2. Every project is an endeavour arising as the
result of a need for a new product or
process; or evolution of existing product or
process.
The Business Case provides the justification for
the project by setting out the frame work in
terms of Scope, Time, and Resources, and
iterate what would happen if the Project did
not go ahead
3. A Project Brief states what needs to be done; the Project
Plan explains how it will be carried out; and the
Business Case gives the reason why, and is considered
as the Project Driver.
According to Portman (2009) the Business Case consists
of four generic building blocks. These building blocks
set out the criteria for continued testing for Project
viability
Project mandate
Project background
Project Scope
Project Costs/Benefits Analysis
4. It provides the foundations for Senior Responsible
Owner (SRO) and Project Sponsors to make their
judgments based on estimated costs and expected
benefits
It also provides guidance for the Project Board and the
Team in terms of defining the Project Goals and
identifying roles and responsibilities.
The Business Case underpins an initial appraisal of the
business opportunity within the context of
Organisational strategy.
5. a Business Case document must be produced by the
Project Manager. The initial Business Case must be a
short and concise document focusing as much as
possible on factual data and realistic estimates (Young,
1996).
The Business Case is the product of management
activities and efforts. It establishes mechanism to judge
whether the Project is (and remains) desirable, viable
and achievable as a means to support decision making
in its (continued) investment.’
6. According to PRINCE 2 methodology it provides the
justification for the endeavour; though in other project
management methodologies, the justification is a
separate activity and encompasses the business case
alongside the project objectives, scope, and context
(Newell and forashival, 2004).
7. The Business Case provides the vital test of viability
and validity for the Project Board and Stakeholders to
continue with their support and investment; whilst
setting out the project scope and its fit within the
overall context of corporate objectives and strategy.
The Business Case should be written in plain English,
avoiding specialised terminology as much as possible.
The Business Case is central to the decisions made by
the Project Board (Smith, 2008). it can greatly
influence the final decision made by the sponsors.
8. • Reason for the project, and the benefits it offers
• How the project offers solutions for
problems/opportunities the organisation is facing
• Description of options considered, and
recommended solutions
• Forecast of expected benefits
• Key project risks
• Identification of the required resources
• estimated costs and required investments
• Key dates for project start and end
9. The business case is initially a static document
containing information about the following:
• project definition,
• management organisation and project team,
• internal and external communication strategy,
• quality assurance,
• control structures.
Once the approval for a project is given, then the
business case becomes dynamic and the information is
updated as the project proceeds and evolves through
various stages
10. In PRINCE2 methodology, a viable Business Case should
be the driving force behind the proposed Project, and
should concentrate on customer’s business needs.
Therefore a Project should not be started unless there is
a compelling Business Case for it.
The Business case should be checked for Project
viability throughout the Project lifecycle, and the
project should be terminated if the justification no
longer applies.
11. Business case Templates can be downloaded from
following cites:
http://www.prince2.com/prince2-business-case.asp
www.jiscinfonet.ac.uk/InfoKits/infokit-related-files/businesscase-
template
http://www.my-project-management-expert.com/how-to-write-a-
business-case.html
http://www.projectsmart.co.uk/business-case.html
Further reading on Business Case and PRINCE2 methodology:
What is a PRINCE2® Business Case and why do you need one?
http://www.knowledgetrain.co.uk/prince2-business-case.php
12. Michael W. Newell, Marina N. Grashina, 2004, The
Project Management Question and Answer Book, New
York, American Management Association
N. J. Smith, 2008, Engineering Project Management, 3rd
Edition, Oxford, Blackwell Publishing
Trevor L. Young, 2004, The Handbook of Project
Management, 2nd Edition, London, Kogan Page Ltd.
