Refining the Business Case and Risks
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When setting up, and
particularly while running, the project, it is all too easy to concentrate on
what is being done and how it is to be done, while ignoring why it
needs to be done. The Business Case states why the work is being done, and as
such is a crucial element of the project. |
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It is also important to
anticipate any problems or threats to which the project could be subject so
that appropriate actions can be taken to deal with them. |
The
process takes the Outline Business Case from the
Project Directive and the
Project Plan that shows the resource requirements. From these the activities of
the process produce a refined Business Case that is later incorporated into the
Project Foundation Document. It also expands on risks in the Project
Directive,
plus any extra risks found since, and produces a Risk
Log.
This
process involves creating and refining the Business
Case. The objectives of
this process are to:
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Refine the Business Case
in the light of what is now known about the project |
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Add to the Risk Log any
extra problem or threat to which the project may be subject |
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Modify the Project Plan
in the light of any risk exposure activities. |
In
order to achieve these objectives, various steps have to be undertaken.
For
the Business Case:
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Check whether recent
external events have affected any of the benefits quoted in the Business Case
held within the Project Directive |
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Check whether the
programme, corporate or strategic objectives which this project is expected
to address are still likely to be achievable in light of the information
gained so far during Project Kick Off |
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Re-quantify the benefits
where appropriate, and identify any disadvantages which might arise from the
project's completion |
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Establish whether any
additional business benefits have become apparent |
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Calculate and/or refine
the cost elements based on the Project Plan and the latest information
regarding the likely operational and maintenance characteristics of the
project's deliverables and outcomes |
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Refine or calculate the
financial case, and re-cast the investment appraisal where appropriate. |
For
the Risk Log:
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Identify any business
risks which may impact the project |
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Assess the likelihood of
each business risk occurring within this particular project |
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Assess the impact on the
project if it does occur |
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Identify possible courses
of action to ameliorate the business risk to an acceptable level. |
For
the Project Plan:
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Evaluate the cost of the
resolution actions against their value in alleviating the business risk |
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Add these to the Project
Plan and/or the Next Stage Plan [NB. This will involve an iteration back
through Planning a Project and possibly a re-visit to the Business Case elements.] |
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Prepare any appropriate
contingency plans for inclusion in the Project
Plan. |
There
will be a step of balancing the agreed benefits with the identified costs and
risks in order to make a final decision on project viability. If the steps
listed above identify any changes which have a fundamental effect on the
Business Case, the Project Board will need to be informed as early as possible,
since they may need to escalate the issue to corporate or programme management.
Where
the project is part of a programme, identified risks must be fed to the
programme support office.
The
Project Manager is responsible, assisted, where appropriate, by the project
support roles, and advised by those with project assurance responsibilities.
The Project Manager should discuss the Business Case and risks with the
Project
Board informally before presentation in the Project Foundation
Document.
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Management information |
Usage |
Explanation |
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Input |
Contains high-level views of the anticipated Business Benefits and risks as identified in Pre Project Preparation |
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Input |
Will contain information about the way the work is to be conducted and could provide input to both Business Case and risk analysis |
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Update |
Add any identified new risks. Modify with details of any changed risk |
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Update |
Updated with any significant extra activities to counter risk exposure |
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Output |
Extract from the Project Directive and update with the latest (more detailed) information |
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Are the risk avoidance
costs commensurate with the costs implicit in the ' threats? |
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Is it reasonable that the
benefits claimed can be achieved by the anticipated project deliverables and
outcomes? |
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Is the information in a
form that is understandable by the Project
Board? |
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Are plans in place/to be
created by which the Users of the products will realise the benefits? |