About this presentation
Presented to a Project Management
Taskforce responsible for the development of
a Project Management Methodology Manual
– PM3
See also
PM3 Charter
PM3 Executive Status
PM3 Corporate Version
1
Preparation of a
Business Case
Presentation to the Project Management Task Force
2
Agenda
Purpose of a Business Case
Business Case Prepared by:
Business Case Contains:
ROI?
Where Does It Fit in The Methodology?
What’s the Issue?
What’s the Issue con’t
Options
3
Purpose of a Business Case
Justifies the investment in a project to develop and
implement an IS change
Assure
Business objectives are documented
Options and risks are identified and assessed
Costs are quantified.
Obtain the next level of management approval
Assist management in setting priorities among
projects competing for the same business and IS
resources.
Define the expected benefits that will be compared
with future actual benefits to measure the project’s
success.
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Business Case Prepared by:
The requesting business organization
develops and presents the Business Case
IS provides assistance:
The process – how to prepare a Business Case
Technical information and issues including IS
costs
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Business Case Contains:
Executive summary
Business problem (or opportunity)
Stakeholders
Scope
Risks & issues
Options
Project plan
Project budget & analysis
Quantified benefits provided by sponsor
Return on investment (ROI)
Un-quantified benefits provided by sponsor
Weighing of ROI and un-quantified benefits
Findings & recommendations
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Financial Analysis
Template provided by Finance
Requestor provides financial costs and
benefits and signs form
IS provides acquisition, development and on-
going costs signs form
Finance reviews data and calculations of
various forms of ROI and signs form
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Cost/Benefit Analysis
Financial analysis documents costs and
financial benefits and provides ROI
Requestor provides non-financial benefits
and their value to the corporation
Requestor balances financial and non-
financial and argues for the approval and
prioritization of the project
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Where Does It Fit in The Methodology?
Large Business
PMO Initial Assessment &
Case
Review w/ Requestor
(Full)
Request Approve,
received by Prioritize & Manage a
Cancel
PMO Manage Project
Budgeted or Not Queue
Small Business
Case
(Limited)
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What’s the Issue?
Large Business
PMO Initial Assessment &
Large List of Case
Review w/ Requestor
Budgeted (Full)
Projects
Request Approve,
received by Prioritize & Manage a
? PMO
Cancel
Manage Project
Budgeted or Not Queue
Small Business
Case
(Limited)
Very Large
“To Do” List
Very Limited Resources
How are projects selected from list for Business
Case development and implementation?
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What’s the Issue con’t
There is limited information about projects in the list
– the Business Case is the first definitive
documentation
Resources are limited
Need to have approved projects – based in large
part on Business Case – in approved queue to
develop IS project plans
Business organizations need to know when changes
will be implemented
On-going need to move projects from list to
Business Case to approved queue
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Options:
Option 1: The IS Governance Committee
selects five to ten
Option 2: Each Application Group Steering
Committee selects one to three, a total of
three to nine.
Option 3: TBD
Repeat as needed to manage queue
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