The Business Case - Revision history

Apinmorale: /* Business Case Methodology */

2021-02-28T18:22:14Z

Business Case Methodology

← Older revision		Revision as of 18:22, 28 February 2021
Line 115:		Line 115:
	This process sequence was selected among others because it ensures that all required aspects are covered by the business case. At the same time, the authors followed the PMBOK Guide standards to develop it. Thus, following these steps will ensure the project is developed in accordance to established guidelines.		This process sequence was selected among others because it ensures that all required aspects are covered by the business case. At the same time, the authors followed the PMBOK Guide standards to develop it. Thus, following these steps will ensure the project is developed in accordance to established guidelines.

	[[File:Methodology.PNG\|600px\|center\|thumb\|Business Case Methodology, own ~~figure~~ modified from <ref name="MethodologyPic"/>]]		[[File:Methodology.PNG\|600px\|center\|thumb\|Business Case Methodology (own creation; modified from <ref name="MethodologyPic"/>)]]


Line 135:		Line 135:
	# <u>'''''Monitor the project and review the business case during execution'''''</u>. The business case must be reviewed and updated on a regular basis, as it is likely to change throughout the process. Changes in the benefits, costs and risks for example, might influence the viability, desirability and achievability of the project <ref name="Harvard"/>(p.47).The good practice is for business cases to be reviewed every 6 months <ref name="Programmes2011"/>(p.127.).		# <u>'''''Monitor the project and review the business case during execution'''''</u>. The business case must be reviewed and updated on a regular basis, as it is likely to change throughout the process. Changes in the benefits, costs and risks for example, might influence the viability, desirability and achievability of the project <ref name="Harvard"/>(p.47).The good practice is for business cases to be reviewed every 6 months <ref name="Programmes2011"/>(p.127.).
	# <u>'''''Measure and assess the benefits realization'''''</u>. This last step goes on after the project has been delivered. After the delivery of the project, the business case does not need to be maintained but it is important that the benefits achieved are compared with those stated in the business case <ref name="Harvard"/>(p.49.). This is to ensure that the benefits have been realized and to be able to evaluate the overall performance of the project from a more objective perspective <ref name="Achieving"/>(p.1000). At last, it is important to collect the lessons learned to prevent making the same mistakes again. <ref name="Achieving"/>(p.991)		# <u>'''''Measure and assess the benefits realization'''''</u>. This last step goes on after the project has been delivered. After the delivery of the project, the business case does not need to be maintained but it is important that the benefits achieved are compared with those stated in the business case <ref name="Harvard"/>(p.49.). This is to ensure that the benefits have been realized and to be able to evaluate the overall performance of the project from a more objective perspective <ref name="Achieving"/>(p.1000). At last, it is important to collect the lessons learned to prevent making the same mistakes again. <ref name="Achieving"/>(p.991)


	=== Consequences of not developing a Business Case ===		=== Consequences of not developing a Business Case ===

Apinmorale: /* Practical Guidelines that can help you when creating your Business Case */

2021-02-28T18:15:31Z

Practical Guidelines that can help you when creating your Business Case

← Older revision		Revision as of 18:15, 28 February 2021
Line 100:		Line 100:

	= Practical Guidelines that can help you when creating your Business Case =		= Practical Guidelines that can help you when creating your Business Case =


	== Building a Strong Business Case ==		== Building a Strong Business Case ==
Line 208:		Line 209:

	<!--OLD TABLE [[File:RolesBusinessCase.PNG\|600px\|center\|thumb\|Roles and responsibilities in the development and implementation of the Business Case, (own creation, based on sources: <ref name="PRINCE2"/> p.146-7; <ref name="PRINCE2GUIDE"/> p.52-53)]] -->		<!--OLD TABLE [[File:RolesBusinessCase.PNG\|600px\|center\|thumb\|Roles and responsibilities in the development and implementation of the Business Case, (own creation, based on sources: <ref name="PRINCE2"/> p.146-7; <ref name="PRINCE2GUIDE"/> p.52-53)]] -->


