Business Case & Feasibility

Once a business problem or opportunity has been identified, a Business Case is prepared. This includes an executive summary, a detailed definition of the challenge or goal and an analysis of the potential solution options available. For each option, the potential costs, benefits, risks, and issues are documented. The Business Case also includes the recommended solution and a generic execution timeline. The Business Case is approved by the Project Sponsor and the required funding is allocated to proceed with the project.

At any stage during (or after) the development of a Business Case, a formal Feasibility Study may be commissioned. The purpose is to assess the likelihood of a particular solution option’s achieving the benefits outlined in the Business Case. The Feasibility Study will also investigate whether the forecast costs are reasonable, the solution is achievable, the risks are acceptable and/or any likely issues are avoidable.

After the solution has been agreed and funding allocated, a project is formed. The Terms of Reference defines the vision, objectives, scope, and deliverables for the project. It also provides the organization structure (roles and responsibilities) and a summarized plan of the activities, resources, and funding required to undertake the project. Finally, any risks, issues, planning assumptions, and constraints are listed.