can uncover the Output?

Answer 8

What is the product that will be delivered by the project?

Question 9

What question can uncover the Outcome?

Answer 9

What can the users do better with this product?

Question 10

What question can uncover the Benefits?

Answer 10

List the measurable improvements of using this product>

Question 11

What are the 5 different Project Types that could affect the Business Case in varying ways?

Answer 11

1. A Compulsory Project
2. Not-for-profit project
3. Evolving project
4. Customer/Supplier project
5. Multi-organisation project (Joint venture, government)

Question 12

What are the 4 steps to create the Business Case?

Answer 12

1. Develop
2. Verify
3. Maintain
4. Confirm the Benefits

Question 13

What document is needed before the project starts to trigger the project?

Answer 13

The Project Mandate.

Question 14

What occurs in the Pre-Project (SU) stage in regards to the Business Case?

Answer 14

Business Case info will be taken from the Project Mandate, and will be what we call the “Outline Business Case”, which is part of the Project Brief.

Question 15

What information does the Business Case document take from the Project Plan?

Answer 15

Costs, Timescales and product information.

Question 16

What is the 1st verification point in regards to the Business Case?

Answer 16

At the end of the “Starting Up a Project” (SU) process.

Question 17

What is the 2nd verification point in regards to the Business Case?

Answer 17

At the end of the Initiation stage (IP)

Question 18

What is the 3rd verification point in regards to the Business Case?

Answer 18

For the Project Manager during the controlling a Stage process.

Question 19

What is the 4th verification point in regards to the Business Case?

Answer 19

The Project Manager updates the Business Case if there are changes in Project Costs, Timescales, Risks or Benefits.

Question 20

What is the 5th verification point in regards to the Business Case?

Answer 20

At the end of each stage and before the next stage.

Question 21

What is the 6th verification point in regards to the Business Case?

Answer 21

During the Closing a Project process (CP).

Question 22

What is the 7th verification point in regards to the Business Case?

Answer 22

After the project, a benefits review will be performed by someone from Corporate or Program Management.

Question 23

When can “Maintaining the Business Case” be done?

Answer 23

When assessing Risks or Issues, or at the end of a stage.

Question 24

When is a good time to update the Business Case during the project?

Answer 24

At the end of every stage, so you have the true cost of the last stage and the updated costs of the next stage.

Question 25

What responsibility does the Executive have in regards to the Business Case?

Answer 25

The Executive has the responsibility to all project stakeholders that the project remains desirable, viable and achievable at all times.

Question 26

What are the 4 steps to confirm the Benefits in the Business Case?

Answer 26

1. Identification of the benefits by the Senior User (Documented) 2. Select objective measurements that reliably prove the benefits. 3. Collect the baselined measures so that they can be used to compare the improvements. 4. Decide how, when and by whom the benefit measures will be collected.

Question 27

What is the purpose of the Benefits review plan?

Answer 27

To identify the benefits and to select how the benefits can be measured to show that they have been reached. Must include information on the expected timeline for these benefits.

Question 28

Who is responsible for specifying the benefits in the Business Case and reporting on the realised benefits to Corporate Management at the end of the Project?

Answer 28

The Senior User

Question 29

What 8 sections should the Business Case contain?

Answer 29

1. Executive Summary 2. Reasons 3. Business Options 4. Expected Benefits and expected dis-benefits 5. Timescales 6. Costs 7. Investment Appraisal 8. Major Risks

Question 30

What are the two Appraisal Techniques that can be included in the Business Case.

Answer 30

1. Simple Cash Flow Example | 2. Return on Investment (ROI)

Question 31

What is Corporate or Program Management responsible for in the Business Case?

Answer 31

1. They provide the project mandate 2. Interested in hearing about the Benefits of the project. 3. Creation of the Benefits review plan after the project is finished.

Question 32

What are Executives responsible for in the Business Case?

Answer 32

1. Responsible for the Business Case and Benefits Review Plan during the project. 2. Develop a viable Business Case, securing funding for the project and ensuring the Project is aligned with corporate strategy.

Question 33

What is the Senior User responsible for in the Business Case?

Answer 33

1. Specifying the benefits and then ensuring they are realised by the Project. 2. Ensuring products produced by the project deliver the desired outcomes.

Question 34

What is the Project Manager responsible for in the Business Case?

Answer 34

1. The Project Manager assists the executive in preparing the Business Case. 2. For each new or revised issue or risk, they will do Impact Analysis of the Business Case to see if the issue or risk affects the Business Case. 3. Asses the Business Case at the end of each stage.