Prince2: Business Case
This Baseline Product documents the justification for the project based on estimated cost of development and implementation against the risks and the anticipated business benefits and savings to be gained. It is formally verified by the Project Board at each key decision point.
The Business Case document is a living document which grows with the project, to which end the physical document will include vital information that defines which version of the document you are reading, whether it is in the draft or final stage, date written, who is the author, owner or client. It will no doubt have a document number also. The Business case document will also include a document history complete with disclaimer and source location.There are many templates out there that can provide a good template framework, but this goes beyond the scope of what I am trying to achieve.
Content of the Business Case
- Executive Summary
- Derivation of the Project Mandate and Project Brief
- The reasons for the project must be consistent with the corporate or program strategy
- Business Options
- Expected Benefits
- The senior user inforation
- Must be clearly identified, justified and how they will be realised
- Expected dis-Benefits
- The derivation of the Project Plan which must be aligned to the Business Case
- The derivation of the Project Plan
- Investment appraisal
- Major Risks (see Risk Register)
- Project mandate and Project Brief (Reasons)
- Project Plan
- Senior User(s)
- Project Executive
- Risk Register
- Issue Register
Elements to remember
- The business case should show funding
- Options for delivery are NOT shown in the business case
- During the Managing a Stage Boundary process, the Project Manager should consult with the Executive when updating the Business Case.
Prince2 Business Case: Business Options
There are three basic business options:
- Do nothing
- Do little
- Do something
Prince2: Expected Benefits
The first thing to understand is that the expected benefit has to be measurable/quantifiable. Benefits can be financial or non-financial.
Benefits should be:
- Aligned to corporate objectives and strategy
- Mapped from the outputs and incomes provided by the project.
- Quantified with tolerance
- Business Reasons are NOT Expected Benefits
Business Case: Reasons
The thing here to get your head around is not to confuse reasons with the expected benefit. The reason quite simply is what drove the decission to begin the project, was it a fall in sales etc?