	= 12 Common Mistakes to Avoid =		= 12 Common Mistakes to Avoid =

Apinmorale at 18:14, 28 February 2021

2021-02-28T18:14:36Z

← Older revision		Revision as of 18:14, 28 February 2021
Line 2:		Line 2:

	This article is aimed at raising awareness on the importance of using '''the business case in the context of project management'''. The article describes some of the main features of this tool as well as the steps that should be followed to create a strong business case. Most of the guidance provided in this article is based on recognized standards, namely PRINCE2 and the PMBOK Guide.		This article is aimed at raising awareness on the importance of using '''the business case in the context of project management'''. The article describes some of the main features of this tool as well as the steps that should be followed to create a strong business case. Most of the guidance provided in this article is based on recognized standards, namely PRINCE2 and the PMBOK Guide.


	= Abstract =		= Abstract =
Line 21:		Line 22:
	</span>		</span>
	''You can start reading directly from '''Section 4'''!''		''You can start reading directly from '''Section 4'''!''


	= Why care about the Business Case as a Project Manager? =		= Why care about the Business Case as a Project Manager? =
Line 60:		Line 62:

	In general, the business case can be applied to justify projects, programs and portfolios. However, this article will be dedicated to providing guidance on the development and understanding of the business case only in the context of project management.		In general, the business case can be applied to justify projects, programs and portfolios. However, this article will be dedicated to providing guidance on the development and understanding of the business case only in the context of project management.


	= Recommended Structure and Formats to Develop your Business Case =		= Recommended Structure and Formats to Develop your Business Case =
Line 94:		Line 97:

	Moreover, every section should also include a list of assumptions where relevant.		Moreover, every section should also include a list of assumptions where relevant.


	= Practical Guidelines that can help you when creating your Business Case =		= Practical Guidelines that can help you when creating your Business Case =
Line 130:		Line 134:
	# <u>'''''Monitor the project and review the business case during execution'''''</u>. The business case must be reviewed and updated on a regular basis, as it is likely to change throughout the process. Changes in the benefits, costs and risks for example, might influence the viability, desirability and achievability of the project <ref name="Harvard"/>(p.47).The good practice is for business cases to be reviewed every 6 months <ref name="Programmes2011"/>(p.127.).		# <u>'''''Monitor the project and review the business case during execution'''''</u>. The business case must be reviewed and updated on a regular basis, as it is likely to change throughout the process. Changes in the benefits, costs and risks for example, might influence the viability, desirability and achievability of the project <ref name="Harvard"/>(p.47).The good practice is for business cases to be reviewed every 6 months <ref name="Programmes2011"/>(p.127.).
	# <u>'''''Measure and assess the benefits realization'''''</u>. This last step goes on after the project has been delivered. After the delivery of the project, the business case does not need to be maintained but it is important that the benefits achieved are compared with those stated in the business case <ref name="Harvard"/>(p.49.). This is to ensure that the benefits have been realized and to be able to evaluate the overall performance of the project from a more objective perspective <ref name="Achieving"/>(p.1000). At last, it is important to collect the lessons learned to prevent making the same mistakes again. <ref name="Achieving"/>(p.991)		# <u>'''''Measure and assess the benefits realization'''''</u>. This last step goes on after the project has been delivered. After the delivery of the project, the business case does not need to be maintained but it is important that the benefits achieved are compared with those stated in the business case <ref name="Harvard"/>(p.49.). This is to ensure that the benefits have been realized and to be able to evaluate the overall performance of the project from a more objective perspective <ref name="Achieving"/>(p.1000). At last, it is important to collect the lessons learned to prevent making the same mistakes again. <ref name="Achieving"/>(p.991)


	=== Consequences of not developing a Business Case ===		=== Consequences of not developing a Business Case ===
Line 135:		Line 140:

