The word justification is the most important thing to understanding the PRINCE2 business case. This focus on justification will help you from thinking that the business case is just about benefits.
You would be right in thinking that most projects are justified by the business benefits they will realize. However, some are based on something other than business benefits and need some other type of justification.
As an example, the project may not lead to any business benefits of tall; yes, it may still be entirely justified because it is necessary for some form of legal compliance or because it is being carried out on instruction from senior management.
The PRINCE2 business case is crucial because the business focus is the primary emphasis of the method.
There are three critical areas when you revise the PRINCE2 business case theme.
The first area is to be clear on what the business case contains, so here is a list of the contents within a PRINCE2 business case:
The Business Case Contents
The second area to check up on is where the business case is developed and then where it is used throughout the project.
Briefly, the “quick and dirty” outline business case is developed in the startup stage then that case is refined into the full business case during initiation, which forms part of the project initiation documentation (PID).
The third area to watch out for in revision is how the business case relates to the benefits management approach, and I shall refer to that again later.
As you plan your revision, and to help them make sure that you understand the detailed content of the business case theme, it is essential that you read through the vital areas that you will need to be familiar with:
What is in the business case – the understanding of what goes under each heading
- Who is responsible for the business case
- What is the purpose and objectives statement of the theme, and are you able to recognize it within an exam
- The differences between the outline business case and the full business case
- The different types of justification
The PRINCE2 processes in which the business case is created and then, throughout the project, updated
How the business case is used by the project manager and the project board to ensure that the project continues to be justified. And also how this fulfils the PRINCE2 principle of “continued business justification”.
Become familiar with the terms “output” and “benefit.”
Be familiar with the definition of a benefit as a measurable improvement
The term dis-benefit – a disadvantage of running the project, not to be confused with what happens if you don’t run the project
The benefits management approach and how it is used
Next, I want to cover some points that you may be unclear about while learning PRINCE2:
Understanding project justification
Most projects are justified on the level of benefits that will result from them or that people claim will result from them.
Most projects are justified on the basis that they will lead to business benefits which are of greater value than the cost of the project. Such extra benefits may include saving money or additional profits.
PRINCE2 does recognize other types of project justification – while some of these are easy to understand, you may find others hard to understand.
Go To Business Case Part 2 HERE!
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