The PRINCE2 Business Case

 

The Business Case is used to determine whether the project is, and remains, desirable, viable and achievable.  It answers the question ‘ is the investment in this project is still worthwhile?’

 

An outline Business Case is created within the Project Brief and is used to determine if it is worth investing in the initiation stage.  The detailed Business Case forms part of the Project Initiation Documentation and his used by the project board to determine if we have a worthwhile project.

 

Throughout each stage the Business Case is used and continually updated with current information to determine if the project remains viable.  If the Business Case ceases to be viable, then the project should be changed or stopped.

 

The output of a project is the specialist products, the outcome is the result of the change derived from using the projects outputs, a benefit is the measurable improvement resulting from an outcome seen as an advantage by at least one of the stakeholders.

 

Normally, the projects outcomes and benefits are realized after the project has been completed, although some projects can use a phased delivery where some products are released into the operational area and benefits may accrue during the life of the project.

 

The PRINCE2 approach to the Business Case is that it first must be developed, meaning it contains the right information; verified, meaning that the project is still worthwhile; maintained, meaning that the business case is updated with actual costs and benefits for both current and forecast timeframes; confirmed, meaning assessing whether the benefits have been, or will be realized.

 

The project board executive is responsible for the Business Case however its development as above, may be delegated to the project manager or someone else with appropriate finance knowledge and skills including the business assurance role if the executive has delegated their responsibilities.

 

The Business Case will be reviewed at the end of the Starting Up a Project and again at the end of the Initiating a Project processes, and will form part of the evidence the project board to decide what to do next.  During a stage and as part of any impact assessment for issues or risks, the Business Case should be checked to see what the impact may be.

 

At the end of each stage the project manager will update the Business Case based on the next Stage Plan, and updated Project Plan, and this will be presented to the project board for them to decide what to do next.

 

The investment appraisal section of the Business Case provides the project will with information to verify that it justifies the authorization and continuation of the project.  It is the Senior User who is responsible for specifying the benefits within the business case and will be held to account by corporate or programme management that the forecast benefits are eventually realized.

 

The Benefits Review Plan is created from the detailed Business Case during the initiation stage, and this will be updated at the end of each stage as part of the evidence for the project board to consider as to whether to proceed or not.  The project’s Benefits Review Plan defines the scope, timing and responsibility of a number of reviews for the expected benefits.

 

The benefits that can be measured during a project should be included in each End Stage Report.

 

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