Ensure continued business justification

The PRINCE2 principle of ensure continued business justification emphasizes the importance of maintaining a clear, ongoing business reason for a project throughout its lifecycle.

Business case

At the heart of this principle is the business case, which provides the rationale for starting a project. The project’s justification must make sense from a business perspective, ensuring that the benefits outweigh the costs, and that there is a clear return on investment (ROI).

For example, if a project costs €20,000 but delivers savings of €80,000 over the first two years, it demonstrates clear business justification. However, if at any point the ROI significantly decreases (e.g., by 80%), it could result in the project being halted. The business case document outlines the complete business justification, including the project’s rationale, costs, expected benefits, and timescales. It serves as a critical tool for assessing whether the project should proceed or be stopped.

Timing

The business case is usually created at the start of the project to prevent the initiation of projects with little or no real benefit to the organization. It is regularly reviewed throughout the project’s lifecycle, for example, at the end of each stage, to ensure the business justification still holds. Even projects required for compliance with new legislation need business justification. For instance, the potential cost of non-compliance might include a loss of market share or clients, which can be quantified and considered in the business case.

Responsibilities

PRINCE2 may give the impression that the business case is created at the project level, but in reality, it should be developed at the business level. While the business case is initially created at the business level, it can be refined throughout the project lifecycle to ensure it stays up to date with any changes. It is important to view the project manager more as a facilitator rather than someone solely responsible for creating business cases. The project manager’s role is to ensure the business case is regularly reviewed and maintained, not to create it from scratch.

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Written by Frank Turley.

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