Improving Project Management Practice Through the Development of a Business Case: A Local Administration Case Study

Abstract

The identification and implementation of the best practices of project management are preponderant and decisive factors for the success of the companies, regardless of their area of intervention. This highlight arose from the need for companies to respond quickly, efficiently and in an integrated manner to the challenges that an ever-changing environment offers.

Full text

Improving Project Management Practice
Through the Development of a Business Case:
A Local Administration Case Study
Fernando Martins
(&)
, Pedro Ribeiro, and Francisco Duarte
Information Systems Department, ALGORITMI Research Centre,
School of Engineering, University of Minho, Guimarães, Portugal
fernandorui@outlook.com,
{pmgar,francisco.duarte}@dsi.uminho.pt
Abstract. The identification and implementation of the best practices of project
management are preponderant and decisive factors for the success of the com-
panies, regardless of their area of intervention. This highlight arose from the
need for companies to respond quickly, efficiently and in an integrated manner
to the challenges that an ever-changing environment offers.
In a public transportation company, the challenges should focus on project
management improvement initiatives, considering their organizational context
and the low level of organizational maturity existing in project management.
The purpose of the research was to develop a solution of a Business Case
template that was intended to be integrated into the life cycle of project man-
agement of the company under study, transversal to all the areas of knowledge
described by PMBoK, having several inputs provided by PRINCE2 and BABOK.
The purpose of the research work was to develop a solution to justify ini-
tiatives that lead to projects and ensure a correct management throughout the life
cycle of each project.
Keywords: Business case Project management practice
Project management improving initiatives
Integrated project management processes
1 Introduction
Project Management (PM) has had a great recognition in industries and organizations
to achieve a higher success rate.
The projects of Information Technologies (IT) and Information Systems (IS) have
emerged with high frequency, because of the technological evolution that offers new
opportunities and challenges to the cities. These has led cities to integrate the most modern
technology in order to sustain its development, whether economic or political [1].
This situation makes it necessary to implement good practices of PM in order to
increase the success rate of these same projects, which is around 29% [2].
However, the simple implementation of any PM approach is not a solution, it has
already been recognized that PM varies from one context to the other, and several
limitations are also identified in the recommended approaches [3].
©Springer International Publishing AG, part of Springer Nature 2018
Á. Rocha et al. (Eds.): WorldCIST'18 2018, AISC 745, pp. 433–448, 2018.
https://doi.org/10.1007/978-3-319-77703-0_43

One of the important steps in PM is its start-up, which is being ignored most of the
time, so presenting a solid Business Case (BC) increases the probability of obtaining
the leadership engagement and the resources needed to start and implement successful
projects [4].
2 Case Study
All companies have different scopes. Some exist in business contexts related to
industry or commerce activities, others are public entities and there is still room for
those that do not have any profit objective.
Despite this distinction in their scope they all have internal structures, which rep-
resent their mission, vision and strategy that serve as a foundation for all the objectives
of these same companies.
Transportes Urbanos de Braga (TUB) is a company located in Braga, Portugal, that
operates in the urban passenger transport sector, being certified by the Portuguese
standard that regulates Research, Development and Innovation, NP4457:2007 [5].
This company is heir to a long tradition, but its ambition leads them to make future
every present day through its dynamic image and continuity, looking for Integrated
Urban Mobility that encompasses pedestrian paths, cycle paths and integration between
the various modes of transport.
2.1 Strategy for Projects
As a benchmark company with a high impact on society, it is worth mentioning that
TUB has been heavily involved in the search for more economical solutions over the
last few years and that they guarantee significant reductions in their negative impact on
the environment.
TUB have sought to position Braga as a city capable of responding to the latest
challenges in terms of transport and mobility, so they see innovation, research and
development as critical factors for their activity because of their certification.
2.2 TUB Projects
The fuel for all the TUB projects is its mission to offer mobility and comfort solutions
in the region, satisfying and surprising the expectations of the involved partners [6],
which justifies its constant search to create new means and mechanisms to serve its
customers, recognizing the importance and value of information and making it avail-
able to anyone.
2.3 Motivation
One of the great difficulties identified is precisely the absence of standard documents
and processes. By default, the project owner to justify a project does not use a docu-
ment that identifies the necessary requirements for the board of directors support their
decision-making process.
434 F. Martins et al.