	Overall, not creating a business case has many repercussions. First, it might lead the organization to inefficiently use their resources and pursue a project that is not aligned with their strategic goals and vision. It could also lead the organization to overlook reachable benefits or even to invest in a project that is not desirable (whose benefits do not outweigh the costs). Without a business case the company could also overlook the ''Do-nothing'' option, which could be more beneficial. Additionally, not developing a business case can lead the organization to invest in projects that are less urgent and important. This would also affect the company's resource allocation, which would not be optimized because of investments on projects that bring lower value. If a business case is not created, it is likely that the intended outcomes and benefits will not be met by the project. <ref name="Achieving"/><ref name="Compelling"/>(p.997; p.195-6)		Overall, not creating a business case has many repercussions. First, it might lead the organization to inefficiently use their resources and pursue a project that is not aligned with their strategic goals and vision. It could also lead the organization to overlook reachable benefits or even to invest in a project that is not desirable (whose benefits do not outweigh the costs). Without a business case the company could also overlook the ''Do-nothing'' option, which could be more beneficial. Additionally, not developing a business case can lead the organization to invest in projects that are less urgent and important. This would also affect the company's resource allocation, which would not be optimized because of investments on projects that bring lower value. If a business case is not created, it is likely that the intended outcomes and benefits will not be met by the project. <ref name="Achieving"/><ref name="Compelling"/>(p.997; p.195-6)


	=== The Five Case Model for the Business Case ===		=== The Five Case Model for the Business Case ===
Line 150:		Line 156:

	The combination of the above development process and the Five Case Model will ensure that the structure of the business case is as well-rounded and robust as possible. Additionally, it will provide assurance to the stakeholders on the stated objectives of the project.		The combination of the above development process and the Five Case Model will ensure that the structure of the business case is as well-rounded and robust as possible. Additionally, it will provide assurance to the stakeholders on the stated objectives of the project.


	== Defining Roles and Responsibilities in the Context of the Business Case ==		== Defining Roles and Responsibilities in the Context of the Business Case ==
Line 227:		Line 234:
	</div>		</div>
	\|}		\|}


	= What are the Limitations of the Business Case? =		= What are the Limitations of the Business Case? =
Line 233:		Line 241:

	In conclusion, the business case is a document used to assess the feasibility of a project before and throughout its implementation. It cannot be used alone; different financial appraisal techniques and tools should be used concurrently. The business case can be helpful to determine if a project will be successful however, whether this will turn out to be true will not only depend on how well the business case is developed and applied. For example, the business case outlines which benefits will be created but it is the benefits management plan which will ensure that these benefits are sustained after the closing stage of the project <ref name="PMBOK"/> (p.29.).		In conclusion, the business case is a document used to assess the feasibility of a project before and throughout its implementation. It cannot be used alone; different financial appraisal techniques and tools should be used concurrently. The business case can be helpful to determine if a project will be successful however, whether this will turn out to be true will not only depend on how well the business case is developed and applied. For example, the business case outlines which benefits will be created but it is the benefits management plan which will ensure that these benefits are sustained after the closing stage of the project <ref name="PMBOK"/> (p.29.).


	= Main Sources of Literature used in this Article =		= Main Sources of Literature used in this Article =

Apinmorale: /* What are the Limitations of the Business Case? */

2021-02-28T18:11:10Z

What are the Limitations of the Business Case?

