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Creating a Business Case

You can use the Business Case to request a project. The Portfolio Manager or Project Sponsor uses the information from the Business Case to analyze and prioritize the project before they approve it.

Any user with Manage permissions to the project can approve the Business Case.
For more information about approving a Business Case, see "Approving a Business Case."

You must complete all areas of the Business Case except for the Goals area if you want your project to receive a Score in the Portfolio Optimizer. Completing the Goals area is optional. The project will receive a Score in the Portfolio Optimizer, even if this area is not completed. 

Creating and Submitting a Business Case

To create a Business Case of a project request:

  1. Click Projects in the Global Navigation Bar.
  2. Click New Project and select Request Project.
    By default, the project is placed in the Idea status. 
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  3. Specify a name for your project, then click Enter.
  4. (Optional) Click Project Actions, then Attach Template, to create the Work Breakdown Structure of your project.
  5. Select the Project Details tab, then select the Business Case sub-tab.
  6. (Optional) Click Edit Project Info
    For more information about editing the Project Info section of the Business Case, see "Project Info."
  7. (Optional) Click Edit Goals.
    For more information about editing the Goals section of the Business Case, see "Goals."
  8. (Optional) Click Edit Expenses.
    For more information about editing the Expenses section of the Business Case, see "Expenses."
  9. (Optional) Click Edit Resource Estimates.
    For more information about editing the Resource Estimates section of the Business Case, see "Resource Estimates."
  10. (Optional) Select a scorecard in the Add a Score Card to this Project drop-down menu.
    Scorecards must be created before they can be attached to projects.
    For more information about scorecards, see "Score Card."
  11. (Optional) Select a Custom Form in the Custom Forms drop-down menu. 
    Custom Forms must be created before they can be attached to projects.
    For more information about Custom Forms, see "Custom Forms."
  12. Click Submit.
    The project status is changed to Requested and your project is submitted to have the Business Case approved.
    For more information about approving a Business Case, see "Approving a Business Case."
  13. (Optional) After completing the Business Case, you can export a copy of it to a .pdf file. 
    For more information about exporting the Business Case to a .pdf file, see "Understanding the Business Case Summary."

Understanding the Areas of the Business Case

Your system administrator must enable all the sections in the Business Case except for the Project Info section so that they are available to be edited or viewed. 

For more information about enabling the areas of the Business Case, see the "Business Cases" section in "Setting Project Preferences."

All areas except for Goals must be configured in the Business Case of a project for the Portfolio Optimizer to provide a score for the project.

When you are building the Business Case of a project, consider editing or viewing the following sections:

Project Info

The Project Info area of the Business Case is not configurable by the system administrator. All projects have a Project Info area in the Business Case. 

The Project Info section of the Business Case includes the basic information of a project, before the project has actually started.

Consider editing the following fields:

  • Description: Specify a description for your project.
  • Project Owner
  • Project Sponsor
    By default, the user creating the Business Case is also the Project Owner and the Project Sponsor.
    You might want to consider adding someone else as the Sponsor of the project. They will receive the approval of the Business Case. 
  • Portfolio: Specify a Portfolio for the project. 
    For more information about portfolios, see "Understanding Portfolios."
  • Planned Benefit: A manual entry where you estimate what the monetary benefit is planned to be for your organization when this project is completed.
  • Status: By default, the Status for a project request is set to Idea.
    If you change the Status to anything other than Idea or Planning, the Submit button disappears from the Business Case Summary area, and you can no longer submit the Business Case for approval. 
  • Fixed Start Date: Specify a date when you would like for the project to start.
  • Fixed End Date: Specify a date when you would like for the project to end.
    NOTE The Fixed Start and End Date on the Business Case do not impact the timeline of the project. These represent the dates requested by the project creator for when the project would ideally develop. Instead, the Planned Start and Planned Completion Dates of the project show the planned timeline for the project.

Goals

Goals define the objectives for the project. This area is enabled by default in the Business Case, but the system administrator might choose to not display it. This field displays the goals in order of priority. The priority level is entered when the goal is created.

Defining the goals is optional for the project to receive a Score in the Portfolio Optimizer. This section is the only optional section in the Business Case. All other sections of the Business Case must be completed before the project is scored in the Portfolio Optimizer. 

For more information about goals, see “Creating Goals.” 

Expenses

Expenses represent the non-labor costs that might be incurred during the life of a project. This area is enabled by default in the Business Case, but the system administrator might choose to not display it. 

Any expenses that you enter on the Business Case are also entered on the Expenses tab of the project, as Planned Expenses.

Expenses affect the Budgeted Cost of the Project, as well as the Net Value. 
For more information about Budgeted Cost and Net Value, see "Understanding Financial Fields in the Business Case."

For more information about expenses, see “Managing Expenses.” 

Your system administrator can set up custom Expense Types. 
For more information about creating custom Expense Types, see "Creating Custom Expense Types." 

Resource Estimates

Using the Resource Estimates area of the Business Case, you can estimate the cost of the resources working on your project. This area is enabled by default in the Business Case, but the system administrator might choose to not display it.

Resource Estimates display anticipated labor resources needed to complete your project. You can view your requested labor resources by FTE, Hours, or Cost. The information displayed here is also displayed in the Capacity Planner. 

For more information about Resource Estimates, see "Estimating Project Resources by Applying Legacy Resource Pools to the Business Case."

For more information about the Capacity Planner, see "Working in the Capacity Planner."

The cost of your resources represents the Labor Cost of the project. The Planned Cost of the Resource Estimates affects the Budgeted Cost and the Net Value of the project. 

For more information about Budgeted Cost and Net Value, see "Understanding Financial Fields in the Business Case."

