1PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office.
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2PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office.
© Manag...
3PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office.
© Manag...
4PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office.
© Manag...
5PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office.
© Manag...
6PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office.
© Manag...
7PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office.
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8PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office.
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9PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office.
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10PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office.
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11PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office.
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12PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office.
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13PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office.
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14PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office.
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15PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office.
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16PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office.
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17PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office.
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18PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office.
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19PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office.
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PRINCE2 Foundation Workshops -- Business Case

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PRINCE2 Foundation workshop slides for the Business Case theme.

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PRINCE2 Foundation Workshops -- Business Case

  1. 1. 1PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office. © Management Plaza P2F-WS-BC-EN Version v01.02 PRINCE2® Foundation Workshops By Frank Turley, Management Plaza Theme: Business Case Use this course in conjunction with the: The PRINCE2® Foundation Training Manual PRINCE2® is a Registered Trade Mark of the Cabinet Office. PRINCE2™ is a Trade Mark of the Cabinet Office.
  2. 2. 2PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office. © Management Plaza P2F-WS-BC-EN Version v01.02 Theme Business Case: Topics • Purpose of the Business Case theme • What is a Business Case? • Outputs, outcomes and benefits • Types of Business Case • The PRINCE2® Approach to Business Case (Develop, Maintain) • The contents of a Business Case • Benefits Review Plan • Roles and Responsibilities Business Case Theme
  3. 3. 3PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office. © Management Plaza P2F-WS-BC-EN Version v01.02 • To establish mechanisms to judge whether the project is (and remains) desirable, viable and achievable as a means to support decision making in its (continued) investment • It is a PRINCE2® principle that the project must have continued business justification Purpose of the Business Case theme Business Case Theme
  4. 4. 4PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office. © Management Plaza P2F-WS-BC-EN Version v01.02 • The Business Case presents the optimum mix of information used to judge whether the project is (and remains) desirable, viable and achievable, and therefore worthwhile investing in • The Business Case is not a static document – It is continually updating during the project with actuals – It is continually used by the Project Board to see if the project is still worth doing What is a Business Case? Business Case Theme
  5. 5. 5PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office. © Management Plaza P2F-WS-BC-EN Version v01.02 • Output The product • Outcome The result / Features / What can it do different • Benefits Measurable improvement Outputs, outcomes and benefits • Output New CRM System • Outcome Quicker searchers, easier to import data, faster reports • Benefits 15% increase in sales, 20% reduction in admin costs Example Project: New CRM System Tangible product E.g. CRM System Output Results in Outcome Results in Benefits Result of change E.g. Easier to create reports Measurable improvements E.g. 30% reduction in sales costs Based on OGC PRINCE2® material. Reproduced under license from OGC • Why is their such a focus on monitoring benefits? • Who do you think should monitor benefits for all closed projects Questions Business Case Theme
  6. 6. 6PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office. © Management Plaza P2F-WS-BC-EN Version v01.02 New legislation, can’t afford not to do it Good will in the community, press, “we care” Business decides next products during project Traditional projects – clear product description E.g. Merge, Takeover, joint projects Types of Business Case • Compulsory • Not-for-profit • Evolving (Agile, RUP) • Customer/supplier • Multi-organization PRINCE2® has identified 5 project types Business Case Theme