As such, and using the current process, there is the mistake of spending more time
on project justification than what would be ideal.
The process that represents the beginning of the life cycle of a project can be
described as follows, and is represented in the Fig. 1the “as is”as present (left) and the
“to be”as the desired process (right).
When identifying a need or opportunity it is necessary to create or identify a
solution and then select the one that best suits this issue. If the solution demonstrates
that it can solve the identified situation, the owner must fill an internal document
explaining the need.
Fig. 1. Procedure for the start of a project
Improving Project Management Practice 435

The main weakness of this process lies in this phase because this document will be
filled according to what its author deems pertinent and valid and then submitted to the
board of directors.
With the requirements obtained through several contact points (iterative approach)
[7,8], because of the involvement of several employees, the following process was
defined as desirable:
•Problem: when identifying a problem or opportunity, all its characteristics and
impacts must be identified with the organization.
•Idea: subsequently, a list of requirements that may lead to the resolution of the
previously identified situation must be elaborated.
•Solution: the identification of one or more solutions must be performed to solve the
difficulty or opportunity felt.
•Proposal: fill in a document that translates the difficulty or opportunity so that it can
be introduced into the organization.
•Authorisation: with the proposal, the administration should take the decision
making that should be one of three possibilities: do something, do the minimum or
do nothing.
The workflow is simplified and ensures that decision making is better sustained,
ensuring better engagement by all stakeholders at different levels of the company.
Thus, with the introduction of a structured document, which is the Business Case
Template, 30% of the complexity is reduced thanks to process uniformity and docu-
mentary support.
3 Business Case
According to the International Institute of Business Analysis (IIBA) [9], the BC is a
tool that provides the justification for a particular solution, based on the benefits to be
gained when compared to the cost, effort and several other considerations made
IIBA [9] further indicates that it must capture all the reasoning necessary to achieve
change and is often presented as a formal document.
Observing and analysing the business for improvement is only part of the process
of identifying the benefits. It is also necessary to develop a BC to justify the level of
investment and ensure that all risks are identified. One of the key elements of the BC is
the identification and quantification of benefits guaranteed by change [9].
To facilitate its implementation and versatility, this should not be a complex
document, it can be the catalyst for several different change initiatives and follow the
whole life cycle of a project as seen in the Fig. 2.
436 F. Martins et al.

3.1 Business Case Application in the Life Cycle of a Project
To develop a BC template, both BABOK Guide [9] and Prince 2 [11] were used as a
major influencers.
The BC is one of the techniques present in BABOK in order to promote and sustain
organizational change [9]. BC covers a series of areas that aim to respond to that purpose,
having a description and several constituent elements and considerations of use.
The BC in PRINCE2 is one of 7 themes that represents the key aspects that needs to
be addressed in PM [11].
This artefact is developed at the beginning of the project and updated throughout it,
it should be formally reviewed at various times, such as decision moments or at the end
of each phase of the project.
With the understanding of all existing processes, it is possible to develop a Busi-
ness Case Template that provides all the necessary information from a business point of
view that allows determining the feasibility and obtaining the necessary commitment
with it to achieve success [12].
According to the BABOK® Guide, the BC is not only a justification for an
investment to deliver a proposed solution, it must consist of the benefits, costs and risks
associated with the investment.
Thus, the BC should be composed of [9]:
•Why the project is being carried out;
•Problem statement/definition;
•Recommended solutions;
•What are the benefits to the various stakeholders (i.e. organization, project team and
client);
Fig. 2. Business case change lifecycle [10,p.4]
Improving Project Management Practice 437

