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6. Theme: Business Case

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Contents

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PRINCE2 Foundation

The course is part of this learning path

PRINCE2 Foundation
course-steps
21
certification
3
description
2
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The Business Case Theme - Part 1
Overview
DifficultyBeginner
Duration12m
Students226
Ratings
5/5
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Description

The course focuses on the components of the method and how they help to structure project delivery. Delegates should note that evening work will be assigned which is not expected to exceed two hours per night.

Specific course content will include:

PRINCE2 Overview

  • The structure of the method and the guide will be introduced before we discuss the context within which a PRINCE2 project operates.
  • Principles
  • The seven PRINCE2 principles provide the framework for managing the project and are built on good practice developed from successful and failed projects.
  • Themes and Processes

Themes

The seven PRINCE2 themes are aspects of the project that must be continually addressed and integrated as the project journeys through its life cycle.

  1. Business Case
  2. Organization
  3. Quality
  4. Plans
  5. Risk
  6. Change
  7. Progress

Processes

The seven PRINCE2 processes encompass the chronological activities that are required to direct, manage and deliver the project successfully. The activities include pre-project, initiation and delivery, and end with project closure.

  1. Starting up a Project
  2. Directing a Project
  3. Initiating a Project
  4. Controlling a Stage
  5. Managing Product Delivery
  6. Managing a Stage Boundary
  7. Closing a Project

 

PRINCE2® is a [registered] trade mark of AXELOS Limited, used under permission of AXELOS Limited. All rights reserved.

The Swirl logo™ is a trade mark of AXELOS Limited, used under permission of AXELOS Limited. All rights reserved

Transcript

- Welcome to module six part one. This is the business case theme. And in this module, we're going to look at the purpose of the business case theme, we're going to look at some language there because we need to explain outputs, outcomes, benefits and disbenefits, and then in the next part, we're going to look at the requirements for PRINCE2 in your project and also look at some management products which are very important to us. So that's what this module will cover. Let's take a look at the purpose of business case, and there is some key words that I want you to retain, ready for our exam. The business case is making sure that our project is desirable. And here, we're thinking about balancing our costs and our benefits and our risks. So do we really want this, do we really want this? What are the costs? We gotta weigh that up against the benefits and the risks. You also need to make sure this project is viable. So are we actually able to deliver the products that they want from this project, is it actually possible. And we also need to think about whether or not this project is as achievable. So we want to create some products that will hopefully give some benefits later on, and are these products actually going to give us those benefits. So these words, desirable, viable and achievable, when you see these words, think business case. And PRINCE2 tells us that projects must have a documented business justification, the reason for the project, in other words, its objectives. You're going to have to write this down. Now, I don't insist on this with everything in PRINCE2, but with a business case, they want it documented because we can then refer to that over time and check that we're still on track to deliver those benefits and check that it's still viable and desirable. So quite important there to think about business case very, very key, and that that business case is a very important product not to talk about that in the later part. Let's take a look at outputs, outcomes and benefits. Oh, and disbenefits, which we'll talk about later. There's some important language there that you need to understand really, particularly for the foundation questions because I might talk about outputs, outcomes and benefits, and you need to know the difference, particularly between outputs and outcomes. So let's take a look through this flow diagram. Now, a project will create outputs whether or not it's a car or a restructured organisation or a conference. Those are outputs. And once we created those outputs or specialist products, the business now has changed. It's going to enable business changes, new capability that will enable business change. And hopefully, there will be some positive outcomes from this. Now, if we can measure those outcomes, then we will say that they're benefits, and those benefits as measurable benefits will then prove once we measure them and they've been achieved that we've met the strategic objectives desired by the organisation. However, not all of those changes might be desired, or despite them, there might be some unexpected changes. So if there were any side effects or consequences that were not desired initially, then we need to think about those. In fact, some of even the desired outcomes could have unexpected consequences as well. There are, for example, projects where they're trying to reduce cost, and that project might then cause people within the organisation to be made redundant. Now, the project output is the restructured organisation, and then the change then is an organisation with fewer staff. That brings about the desired outcome which is reduce cost, and we can measure how much cost is being reduced as a benefit. And then we can prove to the organisation that we've achieved that goal, that strategic objective. But of course, for the people being made redundant, this isn't so great. So that would be a side effect or consequence considered not positive, negative then, and would be considered a disbenefit. However, not all of these side effects or consequences are negative. Some of them might actually be good things, and so they could be considered benefits. So there is a link there between side effects and consequences. They could be disbenefits and negative then, and disbenefits then are anything that's considered negative by a stakeholder, so that's quite a broad definition. They do not have to be measurable, but some of those consequences could also be considered benefits. Oh, didn't think of that, that's great, let's measure that in the future and that could also support the fact that we've met our strategic objectives. So there's quite a lot of language in there, but we've got project outputs, which are things or products we're making, and then outcomes, which are changes, and then if we measured them, then we'll call them the positive changes, benefits, but if they're negative changes, or considered at least by the stakeholders to be negative, then it would also be a disbenefit. If we are in a project where we have decided to make staff redundant, actually, the result of that is positive. We've achieved our objective, we've got benefit, but it would also have a disbenefit. So we need to bear those in mind because if we do know that we're going to have some disbenefits, the project needs to think about how we're going to minimise the impact of those disbenefits and raise maybe the profile of the benefits instead. So that's the business case theme. Thank you.

About the Author

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A hard working, self-motivated and dedicated IT Consultant with extensive experience and a proven track record in the areas of Management, Networking, Communications and Security. A capable organiser, quick to grasp and make good use of new ideas and concepts. Reliable and conscientious in all work aspects. Possesses exceptional interpersonal skills and utilises communicative abilities to build, develop and maintain effective relationships. A motivational and inspirational manager, who enjoys being part of a successful and productive team, and thrives in highly pressurised and challenging working environments.