PRINCE2 stresses that a project should have a valid business case. The purpose of the Business Case is to judge whether the project is (and remains) desirable, viable and achievable. Which aids to support decision making in projects continued investment.

The business justification is the reason for the project. it should be recorded in a Business Case documents / Management Product. Without proper business justification or business case no project should start. If business justification is valid at the start of a project, but changes or does not remain valid once it is under way, the project should be stopped or changed.

In PRINCE2, the Business Case is developed at the start of the project and maintained throughout the life of the project. It is formally verified by the Project Board at each key milestone or decision point.

Lifecycle of Business Case covers :

Develop Business Case – Getting the right information upon which decisions can be made.

Verifying Business Case – Assessing whether the project is and remains worthwhile to continue.

Maintain Business Case – Update the Business Case with actual costs and benefits and current forecasts for costs and benefits.

Confirm Benefits – assessing whether the intended benefits have been realized or will realize. Mostly confirming benefits will take place post project.

While confirming benefits it is likely that many benefits will not be realised until after project has closed. To track the benefits post project, PRINCE2 suggests use of Benefits Management Approach. The project’s Benefits Management Approach defines the scope, timing and responsibility of a number of reviews based on the timing and nature of the expected benefits.

To conclude we need to track Business justification and benefits arising out of the project to ensure that project provides value for money. And the purpose for which it is initiated is not lost.