17/09/2022

Advance Project Management

(On-the-job Training 02)

Session 2:
Project Business Case
Development

Presented by: Prof. Roque Senga, IntPE, Eur Ing, IPMA-B

Chairman, IPMA Philippines
CEO, RS Management Education & Training Services

Copyright Materials

“Reproduction, distribution, display and use of the

presentation without written permission of RSPMCTS
& IPMA Philippines is prohibited”.

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What is a Project?

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What is a Project?
• A project is a 1-time event with a specific beginning and end
date.
• A unique, transient endeavor undertaken to bring about
change and to achieve planned objectives (APM)
• A temporary endeavor undertaken to create a unique
product, service, or result (PMI)
• A project is a unique, temporary, multi-disciplinary and
organized endeavor to realize agreed deliverables within
predefined requirements and constraints (IPMA)
• A project is “a temporary organization that is created for the
purpose of delivering one or more business products
according to an agreed Business Case.” (PRINCE2, OGC)

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What is a Project?

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What is Project Management?

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What is Project Management?

• The application of processes, methods, knowledge,

skills and experience to achieve specific objectives
for change (APM)
• The application of knowledge, skills, tools, and
techniques to project activities to meet the project
requirements (PMI)
• Project management typically involves personnel
from project management associates up to senior
project managers (IPMA)
• It is the application of identifying project
requirements, establishing clear and achievable
objectives while balancing the competing demands
for quality, scope, time and cost.
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Project Management in Simple Terms:

Good System, Good Leaders and Good Project Team.
Bad Start - Bad End, Good Start – Good End
A good project must be well managed project

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Projects versus Ongoing Operations

Projects Ongoing Operations

Definite beginning and end No definitive beginning and
end
Temporary in nature Ongoing

Produces a unique product Produces the same product

or service or service over and over
Resources are dedicated to Resources are dedicated to
the project operations
Ending is determined by Processes are not completed
specific criteria

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Why Project Management is

important?

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Why Project Management is important?

• It has become an essential component of today's

workplace
• It is now a global profession
• Countries around the world have become more
project-oriented are also now relying on project
management principles to keep processes on track
• It provides strategic alignment for an organization

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Why Project Management is important?

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DEVELOPING BUSINESS CASE

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What is a Business Case?

• A Business Case is a document which outlines the
justification for the start-up of a project.
• It is used to understand the business need and
determine whether the investment in the project is
worthwhile.
• The business case often describes the cost-benefit
analysis as well.

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What is a Business Case?

• It includes:
1. A description of the business problem (or opportunity)
which exists in the business
2. A listing of the available options for delivering a solution
to resolve the problem
3. The benefits and costs associated with each solution
option
4. A recommended solution option for approval.

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When do I use a Business Case?

• The Business Case is usually presented by
Senior Management within the business to an
identified Business Sponsor.
• It is the first document used in the Project
Lifecycle and, once approved, allows the
project to be formally defined.

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1. Business Environmental Analysis

Why we INITIATE a Project?

• Customer demand
• Business processes or technologies
which are not operating efficiently
• New Competitor products or processes
which have been identified
• New technology trends (or
opportunities resulting from new
technologies introduced)
• Commercial or operational trends which
are driving changes in the business
• Changes to Statutory, legislative or
other environmental requirements.

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1. Business Environmental Analysis

Why we INITIATE a Project?

Our Project Team to Sr. Management
• Provide reliable studies, facts, documents
or evidence to support the conclusions of
the business case
• If the project is a solution to a Problem:
• A generic description of the core issue to hand
• The reasons why the problem exists
• The elements which create it (e.g. human,
process, technology)
• The impact it is having on the business (e.g.
financial, cultural, operational)
• The timeframes within which it must be
resolved.

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1. Business Environmental Analysis

Why we INITIATE a Project?

