Clarifying Some Key Points
This section covers some points you may be unclear on while learning PRINCE2. The section covers things that people often find difficult or confusing. Have a look through each area and if, after reading a few sentences, you’re sure you understand it, then skip the rest of that item and move on to the next one.
Understanding project justification
Most projects are justified on the level of benefits that will result from them – or that people claim will result from them! Most projects are justified on the basis that they will lead to business benefits which are of greater value than the cost of the project. For example, a three-month project costing £150,000 may lead to savings worth £1 million a year. Another £150,000 project may lead to additional sales of a commercial product, leading to increased profits of £750,000 a year.
PRINCE2 does recognise other types of project justification, though. Some are fair enough, while you may find others hard to understand. The 2009 edition of the PRINCE2 manual lists different justifications, but sadly doesn’t offer clear explanation or examples. The following list may help if you aren’t clear on the different types of project justification:
Benefits: Although not listed in the PRINCE2 manual among the other types of justification, because it’s covered in the main manual text, most projects are benefits driven.