Business Case
A business case is a documented economic feasibility study that establishes the validity of the benefits of a selected component lacking sufficient definition and that is used as a basis for the authorization of further project management activities.
Explanation
The business case is a business document that provides the justification for undertaking a project. It presents the analysis of costs, benefits, risks, and alternatives that supports the decision to invest in the project. The business case is typically developed before the project is formally initiated and is an input to the Develop Project Charter process.
A comprehensive business case includes the business need or problem being addressed, the analysis of the situation (including root cause analysis), the recommended solution, an evaluation of alternatives considered, the expected costs and benefits (including financial metrics such as ROI, NPV, IRR, and payback period), risks and assumptions, success criteria, and the organizational strategy alignment.
The business case is owned by the project sponsor or the business, not the project manager. It remains relevant throughout the project and is periodically reviewed — particularly at phase gates — to confirm that the project still delivers value. If the business case is no longer valid (for example, due to market changes), the project may be cancelled. The business case is also referenced during project closure to assess whether the intended benefits are on track to be realized.
Key Points
- •Business document that justifies the project investment
- •Includes cost-benefit analysis, alternatives, risks, and strategic alignment
- •Owned by the sponsor or business, not the project manager
- •Reviewed at phase gates to confirm continued viability
Exam Tip
The business case is created BEFORE the project charter and is an input to Develop Project Charter. Know that it is a business document, not a project document or part of the project management plan.
Frequently Asked Questions
Related Topics
Benefits Management Plan
The benefits management plan is a document that describes how and when the benefits of a project will be delivered, measured, and sustained, including target benefits, strategic alignment, timelines, metrics, and ownership.
Develop Project Charter
Develop Project Charter is the process of creating the document that formally authorizes a project or phase and documents the initial requirements that satisfy stakeholder needs and expectations.
Project Charter
A project charter is a document issued by the project sponsor that formally authorizes the existence of a project and provides the project manager with the authority to apply organizational resources to project activities.
Business Documents
Business documents are documents that exist outside the project management plan and are used to make decisions about the project before it is initiated and throughout its lifecycle. They include the business case and the benefits management plan.
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Integration Management
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