LO6 Business Case

Question 1

What is a business case?

Answer 1

A business case provides justification for undertaking a project. It evaluates the benefit, cost and risk of alternative options and provides a rationale for the preferred solution.

Question 2

What are the five purposes of a business case?

Answer 2

• Provide info to enable the project to be authorised at the start
• justify the investment and gain commitment from the host organisation in terms of strategy
• Give stakeholders confidence that the project is worthwhile and aligns with overall strategy
• Provide a basis for decision making through the life of the project e.g. when project scope changes
• Provide a baseline against which the benefits will be measured.

Question 3

BC in concept

Answer 3

An outline business cas created to justify investment and progressing into the defintion stage.
Ensures only projects algined with organisational strategy and have mangement support use planning resources.

The outline BC infroms a decision to commit resources to the project.

Question 4

BC in defintion

Answer 4

The BC is refined once more accurate costs, risks and timescales are known from planning of the project.
Approved by the appropriate level of management and owned by the sponsor through the life of the project (ensuring ongoing viability following development of the project management plan)
This BC marks agreement and buy-in among stakeholders and acts as reference for the benefits realisation.