Introduction: In PRINCE2, there are 7 Themes describing important aspects of

project management that are vital to the success of the project. The Business
Case Theme is the first PRINCE2 Theme which focuses on whether the
project benefits justifies the investment. This should be monitored
continuously during the life of the project. Once the project is considered not
beneficial enough, it might be stopped depending on the decision of the
management. The PRINCE2 Foundation Study Notes for the Business
Case Theme below details what are needed for the PRINCE2 Foundation
Exam.

PRINCE2 Theme: Business Case

The Business Case is a must for PRINCE2 projects that contains the
justifications for the project (i.e. why the project, how to carry out the project and
how much benefits the project will bring, etc.). It is part of the Project Initiation
Document (PID).
It presents the optimum amount of information as the basis to judge whether the
project is desirable, viable, achievable and worthwhile to start and continue
i.e. the Business Case is not only vital for the initiation of the project but it is
often referred regularly to during the execution and closure of the project.
The Business Case must be continually updated throughout the life of the project
to provide the updated status of the project.
The Business Case needs to be formally approved (i.e. baselined to be
managed under configuration management).
Types of Business Cases
Outline Business Case
developed during Starting up a Project process which is derived from
the project mandate
need to be reviewed by the project board and approved by management (i.e.
baseline)
responsible by the Executive
Detailed Business Case
developed during Initiating a Project process from the Outline Business
Case together with the Project Plan
includes more details (e.g. project cost, time, products and risks)
need to be reviewed by management in Benefits Review for management
stages
responsible by the Executive; updated by the Project Manager
Content/Format of a Business Case
The actual contents of the Business Case varies according to organization
needs as well as the scope/severity of the project. PRINCE2 does not
prescribe a definite format for the Business Case. But the following are major
items that are found in most Business Cases.

an executive summary for the management

reasons for the existence of the project (why it is worthwhile to undertake the
project)
at least 3 business options (i.e. doing nothing, doing the minimum and doing
something) with analysis of respective expected benefits and dis-benefits (better in
quantifiable terms e.g. in a money range))
the time of the project (i.e. when would spending incur and benefits realized)
the cost of the project with assumptions (i.e. cost calculated in the project plan
plus ongoing running/maintenance costs)
investment appraisals (i.e. compare the total costs of the project against the
benefits realized from the project over time)
major risks for the project
Key Definitions
Output the products (tangible or intangible) delivered by the project
Outcome the results brought about from using the output of the project
Benefit the quantifiable improvement from the project outcome (often in terms
of money)
Business Case Theme: Roles and Responsibilities
Corporate or Programme Management: provides the project mandate (the
authorization for the start of the project, can be in written or verbal format) and
defines the standards/level of details of the Business Case
Executive (can be considered as the project owner): responsible for the Business
Case and the Benefits Review Plan during the whole project life to ensure the
project is in line with corporate strategies and benefits generated from the project
justify the cost (assessed with the Benefits Review Plan). Executive is also
responsible for securing funding for the project.
Executive may ask the Business Analyst to help developing the Business Case
Senior User(s): specifies the benefits/desired outcomes required from the project
which would include the expected products, desired outcome and benefits to be
achieved. And during the benefits reviews, Senior User(s) needs to provide actual
vs forecast benefits statement to help assessing the viability of the project at
different stages.
Senior Supplier(s): responsible for the supplier Business Case(s) (if any) and
checks that the required products can be achieved with the estimated cost.
 Project Manager: help the Executive to compose the Business Case and
update it at the end of each management stage with actual project data. Project
Manager is also responsible for carrying out impact analysis of new/changed
issues/risks affecting the project against the original.
Project Assurance: carries out business assurance responsibilities by verifying and
monitoring the Business Case against project progress and changes and ensures
the project is financially beneficial to the business for the life of the project. The
Project Assurance also need to check whether the project is aligned with
programme/corporate strategy.
Project Support: provides advice to the Project Manager on changes to the
products affecting the Business Case.