  7. 7. 7PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office. © Management Plaza P2F-WS-BC-EN Version v01.02 Direction ProjectBoard Corp.. by Frank Turley MgmtPlaza.com Version 1.2c Project mandate Corporate or Programme Management Business Case Benefits Review Plan Management ProjectManager P I D Project Brief -- Outline BC Develop Business Case (Planning) Initiation – 1st Stage Delivery Stages : Controlling a Stage & Stage Boundary Closing a ProjectPre-Project PRINCE2® approach to Business Case: Develop BC Develop the Business Case • Outline Business Case is created in SU process • Business Case is created in IP process (IP Stage) • Owner is the Executive • Project Manager can assist the Executive Business Case Theme Based on OGC PRINCE2® material. Reproduced under license from OGC
  8. 8. 8PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office. © Management Plaza P2F-WS-BC-EN Version v01.02 Pre-project Initiation Stage Subsequent Delivery Stages Final Delivery Stage Post- project Verify outline Business Case Verify updated Business Case Verify the Business Case Develop Business Case Maintain Business Case Verify detailed Business Case Answer: • First verification point by Project Board is at the end of SU process • Second verification point by Project Board is at the end of IP process • Next verifications points are at the end of each stage • Last verification point for Project Board is at the end of the project Question: Where do you verify the Business Case? Business Case Theme Based on OGC PRINCE2® material. Reproduced under license from OGC
  9. 9. 9PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office. © Management Plaza P2F-WS-BC-EN Version v01.02 Content of the Business Case • An executive summary Introduction • Reasons Why, what if not • Business options Chosen option (do nothing/minimum/something) • Expected benefits Measurable benefits • Expected dis-benefits Side effects • Timescale Project & when benefits will be realized • Costs Project costs plus future maintenance • Investment appraisal RoI calculation • Major risks Summary of risks (taken from Risk Register) What kind of information is in a Business Case? Business Case Theme
  10. 10. 10PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office. © Management Plaza P2F-WS-BC-EN Version v01.02 Benefits Review Plan 1. Created by Project Manager in Initiation Stage 2. Information is provided by Senior User 3. Project Board approves the Benefits Review Plan 4. Check for realized Benefits at end of each stage 5. Plan Benefits Review after project (Post Project) 6. Check for Benefits (after project) • Some projects check for realized benefits during the project: • Example: New CRM functionality released to users after each stage • The Senior Supplier is responsible for creating the products to achieve the Benefits • Lastly the Corp… do the Benefit Review after the project. Eg: 6, 12, 18, 24 months • Project Manager • Senior User • Project Board • Project Manager • Project Manager • Corp/Program • A plan that defines how & when benefit will be measured • A plan to review the benefits  Benefits Review Plan Benefits Review Plan Steps: Pre-project Initiation Stage Subsequent Delivery Stages Final Delivery Stage Post- project Create BRP Check Benefits Approve BRP Check Benefits Who: PM/SU PM Corp… Check Benefits Plan Post Reviews 3 1 2 4 5 6 Business Case Theme
  11. 11. 11PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office. © Management Plaza P2F-WS-BC-EN Version v01.02 Delivery TeamManager Direction ProjectBoard Corp.. by Frank Turley MgmtPlaza.com Version 1.2d Corporate or Programme Management Business Case Documentation Business Case Benefits Review Plan Business Case Stage Boundary: Updated Management ProjectManager P I D Based on OGC PRINCE2® material. Reproduced under license from OGCSU Process Benefits Review Plan Updated Created Business Case Project Brief -- Outline BC Starting Up A Project Closing a Project Benefits Review Plan Develop Business Case Maintain Business Case Planning Initiation – 1st Stage Delivery Stages : Controlling a Stage & Stage Boundary Closing a Project Pre-Project Business Case management products created during a project Project mandate Business Case documentation 1-outline Business Case - Created by Executive: part of the Project Brief 2-Business Case 3-Benefits Review Plan 4-Updated Business Case 5-Updated Benefits Review Plan (if necessary) 6-Update Benefits Review Plan - Plan the next Benefits review meeting 7- Business Case (final update with cost data) 1 2 3 4 5 6 7 Business Case Theme
  12. 12. 12PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office. © Management Plaza P2F-WS-BC-EN Version v01.02 • Corporate or Prog Mgmt • Executive • Senior User • Senior Supplier • Project Assurance • Project Manager Roles and responsibilities Reasons, project mandate, post-project benefits Responsible for BC, Creates BC, Verify, Approve BRP Provides Benefits info, Report on Benefits Provide Resources Assist Project / Audit that all is OK Update BC, Creates BRP, Effect of Risk & Issues, Assists the Executive with the creation of BC Aware Business Case Theme
  13. 13. 13PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office. © Management Plaza P2F-WS-BC-EN Version v01.02 1. Continued business justification 2. Learn from experience 3. Defined roles and responsibilities 4. Manage by stages 5. Manage by exception 6. Focus on products 7. Tailor to suit the project environment Question: Which Principles does the Business Case theme support? Theme Business Case Where do you work this principle? Even small or simple projects must have a Business Case Business Case Theme
