Are you preparing for your PRINCE2 7th Edition Foundation exam? Feeling a bit overwhelmed by the Business Case Practice? You’re not alone! Many project management students find this concept challenging, but it’s absolutely essential for exam success and real-world project management.
In this comprehensive guide, we’ll break down everything you need to know about the Business Case Practice for your PRINCE2 7th Edition Foundation exam. Let’s dive in!
What Is the Business Case Practice in PRINCE2 7th Edition?
The 7th Edition of PRINCE2 has transformed what were previously known as “Themes” into “Practices.” The Business Case is one of these essential practices in the updated methodology.
The Business Case Practice focuses on establishing and maintaining justification for the project. It answers the crucial question: “Why are we doing this project?” by demonstrating that the expected benefits outweigh the costs and risks.
In PRINCE2 terms, the Business Case provides the vital “why” behind the project and remains central throughout the project lifecycle. It’s not just a document you create at the beginning and file away—it’s a living practice that evolves as your project progresses.
Why Is the Business Case Practice So Important for Your Exam?
The Business Case Practice typically accounts for about 10-15% of the Foundation exam questions in the 7th Edition syllabus. Understanding its principles thoroughly can significantly boost your score!
Beyond the exam, mastering the Business Case Practice gives you a powerful tool for your project management career. It helps you:
- Justify project investments
- Keep projects aligned with organizational objectives
- Make informed decisions about continuing or stopping projects
- Evaluate project success beyond just “on time and on budget”
The 5 Key Elements of a PRINCE2 Business Case
For your Foundation exam, make sure you understand these five essential components:
Executive Summary
This provides a snapshot of the Business Case, outlining the project’s purpose and strategic alignment. While brief, the executive summary captures why the organization should invest in this project.
Reasons
This section answers the fundamental question: “Why are we doing this project?” It outlines the business drivers and the problems or opportunities the project addresses. Remember that in PRINCE2, all projects must have a valid business reason to proceed!
Business Options
PRINCE2 requires consideration of at least three options:
- Do nothing (the baseline for comparison)
- Do the minimum
- Do something (the proposed project solution)
Examiners love testing candidates on these three options, so commit them to memory!
Expected Benefits, Dis-benefits, and Timescales
Benefits are the measurable improvements resulting from the project. These might include:
- Financial benefits (like increased revenue or cost savings)
- Non-financial benefits (like improved customer satisfaction or regulatory compliance)
- Dis-benefits are the negative consequences of implementing the project. Being honest about these is crucial for making informed decisions.
- Timescales indicate when benefits are expected to be realized—some may come quickly, while others take longer to materialize.
Costs, Investment Appraisal, and Risks
This section covers:
The total cost of the project
Financial analysis techniques (like ROI, NPV, or payback period) and major risks that might impact business justification
The Business Case Throughout the Project Lifecycle
One common exam question focuses on how the Business Case evolves. Remember this simple progression:
- Starting Up a Project: The outline Business Case is developed
- Initiating a Project: The detailed Business Case is created
- Controlling a Stage: The Business Case is reviewed and updated if necessary
- Managing a Stage Boundary: The Business Case is updated and verified
- Closing a Project: The Business Case is used to evaluate project success
Who’s Responsible for the Business Case?
Understanding roles and responsibilities is critical for your exam. Remember:
- The Executive is ultimately responsible for the Business Case
- The Project Manager creates and maintains the Business Case document
- The Project Board approves the Business Case
Business Case Practice and the PRINCE2 Principles
In the 7th Edition, it’s important to understand how the Business Case Practice connects to the PRINCE2 principles, particularly:
- Continued Business Justification: The project must remain viable and aligned with organizational objectives throughout its lifecycle
- Learn from Experience: Previous projects inform how benefits are defined and measured
- Defined Roles and Responsibilities: Clear ownership of the Business Case is essential
Common Exam Questions About the Business Case Practice
Here are some typical questions you might encounter in the 7th Edition Foundation exam:
- When is the detailed Business Case first created? (Answer: During the Initiating a Project process)
- Who is ultimately accountable for the Business Case? (Answer: The Executive)
- What happens to the Business Case during stage boundaries? (Answer: It’s updated and verified)
- What are the three business options that should be considered? (Answer: Do nothing, do minimum, do something)
- How does the Business Case Practice support the principle of continued business justification? (Answer: By regularly reviewing and confirming the project’s viability)
Real-World Application: Making the Business Case Practice Work for You
Beyond passing your exam, understanding the Business Case Practice helps you:
- Present compelling project proposals to stakeholders
- Keep your projects focused on delivering business value
- Make tough decisions when projects face challenges
- Demonstrate the success of your projects with measurable benefits
Final Tips for Exam Success with the 7th Edition
When tackling Business Case Practice questions in your Foundation exam:
- Remember the transition from Themes to Practices in the 7th Edition
- Understand how the Business Case Practice relates to the seven PRINCE2 principles
- Know how the Business Case evolves through the project lifecycle
- Be clear on the roles responsible for creating, maintaining, and approving the Business Case
- Understand the difference between outputs, outcomes, and benefits
Ready to Ace Your PRINCE2 7th Edition Foundation Exam?
The Business Case Practice may seem complicated at first, but breaking it down into these manageable components makes it much easier to understand and remember for your exam.
Remember, the Business Case isn’t just theory—it’s a practical tool that ensures projects deliver real value.
Master this concept, and you’ll not only pass your exam but also become a more effective project manager!
PRINCE2 Foundation Masterclass
PRINCE2® is a globally recognized project management framework. By completing both the Foundation and Practitioner courses through our self-paced e-learning, you will develop an understanding of the methodology and learn how to effectively adapt it to any project.
This PRINCE2 FOUNDATION course is a prerequisite for more advanced PRINCE2 certifications, such as PRINCE2 Practitioner. If you just want to sit your Foundation Exam then this is the perfect course for you – paced for home study, including study guides and sample exam questions with answers.
This PRINCE2 Foundation Course is also included in the PRINCE2 Foundation & Practitioner Masterclass.
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PRINCE2 is a structured project management approach that is widely used in the UK and internationally. The Foundation certification demonstrates a solid understanding of the PRINCE2 framework and its processes, principles, practices, and techniques.
