Business case: definition, purpose, structure, and examples

• such as software, equipment, facilities, or hiring.Start your APM project management career.
• Change initiativesProject Management Qualification (PMQ) such as process improvement, automation, or organisational redesign.Advance your APM project management expertise.
• Project approvalProject Risk Single Certificate Level 1 when funding depends on demonstrating value and feasibility.Enhance your project risk management skills.
• Regulatory or risk-driven workAgilePM where costs are clear but benefits are mainly risk reduction.®
• Competing priorities – Agile Project Management where Foundation opportunity costLearn the key principles of Agile Project Management. (what you give up by choosing one option) is material.Practitioner

Many organisations require a business case before progressing from idea to funded delivery, particularly where governance frameworks and portfolio management are in place.Includes Foundation & Practitioner combined option.

Who creates and who approves a business casePRINCE2

Ownership and approvals vary by organisation, but a typical model looks like this:®

• Author Agile: a project manager, product manager, business analyst, or subject matter expert drafts the business case with input from finance and operational teams.Foundation
• Accountable ownerLearn the fundamentals of the PRINCE2 Agile method.: the Practitioner executive sponsorIncludes Foundation & Practitioner combined option. (often a senior stakeholder) is accountable for the case, ensuring it aligns with strategy and that benefits are owned.AI Project Governance Framework (AIPGF)
• ReviewersFoundation : finance teams validate costs and investment appraisal; risk and compliance functions challenge Learn the fundamentals of the governance framework.risksPractitioner and controls; procurement validates supplier assumptions.Includes Foundation & Practitioner combined option.
• ApproversBetter Business Cases: a steering group, investment committee, portfolio board, or senior leadership approves the recommended option and budget.™

Clear stakeholder roles reduce rework and ensure that assumptions, constraints, and delivery responsibilities are agreed early.Foundation

Key components of a business caseLearn the fundamentals of Better Business cases.

A well-structured business case is easy to scan and trace from problem to recommendation. Most high-performing cases include the following components:Practitioner

• Problem or opportunityIncludes Foundation & Practitioner combined option.: what is happening now, why it matters, and what will happen if nothing changes (the baseline).
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• Scope and constraintsFoundation : what is included and excluded, plus constraints such as time, budget, technical limitations, and regulatory requirements.Learn the fundamentals of the P3O project management office.
• StakeholdersPractitioner : who is affected, who must contribute, and who will own benefits.Includes Foundation & Practitioner combined option.
• Options analysis (alternatives)Workshops: a shortlist of credible options, including a do-nothing or do-minimum baseline where appropriate.Introduction to Project Management
• Recommended option1-day workshop to learn the basics of project management.: which option is proposed and why it is preferred.Project Management Essentials
• Benefits2-day workshop to learn how to manage projects without getting certified.: quantified and non-quantified benefits, and how they support strategy.Writing Business Cases
• CostsHalf-day workshop to learn to write robust business cases.: one-off and ongoing costs (capital and operational), including training, support, and change management.AI in Project Management
• Investment appraisalLearn how to use AI tools in everyday project work.: methods such as ARTIFICIAL INTELLIGENCE (AI)return on investment (ROI)BCS AI, Foundation net present value (NPV)Learn the fundamentals of artificial intellegence., AI Project Governance Framework (AIPGF)internal rate of return (IRR)Foundation , and Learn the fundamentals of the governance framework.payback periodPractitioner .Includes Foundation & Practitioner combined option.
• RisksWorkshops: key risks, mitigations, and residual risk.AI in Project Management
• Assumptions and dependenciesLearn how to use AI tools in everyday project work.: what must be true for the case to succeed and what it relies on (for example, data quality or supplier delivery).AGILE
• Implementation planAgilePM: phases, milestones, resourcing approach, and indicative timeline.®
• Metrics and KPIs – Agile Project Management: how progress and outcomes will be measured, including benefits tracking.Foundation
• Governance and approvalLearn the key principles of Agile Project Management.: decision points, review cadence, and post-implementation review plan.Practitioner

How to write a business caseIncludes Foundation & Practitioner combined option.

1. Define the decision to be madePRINCE2: state what approval is requested (funding, people, procurement authority) and by when.®
2. Describe the current state and baseline Agile: quantify today’s performance, costs, cycle times, or risks so improvement can be measured.Foundation
3. Set objectives and success criteriaLearn the fundamentals of the PRINCE2 Agile method.: define outcomes and KPIs, including benefits ownership and expected timing.Practitioner
4. Identify feasible optionsIncludes Foundation & Practitioner combined option.: include at least a baseline option and 1 to 3 credible alternatives; capture key constraints.Scrum
5. Estimate benefitsScrum Essentials : quantify savings, revenue uplift, risk reduction, or service improvements; link to benefits realisation plans.Self-paced training course to learn the essentials of Scrum.
6. Estimate full costsScrum Master : include acquisition, implementation, training, transition, and ongoing running costs; note opportunity cost where relevant.Choose Scrum Alliance or Scrum.org Scrum Master training courses.
7. Run financial appraisalScrum Product Owner : calculate ROI, NPV, IRR, and payback period; document discount rate and major assumptions.Choose Scrum Alliance or Scrum.org Product Owner training courses.
8. Assess risks, assumptions, and dependenciesAgileBA: rate likelihood and impact, define mitigations, and identify decision-critical unknowns.®
9. Recommend the preferred option – Agile Business Analysis: provide a clear recommendation and explain trade-offs (value, risk, feasibility, timing).Foundation
10. Outline the implementation plan and governanceLearn the fundamentals of Agile Business Analysis.: include timeline, milestones, responsibilities, and a post-implementation review to validate outcomes.Practitioner

A more detailed guide to 4-day course including Foundation.writing a business caseLean Six Sigma is on our web site.Yellow Belt

Financial analysis methodsSelf-paced training course to gain LSS Yellow Belt.

Business cases often combine narrative justification with investment appraisal. Common methods include:PMI

• Return on investment (ROI)®: a simple ratio comparing net benefits to costs. It is easy to communicate, but can hide timing and risk.PMI-ACP
• Payback periodSelf-paced course to prepare you for the exam (exam not included).: how long it takes for cumulative benefits to repay the initial investment. Useful for liquidity constraints, but ignores value after payback and time value of money.Kanban
• Net present value (NPV)Estimating for Agile Foundation: discounts future cash flows back to today using a discount rate, reflecting the time value of money. A positive NPV indicates value creation under the model assumptions.Agile Learning Library (ALL)™
• Internal rate of return (IRR)BUSINESS ANALYSIS: the discount rate at which NPV equals zero. It supports comparison between investments, but can be misleading with non-standard cash flows.BCS Business Analysis

Background explanations for these appraisal concepts are available from reference sources for Business Analysis Foundation cost–benefit analysisLearn the fundamentals of business analysis., Modelling Business Processes net present valueGain practitioner certificate in modelling business processes., and Business Analysis Practices internal rate of returnGain practitioner certificate in business analysis practices..Requirements Engineering

Benefits vs costs (simple structure)Gain practitioner certificate in requirements engineering.