The business case practice in PRINCE2 7 continues to uphold one of PRINCE2’s foundational principles, which has remained consistent across previous editions. PRINCE2 acknowledges that establishing business justification for initiating a project and ensuring its ongoing validity are critical factors for project success.
In terms of innovations introduced in PRINCE2 7, the business case chapter now explicitly underscores the significance of sustainability as an investment consideration. It incorporates discussions on sustainability targets and tolerances within the business case framework. Additionally, the updated version highlights the interdependencies among all seven performance targets, emphasizing the potential impacts on other targets if any one of them undergoes changes.
To illustrate the business case practice, scenarios are woven throughout the book, providing real-life examples. These changes also aim to enhance consistency with other related frameworks within the PeopleCert portfolio, such as Managing Successful Programmes (MSP).
The most noteworthy addition in the latest edition is the explicit consideration of sustainability, a first for PRINCE2. Defining sustainability goals and tolerances reflects the crucial challenges companies confront, such as whether a project is truly viable if it compromises commitments to environmental or social governance.
Sustainability drivers have prompted leaders to broaden their perspectives on what constitutes a business priority. For instance, while a project’s priority might have previously been cost reduction – opting for the cheapest, fastest supplier – the best overall option now might involve more expensive raw materials made from recycled waste. The business case assesses the impact of actions on sustainability targets.
These sustainability targets are also evaluated in conjunction with other performance targets, including time, cost, benefits, scope, quality, and risk. The business case prioritizes selecting the optimal investment option that ensures all targets remain within their tolerance levels.
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The business case serves as the foundation for sound investment decision-making, with its primary role being to guarantee that a project is (and remains) desirable, viable, and achievable. Does the project strike the right balance between costs, benefits, and risks? Is it poised to deliver the necessary products? Will the utilization of these products lead to enhanced outcomes and, consequently, the realization of the required benefits? A well-structured business case also incorporates an assessment of the level of risk associated with achieving the outcomes, offering stakeholders a coherent understanding of the project’s purpose.
The guidance explores the repercussions of changes or unforeseen events that may impact projects and their investment justifications. For instance, a significant flood might compel governments to promptly reassess their projects and priorities, potentially reallocating funds to rescue and cleanup efforts.
As PRINCE2 asserts, it is entirely acceptable to halt a project if the desired outcomes cannot be achieved or if priorities shift. Understanding how to halt, modify, or proceed with a project is integral to ensuring that each project continues to maintain a robust business justification or adapts when the justification is no longer applicable.
We find it important that PRINCE2 acknowledges this change in perspective and appreciates the practical examples it offers as best practices. The recent enhancements to the business case chapter are, in my opinion, incredibly valuable for PRINCE2 practitioners. It now serves as a more practical illustration of how a business case functions as a control tool throughout a project and emphasizes the importance of consistently revisiting the business case to support sound decision-making.
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