GR2 - Business Case & Success Criteria Flashcards
Business Case (BOK Definition)?
-“Provides justification for undertaking a project or programme. It evaluates the benefit, cost & risk of alternative options & provides a rationale for the preferred solution.”
What is some important info on the Business Case?
-The benefits of doing a project should outweigh it’s costs & risks
-The business case is used at each decision gate to justify the continued investment in the project
-The effects of change on the business case must be considered, particularly the Investment Appraisal
-The business case is developed in Concept phase, updated throughout the Project Lifecycle with the latest info e.g. time & cost
Who is the Business Case owned by & what responsibilities do they hold?
-owned by the Project Sponsor (although many ppl will contribute to its preparation)
-Project Sponsor will present it to senior management team for approval
-Project Sponsor will obtain approval from senior management team if major changes to business case throughout the life of project
Minimum Business Case contents?
-Reasons for undertaking the project : current situation; problems & opportunities
-Options (including preferred option) : examine possible solutions; include the recommended option w/ a rationale for this recommendation
-Benefits : describing improvements that will accrue once project completed (financial ideally but also intangible & non-financial)
-Scope & major deliverables that project will reduce
-Risks to business that arise due to project
-Cost & Timescales
-Investment appraisal (cost benefit analysis) : provides financial analysis of cost & benefits over the life of the investment
What is a successful Project?
-a Project that delivers the right output by the date requested & within the budget agreed
-that achieves the benefits defined in the Business Case
-that adheres to safety elements as cannot be compromised
Success Criteria (BOK Definition)?
-“Success criteria are the satisfaction of stakeholder needs for the deployment of a project. Note this is a different performance measure to benefits, which are focused on the strategic intent & delivering beneficial change.”
When may the Project Sponsor find a delay or increase in budget acceptable?
-as long as the long-term benefits of the change exceed the costs & risks… if so, this is a worthwhile investment in change
Project Managers responsibilities regarding Success Criteria?
-success criteria will be set for the Project Manager to achieve by the end of the Project
-will outline what they have to achieve & how it is achieved
-will need to monitor progress to ensure all Success Criteria have been achieved (known as Key Performance Indicators)
Key Info on Success Criteria?
-set at the start of a project
-documented in the Business Case
-checked for their achievement at end of project
-owned by the Project Sponsor
-criteria will relate to what’s being delivered
-criteria will be captured as part of the requirements management process
-it may be in conflict that will need to be resolved
-need to comply with safety elements
What aspects will the Success Criteria cover?
-meets specification
-delivered on time
-delivered within budget
-adhered to all safety standards
-(these will be documented as measurable objectives & agreed by all stakeholders)
Who is responsible for setting the Project’s Success Criteria?
-the Project Sponsor
-however key stakeholders may have some interest or influence
Key info on Key Performance Indicators (KPIs)?
-must be defined for each project depending on need
-based on what you have to achieve, which will be different for each KPI
-Gant chart, milestone chart or network diagram can be used to measure KPIs
-Net Present Value & Investment Appraisal technique can be used to measure the forecast of benefits & check the Project is still predicted to make a profit
-Configuration Management will allow you to confirm what is being delivered
-Audit trail needed for all quality control activities to show all items have been tested & passed quality control
Where are Key Performance Indicators (KPIs) documented? Who are they agreed by?
-in the Project Management Plan
-agreed by the Project Sponsor
What elements should be included when setting success criteria for a project?
-Delivered on time
-Delivered within a budget
-Approved by all team members
-Meets specification
-Includes all possible features
Answer:
-Delivered on time
-Delivered within a budget
-Meets specification
Identify the missing word in the following sentence:
The Business Case provides the justification for doing the Project & contains the benefits of doing the Project, which should outweigh its costs & [ ? ]
-risks
State one key element that must be included in the Business Case (explain the rationale for this)
-Investment Appraisal
-Is a critical element of the Business Case, providing a financial analysis of the costs & benefits over the life of the investment. This helps in assessing the Project’s financial viability & justifying the investment to stakeholders. Other key elements include reason, options, benefits, scope, major risks, costs & timescales.
EQ: Explain 2 points in the Project when the Business Case must be updated (2 marks)
EA:
-During Gate Reviews : At each decision gate or phase review, the business case must be updated to reflect the latest information on costs, benefits, risks & time. This ensures that the project remains aligned with its objectives & provides justification for continued investment.
-When a Major Change is Proposed : If a significant change to a project scope, schedule or budget is proposed, the business case must be updated to assess the impact of this change. This includes re-evaluating the investment appraisal to ensure the project still offers a viable return on the investment.
EQ: Explain 3 benefits of keeping the Business Case up to date (3 marks)
EA:
-Ensures Continuous Justification : By keeping the business case up to date, the project maintains a clear & ongoing justification for its existence. This helps in making informed decisions about whether to proceed, modify, or terminate the project based on current data & circumstances.
-Improves Stakeholder Confidence : Regular updates to the business case provide stakeholders with assurance that the project is being managed responsibly & transparently. It demonstrates that the project team is actively monitoring & responding to changes, which helps build & maintain trust among stakeholders.
-Enhances Risk Management : An updated business case helps in identifying & managing risks more effectively. By continually assessing the Project’s alignment with its original goals & the current environment, potential risks can be identified early& mitigation strategies can be implemented to address them proactively.
