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Business Justification

A clear, documented rationale for starting a project that explains the need, expected value, and strategic alignment. It answers why the work should proceed and serves as the primary basis for funding, prioritization, and decisions throughout the project life cycle.

Key Points

  • Clarifies the problem or opportunity, expected benefits, and who will be impacted.
  • Links the project to organizational strategy and measurable outcomes.
  • Guides go/no-go, scope, and priority decisions; revisited at phase gates and major changes.
  • Typically outlines benefits, costs, risks, assumptions, and time frame to realize value.

Example

A company proposes an MVP mobile app to reduce call center volume. The business justification cites rising support costs, projected 25% call deflection, improved customer satisfaction, implementation cost, expected payback in 9 months, and alignment with the self-service strategy. As data is collected during sprints, the justification is updated to confirm benefits or pivot the plan.

PMP Example Question

Midway through an Agile project, benefits are trending below forecasts. Which artifact should the project manager review first to decide whether to continue, change scope, or terminate the project?

  1. Business justification
  2. Risk register
  3. Scope statement
  4. Work breakdown structure

Correct Answer: A — Business justification

Explanation: The business justification contains the reason the project exists and the value expectations, making it the primary reference for continuation or termination decisions.

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