agile > chapter 2 launch and planning > 1 business case and project justification

Business Case and Project Justification

When undertaking agile projects, we must first justify the financing of the project. The business case uses various metrics to provide justification for agile projects.

The business case appeals to the market demands, social needs, organizational needs, legal requirements, etc. of a project. The business case is completed by the sponsor of the project.

Metrics used in the business case

The following metrics are used in the business case to justify a project:

$$ROI=\frag{\text{Gain-Cost}}{\text{Cost}}$$

The ROI is usually expressed as a percentage.

Other factors to consider in decision-making

It is possible to launch a project at a loss (not prioritizing financial gain at the start) in order to achieve the one of the following:

The project charter

This is a document which describes the vision and goals of the project. It serves as a high-level overview of the project plan, scope, organization and execution.

The project charter includes the following information:

The charter serves to provide details of: