Introduction
The PRINCE2 business case theme’s objective is to build processes for determining if the project is and stays desired, feasible, and doable to assist decision-making in its investment. This indicates that no project should start until there is a business case for it. As the project progresses, the reasoning as described in the business case must be examined to ensure that the project is justified and that the explanation is based on appropriateness, which is how the cost-benefit and risk-balanced appear.
In this article, you will comprehend What is a Business Case PRINCE2 and the Importance of the Business Case in the PRINCE2 Methodology.
What is a Business Case?
The business case provides the optimal blend of facts for assessing the ongoing project's attractiveness, viability, and capacity to achieve success. The project board and stakeholders of 20 more stakeholders later must be convinced of the project's ongoing viability at all times, and the business case must be updated throughout the project's life cycle and should always have updated information on costs, risks, and benefits. Projects should be evaluated based on their contribution to company objectives as well as their benefits in contrast to their costs and hazards.
Importance of the Business Case in PRINCE2 Methodology
- The Business Case is the project's driving force and provides its business reason.
- The project objectives are linked to the needs outlined in the Business Case, which act as guidelines for decision-making.
- The business case theme PRINCE2 serves as a rationale for the project's first funding. The feasibility of the project may be determined while developing the Business Case, and the Project Board can make an informed choice on whether to move forward with the project based on this crucial document.
- The PRINCE2 Business Case contents serve as a checkpoint throughout project execution to ensure the project remains aligned with intended objectives and maintains procedures on track.
- The Business Case isn't a one-and-done document. It can be built in more depth and modified as the project moves forward.
- The Business Case sets the project team for the path ahead by putting out critical features of the project such as timeframe, cost, and main risks.
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Outline Business Case vs detailed Business Case
An Outline Business Case (OBC) outlines the early ideas for a proposed initiative. It should include all of the information required to assist the institution in making judgments on the project's adoption. It should outline the expected outcomes, rewards, and risks connected with the plan.
On the other hand, the detailed business case (DBC) verifies an activity from the detailed program of activities, as well as the overall evaluation profile. It involves extensive reporting on the economic, financial, and commercial elements of the activity, which is based on the strategic/program/indicative business case.
How to Create Your Version of This Business Case
The Business Case PRINCE2 is created during the Initiation Stage and is kept up to date throughout the project. The Project Board must first approve the Business Case before the project begin. It is then validated at critical decision points throughout the project, such as at the closing of each stage.
The Business Case is created in four steps. They are as follows:
Step 1: Create the Business Case
The Executive is in charge of developing the Business Case. However, it can be prepared by others or with assistance from others. For example, the Executive can enlist the assistance of a member of the finance team to assist with the financial records.
- Before the project starts: The Project Manifesto document will often include an outline of Business Case PRINCE2 and will describe why the project is required.
- Pre-Project: The content for the Business Case is obtained from the project requirement and pasted into the outline Business Case PRINCE2. It will be included in the Project Brief.
- Starting a Project process: The PRINCE2 outline Business Case template is extended into the Business Case document usually by the Executive, and it becomes part of the Project Initiation Documentation.
Step 2: Verify the Business Case
What does it mean to "check the Business Case"? It entails deciding whether or not the Business Case is worthwhile. The Project Board does this verification several times during the project.
Where do you believe the Project Board should move in the project to verify the Business Case?
Verification Point 1: occurs after the Starting a Project (Pre-Project) procedure.
Point 2: After the Project Initiation procedure.
Point 3: In the Managing a Stage Boundary procedure, at the start of each new delivery stage.
- Other points of verification include every time the Business Case is revised or evaluated. When an exception occurs, the project manager will verify for a continuous business reason during the Stage Boundary procedure. In other words, the PRINCE2 Business Case content is used to support the project's continued viability.
The executive is responsible for determining whether a project is cost-effective and aligned with business goals, assuring other stakeholders that the initiative is still feasible. Get yourself equipped with projects execution strategies with the best online PRINCE2 foundation course on the internet today.
Step 3: Maintain the Business Case
What does it mean to "Maintain the Business Case"?
The term "maintain the Business Case" means maintaining the Business Case up to date with what is going on in the project. It may be performed while analyzing risks or issues or after a stage. Some common changes are an increase or decrease in cost and new points of menace.
