Business Case
A written economic feasibility analysis that tests whether the expected benefits of a proposed project or component, still not fully defined, are credible and worthwhile; its findings are used to justify and authorize continued project management work.
Key Points
- Evaluates economic viability and the realism of expected benefits, including strategic alignment.
- Created early when scope and requirements are not yet fully defined; refined as information improves.
- Common elements: problem or opportunity, alternatives, cost-benefit analysis, risks, assumptions, and success metrics.
- Used by sponsors or governance bodies to approve, defer, or reject and to authorize the next phase of project work.
Example
A city IT department proposes moving email to the cloud. The business case compares on-premises vs. cloud costs, estimates savings, reliability gains, and compliance benefits. Based on the analysis, the sponsor authorizes initiating the project and detailed planning.
PMP Example Question
Which document provides the economic justification for a proposed project when details are still emerging and is used to authorize further planning?
- Project charter
- Business case
- Cost baseline
- Statement of work
Correct Answer: B — Business case
Explanation: The business case evaluates benefits and feasibility to justify investment and authorize next steps; the other documents serve different purposes.
