Business Case theme

Purpose

To establish mechanisms to judge whether the project is desirable, viable and achievable and worth the continued investment that is made during the project.

Continued Business Justification principle: Is there a valid Business Case for doing the project?

Definition

• The Business Case gathers information on the business value of the project.

• It is developed at the start of the project.

• It is maintained throughout the project.

• The Project Manager checks the Business Case during the project.

In brief: Is the continued investment in the project still worthwhile?

Outputs are the Product to be delivered.
Outcome is what the users can do better with the outputs (features).
Benefits are the measurable improvements resulting from the outcome.

Approach to Business Case

Develop:	At the beginning of the project the right information it gathered upon which decisions will be made. Project mandate contains the reasons for the project; Outline BC is elaborated from the project mandate; it is extended and completed to (detailed) BC during the Initiation Stage.
Verify:	At (before) key decision points (see diagram) it is assessed whether the project is (still) worthwhile. I.e. verify the Business Case.
Maintain:	The Business Case must be updated with actual costs and benefits and current forecasts for costs and benefits. Project Manager updates it in the Stage Boundary process.
Confirm:	Assess the realisation of benefits at key delivery points. I.e. confirm the benefits. Confirming benefits will mostly take place post-project. Benefits Review Plan. Benefits realised during the stages, during the project and post-project.

The Benefits Review Plan

• Purpose
  • How to measure the benefits
    “if you cannot measure a benefit, then don’t claim it as a benefit”
  • Activities to measure the benefits

• Current situation becomes baseline

• Created in IP stage and Senior User provides benefit information

• Senior User represents all users and able to describe the benefits

• Senior User becomes accountable

Contents of the Business Case

• Executive Summary

• Reasons (for doing the project)

• Business options (considered options, chosen option)

• Expected Benefits (list)

• Expected dis-Benefits (side effects of the project)

• Time scales (project start & End; when can benefits be measured)

• Costs (for project and on-going maintenance)

• Investment Appraisal (ROI information; cost vs. benefits)

• Major risks (summary from Risk Register)

Roles and Responsibilities

Corp. Or Prog. Mgmt	Provide the Project Mandate & Business Reasons Responsible for Benefits Review Plan - Post Project.
Executive	Create the Business Case and responsible during the project. Responsible (verify and approve) for Benefits Review Plan during the project.
Senior User	Provide Benefits information, Report on Benefits. Ensure desired outcomes are specified. Ensure the project’s products produce the desired outcomes. Ensure the expected benefits are realised.
Senior Supplier	Confirm the required products can be delivered within costs and are viable. Responsible for supplier Business Case (if it exists).
Project Manager	Prepare/update Business Case on behalf of Executive. Create Benefits Review Plan. Impact analysis of Issues and Risks that effect the desirability, viability or achievability of the project. Assess/update Business Case at the end of each management stage. Assess/report project performance at project closure.
Team Manager	-
Project Assurance	Assist in development of the Business Case. Audit the Business Case against events and progress. Audit Project finance. Ensure the project and the Benefits Review Plan fits with corporate/programme management Strategy. Monitor and review changes and the impact assessments on the Business Case and the Project Plan.
Project Support	Baseline the Business Case and put under Configuration Management. Advise the Project Manager on any proposed or actual changes to product, that effect the Business Case.