← Older revision		Revision as of 18:11, 28 February 2021
Line 232:		Line 232:
	There are some limitations to the use of the business case. First, it might be hard to estimate what the benefits will be from undertaking a specific project during the first few stages <ref name="Air">Sheen, R. (2015). Riposo, J., Weichenberg, G., Duran, C. K., Fox, B., Shelton, W., & Thorsen, A. (2013). Business Case. In ''Improving Air Force Enterprise Resource Planning-Enabled Business Transformation''(pp. 7–12). RAND Corporation. https://www.jstor.org/stable/10.7249/j.ctt5hhvgh.10</ref> which might result in organizations pursuing projects that are far from optimal. Other factors such as miscommunication, and the lack of effective governance<ref name="Achieving"/> and coordination between the different stakeholders could also influence the efficiency of the business case in bringing value to the organization. Furthermore, the way the business case is delivered in writing or orally can affect how it is received. More specifically, the phrasing and framing of the different components of the business case can alter how different stakeholders perceive them. As described by Wolfgang Messner, "the order or manner (positive or negative statement) in which investment propositions or alternatives are presented in the business case"<ref name="Compelling"/> can influence the stakeholder's judgement. For example, the way risks are phrased can provide or withhold reassurance to stakeholders <ref name="Air"/>. Moreover, making small mistakes like the ones mentioned above could have significant repercussions on the overall performance of the project.		There are some limitations to the use of the business case. First, it might be hard to estimate what the benefits will be from undertaking a specific project during the first few stages <ref name="Air">Sheen, R. (2015). Riposo, J., Weichenberg, G., Duran, C. K., Fox, B., Shelton, W., & Thorsen, A. (2013). Business Case. In ''Improving Air Force Enterprise Resource Planning-Enabled Business Transformation''(pp. 7–12). RAND Corporation. https://www.jstor.org/stable/10.7249/j.ctt5hhvgh.10</ref> which might result in organizations pursuing projects that are far from optimal. Other factors such as miscommunication, and the lack of effective governance<ref name="Achieving"/> and coordination between the different stakeholders could also influence the efficiency of the business case in bringing value to the organization. Furthermore, the way the business case is delivered in writing or orally can affect how it is received. More specifically, the phrasing and framing of the different components of the business case can alter how different stakeholders perceive them. As described by Wolfgang Messner, "the order or manner (positive or negative statement) in which investment propositions or alternatives are presented in the business case"<ref name="Compelling"/> can influence the stakeholder's judgement. For example, the way risks are phrased can provide or withhold reassurance to stakeholders <ref name="Air"/>. Moreover, making small mistakes like the ones mentioned above could have significant repercussions on the overall performance of the project.

	In conclusion, the business case is a document used to assess the feasibility of a project before and throughout its implementation. It cannot be used alone; different financial appraisal techniques and tools should be used concurrently. The business case can be helpful to determine if a project will be successful however, whether this will turn out to be true will not only depend on how well the business case is developed and applied. For example, the business case outlines which benefits will be created but it is the benefits management plan which will ensure that these benefits are sustained after the closing stage of the project.		In conclusion, the business case is a document used to assess the feasibility of a project before and throughout its implementation. It cannot be used alone; different financial appraisal techniques and tools should be used concurrently. The business case can be helpful to determine if a project will be successful however, whether this will turn out to be true will not only depend on how well the business case is developed and applied. For example, the business case outlines which benefits will be created but it is the benefits management plan which will ensure that these benefits are sustained after the closing stage of the project <ref name="PMBOK"/> (p.29.).

	= Main Sources of Literature used in this Article =		= Main Sources of Literature used in this Article =

Apinmorale: /* What are the Limitations of the Business Case? */

2021-02-28T18:10:22Z

What are the Limitations of the Business Case?

← Older revision		Revision as of 18:10, 28 February 2021
Line 230:		Line 230:
	= What are the Limitations of the Business Case? =		= What are the Limitations of the Business Case? =