• If the project is an Opportunity:
• A summary of the generic
opportunity
• Any supporting evidence to
prove that the opportunity is real
• A timeframe within which the
opportunity will likely exist
• The positive impact that
realization of the opportunity
will have on the business

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2. Available Options

• We will Provide full listing of all solution

options, their benefits, costs, feasibility,
risks and issues.
• Options may include doing nothing, doing
something that will achieve a similar result
or doing something that will achieve a
better result than current performance.
• Try to minimize the number of options
available by conducting a detailed
Feasibility Study beforehand.

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2. Available Options

Each Options should provide:

1. Benefits (tangible/intangible) to the
company
2. Costs to the company
3. Feasibility Study may need to be
initiated to quantify the likelihood of
achieving the desired project result
4. Risks associated with the adoption of
this option
5. Issues associated with the adoption
of this option
6. Major assumptions associated with
the adoption of this option

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1. Benefits to the Company

• Describe the tangible and intangible benefits to the company
upon implementation of the solution.

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Mostly used Benefits financial Tools:

• Return on Investment (ROI)
• Cost/Benefit Analysis (CBA)
• Payback Period
• Net Present Value (NPV)

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2. Costs to the company

• Describe the tangible and intangible costs to the company upon implementation of the
solution. The costs of the actual project should be included (e.g. equipment procured) as
well as any negative impact to the business resulting from the delivery of the project (e.g.
operational down-time).

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Concept Screening

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3. Feasibility Study

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Facilities’ Life Cycle

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4. Project’s Associated Risks

• Summaries the most apparent risks associated with the adoption of this
solution. Risks are defined as “any event which may adversely affect the
ability of the solution to produce the required deliverables”.
• Risks may be Strategic, Environmental, Financial, Operational, Technical,
Industrial, Competitive or Customer related.

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Risk Response
Risk Response:
1. Avoid
2. Accept
3. Reduce (Mitigate)
4. Transfer

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5. Project’s Associated Issues

• Summarize the highest priority issues associated with the adoption of this
option. Issues are defined as “any event which currently adversely affects
the ability of the solution to produce the required deliverables”.

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6. Project’s Major Assumptions

• List the major assumptions associated with the adoption of
this option. Examples include:
• There will be no legislative, business strategy or policy
changes during this project
• Prices of raw materials will not increase during the course
of this project
• Additional human resource will be available from the
business to support this project.

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3. Recommended Option
• We compares the key
characteristics of each solution
option and recommends a
preferred solution option for
implementation.
• Option Quantitative
Rankings
• Option Recommended

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Option Quantitative Ranking

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4. Project Implementation Approach

1. Project Initiation
2. Project Planning
3. Project Execution
4. Project Closure
5. Project Management

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1. Project Initiation
• Outline the method by which the project will be
defined, the project team formulated and the
project office established.
• Develop Project Charter
• a document which outlines the purpose of the
project, the way the project will be structured and
how it will be successfully implemented.
• It describes the project:
• Vision, objectives, scope and deliverables (i.e.
what we have to achieve)
• Stakeholders, roles and responsibilities (i.e. who
will take part in it)
• Resource, financial and quality plans (i.e. how it
will be undertaken).

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2. Project Planning
• Define the overall planning process to ensure that the project
phases, activities and tasks are undertaken in a co-
coordinated fashion.
• Project Planning can Start when:
• Business Case is Approved
• Project Charter is Approved

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3. Project Execution
• We will Identify the generic phases and activities
required to complete the ‘build’ phase of the
project.

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4. Project Closure
• We will list generic steps necessary to release the deliverables
to the business (once complete), close the project office,
reallocate staff and perform a Post Implementation Review of
the project.

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5. Project Management
• Describe in brief how the following aspects of the project will
be managed:
1. Time Management
2. Cost Management
3. Quality Management
4. Change Management
5. Risk Management
6. Issue Management
7. Procurement Management
8. Communications Management
9. Acceptance Management

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• Assignment Groupings – 3 - 5 Members

• Subscribed in IPMA Philippines YT Channel

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IPMA Phillipines YT Channel

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To contact us:
• Prof. Roque S. Senga
email: roquesenga@gmail.com
Viber/WhatsApp: +971 503243781
Mobile: (+63) 9196855422 - Philippines
(+971) 503243781 - UAE

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