A question I get asked a lot is ‘When should I develop a business case for my project?’ In this video, I’ll tell you.
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Business Case
This video is not about what a business case is, nor how to create one. I’ve done videos on those topics already and I’ll link to them in the description.
But, in short, a business case is a document that assesses the balance between costs and benefits of undertaking one or more project options. It is a tool to help decision-makers determine which projects to do, and which to reject.
- What is a Business Case? | Video
- Project Business Case: How to Create the Perfect Project Proposal
- Project Business Case: Write an Effective Project Proposal | Video
When to Create a Business Case
So, when, in the lifecycle of a project, should we create a business case?
This question comes up because there is no single ‘correct’ answer.
Whenever it may seem logical – in principle – to do it, you can always find another step in the project process that also makes good sense.
And the reason for this is that there is no single point when you should develop a business case. Instead, there should be a series of refinements, as you move towards your definitive business case. It is this that informs the final approval (or cancellation) of a project.
And, even once it has been approved, it remains a version-controlled document, which you may update throughout the delivery of your project.
Outline Business Case
Early on, you might create what we can call an outline business case. Initially, this might consist of little more than:
- A statement of the principal benefit
- Broad estimates of the main costs
As you work to define your project in more detail – Project Discovery – you can start to understand the costs more. There will be an iteration of the Business Case that offers enough confidence to allow a decision on whether the project should continue to the next stage, to:
- create a detailed design and specification for the systems that will meet the stakeholders’ requirements
- Develop a detailed plan for how to deliver the products
Full Business Case
It is during this stage that you will also be able to:
- Create a full budget
- Assess the project risks
- Assess the benefits with confidence
- And, therefore, develop a full Business Case
Assuming this business case is approved and the project proceeds, it will be the baseline for change control decisions throughout the project.
As those decisions are made, we would normally update the business case, and maintain it under strict version control.
Is this picture of the process ‘correct’?
Yes and no. There’s nothing wrong with it. But it is the principle that is important, not the details.
Each organization and possibly every different project needs to find its own best way to adopt the principle of a rolling Business case process that continually refines the information, and subjects the best assessment of the time to scrutiny, before approving the next stage of project development.
Recommended Videos and Articles to Help with Business Cases
Let’s start with some videos that answer the question, ‘What is a…’
- Business Case?
- Value? …or Project Value?
- ROI – Return on Investment?
- Business Acumen?
- Discounted Cash Flow – DCF?
- Business Blueprint?
And now some videos and articles answering the ‘how to…’ question:
- Project Business Case: Write an Effective Project Proposal | Video
- How to Create a Discounted Cash Flow – DCF Made Easy
- Should You Get a PM Certification? How to Build a Business Case for Professional Certification
- How to Survey Changes to Your External Business Environment | Video
What Kit does a Project Manager Need?
I asked Project Managers in a couple of forums what material things you need to have, to do your job as a Project Manager. They responded magnificently. I compiled their answers into a Kit list. I added my own.
Check out the Kit a Project Manager needs
Note that the links are affiliated.
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