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PRINCE2 2009 - Starting up a project part 8

Activities

Prepare the outline Business Case

When setting up, and particularly while running the project, it is all too easy to concentrate on what is being done and how it is to be done, while ignoring why it needs to be done.
The Business Case states why the work is worth doing and, as such, is a crucial element of the project.

If the project is part of a programme, then the Business Case may already have been defined at the programme level.

Given the information available, the outline Business Case is likely to be only a high-level view at this time.
It provides an agreed foundation for a more extensive Business Case developed in the Initiating a Project process.

Diagram 1 shows the inputs to, and outputs from, this activity.
For more details on the Business Case, see the section covering ‘Business Case’.

starting up a project business case diagram 1 smallstarting up a project business case diagram 1

Diagram 1

PRINCE2® recommends the following actions:

  • Executive to draft the outline Business Case based on what is currently known about the project:
    • Understand the objectives of, and the reasons for, the project as defined in the project mandate
    • Understand how the project will contribute toward corporate and/or programme objectives
    • Understand how the project will be funded
    • Review the Lessons Log for lessons related to business justification
    • Check for any standards mandated for the format and presentation of the Business Case (templates, cost metrics etc.)
    • Assemble any relevant background information, e.g. contracts, feasibility reports, service level agreements etc.
    • If necessary, seek approval of the outline Business Case from corporate or programme management
  • Project Manager to consult with the Senior User and Executive to define what the project is to deliver, and create the Project Product Description (see the section covering ‘Quality’):
    • Capture the customer’s quality expectations
    • Capture and agree the project’s acceptance criteria
    • Check feasibility of the timescale requirements from the project mandate or as required by the outline Business Case
    • Determine any key milestones
    • Capture any new risks in the Daily Log
  • Review the risks captured in the Daily Log and summarize the key risks affecting viability of the project in the outline Business Case.

Diagram 2 shows the responsibilities for this activity.

starting up a project business case diagram 2 smallstarting up a project business case diagram 2

Diagram 1

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Managing Successful Projects with PRINCE2 - 2005 edition
Managing successful Projects with PRINCE2 – 2009 edition
Directing Projects with PRINCE2.
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