What is the Business Case?

The business case is usually developed during the project initiation phase, when information is gathered to understand the need for the project and its viability. It is important that the business case is clear, concise and convincing, so that stakeholders understand the value of the project and are willing to approve it.

The main elements of the Business Case are the following:

Executive Summary: Brief description of the project indicating the benefits that the project will create in the organization.

Context: Reason for executing the project and how it relates to the strategic objectives of the organization.

Objectives: Correspond to the specific results that are expected to be achieved by executing the project in question.

Benefits: When we talk about benefits, these can be economic, operational or strategic, which will be obtained by executing the project.

Costs: The costs associated with the execution of the project must be considered; only the implementation costs must be considered; the operational costs of the project are outside this document.

Risks: Risks associated with project implementation must be identified. It is important to perform a risk analysis that considers the risks and uncertainties that may affect project execution.

Recommendation: As part of the Business Case, a recommendation regarding project execution must be provided. This may be a Go/No Go regarding project execution.

The business case is an important tool for project management. It helps ensure that projects are carried out only if they are viable and add value to the organization.