	There are some limitations to the use of the business case.		There are some limitations to the use of the business case. First, it might be hard to estimate what the benefits will be from undertaking a specific project during the first few stages <ref name="Air">Sheen, R. (2015). Riposo, J., Weichenberg, G., Duran, C. K., Fox, B., Shelton, W., & Thorsen, A. (2013). Business Case. In ''Improving Air Force Enterprise Resource Planning-Enabled Business Transformation''(pp. 7–12). RAND Corporation. https://www.jstor.org/stable/10.7249/j.ctt5hhvgh.10</ref> which might result in organizations pursuing projects that are far from optimal. Other factors such as miscommunication, and the lack of effective governance<ref name="Achieving"/> and coordination between the different stakeholders could also influence the efficiency of the business case in bringing value to the organization. Furthermore, the way the business case is delivered in writing or orally can affect how it is received. More specifically, the phrasing and framing of the different components of the business case can alter how different stakeholders perceive them. As described by Wolfgang Messner, "the order or manner (positive or negative statement) in which investment propositions or alternatives are presented in the business case"<ref name="Compelling"/> can influence the stakeholder's judgement. For example, the way risks are phrased can provide or withhold reassurance to stakeholders <ref name="Air"/>. Moreover, making small mistakes like the ones mentioned above could have significant repercussions on the overall performance of the project.
	First, it might be hard to estimate what the benefits will be from undertaking a specific project during the first few stages <ref name="Air">Sheen, R. (2015). Riposo, J., Weichenberg, G., Duran, C. K., Fox, B., Shelton, W., & Thorsen, A. (2013). Business Case. In ''Improving Air Force Enterprise Resource Planning-Enabled Business Transformation''(pp. 7–12). RAND Corporation. https://www.jstor.org/stable/10.7249/j.ctt5hhvgh.10</ref> which might result in organizations pursuing projects that are far from optimal. Other factors such as miscommunication, and the lack of effective governance<ref name="Achieving"/> and coordination between the different stakeholders could also influence the efficiency of the business case in bringing value to the organization. Furthermore, the way the business case is delivered in writing or orally can affect how it is received. More specifically, the phrasing and framing of the different components of the business case can alter how different stakeholders perceive them. As described by Wolfgang Messner, "the order or manner (positive or negative statement) in which investment propositions or alternatives are presented in the business case"<ref name="Compelling"/> can influence the stakeholder's judgement. For example, the way risks are phrased can provide or withhold reassurance to stakeholders <ref name="Air"/>. ~~At last~~, making small mistakes like the ones mentioned above could ~~result in~~ significant repercussions to the overall performance of the project.
			In conclusion, the business case is a document used to assess the feasibility of a project before and throughout its implementation. It cannot be used alone; different financial appraisal techniques and tools should be used concurrently. The business case can be helpful to determine if a project will be successful however, whether this will turn out to be true will not only depend on how well the business case is developed and applied. For example, the business case outlines which benefits will be created but it is the benefits management plan which will ensure that these benefits are sustained after the closing stage of the project.

	= Main Sources of Literature used in this Article =		= Main Sources of Literature used in this Article =

Apinmorale: /* What are the Limitations of the Business Case? */

2021-02-28T17:55:27Z

What are the Limitations of the Business Case?

← Older revision		Revision as of 17:55, 28 February 2021
Line 231:		Line 231:

	There are some limitations to the use of the business case.		There are some limitations to the use of the business case.
	First, it might be hard to estimate what the benefits will be from undertaking a specific project during the first few stages <ref name="Air">Sheen, R. (2015). Riposo, J., Weichenberg, G., Duran, C. K., Fox, B., Shelton, W., & Thorsen, A. (2013). Business Case. In ''Improving Air Force Enterprise Resource Planning-Enabled Business Transformation''(pp. 7–12). RAND Corporation. https://www.jstor.org/stable/10.7249/j.ctt5hhvgh.10</ref> which might result in organizations pursuing projects that are far from optimal. Other factors such as miscommunication, and the lack of effective governance<ref name="Achieving"/> and coordination between the different stakeholders could also influence the efficiency of the business case in bringing value to the organization. Furthermore, the way the business case is delivered in writing or orally can affect how it is received. ~~The~~ phrasing and framing of the different components of the business case can alter how different stakeholders perceive them. As described by Wolfgang Messner, "the order or manner (positive or negative statement) in which investment propositions or alternatives are presented in the business case"<ref name="Compelling"/> can influence the stakeholder's judgement. For example, the way risks are phrased can provide or withhold reassurance to stakeholders <ref name="Air"/>. At last, making small mistakes like the ones mentioned above could result in significant repercussions to the overall performance of the project.		First, it might be hard to estimate what the benefits will be from undertaking a specific project during the first few stages <ref name="Air">Sheen, R. (2015). Riposo, J., Weichenberg, G., Duran, C. K., Fox, B., Shelton, W., & Thorsen, A. (2013). Business Case. In ''Improving Air Force Enterprise Resource Planning-Enabled Business Transformation''(pp. 7–12). RAND Corporation. https://www.jstor.org/stable/10.7249/j.ctt5hhvgh.10</ref> which might result in organizations pursuing projects that are far from optimal. Other factors such as miscommunication, and the lack of effective governance<ref name="Achieving"/> and coordination between the different stakeholders could also influence the efficiency of the business case in bringing value to the organization. Furthermore, the way the business case is delivered in writing or orally can affect how it is received. More specifically, the phrasing and framing of the different components of the business case can alter how different stakeholders perceive them. As described by Wolfgang Messner, "the order or manner (positive or negative statement) in which investment propositions or alternatives are presented in the business case"<ref name="Compelling"/> can influence the stakeholder's judgement. For example, the way risks are phrased can provide or withhold reassurance to stakeholders <ref name="Air"/>. At last, making small mistakes like the ones mentioned above could result in significant repercussions to the overall performance of the project.


