Business Documents: Business Case and Benefits Management Plan

PMBOK v8 Definition

Both the business case and the benefits management plan are developed prior to the project being initiated. These documents are considered business documents rather than project documents or components of the project management plan. A business case is a documented economic feasibility study used to establish validity of the benefits to be delivered by a portfolio component, program, or project. The benefits management plan complements the business case, project charter, and project management plan, and describes how the business value resulting from the project becomes part of the organization’s ongoing operations, including the metrics to be used.

Why It Matters for the Exam

This concept appears frequently in PMI exam questions about project initiation and business value validation. Questions test your ability to distinguish business documents from project documents, and to understand which documents exist before the project charter is created. You will see this in situational questions asking who is accountable for these documents or when they are used.

Key Points to Remember (for the exam)

• Timing: Both documents are developed prior to the project being initiated and referenced after the project has been completed
• Classification: They are business documents, NOT project documents or components of the project management plan
• Input to: They may be inputs to processes such as developing the project charter
• Accountability: The project sponsor is generally accountable for the development and maintenance of the business case document
• Iterative Nature: Development and maintenance of the benefits management plan is an iterative activity
• Alignment: The project manager works with the sponsor to ensure the project charter, project management plan, and benefits management plan remain in alignment throughout the project life cycle
• Review: Although developed prior to the project, both documents are reviewed periodically
• Common Confusion: Do not confuse business documents (business case, benefits management plan) with project documents or project management plan components

Typical PMI Exam Example

A project manager is assigned to a new project. The sponsor provides a document that establishes the economic feasibility and validity of the benefits to be delivered. The project manager asks whether this document should be included as a component of the project management plan.

Correct answer: No, this is the business case, which is a business document developed prior to project initiation, not a component of the project management plan.

PMI Exam Traps

• Trap: Thinking the business case is a project document created during planning

  • Reality: The business case is a business document developed before project initiation

• Trap: Believing the project manager is accountable for the business case

  • Reality: The project sponsor is generally accountable for the business case document

• Trap: Assuming the benefits management plan is finalized once created

  • Reality: Development and maintenance of the benefits management plan is an iterative activity

• Trap: Confusing the benefits management plan with the project management plan

  • Reality: The benefits management plan complements the project management plan but is a separate business document

Important PMI Connections

Quick Review Questions

1. When are the business case and benefits management plan developed relative to project initiation?

2. Who is generally accountable for the development and maintenance of the business case document?

3. Are the business case and benefits management plan considered project documents, business documents, or components of the project management plan?

4. What is the relationship between the benefits management plan and the project management plan?

5. What type of activity is the development and maintenance of the benefits management plan?

PMBOK v8 Reference

Section 4 – Inputs and Outputs (pages 115-116) - A Guide to the Project Management Body of Knowledge