So, when is it appropriate to revise the Business Case during the project life cycle? The conclusion of each step is a good opportunity to update the Business Case as you will have the real cost of the previous stage and maybe the revised cost of the following stage and any details on challenges and vulnerabilities.
Step 4: Confirm the Benefits
The benefits are recognized and put down at the project's outset in the paper The Benefits Management Approach and the Business Case. You must indicate how the advantage will be quantified and when the profit will be achieved for each benefit. This information is included in the Benefits Management Approach.
Measurable examples include: X% expense decrease, X% profit gain Benefits are often obtained after the project is completed. However, some might be realized throughout the process. The procedure confirms the Benefits checks to verify if the projected benefits were realized.
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PRINCE2 Business Case Mind Map
PRINCE2 Business Case Mind map assists you and your team uncover hidden ideas and unlock greater possibilities. And regardless of where you are in the business process, whether you are gathering ideas to launch a new initiative or wanting to simplify existing procedures, mind mapping may help you get there.
When it comes to sharing business-related information with potential investors, transparency is crucial. Browse online PRINCE2 outline business case template that includes chart templates for data visualization, ensuring that the information you present is simply understood and can be examined right away.
The Contents of a Business Case
The PRINCE2 Business Case contents should explain why the project is being undertaken and include information on the projected costs, risks, and expected benefits. The following sections are included in the Business Case:
- Executive Synthesis: A summary of the Business Case for top management
- Reasons: Reasons for carrying out the project (comes from project declaration)
- Alternatives for Business: According to PRINCE2, there are always three choices to examine when investing. They are as follows:
- Do nothing: this may sound unusual at first, but let me give you an example. Assume we learn that the advantages of the Sales initiative would not be realized because more than 66 per cent of clients would never want to purchase online and would rather call. Then it's best if we don't do anything. The "Do nothing" choice should always be the first option because the Project Board will weigh the reality of doing nothing against other possibilities that might necessitate expenditure.
- Do the bare minimum: this approach would generally need a comprehensive Business Analysis, including costs, advantages, desire, and feasibility.
- Do something: Normally, this choice would need a rigorous Business Analysis outlining costs, advantages, desires, and feasibility.
- Expected Benefits: Describe each benefit, as well as how and when it may be measured.
- Expected Dis-Benefits: A dis-benefit, according to PRINCE2, is a result that is seen negatively by one or more stakeholders. Another name might have a negative impact. For example, with the online CRM program, half of the present sales support workers may need to hunt for other employment.
- Timelines: When the project will begin and conclude, and when the advantages will be recognized.
- Costs: include the project cost as well as the estimated ongoing maintenance costs once the project is completed.
- Investment Appraisal: Return on Investment (ROI) data/calculation (costs v. benefits).
- Major Vulnerabilities: An overview of the major risks (comes from Risk Register).
Here you can find a simple PRINCE2 Business Case template pdf, Microsoft Word/Excel format along with an explanation on how to use it.
Download the Template
Conclusion
Thus, one of the most significant parts of the PRINCE2 project management framework is the Business Case and its development. Project management professionals can increase their capabilities to the accomplishment of beneficial results for their businesses by learning how to create a compelling Business Case. There is an abundant PRINCE2 business case example pdf available on the internet. Do check out and create your business case.
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Frequently Asked Questions (FAQ):
Q. What does a Business Case do for the project?
A business case justifies the execution of a project, programme, or portfolio. It assesses the benefits, costs, and risks of several alternatives and presents a reason for the recommended choice.
Q. Why PRINCE 2 Approach needs Business Case?
A PRINCE2 business case is a primary document that is often referenced to ensure and validate that the idea is feasible. PRINCE2 business cases include project explanations such as cost efficiency for what is to be performed and why it should be performed now.
Q. What needs to be included in a Business Case?
- The executive summary
- Information about the context.
- Definition of the project.
- Requirements for Business.
- Presentation and assessment of options
- Strategic coordination.
- Benefits.
Q. What are the recommended contents of a PRINCE2 business case?
The recommended contents of a PRINCE2 business case incorporate both financial and non-financial elements. Costs and hazards associated with operations and maintenance and project costs and risks.
Q. What are the steps in preparing a business case?
- Be precise and simply deliver the basics.
- Make it engaging, straightforward, and concise.
- You should avoid conjecture, and jargon should be kept to a minimum.
- Describe your future outlook.
- Demonstrate the project's worth and advantages to the business.
- Maintain a consistent style and readability.
