What is in a Business Case? And Why Your Projects Need One

Is this a Business Case..? No, no it is not.

What are they and why should you care?

A Business Case is a document that the Project Manager can refer to see the project is still useful, still something the users would want and still doable.

This is the fourth post in my PRINCE2 series to learn more about Project Management. The Business Case is one of the Themes of PRINCE2.

Some Jargon For You:

Benefits: Any measurable improvement to the business. Does it make the business better? No? not a benefit. Can you specifically measure the impact of the goodness created? No? not a benefit.

PRINCE2 projects create PRODUCTS, using products creates a change in the business. These changes create OUTCOMES. These outcomes produce BENEFITS for the business.

For some weird reason negative outcomes are called DIS-BENEFITS. I think the creators of PRINCE2 wanted the least catchy name they could think of.

Want an Example with that Jargon?

Jargon is all well and good, but how can we really understand something? With some super sexy context of course.

Output

New Sales System

Outcome

Sales are processed quicker and more accurately than the crappy old system

Benefits

10% cost reduction and 15% more sales

Boom. That is context.

Business Justification

Business Justification sounds very impressive. But what does it mean?

Some more jargon coming your way.

To keep a project being worth the trouble, you must justify the Business Case. The project must be Desirable, Viable and Achievable (DVA). What are these terms? Why do they rhyme?

Desirable: The project balances cost, benefits and risk (not the same kind of desirable as a chocolate lava cake, sadly)

Viable: The project will create benefits for the business

Achievable: The project can be done. It is not some impossible task.

What Makes A Business Case a Business Case?

It is vital that you, as Project Manager, create and maintain a Business Case on any PRINCE2 project.

You must review and update your Business Case after any events or decisions that affect the DVA.

Your Business Case must define how to manage the project so you get the benefits and outcomes the business needs.

You must record all the roles and responsibilities of the project team in your Business Case.

The key idea of a Business Case is why? Y0u must define why this project must be done.

Verifying and Maintaining Business Justification

AKA checking the project should be done and making sure it’s still worth the cost.

For a truly well-managed project you must check it it is still worth the cost at the following times:

  • The beginning of each step in the project
  • The end of each step in the project
  • Any time a new issue or risk is noticed!
  • When a backup plan is created
  • At the very end of the project

Remember, the customer is the ultimate judge of the whether or not the project was justified.

Ensuring and Confirming Benefits are Realised

AKA making sure the project is a success.

Sadly, many systems never get used. A system is not just for Christmas people! Here are some common reasons why a system may not get used:

  • If a project is part of a larger programme, it may not be able to produce all those juicy benefits on its own. You could create a damn good wheel, but the customer can’t drive home in a wheel.
  • The project team could make a fantastic product but not train the customers how to use. Remember the first time you drove a car? Imagine there were no driving instructors and you had to just get that bad boy home. Training matters.
  • People can just lose enthusiasm. Some projects take a long time, the customer doesn’t care anymore or some newer shinier, project comes along. You need to keep their precious attention or your project will crash and burn.

A truly successful project has the products used, not just created.

If you learned something or you want to try your own Business Case now, please let me know in the comments below.

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