The Rational Unified Process (RUP) [12] and the BABOK® Guide [9] indicate that
the BC should be carried out in the preparatory phases for the project. The RUP
approach defines BC as part of the Inception.
Inception’s main objective is to obtain the agreement between all the stakeholders
in the objectives of the project life cycle. This phase is particularly important for new
efforts, where there are several business risks and requirements that must be addressed
before the project can proceed [12].
Considering the dynamics and relationship present in the BC and the projects, it
was considered valid that the defined template would be structured according to the
principles present in the RUP, PRINCE2 and BABOK® Guide, so through the RUP it
is possible to introduce a time point where the BC is necessary, and with PRINCE2 and
BABOK® Guide we define the requirements necessary to create the artefact in ques-
tion, with the complexity required for the document and its importance [9,11,12].
3.2 Requirements
The characteristics of a BC differ between the BABOK® Guide and PRINCE2, as can
be seen in Table 1[9,11,12] and from that, according to the requirements also
imposed by standard NP4457:2007 [5], the requirements for the Business Case Tem-
plate TUB are defined in Table 1.
3.3 Phases of a Project Lifecycle
Certain that the contribution of the employees is determinant for the accomplishment of
the objectives of the public entities, the requirements defined for a BC model and
considering the process defined for the use of the same, several iterations were then
made in the construction of a valid model.
When designing a first proposal for a Business Case Template, it became clear that
it is necessary to define the process and the desired project life cycle initially.
Table 1. Business case content
BABOK® Guide PRINCE2 Template Business Case TUB
Scope
Description
Need
Desired Results
Alternatives
Scope
Viability
Assumptions, Risks and Constraints
Financial Analysis and Valuation
Recommended solution
Usage Consideration
Forces and Limitations
Reasons
Actions to take
Do nothing
Do something
Do the minimum
Expected benefits
Consequences
Costs
Time scale
Risks
Investment valuation
Program part
Consulting / External Support
Introduction / Justification
Scope, Purpose and Purpose
Objectives and Expected Results
Definitions / Acronyms and Abbreviations
Inputs
Solution Description #
Expected Benefits
Consequences
Risks
Time
Costs
Investment Evaluation
Program
Consulting / External Support
Deliberation
438 F. Martins et al.

Thus, mapping the process that starts in identifying a need that originates a project
becomes a vital issue for the preparation of the Business Case Template and the entire
remaining life cycle of projects.
Considering the characteristics of the template to be developed and the require-
ments that it must have, we also analysed the internal process groups that belong to the
life cycle of a project, creating a workflow and the way in which these, in ideal
situations, relate and precede activities among them (Fig. 3).
Fig. 3. Phases of a project lifecycle
Improving Project Management Practice 439

3.4 Tools and Techniques
For those organizations that perform well, it is necessary to set in motion a set of
mechanisms that do not have an instantaneous effect or act if they are used in
isolation [13].
Thus, in order to create some control guidelines we used the tools and techniques
present on the standards PMBoK [14] and PRINCE2 [11] to implement and customize
the BC template in order to facilitate all the management of a project life cycle.
In this way, the Business Case Template will have the following tools and
techniques:
This covers the whole life cycle of a project divided by the 4 phases that interact
with the different areas of PMBoK knowledge (Table 2).
3.5 Business Case Template
Having defined the life cycle process of a project, requirements and tools to be
incorporated, thus ensuring a thorough understanding of it, it is now possible to define
what a Business Case Template should address.
Therefore, the proposed model will be composed of:
Cover Sheet
Inserted in the initiative of standardizing and customizing the PM processes to the
organizational context, a cover page was then introduced to the template in order to
offer various information through a brief consultation (Table 3).
Information is more than a production factor, it is the resource that allows the
effective combination of other means in order to optimize the organization’s perfor-
mance [13] and thus ensure that several units of the company provide inputs.
This way it is related to filling the fields according to the assigned responsibility.
Table 2. Tools and techniques of the business case template
Opening
Statement
Project
Management Plan
Scope
Management
Categorization
of Project
Typology
Time
management
Cost
management
Quality
Management
Matrix of
Responsibilities
Stakeholders
Skills
Management
Risk
Management
Lessons
Learned
Business Case
Pre-Project xxx x xx x x
Planning and
Execution of the
Project
xxxx
Follow up
Monitoring and
Quality control
xx x x
Evaluation and
Closure xx x
440 F. Martins et al.

