Business Case

Posted on June 25, 2009 by

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The Business Case document presents the reasoning for performing a project or activity from a business standpoint. The content, formality, and length will vary across situations and organizations. For external projects, the customer may be the author of this document. The Business Case is an input into the fourth edition PMBOK®’s Develop Project Charter process, so it is used as a reference when creating the charter that formally initiates the project. According to the PMBOK, there are seven reasons for creating a business case:

Market Demand (A farm changes to organic in response to more customers preferring food products that have not been treated with pesticides or herbicides).

Organizational Need (An office building is expanded due to the need to hire more employees).

Customer Request (A customer orders a custom-built home).

Technological Advance (A boat manufacturer upgrades their engines after a more fuel-efficient engine has been developed).

Legal Requirement (Hiring procedures are updated after legislation is passed mandating reporting on the demographics of applicants).

Ecological Impact (A manufacturing plant takes steps to lessen air pollution from their smokestacks).

Social Need (A non-profit company provides fans at no cost during heat waves to those with low income).