The business case or similar document provides the necessary information from a business standpoint to determine whether or not the project is worth investing in. Typically, at a high level, the business need, which will be addressed by the project and the cost benefit analysis are contained in the business case to justify the project. The requesting organization or customer, in the case of external projects, may write the business case. The business case is created as a result of one or more of the following:
• Market demand (e.g., a car company authorizing a project to build more fuel-efficient cars in response to gasoline shortages),
• Business need (e.g., a training company authorizing a project to create a new course to increase its revenues),
• Customer request (e.g., an electric utility authorizing a project to build a new substation to serve a new industrial park),
• Technological advance (e.g., an electronics firm authorizing a new project to develop a faster, cheaper, and smaller laptop after advances in computer memory and electronics technology),
• Legal requirement (e.g., a paint manufacturer authorizing a project to establish guidelines for handling toxic materials), or
• Social need (e.g., a nongovernmental organization in a developing country authorizing a project to provide potable water systems, latrines, and sanitation education to communities suffering from high rates of cholera).
In the case of multi-phase projects, the business case may be periodically reviewed to ensure that project is on track to deliver the business benefits. In the early stages of the project life-cycle, periodic review of the business case by the sponsoring organization also helps to confirm that the project is still required.
Was this article helpful?
What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.