	= Main Sources of Literature used in this Article =		= Main Sources of Literature used in this Article =

Apinmorale: /* The Five Case Model for the Business Case */

2021-02-28T17:53:25Z

The Five Case Model for the Business Case

← Older revision		Revision as of 17:53, 28 February 2021
Line 145:		Line 145:
	* <u>''The Economic Case''</u>: The purpose of this dimension is to ensure that the selected project initiative will produce the most optimal value for money out of all the alternatives. For this, it is important that the business case justifies any higher costs that the project might create from the organization’s business as usual (BAU) activities. <ref name="HM"/><!--		* <u>''The Economic Case''</u>: The purpose of this dimension is to ensure that the selected project initiative will produce the most optimal value for money out of all the alternatives. For this, it is important that the business case justifies any higher costs that the project might create from the organization’s business as usual (BAU) activities. <ref name="HM"/><!--
	--><p> It is important that when calculating the value using different analytical techniques, such as the Cost Effectiveness Analysis (CEA), the three pillars of sustainability (the economy, society and environment) are also considered. </p>		--><p> It is important that when calculating the value using different analytical techniques, such as the Cost Effectiveness Analysis (CEA), the three pillars of sustainability (the economy, society and environment) are also considered. </p>
	* <u>''The Management Case''</u>: This dimension ensures that the business case is developed following the best practices for project management processes. For example, processes should be established to monitor the project throughout its life cycle, and manage the post project implementation feedback. It is important to verify that the project led to the realization of the stated benefits. Additionally, contingency plans should also be developed and risk management strategies should be analyzed.<ref name="HM"/><ref name="BetterBusiness"/>		* <u>''The Management Case''</u>: This dimension ensures that the business case is developed following the best practices for project management processes. For example, processes should be established to monitor the project throughout its life cycle, and manage the post-project implementation feedback. It is important to verify that the project led to the realization of the stated benefits. Additionally, contingency plans should also be developed and risk management strategies should be analyzed.<ref name="HM"/><ref name="BetterBusiness"/>
	* <u>''The Commercial Case''</u>: This dimension makes sure that, regardless of changes in the organizational and operational requirements, the target project will be able to provide the value in the timeframe specified on the business case. The objectives of the business case should be feasible to the stakeholders and the procurement arrangement should be viable. <ref name="HM"/><ref name="BetterBusiness"/>		* <u>''The Commercial Case''</u>: This dimension makes sure that, regardless of changes in the organizational and operational requirements, the target project will be able to provide the value in the timeframe specified on the business case. The objectives of the business case should be feasible to the stakeholders and the procurement arrangement should be viable. <ref name="HM"/><ref name="BetterBusiness"/>
	* <u>''The Financial Case''</u>: It is possible for a project to create value for money and to simultaneously not be affordable. Therefore, the aim of the financial dimension is to verify that the project can be afforded and that the required funds from the organization and other stakeholders can be obtained. There should not be any funding gaps in the business case of the selected project. <ref name="HM"/><ref name="BetterBusiness"/>		* <u>''The Financial Case''</u>: It is possible for a project to create value for money and to simultaneously not be affordable. Therefore, the aim of the financial dimension is to verify that the project can be afforded and that the required funds from the organization and other stakeholders can be obtained. There should not be any funding gaps in the business case of the selected project. <ref name="HM"/><ref name="BetterBusiness"/>

