We recently talked about Defining a Programme in MSP and mentioned the need for a Business Case to ensure the programme is required.
The business case is crucial to the MSP framework as it ensures that the programme is the best possible course of action towards progress.
MSP is a defined and controlled methodology for managing programmes, and defining the business case is just one small part of the technique. Our accredited MSP courses will cover this topic in much more depth, along with all the other theory and best practice of programme management.
What is the Business Case in MSP?
The official MSP website defines Business Case Management as “The manner in which a programme’s rationale, objectives, benefits and risks are balanced against the final investment, and how this balance is maintained, adjusted and assessed during the programme.”
In other words, the Business Case is the rationale for the programme in the first place – and is therefore regularly reviewed to ensure the sponsors’ investment is still worth it.
It’s important to always remember that the Business Case covers justification for the existence of the programme itself (and accompanying staff and resources) – the case for any projects occurring within the programme are defined separately, albeit with the programme’s Business Case in mind.
When is the Business Case Defined?
The Business Case first starts to be formed during the Identifying a Programme phase – and becomes part of the Programme Brief along with the Programme Plan, Benefits Realisation Plan and Projects Dossier.
It is defined in full during the Defining a Programme phase of MSP. Each project that then occurs within the Programme Management framework will refer to the overriding business case to ensure its own viability, and the Business Case will be updated accordingly.
For multiple programmes, the business case is defined along with the programme plan, before the first tranche, and before authority has been given for the programme to proceed.
As benefits are realised during Managing the Tranches, justifications for, or evidence against, the business case is recorded.
During the Closing a Programme phase, the business case will be reviewed for the last time, in light of the outcomes of the individual projects – and it may even be updated later on as other unseen benefits become realised.
What Goes Into the Business Case?
The business case contains:
- The benefits of the programme
- The value of these benefits
- Costs involved for the programme itself and the cost of individual projects within the programme
- Details of risk
- Timescales for achieving the defined benefits
How is the Business Case Validated?
As projects within the programme are initiated and completed, the programme Business Case is maintained and updated to ensure it remains viable.
As the Business Case is defined with the Defining a Programme stage, it’s up to the Senior Responsible Owner to ensure that other viable alternatives have been considered, and this process will be documented in order for the Programme to go ahead.
As mentioned above, validation for the Business Case doesn’t just occur before it begins but at all stages of the programme:
- As more details are added to the programme definition, the business case is revisted to check none of these details have detracted from this
- During Managing the Tranches, any evidence against the business case is taken seriously in case it invalidates it
- As the programme is closed, the business case may be validated or otherwise by the outcome of the programme
Below you can see a diagram of how the Business Case evolves in MSP: