Business Case Theme Flashcards
What is the PRINCE2 definition of a Business Case?
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.
What does a Business Case do for the Project?
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.
What question is the Project Manager constantly asking in regards to the Business Case?
“Is the the continued investment in this project still worthwhile?”
What terms does PRINCE2 use to describe what you get from a Project?
Output, Outcome and Benefits
What is the definition of Outputs?
The outputs of a project are the products that the Users will use.
What is the definition of Outcome?
An Outcome is the result of a change derived from using the projects outputs.
What is the definition of Benefits?
Benefits are the measurable improvement, resulting from an outcome that is perceived as an advantage by one of the stakeholders.
What question can uncover the Output?
What is the product that will be delivered by the project?
What question can uncover the Outcome?
What can the users do better with this product?
What question can uncover the Benefits?
List the measurable improvements of using this product>
What are the 5 different Project Types that could affect the Business Case in varying ways?
- A Compulsory Project
- Not-for-profit project
- Evolving project
- Customer/Supplier project
- Multi-organisation project (Joint venture, government)
What are the 4 steps to create the Business Case?
- Develop
- Verify
- Maintain
- Confirm the Benefits
What document is needed before the project starts to trigger the project?
The Project Mandate.
What occurs in the Pre-Project (SU) stage in regards to the Business Case?
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.
What information does the Business Case document take from the Project Plan?
Costs, Timescales and product information.
What is the 1st verification point in regards to the Business Case?
At the end of the “Starting Up a Project” (SU) process.
What is the 2nd verification point in regards to the Business Case?
At the end of the Initiation stage (IP)
What is the 3rd verification point in regards to the Business Case?
For the Project Manager during the controlling a Stage process.
What is the 4th verification point in regards to the Business Case?
The Project Manager updates the Business Case if there are changes in Project Costs, Timescales, Risks or Benefits.
What is the 5th verification point in regards to the Business Case?
At the end of each stage and before the next stage.
What is the 6th verification point in regards to the Business Case?
During the Closing a Project process (CP).
What is the 7th verification point in regards to the Business Case?
After the project, a benefits review will be performed by someone from Corporate or Program Management.
When can “Maintaining the Business Case” be done?
When assessing Risks or Issues, or at the end of a stage.
When is a good time to update the Business Case during the project?
At the end of every stage, so you have the true cost of the last stage and the updated costs of the next stage.
What responsibility does the Executive have in regards to the Business Case?
The Executive has the responsibility to all project stakeholders that the project remains desirable, viable and achievable at all times.
What are the 4 steps to confirm the Benefits in the Business Case?
- Identification of the benefits by the Senior User (Documented)
- Select objective measurements that reliably prove the benefits.
- Collect the baselined measures so that they can be used to compare the improvements.
- Decide how, when and by whom the benefit measures will be collected.
What is the purpose of the Benefits review plan?
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.
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?
The Senior User
What 8 sections should the Business Case contain?
- Executive Summary
- Reasons
- Business Options
- Expected Benefits and expected dis-benefits
- Timescales
- Costs
- Investment Appraisal
- Major Risks
What are the two Appraisal Techniques that can be included in the Business Case.
- Simple Cash Flow Example
2. Return on Investment (ROI)
What is Corporate or Program Management responsible for in the Business Case?
- They provide the project mandate
- Interested in hearing about the Benefits of the project.
- Creation of the Benefits review plan after the project is finished.
What are Executives responsible for in the Business Case?
- Responsible for the Business Case and Benefits Review Plan during the project.
- Develop a viable Business Case, securing funding for the project and ensuring the Project is aligned with corporate strategy.
What is the Senior User responsible for in the Business Case?
- Specifying the benefits and then ensuring they are realised by the Project.
- Ensuring products produced by the project deliver the desired outcomes.
What is the Project Manager responsible for in the Business Case?
- The Project Manager assists the executive in preparing the Business Case.
- 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.
- Asses the Business Case at the end of each stage.
