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4 - PROJECT INTEGRATION MANAGEMENT

4.1.1.2 Business case

The business case or similar document describes the necessary information from a business standpoint to
determine whether or not the project is worth the required investment. It is commonly used for decision making
by managers or executives above the project level. Typically, the business need and the cost-benefit analysis are
contained in the business case to justify and establish boundaries for the project, and such analysis is usually
completed by a business analyst using various stakeholder inputs. The sponsor should agree to the scope and 4
limitations of the business case. The business case is created as a result of one or more of the following:
• Market demand (e.g., a car company authorizing a project to build more fuel-efficient cars in response
to gasoline shortages),
• Organizational need (e.g., due to high overhead costs a company may combine staff functions and
streamline processes to reduce costs.),

• Customer request (e.g., an electric utility authorizing a project to build a new substation to serve a new
industrial park),
• Technological advance (e.g., an airline authorizing a new project to develop electronic tickets instead of
paper tickets based on technological advances),
• Legal requirement (e.g., a paint manufacturer authorizing a project to establish guidelines for handling
toxic materials),

• Ecological impacts (e.g., a company authorizing a project to lessen its environmental impact), or
• Social need (e.g., a nongovernmental organization in a developing country authorizing a project to provide
potable water systems, latrines, and sanitation education to communities suffering from high rates of
cholera).
Each of the examples in this list may contain elements of risk that should be addressed. In the case of multiphase
projects, the business case may be periodically reviewed to ensure that the project is on track to deliver the
business benefits. In the early stages of the project life cycle, periodic review of the business case by the sponsoring
organization also helps to confirm that the project is still aligned with the business case. The project manager is
responsible for ensuring that the project effectively and efficiently meets the goals of the organization and those
requirements of a broad set of stakeholders, as defined in the business case.

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