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9 Major Components Of Project Business Case

9 Major Components Of Project Business Case

 

In my previous article, I have talked about all that you need about project concept definition document. In this article, I want to look at all that you need to know about components of project business case. Follow me as we are going to look at that together in this article .

Component of project business case

What a business case is …

A business case is brief document that justifies the investments made for a project and describes how a particular investment is in accordance with the Organisation’s policy.

 

It outlines the technical, investments , and regulatory factors that influence the project. The business case provides a framework to link an investment proposal to the achievement of an organisational objectives.

 

Typical example…

Senior management at Fourth Mouse Consulting held a meeting to review project selections by the PMO. The project sponsor ,Nelson Samson , is required to present a business case that outlines the technical , investment ,and regulatory factors influencing the geothermal energy project.

 

She prepared a business case that includes :

  • Details of the proposed investments with the timeline.
  • Expected returns from the project with the proposed time line.
  • Expected ROI.
  • Reference to the pay ack period, in the context of organisational strategies and project objectives.
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Business case components…

A number of components need to be added to a business case:

READ THIS  6 Terms Relating To Schedule Management For Projects

#1 Business need

This substantiates the business reason for conducting the project. It shows the main reason why the project is being carried out.

 

#2 Project contribution

This lists the project stakeholders ,their expectations ,and contributions toward the project. This shows the value that the project will add to the organisation.

 

#3 Constraints

This aspect of the business case documents compiles the limitations of the project. It shows some of the aspects that are not covered by the project.

 

#4 Stakeholders

Stakeholders are individual that will be affected negatively or positively by a project. This aspect list the project stakeholders , their expectations , and contributions towards the project.

 

#5 Strategic risks

The strategic risk as part of the business case lists the risks that the project may face and the positive risk management measures that must be adopted for the project.

 

 

#6 Benefit evaluation

The business case also considers the business evaluation for the project. This also abuse and outlines key benefit to be obtained by the project.

 

#7 Benefit management plan

The business case will also highlight the business management plan for the project. They need to determines the benefits that they are going to the project as well as how the benefits will be realised and maintained at the end of the day.

 

#8 Contingency plan

The business case will also consist a contingency plan. This will outline the alternate solutions for unplanned events. You have to be able to foresee what is likely to happen in the future and plan on how to mitigate them.

READ THIS  Components Of A Business Requirements Document
READ THIS  Major Outputs Of Project Life Cycle

 

 

 

 

 

 

Now your take on this article…

I know you might agree with some of the points that I have raised in this article. You might not agree with some of the issues raised. Let me know your views about the topic discussed. We will appreciate it if you can drop your comment. Thanks in anticipation.

 

 

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Adeniyi Salauhttps://cehnigeria.com
I am an IT entusiast and a man of many parts. I am a Certified Digital Marketer, Project Manager and a Real Estate Consultant. I love writing because that what keeps me going. I am running this blog to share what I know with others.

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