One of the key focal points of Prince2 2009 is the Business Case. Senior staff will always want to ascertain if the project meets particular criteria and remains in that state. The key points are whether the project is desirable (a balance of benefit, risk and costs), viable (can the project in fact generate the product) and achievable (will the product give the benefits required). They will need this important information so as to make the correct selections on their financial commitment. Simply expressed, is the project good value for money.
Without the business justification a project can't go on. Not just this, but it is the rationale for a project which really should not start without one. For this reason, if the business circumstance alters during the project, and this is negative, it is very likely to become changed or even ended. It is never at a standstill. It controls the ultimate viability of a project. When creating a Business Case it may be useful to use a set layout or examine one from an earlier job.
It may be tempting to use it to help begin the project then put it on the back shelf. Under PRINCE2 2009 this would be a heresy. It must be taken account of at the appropriate milestones of any project. Projects should always be reviewed to show how they will benefit the corporate objectives. In this way, the organization can compare projects to maximize their financial commitment. The person who asks 'what is a Business Case' is probably not running the project as well as could be expected.
This business reason is recorded in the Business Case document. The rationales for the project will be based upon projections of costs, project risks and the expected gains. These reasons will thus drive the project decision making. The Executive will want to ascertain the degree of benefit (from a specific level of financial investment) and when it will happen given a certain set of risks.
It is good to remember that any project has a goal and the project is certainly not an end in itself. Therefore, anything that affects the project should be analyzed by consulting the Business Case. In this way, it sits in the background of each project decision making.
Within PRINCE2 2009 the Senior User (s), who will also sit on the Project Board, will specify the benefits and guarantee that they are realized by the product.
The Executive is then responsible for confirming that the benefits supplied by the Senior User are in agreement with the objectives of the corporation, could be attained and are good value for money.
The PRINCE2 Business Case is created at the beginning of a project and is maintained and consulted through the project. It is formally ratified by the Project Board at crucial points in the project, for example, end stage analyses. Benefits are verified as they materialise. It is not only the Project Board that must have confidence in the project but also all the stakeholders.
If one already exists, for example, from program or corporate management, it should be modified to meet the present project needs.
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