Summary
A Business Case is a document that explains how and why a project is important, needed, and aligned to an organization's mission, strategic plan, and goals. Creating a simple project management business case involves several key steps and considerations. It should be the first step taken as a means to explore and transform an idea into a documented, tangible outline consisting of key high-level components. The Business Case, in turn, provides the information needed to move ahead to the next step, the Project Charter, or the formalized agreement between Project Manager, Sponsor, and Customer, to conduct the project. Here's a summary of the Business Case process, with explanations of each step and its considerations, followed by a summary and statement of the process's importance.
Before You Start
A Business Case is the first step in converting an idea for a project into a documented outline, comprising key high-level components (e.g., time, cost, scope) and aligned to an organization's mission, strategic plan, and goals. Therefore, prior to creating a Business Case, the Customer should consult the Sponsor to discuss the project idea, its high-level components, and the organization's mission, strategic plan, and goals. How strong is the alignment? How feasible is the project given its preliminary timeframe, cost, and scope? For a project in which the Customer, Sponsor, and Project Manager are all part of the same organization, it is common for all three individuals to collaborate on composing the Business Case. Often, the Business Case provides the basis for a more detailed proposal and agreement, the Project Charter.
Steps
Constructing a Business Case is the first step in transforming an idea into a documented, tangible project outline that is aligned to an organization's mission, strategic plan, and goals. Consider these steps, considerations, and explanations for creating a Business Case for a project.
Steps, Considerations, and Explanations
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Define the Project: Clearly outline the project's purpose, objectives, and scope. Identify the problem it aims to solve or the opportunity it seeks to develop. This step involves articulating the project's goals, the problems it aims to solve, and the expected outcomes. It sets the foundation and direction for the entire business case.
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Identify Stakeholders: List all key stakeholders, including project sponsors, team members, and any other individuals or groups affected by the project. Understanding stakeholder needs and expectations is crucial for project success. Identifying stakeholders ensures that all relevant parties are considered, and their needs and expectations are addressed. This step is crucial for gaining support and buy-in.
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Analyze the Current Situation: Describe the current situation and the limitations that could prevent the project's success. This analysis helps in understanding the context and the necessity for the project. Understanding the current situation and its limitations helps in justifying the need for the project. It provides context and highlights the urgency for change.
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Develop the Approach: Outline the approach needed to complete the project, including resources, technology, and methodologies. This step involves planning the execution strategy. Planning the approach involves detailing the resources, technology, and methodologies required to execute the project. It ensures that the project is feasible and well-planned.
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Evaluate Alternatives: Provide an overview of viable alternatives to the proposed solution. This includes maintaining the status quo or exploring different approaches to achieve the project goals. Exploring different alternatives provides a comprehensive view of possible solutions. It helps in selecting the most effective and efficient approach.
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Assess Benefits and Costs: List the benefits the project will bring to the organization and estimate the costs involved. This step helps in understanding the project's value proposition and financial feasibility. Evaluating the benefits and costs helps in understanding the project's value proposition. It ensures that the project is financially viable and beneficial to the organization.
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Identify Risks and Constraints: Detail the risks and constraints associated with the project, such as the need for special equipment or technical resources. This helps in preparing for potential challenges. Identifying risks and constraints prepares the project team for potential challenges. It helps in developing mitigation strategies and ensuring project success.
Summary of the Business Case Process and Importance
The business case process is a structured approach to justify the need for a project, outline its benefits, and assess its feasibility. It involves defining the project, identifying stakeholders, analyzing the current situation, developing the approach, evaluating alternatives, assessing benefits and costs, and identifying risks and constraints. This process is crucial for making informed decisions, gaining stakeholder support, and ensuring that the project aligns with the organization's strategic goals. A well-prepared business case provides a clear rationale for the project, helps in securing funding, and guides the project planning and execution phases. It ultimately ensures that the project delivers value to the organization and achieves its intended outcomes.
Additional Resources
A number of Business Case related resources are available online. For example: