Business Case
The Business Case serves as a critical document that links business goals and objectives with portfolio components, programs, or projects designed to achieve those objectives. It is essentially an economic feasibility study that justifies the investment needed for the initiative by detailing the value and benefits it will bring to the organization. Here's a breakdown of its key elements and roles:
Economic Feasibility and Benefits
The primary purpose of a business case is to establish the economic feasibility of an initiative. It lays out the anticipated benefits in terms of value to the organization, thus making it easier to justify the required investment. These benefits are often quantified in monetary terms or other value metrics that align with the organization's strategic objectives.
Link to Business Goals and Objectives
The business case is the tether that connects business goals and objectives to the actual work that needs to be done—whether that work is part of a portfolio component, program, or project. In doing so, it aligns the work with the organization’s overarching strategy.
Input to Charter
Once the business case is approved, it serves as a key input when creating a charter to initiate a portfolio component, program, or project. The charter often contains an abbreviated version of the business case, including crucial information like business need and the cost-benefit analysis.
Needs Assessment
The process of assembling a business case is one of the final steps in the Needs Assessment phase. This assessment, along with the business case, provides the foundation for defining the objectives of the initiative. They together serve as critical inputs to the charter that will be developed to initiate the project, program, or portfolio component.
Context for Transition and Prioritization
In addition to providing the basis for initiating an effort, the business case also sets the context for the transition phase of the project or program. It can be used as a foundational document for prioritizing transition activities, especially when there are multiple stakeholders or competing requirements.
Authoritative Source for Expected Benefits
The business case is considered the authoritative source for outlining the expected benefits of an initiative. These benefits are usually detailed in a way that allows them to be tracked and measured, providing a clear framework for evaluating the success of the initiative as it progresses.
Decision-Making and Investment Justification
The business case serves as a pivotal tool for decision-makers. By laying out the cost-benefit analysis and outlining the business need, the document enables stakeholders to make informed decisions about whether or not to proceed with the initiative.
In summary, the Business Case is a multi-faceted document that serves several critical functions, from justifying the investment and linking to organizational goals, to setting the stage for the project charter and providing a basis for ongoing decision-making and prioritization.