Apinmorale: /* The Five Case Model for the Business Case */

2021-02-28T17:52:25Z

The Five Case Model for the Business Case

← Older revision		Revision as of 17:52, 28 February 2021
Line 144:		Line 144:
	--><p> According to the HM Treasury and Welsch Government “the business needs must be well researched and supported by service demand and capacity planning” <ref name="HM"/>(p.7.).</p>		--><p> According to the HM Treasury and Welsch Government “the business needs must be well researched and supported by service demand and capacity planning” <ref name="HM"/>(p.7.).</p>
	* <u>''The Economic Case''</u>: The purpose of this dimension is to ensure that the selected project initiative will produce the most optimal value for money out of all the alternatives. For this, it is important that the business case justifies any higher costs that the project might create from the organization’s business as usual (BAU) activities. <ref name="HM"/><!--		* <u>''The Economic Case''</u>: The purpose of this dimension is to ensure that the selected project initiative will produce the most optimal value for money out of all the alternatives. For this, it is important that the business case justifies any higher costs that the project might create from the organization’s business as usual (BAU) activities. <ref name="HM"/><!--
	--><p> It is important that, when calculating the value using different analytical techniques such as the Cost Effectiveness Analysis (CEA), three pillars of sustainability (the ~~economic~~, ~~social~~ and ~~environmental aspects~~) are also considered. </p>		--><p> It is important that when calculating the value using different analytical techniques, such as the Cost Effectiveness Analysis (CEA), the three pillars of sustainability (the economy, society and environment) are also considered. </p>
	* <u>''The Management Case''</u>: This dimension ensures that the business case is developed following the best practices for project management processes. For example, processes should be established to monitor the project throughout its life cycle, and manage the post project implementation feedback. It is important to verify that the project led to the realization of the stated benefits. Additionally, contingency plans should also be developed and risk management strategies should be analyzed.<ref name="HM"/><ref name="BetterBusiness"/>		* <u>''The Management Case''</u>: This dimension ensures that the business case is developed following the best practices for project management processes. For example, processes should be established to monitor the project throughout its life cycle, and manage the post project implementation feedback. It is important to verify that the project led to the realization of the stated benefits. Additionally, contingency plans should also be developed and risk management strategies should be analyzed.<ref name="HM"/><ref name="BetterBusiness"/>
	* <u>''The Commercial Case''</u>: This dimension makes sure that, regardless of changes in the organizational and operational requirements, the target project will be able to provide the value in the timeframe specified on the business case. The objectives of the business case should be feasible to the stakeholders and the procurement arrangement should be viable. <ref name="HM"/><ref name="BetterBusiness"/>		* <u>''The Commercial Case''</u>: This dimension makes sure that, regardless of changes in the organizational and operational requirements, the target project will be able to provide the value in the timeframe specified on the business case. The objectives of the business case should be feasible to the stakeholders and the procurement arrangement should be viable. <ref name="HM"/><ref name="BetterBusiness"/>

Apinmorale: /* Consequences of not developing a Business Case */

2021-02-28T17:49:48Z

Consequences of not developing a Business Case

← Older revision		Revision as of 17:49, 28 February 2021
Line 134:		Line 134:
	According to Einhorn et al., 2019, the step that companies apply the most when developing business cases is ''Monitoring of a project'' (step 6). The least followed steps by organizations are: ''Using the business case to plan and monitor the project'' (step 5) and ''Reviewing, realizing and comparing the benefits obtained to those from the business case'' (steps 7 and 8). Although it is good that organizations are doing the groundwork, generating analyses, monitoring and using the business cases to prioritize projects, Einhorn et al., 2019 argue that applying the other steps would enable them to obtain better results and more benefits. <ref name="Achieving"/>(p.997.)		According to Einhorn et al., 2019, the step that companies apply the most when developing business cases is ''Monitoring of a project'' (step 6). The least followed steps by organizations are: ''Using the business case to plan and monitor the project'' (step 5) and ''Reviewing, realizing and comparing the benefits obtained to those from the business case'' (steps 7 and 8). Although it is good that organizations are doing the groundwork, generating analyses, monitoring and using the business cases to prioritize projects, Einhorn et al., 2019 argue that applying the other steps would enable them to obtain better results and more benefits. <ref name="Achieving"/>(p.997.)

