^ [[5 Initiating Phase]] # 5.3  Business Case The purpose of the [[Business Case]] is to capture the **reasoning behind the project**, to describe the project’s **alignment with the organisation’s strategic objectives**, to provide a **justification** for the investment in time and effort, and to set out the **budgetary needs**. ==For larger strategic projects==, the Business Case may also include an assessment of **impact and risks** along with a more detailed **cost-benefit analysis**. The Business Case provides decision-makers with the information they need to determine whether the project is **worth doing**. The Business Case is a **living document** and therefore should be **re-examined at critical project milestones** to check that the expected benefits are still achievable, the **costs/[[schedule]]** fall within the **[[budget]]/timeline**, and the project is still **relevant** to the organisation and should be continued. ![[Table 5.3 - Business Case.png]] ## Inputs - Project Initiation Request ## Guidelines - Note that the form and **depth** of analysis required for this artefact **depends** on the level of **investment required** for the project. - **Consider several solutions** ([[SWOT Analysis]]) that fulfil this business need and recommend one of these. - Describe the overall **approach** to how the project will be executed (project strategy). - Identify **measurable criteria** that will be used to determine the **success** of the project. - ==For projects carried out under contract (e.g. as a result of a bid award), create the **Business Case based on the Request for Proposal, the response to this request, and the contract itself.**== ## Steps 1. The Business Manager (BM) **drafts** the Business Case based on the information captured in the Project Initiation Request. The main project aspects to be analysed and presented are: - the project’s **justification and impact** - the project’s **positioning in the overall organisational strategy** - an assessment of Strengths, Weaknesses, Opportunities and Threats (**SWOT Analysis**) of several solutions, one of which is proposed for implementation - a **cost benefit analysis**, per identified solution, detailed to the extend required - **synergies and interdependencies** with other projects and initiatives - high-level project roadmap, including **major milestones**. 2. The Project Owner (**PO**) evaluates the Business Case and decides to **approve or reject** it. 3. The Project Owner (**PO**) sends the Business Case to the Appropriate Governance Body (**AGB**) if needed for **corporate approval**. ![[Fig 5.5 Business Case inputs and main roles.png]] ![[Table 5.3 - Business Case - Related artefacts.png]] ## Outputs - Business Case (PM2 Template) ___ Spanish Guide: [[5.3 Caso de Negocio]] <-- [[5.2 Project Initiation Request]] --> [[5.4 Project Charter]]