In the identification process an outline business case is incorporated into the project or programme brief that is used by senior management to assess whether to give the goahead for the definition process. Sign up to download this deliverable and get unlimited access to our library of webinars, timesaving templates and more. This copy is a pmi member benefit, not for distribution, sale or reproduction. Although it may be crafted by many people, the business case is owned by the executive sponsor. It reflects the developing profession, recognising projectbased working at all levels, and across all sectors. This term is defined in the 5th edition of the pmbok. The business case takes the business need outlined in the sow element 1 in the chart above and justifies how the result of the project element 2 in the chart above will satisfy that need and align with the strategic goals of the organization element 3 in the chart above. Pmbok and prince2 contend that the project manager runs the project on behalf of the governance team or the project board, so the decision on project selection and business case rests with them. The business case provides the business rationale, normally in financial terms, of whether the project should be done. Writing a business case project management institute. A good business case captures and documents the reasoning for starting a new project.
The pmbok framework consists of five process groups, ten knowledge areas and 47 project management pm processes. A business case is a written or verbal value proposition that is intended to educate a decision maker and convince them to take some kind of action. A business case captures the reasoning for initiating a project or task. Students will need this title to complete assignments. A business case provides justification for undertaking a project, programme or portfolio.
You can download the ms word version of this template by clicking on the. It is a part of the projects mandate investigating the business problem, examining expected tangible and intangible benefits, setting expected costs of the project, and describing potential impacts of the. With the release of the 6th edition of the guide, pmi has revised its terms of. Business case is a formally written document that proves the justification for proceeding with a given project. A detailed business case is prepared during the latter process and then used to. For practising project managers, we have a selection of templates along with guides to blending prince2 with other frameworks. The following is content that is commonly included. A business case is part of a projects mandate, produced before a project is initiated. A business case provides a justification for a project along with associated risks. Project statement of work vs business case for pmp exam. A business case template is a tool that assists in the development of a wellconsidered business case. A business case helps to determine whether or not a project justifies an organizations investment into a. For a comprehensive list of pmi marks, contact the pmi legal department.
A project charter is a document issued by the project initiator or sponsor that formally authorizes the existence of a project, and provides a project manager with the authority to apply organizational resources to project activities. How is the business need different from the business case. The business case is a type of document that describes information of a particular business to determine if the project is worth the investment. It will also be suitable to use alongside any of our introductory business management books or even competitor titles that fall within this subject. Business cases are created in order to aid decisionmakers compare alternative initiatives based on the indicated benefits and objectives in the document as well as measure performance indicators and use them to realize different aspects of the business project management design. A business case is a proposal for a project, strategy or course of action. Our business case templates provide solid foundation for your next project. Members of apm can download a business case template from the apm learning. However, the document that is new for the 6th edition of the guide is the project benefits management plan. A visual depiction of the product scope showing a business system process, equipment, computer system, etc. Pmbok project case study solution and analysis of harvard.
Business cases can range from comprehensive and highly structured, as required by formal project management methodologies, to informal and brief. Pmbok project harvard case study solution and analysis of harvard business case studies solutions assignment helpin most courses studied at harvard business schools, students are. Its primary purpose is to provide the information necessary to determine whether or not a project is justified. The business case is a key input to the project management plan and is usually owned and created by the project sponsor. We cover how pmbok relates to pmi, pmp, and other project management essentials in our online project management guide. As you can see from the example, the figures provided for the costs and benefits arent very precise. Creating a business case project management for experts. It can be considered a pitch that gives stakeholders the information they need to make a decision to invest in a project.
The fourth edition of a guide to the project management body of knowledge pmbok guide now takes greater notice of the business case 4. A business case is a formal document that describes the business reason for initiating a software development project. This it business case template provides space to discuss why you require the change, how you will source the new solution, and how you will manage the. It is one of the inputs for the pmi process to develop project charter. Read more about business cases in chapter one of the apm body of knowledge 7 th edition the apm body of knowledge 7th edition is a foundational resource providing the concepts, functions and activities that make up professional project management.
