If you are going for your PMP this year, make sure you understand the project business case. It is one of the foundational documents in project management.
What Is a Business Case?
A business case is a feasibility study that presents a cost-to-benefit analysis. It answers the fundamental question: why are we spending the time, money and energy to deliver this project?
Who Creates It?
The business case is usually created by someone in the business, the project sponsor or a business analyst. However, the project manager can help ensure everything stays aligned with organizational strategy and that the business case translates clearly into the project charter.
What It Contains
A strong business case includes several key elements:
The business need describes what prompted the need for action. What problem are we trying to solve or what opportunity are we pursuing?
The current situation describes where you are now and where you want to be. It establishes the gap.
Solution options present alternative approaches to address the business need. Multiple options are evaluated so the best path is chosen.
A recommendation identifies the preferred solution. This recommendation becomes the project that will be approved and funded.
How It Connects
The business case becomes the project charter, which formally initiates the project and provides access to funding and resources. Once you have the charter approved, you develop the project management plan to detail how you will execute the work.
Why It Matters
The business case keeps your project aligned with business strategy. It ensures that the project you are running actually delivers the value the organization expects. Without a clear business case, a project can drift or deliver the wrong solution.
Know the business case concept and you understand how projects start.
– David McLachlan
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