Business Case Theme

26

Define the activities required to measure the expected project's benefits.

The Benefits Review Plan must include information on the expected timeline for these benefits. It
is created in the Initiation Stage by the Project Manager. The Senior User is responsible for
specifying the benefits and realizing the benefits.
Why should the Senior User be responsible for specifying and realizing the benefits?
x The Senior User represents the users who are asking for a new product so they should be
able to describe the expected benefits. These benefit descriptions should show that the
project is value for money (worth the investment).
x The Senior User is then responsible for using the product to achieve the benefits, and they
become more accountable to the Corporate or Programme Environment. This will also
ensure their continued commitment during and after the project.
Tip: If you cant measure a benefit, then dont claim it.

5.8

The Contents of a Business Case

Business Case Introduction

The Business Case should describe the reasons for the project and include information on the
estimated costs, risks and expected benefits. The Business Case contains the following parts:
BC Parts
Executive Summary
Reasons
Business Options

Expected Benefits
Expected Dis-Benefits

Timescales
Costs
Investment Appraisal
Major Risks

Description
A short overview of the Business Case for upper management
Reasons for doing the project (comes from project mandate)
PRINCE2 teaches that there are always three options to consider concerning
any investment. These are:
Do nothing, Do the minimum, and Do something
Do nothing may seem a bit strange, but let me give you an example.
Suppose we discover that the benefits of the Sales project will not be
reached, as more than 66% of customers would never wish to order online
and prefer to use the telephone. Then it is better that we do nothing.
The Do nothing option should always be the first option, as the Project
Board will compare the fact of doing nothing with other options put forward
that would require investment. The Do the minimum and Do something
options would normally require a detailed Business Analysis showing costs,
benefits, desire and viability.
List each benefit and how and when it can be measured.
According to PRINCE2 a dis-benefit is an outcome that is seen as negative
by one or more stakeholders. Another name might be a negative side-effect.
For example, with the online CRM application, 50% of the current sales
support staff may have to look for a new job.
Project start and end, when benefits will be realized.
Cost for project plus expected on-going maintenance costs after the project.
ROI information / calculation (costs v. benefits).
A summary of the major risks (comes from Risk Register).

Foundation Q&A Workbook

- SAMPLE

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