04.26.2024
Your Complete Guide To Scaled Agile Framework Certification
Posted by Marbenz Antonio on September 27, 2023
In PRINCE2 7, the approach to the business case remains steadfast, aligning with one of PRINCE2’s enduring foundational principles—a principle unaltered through previous editions. PRINCE2 acknowledges that establishing a sound business rationale for commencing a project and ensuring its sustained validity throughout the project’s lifecycle are pivotal to achieving project success.
In the context of PRINCE2 7’s innovations, the chapter dedicated to the business case now explicitly acknowledges the significance of sustainability as a pivotal consideration in investment decisions. It introduces a discourse on sustainability objectives and tolerances, incorporating them into the framework of the business case. Additionally, it highlights the intricate interdependencies among all seven performance objectives, emphasizing the potential repercussions on other objectives should any one of them undergo alteration.
To illustrate and enliven the practice of constructing a business case, PRINCE2 7 utilizes scenarios that are interwoven throughout the text, offering practical examples.
These changes also aim to foster greater congruence with other related frameworks within the PeopleCert portfolio, such as Managing Successful Programmes (MSP).
The most notable evolution in the latest edition lies in its explicit consideration of sustainability—a concept now firmly integrated for the first time. The delineation of sustainability objectives and tolerances mirrors the critical contemporary challenges faced by organizations. For instance, a fundamental question arises: can a project be deemed truly viable if it undermines commitments to environmental or social governance?
The impetus of sustainability has compelled leaders to broaden their perspectives regarding what constitutes a paramount business priority. In the past, project priorities might have primarily revolved around cost reduction, leading to the selection of the most economical and expedient suppliers. However, today, the optimal choice might entail the use of more expensive raw materials derived from recycled waste, taking into account their overall impact. The assessment of an action’s consequences on sustainability objectives is a pivotal aspect of the business case.
Furthermore, the sustainability targets are evaluated within the broader context of the other performance objectives, including time, cost, benefits, scope, quality, and risk. The overarching aim of the business case is to select the most judicious investment option that guarantees the maintenance of all objectives within their prescribed tolerance thresholds.
The business case serves as the cornerstone of sound investment decision-making, with its primary function being to guarantee that a project is not only desirable but also both feasible and attainable. It prompts critical questions: Does the project strike the appropriate equilibrium between costs, benefits, and risks? Can it be anticipated to deliver the necessary products? Will the utilization of these products culminate in improved outcomes, thereby facilitating the realization of the anticipated benefits?
A well-structured business case also takes into consideration the level of risk entailed in achieving these outcomes, furnishing stakeholders with a consistent understanding of the project’s purpose and rationale.
The guidance within PRINCE2 delves into the repercussions of alterations or unforeseen circumstances that can potentially impact projects and their investment justifications. For instance, significant flooding might compel governments to swiftly reevaluate their projects and reassign resources towards rescue and cleanup efforts.
As asserted by PRINCE2, it is entirely permissible to halt a project if it becomes evident that the intended outcomes cannot be achieved or if shifting priorities necessitate a change in direction. Proficiency in deciding when to stop, alter, or proceed with a project is integral to ensuring that every project consistently upholds a robust business rationale. It involves recognizing and adapting to changing circumstances if the initial justification becomes obsolete.
We strongly believe that PRINCE2’s incorporation of this evolving perspective, along with the exemplary best practices it offers, is of paramount importance. We are convinced that the recent enhancements to the business case chapter will prove highly beneficial to PRINCE2 practitioners. These updates provide a more pragmatic portrayal of how a business case functions as a control instrument throughout the project lifecycle, emphasizing the significance of consistently revisiting the business case to bolster sound decision-making processes.
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