Planning for Success (Business Case)

Question 1

The Importance of a Business Case Throughout the Project Life Cycle - Business Case

Answer 1

• The business case provides justification for undertaking a project or programme
• It evaluates the benefit, cost and risk alternative options and provides a rationale for the preferred solution

Question 2

What is a Business Case

Answer 2

• Commonly argued to be the single most important document in any project, the business case defines ‘why’ a project is being undertaken by providing a justification for its viability
• The justification is typically supported by a comparison of the projects quantified costs and benefits
• An outline business case is a key output of the project’s concept phase and documents the initial idea problem or opportunity) as well as providing the information required to scope and plan the project in detail
• This should contain sufficient relevant and realistic information for an informed decision to invest in the Definition phase to be taken

Question 3

Reviewing During the Life Cycle

Answer 3

• The project needs to remain justified, so the business case acts as the guide document for the project
• Defines objectives, budgets, expected outputs, and the benefits against which the project will be measured
• The sponsor and PM should review the project performance against the business case through the life cycle
• This should happen at every mile stone
• When significant risks or major changes are identified, the business will need to be reviewed
• The business case should be under change control; only approved changes are made to it

Question 4

Explain What is Meant by Benefits Management

Answer 4

• A benefit is the quantifiable and measurable improvement resulting from completion of deliverable that is perceived as positive by the stakeholder
• Delivering benefits is the primary reason for change initiatives in an organisation
• Generally most projects end with the delivery of an output
• In some cases the project continues through the extended project life cycle to deliver measurable benefits

Question 5

Benefits Management

Answer 5

• Benefits management if the identification, definition, planning, tracking and realisation of business benefits

Question 6

Benefits Management Process

Answer 6

Benefits must be

• IDENTIFIED: in the business case
• DEFINED: in measurable terms e.g. 10% increase in staff turnover in the first year
• PLANNED: embedded in the project i.e. extra activities to ensure benefits occur
• TRACKED: as the project progresses
• REALISED