A Business Case Analysis (BCA) provides a best-value analysis that considers not only cost but other quantifiable and non-quantifiable factors supporting an investment decision. This can include but is not limited to performance, producibility, reliability, maintainability, and supportability enhancements. Definition: A
Business Case Analysis is a Program Management tool used to evaluate potential business decisions for best-value determinations. A BCA is a useful tool that assists in refining the myriad of decisions that go into determining the best value strategy. It follows an iterative process, conducted and updated as needed throughout the life cycle as program plans evolve and react to changes in the business and mission
environment. A Business Case Analysis is used for the following: As a minimum, a BCA should include: DoD has promulgated the Guiding Principles for conducting a Performance-Based Logistics (PBL) BCA in USD(AT&L) Memorandum, Performance-Based Logistics (PBL) Business Case Analysis (BCA), 23 January 2004. OSD has issued guidance emphasizing the use of the Business Case Analysis as a fundamental tool to support PBL support strategic decisions. They are the same regarding results, but a business case normally
refers to the report, and business case analysis refers to the analysis. Updated: 9/26/2022 Rank: G1 DefinitionA business case provides justification for undertaking a project, programme or portfolio. It evaluates the benefit, cost and risk of alternative options and provides a rationale for the preferred solution. Definition from APM Body of Knowledge 7th edition Buy APM Body of Knowledge
Five elements of a business caseA common way of thinking about a business case is using these five elements:
The business case is reviewed and revised at decision gates as more mature estimates and information become available. The approved business case provides a record of the decisions made by governance about how to achieve the required return on investment from the work. It documents the options considered and it is normal practice to include the ‘do-nothing’ option as a reference. Through this approach, the business case becomes a record of the recommended option with rationale and evidence to support the decision. The presentation of the business case, if approved, results in the formal startup of the project, programme or portfolio. The sponsor owns the business case. It brings together the investment appraisal with evidence of how the investment is intended to lead to realisation of the intended benefits. All projects must have a business case that demonstrates the value of the work and it is outlined during the concept phase of the life cycle. Starting out in project managementYour essential guide to the basics of project management. Written for anyone new to projects or wishing to progress their career as a project professional Starting Out charts the journey of the APM project life cycle, from concept through to delivery and handover. Buy from bookshop Related reading Most people see the business case process as a form of medieval torture administered by accountants. They also, with some justification, question the quality and value of the
business case once created... read more. Business cases can be tricky to get right. It calls on a lot of different skills – writing, presentation, budget management, even sales skills – to create a strong case for the project, its scope, benefits and the funds allocated to it... read more. On Wednesday 14th September, the case for a business case was delivered by Peter Langley for the South East Branch at BAE in Rochester. A good number of people supported the event and many good examples and questions came from the floor during the evening... read more. In UK government Projects, HM Treasury Green Book and Five Case model provide a structured approach to making and appraising investment proposals... read more There’s an increasing requirement, across both the public and private sector, to ensure that investment decisions are based on sound reasoning and with clear spending objectives... read more. APM Body of Knowledge 7th editionThe APM Body of Knowledge 7th edition is a foundational resource providing the concepts, functions and activities that make up professional project management. It reflects the developing profession, recognising project-based working at all levels, and across all sectors for influencers, decision makers, project professionals and their teams. Buy from the bookshop
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Browse our popular project management 'What is ...?' topics for definitions, quick insights, view related case studies, research, blogs and glossary. Project – APM's official journal – is circulated quarterly for members only, and online for regularly updated news, blogs, opinions and insights for those in the project community. The APM Community is our online community platform that connects our members faster and easier than ever before. Which of the following is the best definition of a project?A project is defined as a sequence of tasks that must be completed to attain a certain outcome.
Which of the following statements regarding project life cycles is most accurate?Which of the following statements regarding project life cycles is most accurate? The project life cycle is the same regardless of the type of projects managed by an organization.
What is the term that describes the time period after which the dollar benefits have offset the dollar costs?13. What is the term that describes the time period after which the dollar benefits have offset the dollar costs? payback period.
When a client company decides to engage an external contractor?When a client company decides to engage an external contractor to perform project work, it must be prepared to submit a proposal and prepare a bid.
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