Behind the scenes: Business Case Health Check explained.

The purpose of a business case is to capture the reasoning for initiating a project or task. It is often presented in a well-structured written document, but may also sometimes come in the form of a short verbal argumentation. The logic of the business case is that any time resources such as money or effort are consumed, they should be in support of the business. An example could be that a software upgrade might improve system performance but the “business case” is that better performance would improve customer satisfaction.

Business cases can range from comprehensive and highly structured, as required by formal project management methodologies, to informal and brief.

Information included in a formal business case could be the background of the project, the expected business benefits, the options considered (with reasons for rejecting or carrying forward each option), the expected costs of the project, a gap analysis and the expected risks.

Consideration should also be given to the option of doing nothing including the costs and risks of inactivity. From this information, the justification for the project is derived.

The Business Case is updated constantly for the justification of the project. Each time a stage of the project is finished, the Business Case will be  updated according to the revised planning and is assessed whether it still makes sense for the project to proceed.

To perform the Prince2 Health Check for the Business Case, click here!

These are the questions to answer:

1. Is there a Business Case?
2. Are the reasons for the project clearly defined and valid?
3. Is there an Investment Appraisal?
4. Are figures based on defined items that can be measured?
5. Is the Business Case passed down from pre-project work?
6. If so, have the figures been checked out?
7. Are costs based on the Project Plan or some other figure?
8. Are benefits stated in terms that can be measured in the Post-Project Review?
9. Have before measurements been taken in order to assist comparisons in the Post-Project Review?
10. Is the Business Case updated and reviewed for each End Stage Assessment?
11. Who measures the impact of changes on the Business Case?
12. Is the impact of changes on the Business Case assessed?
13. If the project is part of a Programme, is the Programme s Business Case fully reflected?

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