The PRINCE2 Business Case Contents

 

 

The contents of a Business Case will vary from industry to industry and project to project, but will typically contain the following information:

 

Reasons.  These should explain the reasons why the project is required including how the project will enable the treatment of corporate strategies and objectives.  Generally speaking, the reasons will either be to reduce pain or to increase gain of some sort.

 

Business Options.  This will normally consist of three basic options: Do Nothing, Do the Minimum, Or Do Something.  The option do nothing is always the starting point reference for quantifying the other options.  Whichever option is now selected in the business case should show the best level of investment for the best realised benefits, and is more viable and achievable than the other options.

 

Expected benefits.  Based on the selected option, this would then be a list of each benefit that could be achieved by the project’s outcome.  It should also define how and when the measurement of these improvements can be made.  Some benefits will be measured by financial metrics and others by non-financial metrics. 

 

Each benefit should be tied back through the products and outcomes that will provide them, they should be measurable and stated within a tolerance and the and it should be clear where these benefits will be achieved.  

 

The Senior User is responsible for identifying the benefits in the first place and will be held to account by corporate or programme management that these benefits are eventually realised.

 

Expected dis-benefits. A dis-benefit is one where the outcome is seen as negative, and is usually the result of a side affect or consequence. 

 

For example, moving an office to be closer to our customers where the benefit is increased revenue, the dis-benefit may be an increase in costs of renting office space in the city centre.  Dis- benefits should also be measurable in the same way as benefits including the use of tolerance.

 

Timescale.  Although this information is extracted From the Project Plan, it does include other timeframes: the project timeframe, the timeframe that cost/benefits analysis will be based upon, the time when benefits will be accrued, and the earliest/latest feasible start and completion dates.

 

Costs.  These are summarised From the Project Plan along with their assumptions, but should also include details of ongoing operational and maintenance costs.  This section of the Business Case should also include the funding arrangements.

 

Investment appraisal.  Depending on the industry or organisation, then different techniques will be used for investment appraisal.  Whichever is used, they will normally compare the development, operations and maintenance costs against the value of the benefits over a period of time.  

 

Of the many techniques, some of the most often used return on investment, payback period, discounted cash flow, net present value and sensitivity analysis.

 

Major risks.  In order for the business case to make a balanced business justification it must consider and include the risks, and these should be balanced against the benefits and costs.  

The business case will normally include a summary of the aggregated risks and in particular mention those that will have an effect on the business objectives and benefits.

 

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