Business Case/Pre-project
A BC provides the justification for a solution, based on the benefits to be gained when
compared to the cost, effort and other considerations made [9].
Not to mention that the standard NP4457:2007 [5] follows a PDCA approach,
following guidelines for continuous improvement, the document created has the nec-
essary elasticity to follow the entire project life cycle.
This group involves the entire initial phase that originates the creation of a project,
through the introduction to the problem it intends to solve, identifying the scope,
objectives and referencing documents that support this need (Table 4).
Table 3. Business Case - Cover Sheet
Field Responsibility Description
<PROJECT NAME> Author/Project
Manager
Short designation of the project
<PROJECT
MANAGER>
Author/Project
Manager
Responsible for creating the idea and later
managing the project
<DEPARTMENT> Author/Project
Manager
Department responsible for creating the
idea and later managing the project
Project < PROJECT
REFERENCE>
Portfolio Manager Indication of the internal reference of the
project given out by the Portfolio Manager
Type of
Project: < ProjectType>
Management and
Inspection Systems
Manager
Definition of the type of Project
IDI type: < IDItype> Management and
Inspection Systems
Manager
Definition of IDI type
Starting
Date: <AAAA/MM/DD>
Author/Project
Manager
Creation date of idea
Table 4. Business case - business case/pre-project
Business Case document field Description
1. Introduction Identification and description of the difficulty or opportunity
identified
Receives inputs from: PMBoK - Integration Management,
Scope Management
2. Scope/Purpose/Purpose The questions that must be answered in this field are: What is
the scope and purpose for the project in question? What is its
purpose?
Receives inputs from: BABOK® Guide/PRINCE2/PMBoK -
Integration Management, Scope Management
2.1 Objectives and Expected
Results
The solution must have clear and identified objectives so that a
solution can be evaluated against these requirements
Receives inputs from: BABOK® Guide/PRINCE2
(continued)
Improving Project Management Practice 441

Table 4. (continued)
Business Case document field Description
2.2 Definitions/Acronyms
and Abbreviations
A list of definitions, acronyms and abbreviations must be
drawn up here so that any external actor understands the
document
Receives inputs from: NP4456: 2007
2.3 Inputs Any internal and external reference to the company and that
ground the solution should be referenced here as attachments.
Receives inputs from: PMBoK - Scope Management
3. Description of Solution #
1, # 2 …
Description of the solution that seeks to solve identified
problems or withdraw value from an identified opportunity.
The listing is from the most successful to the most
unsuccessful. Considering the possibility of more than one
solution the document allows to duplicate the page and
automatic increase of the number of the solution.
Receives inputs from: BABOK® Guide/PRINCE2/PMBoK -
Scope Management
3.1 Expected benefits The benefits identified after the implementation of the solution
and which must be in accordance with the objectives and
requirements initially identified.
Receives inputs from: PRINCE2
3.2 Consequences The consequences represent positive and negative aspects that
result from the solution beyond those initially identified as
necessary. The consequences can be tangible as intangible.
Receives inputs from: PRINCE2
3.3 Risks Identified risks that should be the subject of a more detailed
management plan to avoid them or reduce their impact
Receives inputs from: BABOK® Guide/PRINCE2/PMBoK -
Risk Management
4. Time The estimated time for completion of the project should be
mentioned here and should be detailed in terms of activities
and include milestones
Receives inputs from: PRINCE2/PMBoK - Time Management
5. Costs Estimated costs for the project, which may be financial, human
or other resources
Receives inputs from: BABOK® Guide/PRINCE2/PMBoK -
Cost Management
5.1 Investment Assessment Relation between the investment and the anticipated gains,
which may be financial or other gains (i.e., distinction,
notoriety, etc.)
Receives inputs from: BABOK® Guide/PMBoK - Cost
Management
6. Program Identification of the program in which this project is inserted. It
may not be included in programs; this input must always be
given by the Portfolio Manager
(continued)
442 F. Martins et al.