	Overall, not creating a business case has many repercussions. First, it might lead the organization to inefficiently use their resources and pursue a project that is not aligned with their strategic goals and vision. It could also lead the organization to overlook reachable benefits or even to invest in a project that is not desirable (whose benefits do not outweigh ~~its~~ costs). Without a business case the company could also overlook the Do-nothing option, which could be more beneficial. Additionally, not developing a business case can lead the organization to invest in projects that are less urgent and important. This would also affect the resource allocation, which would not be optimized because of investments on projects that bring lower value. If a business case is not created, it is likely that the intended outcomes and benefits will not be met by the project. <ref name="Achieving"/><ref name="Compelling"/>(p.997; p.195-6)		Overall, not creating a business case has many repercussions. First, it might lead the organization to inefficiently use their resources and pursue a project that is not aligned with their strategic goals and vision. It could also lead the organization to overlook reachable benefits or even to invest in a project that is not desirable (whose benefits do not outweigh the costs). Without a business case the company could also overlook the ''Do-nothing'' option, which could be more beneficial. Additionally, not developing a business case can lead the organization to invest in projects that are less urgent and important. This would also affect the company's resource allocation, which would not be optimized because of investments on projects that bring lower value. If a business case is not created, it is likely that the intended outcomes and benefits will not be met by the project. <ref name="Achieving"/><ref name="Compelling"/>(p.997; p.195-6)

	=== The Five Case Model for the Business Case ===		=== The Five Case Model for the Business Case ===

Apinmorale: /* The Five Case Model for the Business Case */

2021-02-28T17:43:29Z

The Five Case Model for the Business Case

← Older revision		Revision as of 17:43, 28 February 2021
Line 137:		Line 137:

	=== The Five Case Model for the Business Case ===		=== The Five Case Model for the Business Case ===
	To build a strong business case, the Five Case Model framework can be applied in tandem with the development process above. The Five Case Model is a best practice standard that was created to ensure that every major aspect involved in the development of a business case is systematically approached <ref name="HM">HM Treasury. (2018). ''Guide to developing the Project Business Case''. HM Treasury and The Welsh government. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/749086/Project_Business_Case_2018.pdf</ref>. According to this model, there are five cases or dimensions that should be addressed during the development of every business case.		To build a strong business case, the Five Case Model framework can be applied in tandem with the development process explained above. The Five Case Model is a best practice standard that was created to ensure that every major aspect involved in the development of a business case is systematically approached <ref name="HM">HM Treasury. (2018). ''Guide to developing the Project Business Case''. HM Treasury and The Welsh government. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/749086/Project_Business_Case_2018.pdf</ref>. According to this model, there are five cases or dimensions that should be addressed during the development of every business case.

	[[File:FiveCase.png\|400px\|thumb\|right\| Overview of the Five Case Model Framework (own creation; based on: p.7. <ref name="BetterBusiness">''Better Business Cases''. (2014). New Zealand Government. http://wibe-tco.com/wp-content/uploads/bbc-oview-gd.pdf</ref> and p.7-10. <ref name="HM"/> ).]]		[[File:FiveCase.png\|400px\|thumb\|right\| Overview of the Five Case Model Framework (own creation; based on: p.7. <ref name="BetterBusiness">''Better Business Cases''. (2014). New Zealand Government. http://wibe-tco.com/wp-content/uploads/bbc-oview-gd.pdf</ref> and p.7-10. <ref name="HM"/> ).]]
Line 150:		Line 150:

	The combination of the above development process and the Five Case Model will ensure that the structure of the business case is as well-rounded and robust as possible. Additionally, it will provide assurance to the stakeholders on the stated objectives of the project.		The combination of the above development process and the Five Case Model will ensure that the structure of the business case is as well-rounded and robust as possible. Additionally, it will provide assurance to the stakeholders on the stated objectives of the project.


	== Defining Roles and Responsibilities in the Context of the Business Case ==		== Defining Roles and Responsibilities in the Context of the Business Case ==