A business justification process is a powerful tool for ensuring the strategic alignment of business projects. It ensures the proper use of limited resources. By ensuring that a project is aligned with strategic objectives, business justification processes help ensure that all parties involved in a business project have clear understanding of the goals, benefits, and risks.
The first step in the business justification process is to identify the business need for the project. This will capture the attention of the decision makers and help them understand the project’s objectives. Without a clear business need, it may be difficult to get the support necessary for the project. The next step is to write a realistic Project Vision Statement.
A business justification letter should include an expense worksheet that lists total costs for the proposed venture in dollar amounts. Expenses can include flight tickets, rental cars, and hotel rooms. Additional expenses, such as registration fees, should also be listed. It should also indicate how many people are involved in the proposal. Multiply the expenses by the number of people involved.
Business justification should also be reviewed frequently during a project. Providing feedback and input will avoid delays and changes in the business case. Ultimately, it will help set the appropriate course of action. If a project fails to justify the costs, a business justification will help the company decide whether to proceed with it or not.
The business justification process is an important part of every project. It helps the business understand the options available and provides a compelling reason for undertaking new projects. The Product Owner is responsible for creating the business justification, but other team members can also contribute. A business justification process should also help the Product Owner to create a Prioritized Product Backlog that meets the expectations of the business’s shareholders and executives.
Business justification is an integral part of the PRINCE2 process. It is a crucial component of PRINCE2 and should be documented and approved throughout the project. A business case should be as detailed as possible, as incomplete or outdated business justification may lead to projects that don’t produce any benefits for the business. Insufficient business justification can also lead to failed projects, duplicate projects, and inconsistent results. Additionally, if the project is compulsory, it is imperative to create a business case for it.
A business justification should be included in the Release form when the release coordinator is asked to justify the release. This business justification can include anything from fixing a critical server defect to compliance with Sarbanes-Oxley requirements. Providing a business justification is an essential part of the release approval process and helps ensure that the appropriate funding is available.