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PRINCE2® PRACTITIONER COURSE
•PRINCE2® is a registered trade mark of AXELOS Limited
Accredited by PEOPLECERT
Module 2
BUSINESS CASE THEME
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2. BUSINESS CASE
BUSINESS CASE
Purpose is Business Case theme provides a mechanism to judge whether the project is and remains desirable and achievable.
“The Business Case is NOT static”
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No part of this document may be reproduced in any form without the written permission of both Skillogic and AXELOS Limited. Permission can be requested at [email protected] and [email protected]
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2 BUSINESS CASECONTINUED BUSINESS JUSTIFICATION
Projects can only begin if justified Projects must remain justified throughout their
lifecycle Desirable: product is really needed?
benefits vs dis-benefits Viable: Are we capable of delivering? Achievable: Is it possible to deliver the
benefit? Worth the continued investment: If not, then
the project must be stopped.
Copyright © Skillogic Consulting Solutions Pvt Ltd and AXELOS Limited 2013. All rights reserved. *Italic font material in this document has been sourced from PRINCE2® 2011 core publications.
No part of this document may be reproduced in any form without the written permission of both Skillogic and AXELOS Limited. Permission can be requested at [email protected] and [email protected]
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2 BUSINESS CASETYPES OF BUSINESS CASE
• Customer / Supplier project• Not-for-profit Project• Compulsory Project• Multi-Organization Project• Evolving Project
Copyright © Skillogic Consulting Solutions Pvt Ltd and AXELOS Limited 2013. All rights reserved. *Italic font material in this document has been sourced from PRINCE2® 2011 core publications.
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2 BUSINESS CASEOUTPUTS V OUTCOMES V BENEFITS
OUTPUT : What is the product that will be delivered by the project? Specialist Product (Tangible Or intangible)
OUTCOME : What can the users do better with this product? Result Of The Change Derived Using Products
BENEFIT : List the measurable improvements of using this product.Measurable Improvement Resulting From
An Outcome
Copyright © AXELOS Limited 2014. Reproduced under licence from AXELOS
Copyright © Skillogic Consulting Solutions Pvt Ltd and AXELOS Limited 2013. All rights reserved. *Italic font material in this document has been sourced from PRINCE2® 2011 core publications.
No part of this document may be reproduced in any form without the written permission of both Skillogic and AXELOS Limited. Permission can be requested at [email protected] and [email protected]
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2 BUSINESS CASE
BUSINESS CASE DEVELOPMENT
Approach:Develop: Develop the Business Case Verify: Verify the Business Case Maintain: Maintain the Business Case Confirm the Benefits: Defined in the Benefits Review Plan
Copyright © AXELOS Limited 2014. Reproduced under licence from AXELOS
Copyright © Skillogic Consulting Solutions Pvt Ltd and AXELOS Limited 2013. All rights reserved. *Italic font material in this document has been sourced from PRINCE2® 2011 core publications.
No part of this document may be reproduced in any form without the written permission of both Skillogic and AXELOS Limited. Permission can be requested at [email protected] and [email protected]
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2 BUSINESS CASECONTENTS OF A BUSINESS CASE
Executive Summary
A short overview of the Business Case for upper management
Reasons Reasons for doing the project (from project mandate)
Business Options PRINCE2 teaches that there are always three options to consider concerning any investment. Do nothing, Do the minimum, and Do something
Expected Benefits List each benefit and how and when it can be measured
Expected Dis-Benefits Dis-benefit is an outcome that is seen as negative by one or more stakeholders.
Timescales Project start and end, when benefits will be realized
Costs Cost for project plus expected ongoing maintenance costs after the project
Investment Appraisal Return on Investment (costs v. benefits)
Major Risks A summary of the major risks (comes from Risk Register)
Copyright © Skillogic Consulting Solutions Pvt Ltd and AXELOS Limited 2013. All rights reserved. *Italic font material in this document has been sourced from PRINCE2® 2011 core publications.
No part of this document may be reproduced in any form without the written permission of both Skillogic and AXELOS Limited. Permission can be requested at [email protected] and [email protected]
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2 BUSINESS CASE
The purpose of the Benefits Review Plan is to identify the benefits and most importantly, to select how the benefits can be measured.
Define clearly how to measure the benefits
Define the activities required to measure the expected project's benefits
The scope of the Benefits Review Plan
Who is accountable for expected benefits
What resources are needed to carry out the review work
How the performance of the project’s product will be reviewed
BENEFITS REVIEW PLAN
Copyright © Skillogic Consulting Solutions Pvt Ltd and AXELOS Limited 2013. All rights reserved. *Italic font material in this document has been sourced from PRINCE2® 2011 core publications.
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2 BUSINESS CASE
Programme will define standards to be used for the Project’s Business Case
May be included in overall programme Business Case
Project’s Benefits Review Plan will be part of Programme’s benefits realisation plan
May be produced & maintained by programme
This links to Managing Successful Programmes MSP ®
PROGRAMME RELATIONSHIP
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2 BUSINESS CASEKEY RESPONSIBILITIES
Corparate/Program: Provide Mandate. Information regarding expected benefits realized.Project Board verifying the Business case.Executive owns the Business Case . Responsible for the Benefits Review Plan during the project Senior User is responsible for specifying the benefits and desired outcome by ensuring that the expected benefits are realised. Senior Supplier is responsible for the supplier’s Business CaseProject Manager may prepare the Business Case on behalf of the Executive. Project support may assist the Project Manager as the Business Case is baselined and under Configuration Management Project Assurance can assist with development of the Business Case
Copyright © Skillogic Consulting Solutions Pvt Ltd and AXELOS Limited 2013. All rights reserved. *Italic font material in this document has been sourced from PRINCE2® 2011 core publications.
No part of this document may be reproduced in any form without the written permission of both Skillogic and AXELOS Limited. Permission can be requested at [email protected] and [email protected]
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2 BUSINESS CASE
Continued business justification Learn from experience Defined roles and responsibilities Manage by stages Manage by exception Focus on products Tailor to suit the project environment
SEVEN PRINCIPLES
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