The Life of the PRINCE2 7 Business Case
You need to be aware that the PRINCE2 business case is a living document, and this refers to the fact that the project must continue to be justified right the way through and that the business case should not be used to get funding at the start and then forgotten about.
PRINCE2 has taken that on board in two ways; the first is in the regular updates and checks of the business case, but now also with one of the principles and methods called “continued business justification”.
So to help you be clear on the checks and updates of the PRINCE2 business case, here are the key points:
The business case is developed in startup and then progressed right through the project, so here are the following key points that you need to understand throughout the project lifespan:
Business Case during Startup
The business case is created in rough and ready as an outline business case. The executive is responsible for producing the outline business case, although others may help. The outline business case forms part of the project brief.
Business Case during Initiation
The outline business case is refined into a detailed business case. The document’s responsibility remains with the project board’s executive. However, the production of the full business case is now down to the project manager, again with possible input from others.
From this point onwards, the business case forms part of the project initiation documentation (PID).
Business Case during Management Stages
The business case is checked and possibly updated as part of the “review the stage status” activity.
The wording used within the official Manual is not helpful as it hints that the business case may be updated because it refers to it being impacted. Still, the Manual doesn’t say that it will be updated.
If an issue impacts either direction of the business case, an update is called for even if the benefits limit (tolerance) set by the project board has not been breached.
If benefits are coming on stream during the project, the project manager will also refer to the business case to check the exact level of benefits expected.
Business Case during Stage Boundaries
A routine updating of the business case occurs at each end-stage using the activity “update the business case”. The project board will then have the latest cost, time, and benefits projections when deciding whether the project remains viable and whether to authorize the following stage.
Responsibility for the update of the business case lies with the project manager.
Business Case during End project
Any benefits easily visible at the end of the project will be measured and reported in the end project report.
As with the stage boundary, the measurement may involve consulting the business case on the expected benefit levels.
The key points when PRINCE2 7 benefits may be realized
PRINCE2 recognizes that benefits may come on-stream before the end of a project.
If products are taken into operational use throughout the project, then benefits will often come on-stream during the project. Those benefits may not reach their peak until later, and even lower-level benefits are worth measuring earlier to give some indication of whether the project will turn out to be the success that everyone hopes for.
Benefits coming on stream, such as savings starting to be seen, are known as them being realized.
Benefits can be measured at three points:
During the project. For example, early on in the project, an old, high-maintenance machine is replaced by a new, low-maintenance machine. The savings in maintenance costs will start to be seen soon after, and there is no need to wait until the end of the project to check whether the savings are there.
At the end of the project. In many projects, benefits will be seen at the end when products are delivered. The benefits may have yet to peak, but they are still visible.
After the end of the project, some benefits may only be visible after products have been taken into operational use and the project closes down.
Other benefits may have been seen earlier but will only have reached their peak sometime after completing the project. The organization should run one or more benefits reviews after the project to measure the actual benefits.
Here is an important point. The PRINCE2 project cannot run the reviews because the project is shut down, and the PRINCE2 methodology is no longer used at this point.
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