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2 Business Documents in Project Management: Business Case & Benefits Plan

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Two Important Business Documents in Project Management

When company starts new project, they don’t just jump into it. First they must understand why this project is needed and what benefits it will give. For this, project manager and sponsor prepare special documents. These are called business documents.

In PMBOK (Project Management Body of Knowledge), two main business documents are used before project start:

  • Business Case

  • Benefits Management Plan

These business documents are created before project charter, and they help in deciding if project is worth doing. They also guide project manager during planning and later in checking benefits.

In this article, we explain both documents in simple way, show what is inside them, and how they help in real project.

What Are Business Documents?

Business documents are official papers made by organization or sponsor to support decision-making in projects. They are not made by project manager but are given to project manager after project is approved.

These documents answer questions like:

  • Why we need this project?

  • What problem it will solve?

  • What are benefits and value?

  • What cost and risk are involved?

  • Who will be responsible after project is over?

Let’s now look at both main business documents one by one.

1. Business Case

This is the first and most important of all business documents. A business case shows the reasoning behind starting a project. It explain the need, options, and recommendation.

Purpose of Business Case

  • Show why project is needed

  • Compare different solutions

  • Recommend best option

  • Help decision makers to approve or reject project

This document is usually prepared by business analyst or sponsor, and reviewed by company leadership or steering committee.

Contents of Business Case

Below are the usual sections inside a business case:

a) Executive Summary

Short summary of the project, what it will do, and main recommendation.

b) Problem or Opportunity Statement

What is the issue we are trying to solve or what new chance we are trying to catch.

c) Analysis of Situation

Can include current state, market trend, legal need, customer demand, etc.

d) Options Considered

At least two or three possible solutions must be discussed. For each, we mention:

  • Cost

  • Benefit

  • Risk

  • Timeline

One of the option is usually "Do nothing".

e) Recommended Solution

Which option is best and why. Also mention impact if not done.

f) Expected Benefits

What value or improvement will come if project is done.

g) Cost Estimate

Rough budget needed for project.

h) Risk and Assumptions

Major risks or assumptions related to the project.

i) Timeline or Milestones

When main project stages are expected.

Real Example

A company sees customer complaints are rising. Business case is made to suggest a CRM system. Two solutions are compared: one custom-built and one ready-made. After comparing cost and benefit, ready-made CRM is recommended.

Business case becomes base document for project charter.

2. Benefits Management Plan

After business case is approved and project is started, the next important of the business documents is Benefits Management Plan.

Purpose of Benefits Management Plan

  • Define benefits clearly

  • Set how and when benefits will be measured

  • Make sure benefits are tracked even after project ends

This document is helpful not just for project manager, but also for operations and business team who will use the product after delivery.

Contents of Benefits Management Plan

a) Target Benefits

Clear list of benefits expected from project. Example: 10% more sales, 20% less customer complaints.

b) Strategic Alignment

How these benefits help the company’s goal or strategy.

c) Timeframe for Benefits

When each benefit is expected. Some may come during project, some after delivery.

d) Owner of Benefits

Who is responsible to track and report benefits. Usually not project manager, but business unit.

e) Metrics

How benefits will be measured. For example: NPS score, sales number, system downtime, etc.

f) Risks Related to Benefits

What can stop benefits from coming? For example: people not using system, law changes, market shifts.

g) Assumptions

Any key assumption that benefits depend on.

Real Example

Project delivers new website. Benefits plan say:

  • Increase online sales by 15% in 6 months

  • Reduce support call volume by 30%

  • These will be measured by Sales Head and Customer Service Head using system data

So even after project ends, company can check if promised value is coming.

How Business Documents Help in Project

Both business documents help in making right decisions and also in keeping project on track. Here's how:

a) For Starting the Project

Business case give strong reason to start project. It explain value, cost, and risk clearly to management.

b) For Guiding the Project

Project manager refer business documents to understand the real goal and expected benefit.

c) For Checking Success

After project ends, benefits plan is used to check if value is delivered or not. It show if project was really successful beyond just delivery.

d) For Accountability

Each benefit has owner. So, no confusion who will measure or report.

Final Thoughts

Project is not just to finish on time or budget. Real goal is to bring value. To make sure this happen, business documents like Business Case and Benefits Management Plan are very important.

Business case help to say “yes or no” to project, and benefits plan help to keep focus on value. Without these business documents, project can become only technical task without business impact.

Project managers must read and understand these documents well. Even if they don’t create them, these documents are key to lead project in right direction.