  14. 14. 14PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office. © Management Plaza P2F-WS-BC-EN Version v01.02 Delivery TeamManager Direction ProjectBoard Corp.. by Frank Turley Management-Plaza.com Version 1.2d Authorize initiation Authorize the project Authorize a Stage or Exception Plan Give ad hoc direction Auth. project closure Checkpoint Reports Directing a Project Initiation – 1st Stage Closing a Project Project mandate Corporate or Programme Management End Stage Rpt CS: Highlight Team Plan CS: Issue/Exc. RptsNext Stage PlanIS Plan Strategy: Communication Configuration Quality & Risk Business Case Project Plan Benefits Review Plan or Exception Plan Controlling a Stage Created Business Case Stage Boundary: Updated Stage Boundary: Created Project Plan Product Delivery: Created Updated Management ProjectManager Work Packages -- Team Manager is also responsible -- Created once during project (can be updated) -- Created or updated once per stage -- Created or updated many times during a stage -- Once per Work Package -- Many per Work Package P I D Based on OGC PRINCE2® material. Reproduced under license from OGC Project Controls PMT - Roles SU Process Pre-Project CP is the last part of the last stage End Project Rpt Lessons Report Draft Closure Not. Benefits Review Plan Updated Created Business Case Project Plan CS: Risk Register CS: Issue Register CS: Lessons Log CS: Daily Log CS: CIR Project Brief CIR docs (cmdb) Lessons Log Daily Log Risk, Quality, Issue Registers + Proof of Acceptance Assists with Planning * * Initiation – 1st Stage Delivery Stages : Controlling a Stage & Stage Boundary Closing a ProjectPre-Project -- Outline BC -- PPD -- Approach -- PMT PBS (CIR) PDs PFD * * Quality Register Controlling a Stage Updated Starting Up A Project Closing a Project Delivery Stages : Controlling a Stage & Stage Boundary (Planning) e.g.80% New requirements? PRINCE2® Processes (Management Product Map) Follow on Actions Issue Register
  15. 15. 15PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office. © Management Plaza P2F-WS-BC-EN Version v01.02 Review: Theme Business Case • Purpose of the Business Case theme • What is a Business Case? • Outputs, outcomes and benefits • Types of Business Case • The PRINCE2® Approach to Business Case (Develop, Maintain) • The contents of a Business Case • Benefits Review Plan • Roles and Responsibilities Q&A: PRINCE2® Foundation Q&A workbook (20 minutes) Business Case Theme
  16. 16. 16PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office. © Management Plaza P2F-WS-BC-EN Version v01.02 Business Case Review Questions These questions are taken from the Foundation Q&A Workbook by Management Plaza Business Case Theme
  17. 17. 17PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office. © Management Plaza P2F-WS-BC-EN Version v01.02 Business Case review questions 1. Which document is used to show the justification for the project? 2. Give an example of an output, an outcome and a benefit of a new train service between two cities. (Your answers will be different to mine but just check if you are on the correct track ). 3. What do you think the purpose of the Business Case Theme is? Answer in your own words and remember you will just have to recognize the purpose in an exam question so you are not expected to be able to answer this question in full. (Tip: Try to remember one key word.) 4. Which theme provides mechanisms to judge whether the project is and remains desirable and achievable? 5. What theme ensures the project is desirable, viable and achievable? So which theme looks to see if the project is desirable, viable and achievable? 6. List one purpose of the Benefits Review Plan? Answer in your own words. 7. Do you think the purpose of the Business Case theme is to establish (provide) methods to judge whether the ongoing project is justified? 8. Why is the Business Case updated in the Managing a Stage Boundary process? 9. What is a measureable improvement resulting from an outcome (Output, Outcome or Benefit)? 10. Which of the seven principles does the Business Case team support? Business Case Theme
  18. 18. 18PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office. © Management Plaza P2F-WS-BC-EN Version v01.02 Business Case review questions 11. Why might the Benefits Review Plan be updated during the Controlling a Stage process? 12. Which is a purpose of the Business Case theme? (Tip: Continued business justification). – a) Identify which role is responsible for producing the Business Case. – b) Establish a viable investment proposition. 13. How is a Benefits Review Plan used in the Closing a Project process? (Use your own words). 14. Which is the definition of a project outcome? 15. A measurable improvement that is perceived as an advantage by one or more stakeholders. 16. The reason for the project. 17. The result of the change derived from using the project’s output. 18. What is meant by the statement “PRINCE2 is based on a customer supplier environment”? 19. Who is responsible to make sure that the Business Case is verified at each key decision point (e.g. end of each stage) in a project? The Business Case needs to be verified from a Business, User and Supplier point of view. 20. What do you think is the main purpose of the Benefits Review Plan? (Tip: This is a plan). Business Case Theme
  19. 19. 19PRINCE2® is a Registered Trade Mark of the Cabinet Office. The Swirl logo™ is a Trade Mark of the Cabinet Office. © Management Plaza P2F-WS-BC-EN Version v01.02 Thanks for participating in this PRINCE2 Workshop Our objectives at Management Plaza • Help companies introduce PRINCE2 into their organization • Provide PRINCE2 workshop content for Processes & Themes • Provide Q&A at the end of each Workshop • Provide a fully documented PRINCE2 Sample Project • Provide PRINCE2 Diagrams (e.g. The PRINCE2 Product Map) • Provide PRINCE2 Exams with FREE PRINCE2 Self Study course Lets us know if you are interested in any of this information • Contact us at support@mgmtplaza.com Business Case Theme

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