It will also include what are included not included in the project. Every business case needs to include a clear statement of the intended product or service that is included within the project and expected by the stakeholders. The business case gathers the information to allow the organisation management judge if a project is worthwhile to invest in and they can also compare with other requirements and ideas. Pmi s pmbok guide a guide to the project management body of knowledge, 1996 defines scope as the sum of the products and services to be provided as a project. The goal of this business case template is twofold. Project management as a practice is rapidly growing and spreading worldwide, and is now seen globally as a recognized and strategic competency, a career path and a subject for training and education. In this course, you will learn how to plan, write, and present a business case to persuade key decision makers in your organization that your proposal is a.
Although business cases is a supplementary text, it will be prescribed. Any form of distribution of the pmbok guide is strictly prohibited by pmi. Pmi membership perks include job opportunities, local chapters. The business case can be used to solicit support and to find sponsor and champions for the project according to the pmbok, 5th edition, section 4.
How this manifests itself will differ from one project to another and from one organization to another, depending on the complexity of each. It is often presented in a wellstructured written document, but may also come in the form of. Our free business case template provides a sound foundation for developing the business case for your next project. All projects and programmes must have a business case that demonstrates the value of their objectives. Writing a good business case will help you justify resource allocation to key decision makers and secure funding for your project. The business case provides the reasoning for initiating a particular task or project management scheme. The project statement of work is a document providing the business need and the overview of the qualitiescharacteristics of intended deliverablesproducts the project would deliver. When prompted, select save to save the pdf to your desktop. Project business casethis is an economic feasibility study which demonstrates the benefits or business value to be created as a result of the.
Preparing effective business plan key areas issues pmi. Additionally, you will be able to calculate the return on investment using the total cost of ownership and the cost benefit analysis. What this definition of a project means is that projects are those activities that. A business case provides justification for undertaking a project. Strategies and considerations for building a business case. Following project close or completion a postproject evaluation ppe will usually be held usually some months after project completion to measure the projects benefits against those set out in the business case. Once created, it is then maintained throughout the life of the project. A business case lays out the information to identify whether a project is worth running. The decision makers can then approve or reject the project proposal. Business cases is written to accompany introduction to business management. Browse through and download our printable business case analysis examples in pdf so you can be wellguided once you plan to start the development of your own organizations business case analysis. Clearly, the project manager does not have control over many factors that contribute to the successful use of deliverablesfor example, the people who will define.
This definition is taken from the glossary of the project management institute, a guide to the project management body of knowledge, pmbok. In the project business case example provided above, weve attempted to show an early stage business. Use this template to provide a detailed business case for your project. For enterpriselevel changes, a business case may be necessary to justify costs, resources, and effort. It will allow you to state the business case, document the goals and align with company strategies, mandates or compliance. A business case helps to determine whether or not a project justifies an organizations investment into a project. Download business case presentation template powerpoint. An event or occurrence that could affect the execution of the project that may be accounted for with a reserve. Definition from apm body of knowledge 7 th edition. According to the pmbok project management body of knowledge 3rd edition, a project is defined as a temporary endeavor with a beginning and an end and it must be used to create a unique product, service or result. The purpose of a project business case is to provide justification for a project to be undertaken. Once complete, it will give you a very tangible way to justify your project to executive management and sponsors.
Project charter template, example, definition, and. Most organisations will use the experience of a project manager to determine the business case. The project business case example is show below for this company. Otherwise, you may be eaten alive by the competition. A key part of this is to have a robust business case that has been agreed, and signed off by the sponsors. For example, a software project might decrease processing time for a specific task, and the business case may be that the existing staff can serve additional clients without adding additional resources. You will know what your goals are, have a way to present them to others and to keep. When written, the document itself is sometimes referred to as a business case. Information included in a formal business case could be the background of the project, the expected business benefits, the options considered with reasons for rejecting or carrying forward each. Implementing, improving, or enhancing existing business processes and procedures. A good question to ask here is why is the business case maintained and what does this mean. This is perfectly normal for an early stage project plan, where were simply trying to determine the best way forward by estimating the return on investment. The business case addresses, at a high level, the business need that the project seeks to meet.
A business case supports itself on figures for this argument, for example, the expected cost reduction in a percentage or a cash flow account. The most complete project management glossary for professional project managers. Pmbok is defined as the project management body of knowledge, which is accepted as a standard in project management. The guide to the project management body of knowledge pmbok. The business case is normally developed at the starting up a project process, unless it is provided by corporate or programme management.