Business Case
Definition
The Business Case is a document that justifies the reason for initiating a project by defining the expected value, costs, benefits, and alignment with organizational strategy. It is created before or during initiating, includes cost-benefit analysis (ROI, NPV, IRR, payback period), and is referenced throughout the project life cycle to confirm that the project remains a viable investment. It is an input to the project charter, not part of it.
Related concepts
- Benefits Management Plan
- Initiating
- Focus on Value
- Value Delivery System
- Business Environment Domain
Exam angle
- Business case validation is ongoing: wrong = write the business case once and file it; right = re-validate the business case at key decision points throughout the project
- Invalid business case = recommend termination: if the business case is no longer valid (market changed, costs exploded, benefits unreachable), the right answer is to inform the sponsor and recommend stopping the project
- Sequence: business case is written and approved BEFORE the charter — the charter references and links to the approved business case