Risks

Risks are factors that might prevent a project from finishing on time or on budget. Defining these factors is important for the Portfolio Manager or Project Sponsor to make an educated decision on the approval of the project. This area is enabled by default in the Business Case, but the system administrator might choose to not display it.

You can associate a potential cost with the risks you are defining in case they should occur. The cost of the risks on a project affect the Net Value of the project. 
For more information about the project Net Value, see "Understanding Financial Fields in the Business Case."

For more information about creating risks, see “Creating Risks on a Project.”

Your system administrator can set up custom Risk Types.

For more information about creating and editing custom Risk Types, see "Editing and Creating Risk Types."

Score Card

Scorecards measure the Alignment of the project. This area is enabled by default in the Business Case, but the system administrator might choose to not display it.

For more information about applying a scorecard to a project and generating an alignment score, see "Applying a Scorecard to a Project and Generating an Alignment Score."

To apply a scorecard, your system administrator must create one. The Score Card area of the Business Case does not display unless a Scorecard is created.
For more information about creating a scorecard, see “Creating a Scorecard.”

Custom Forms

You can attach Custom Forms to a project, when defining a Business Case. This area is not enabled by default in the Business Case. The system administrator must enable it to display it in the Business Case. 
For more information about enabling the areas of the Business Case, see the "Business Cases" section in "Setting Project Preferences."

To apply a custom form, your system administrator must first create a custom form.
For more information about creating a custom form, see “Creating Custom Forms.” 

You can use custom forms to collect additional information that is not displayed in the other fields of the Business Case.
For more information about applying a custom form, see "Attaching a Custom Form to a Business Case." 

Business Case Summary

Understanding the Business Case Summary

You can see a summary of the main project finances and whether a project is aligned or not with a Scorecard in the Business Case Summary panel, in the upper-right corner of the Business Case sub-tab.

You cannot edit the Business Case Summary. This is only a quick view of the state of the project as it relates to financial fields and the Scorecard. 
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The following fields display in the Business Case Summary:

  • The Project Net Value
  • The Project Budgeted Cost
  • The Potential Risk Cost
  • The Planned Benefit
  • The Alignment Score

For more information about these fields, see "Understanding Financial Fields in the Business Case."

Exporting the Business Case

You can export the Business Case to a .pdf file, in case you need to email it to an executive, or bring it with you to a meeting. 

The file contains all areas of the Business Case in an easy to read format. 
business_case_summary_sample__1_.png

To export a Business Case:

  1. Navigate to the Business Case sub-tab of a project.
  2. In the Business Case Summary area, click Export.
    A .pdf file is downloaded to your computer. 
    (Optional) Attach the .pdf file to an email, or print it. 

Understanding Financial Fields in the Business Case

The Business Case sub-tab includes financial fields for the project. In order for some of the financial fields to have values, corresponding areas of the Business Case must be completed. 

The following project financial fields display in the Business Case:

Name of Field Description
Aligned 

Displays the alignment of the project according to its scorecard. A high percentage result indicates that the project is well-aligned with the purpose, values, and goals of the organization.
For more information about using scorecards, see "Creating a Scorecard."

This field displays in the Business Case Summary area. 

Budgeted Cost

Calculated using the following formula:

Budgeted Cost = Budgeted Expense Cost + Budgeted Labor Cost.
This value is an estimated Total Cost for the project. 

This field displays in the Business Case Summary area.

Budgeted Expense Cost

The budgeted cost of all the expenses on the project. 

This field displays in the Expenses area.

Budgeted Labor Cost

The budgeted cost of all labor estimated for this project. The Budgeted Labor Cost comes from estimating your resources on the project, in the Resource Estimates area of the Business Case.

The Budgeted Labor Cost is calculated by multiplying the estimated hours for each role by the cost rate of each role associated with the project. 

For more information about estimating resources on a project, see "Estimating Project Resources by Applying Legacy Resource Pools to the Business Case."

This field displays in the Resource Estimates area.

Expenses Planned Cost

This is the same as Budgeted Expense Cost. 

This field displays in the Expenses area.

Net Value

Calculated using the following formula:

Net Value = Planned Benefit - Budgeted Cost - Potential Risk.

This value is your expected net income from the project.

This field displays in the Resource Estimates area.

Planned Benefit

A manual entry where you estimate what the monetary benefit is planned to be for your organization when this project is completed. 

This field displays in the Business Case Summary area and it can be edited in the Project Info area. 

Potential Risk

Calculated using the following formula:

Potential Risk = Potential Risk Cost * Probability of Risk

This displays the cost associated with the risks on the project. 

For more information about risks on the project, see "Creating and Editing Risks on a Project."

This field displays in the Business Case Summary area.

Resource Estimates Planned Cost

The budgeted cost of the labor estimated for this project for each job role associated with the project. The Resource Estimates Planned Cost comes from estimating your resources on the project, in the Resource Estimates area of the Business Case.

It is calculated by the following formula:

Resource Estimates Planned Cost = Estimated Hours per Job Role * Job Role Cost Rate

For more information about estimating resources on a project, see "Estimating Project Resources by Applying Legacy Resource Pools to the Business Case."

This field displays in the Resource Estimates area.

NOTE The Resource Estimates Planned Cost is different than the Planned Cost for the Project. The Resource Estimates Planned Cost is calculated using the Estimated Hours, whereas the Planned Cost is calculated using the Planned Hours on the project. 

Risk Mitigation Cost

The cost of the mitigation plan for the risks you are estimating might occur on the project. 
For more information about risks on the project, see "Creating and Editing Risks on a Project."

This field displays in the Risks area.

Risk Potential Cost

The estimated total financial cost when the risks defined on the project actually occur. 

It is calculated using the following formula: 

Risk Potential Cost = Potential Cost * Risk Probability. 

This field displays in the Risks area.