les 24 - business case - guidance

Question 1

What are the three evolution steps of the business case?

Answer 1

Step 1: Project mandate,
Step 2: Project Brief (outline business case),
Step 3: Business case

Question 2

What business-related information may be in the project mandate?

Answer 2

The project mandate comes from the business layer. Therefore, it should give an overview of the project’s investment idea and show the organization’s value.

Question 3

Which document is seen as the trigger for the project?

Answer 3

Project mandate

Question 4

Why does the project executive create the outline business case and not the project manager?

Answer 4

Creating the outline business case typically requires access to business layer knowledge, and the project manager does not have this. A project executive is usually a senior person in the organization

Question 5

Why is it a good idea to update the business case at the end of each stage?

Answer 5

At the end of each stage, the project board will typically decide to continue with the next stage, and therefore, they need the latest costs, expected benefits, and risk information.

Question 6

Which document tracks benefit-related information such as when benefits will be realized?

Answer 6

Benefits management approach

Question 7

What is the permissible deviation in the benefit performance targets allowed before escalation?

Answer 7

Benefits tolerance

Question 8

What three costs should be included in the business case?

Answer 8

• The cost of creating the project product
• Cost for organization change management (e.g., training, hiring)
• Future maintenance costs