The document requires the identification of at least one solution, although it is ideal
to identify other solutions [9]. Furthermore, it is necessary to identify the expected
benefits, which must at least cover the mentioned requirements expected results,
consequences and risks, whether positive or negative.
To complete the triangle that determines the success of the projects, instructions are
still given regarding time and cost.
Project Planning and Execution
This process group involves, in coordination with all the functional areas of the
organization, to make an initial planning of the preparation of the work to deliver all the
work packages, defined in requirements and activities of the project.
Our planning is done according to the needs of the project to establish procedures
and processes to support PM.
At this moment, the planning and execution of the entire project is initiated, in
which all the elements of the project team, stakeholders, identification of the compe-
tencies that the project team members must have, the definition and implementation of
project specifications and the identification and definition of other activities that must
be carried out throughout the project Table 5.
Table 4. (continued)
Business Case document field Description
7. Consulting/External
Support
Does the project require the contracting of an external service
or consultancy? If yes, which one
Receives inputs from: NP4457: 2007
8. Resolution Deliberation made by the administration that after analysis of
the document must decide: Do something, Do the minimum or
Do nothing
Receives inputs from: PRINCE2/BABOK® Guide
9. Signature Digital signature of the board of directors
Table 5. Business case - planning and execution
Document Field Project Planning
and Execution
Description
10. Stakeholders Identification of all Stakeholders, whether internal or
external, such as elements of the project team.
Receives inputs from: PMBoK - Stakeholder
Management
11. Skills The identification of competencies is of vital
importance for the reduction of the risk of the project
and for the attribution of responsibilities within the
project. This may lead to other activities aimed at
(continued)
Improving Project Management Practice 443

Tracking, Monitoring and Quality Control Cover Sheet
The Tracking, Monitoring and Quality Control process group involves activities of
(Table 6):
•Monitoring of activities and control: evaluates if all the activities are within the
deadline and the cost, constantly evaluating this real progress with the estimate.
Depending on the complexity of the project, it may be carried out either in the
document itself or through an accompanying document allowing traceability.
•Quality Control: controls the quality of all deliverables and/or identified require-
ments through milestones created in project planning.
Evaluation and Closing
This group mentions all the work needed to be done to complete the management of the
project thus closing it.
Table 5. (continued)
Document Field Project Planning
and Execution
Description
reducing the impact of the absence of certain skills, for
example through training
Receives inputs from: NP4457: 2007/PMBoK - Human
Resource Management, Stakeholder Management
12. Definition and Implementation
of Project Specifications
The solution must have clear and identified objectives
so that a solution can be evaluated against these
requirements
Receives inputs from: NP4457: 2007/PMBoK -
Integration Management, Human Resource
Management, Stakeholder Management and
Procurement Management
13. Other activities A list of all the activities required to start the project
and all the activities that take place along the project,
including training, marketing, conferences, interviews,
etc., must be drawn up
Receives inputs from: NP4456: 2007/PMBoK - Human
Resources Management, Stakeholder Management and
Procurement Management
14. Involvement and Commitment Completion of this field by the Project Manager,
Portfolio Manager and Administration ensures that all
parties are involved and committed to the planning and
execution of the project
Receives inputs from: NP4456: 2007/PMBoK -
Stakeholder Management
444 F. Martins et al.

It includes the analysis of project performance in its transversality, the identification
of at least two lessons learned and the formalization of project closure (Table 7).
This Business Case Template was validated after being tested during the “Con-
nected BUS”project.
“Connected BUS”was a project between TUB and IBM Portugal that aimed to
provide buses (18 years of average age) with communication skills.
Managing an IT or IS project entails confronting complexity [15] and this offered a
great test to the Business Case Template TUB, helping to achieve the robustness and
flexibility required to every PM.
The Business Case Template is a document that will accompany the entire project
lifecycle, considering that, according to PRINCE2 [11], the BC should always be
updated throughout the project, being a vital component of management of the entire
project life cycle, and thus it becomes valid that this is the main document used during
that life cycle.
Table 6. Business case - tracking, monitoring and quality control
Document field Tracking,
Monitoring and Quality Control
Description
15. Tracking, Monitoring and
Quality Control
All the documents that are used to monitor the project,
monitor and control the quality of the project are
referenced here. The documents should be schedules,
minutes or progress reports, monitoring of costs incurred,
milestones, etc.
Receives inputs from: NP4457: 2007/PMBoK -
Integration Management, Scope Management, Time
Management, Cost Management, Communications
Management, Human Resource Management,
Stakeholder Management
16. Assessing the Need for a New
Project Plan
The evaluation of the need for a new version of the
project plan considers input issues such as:
•Are there changes in the overall project duration?
•Are there changes in the project objectives?
•Are there increases in project costs?
Receives inputs from: PMBoK - Integration Management,
Scope Management, Time Management, Cost
Management, Stakeholder Management
17. Involvement and Engagement The completion of this field by the Project Manager,
Portfolio Manager and Administration ensures that all
parties are involved and committed to Monitoring,
Monitoring and Quality Control
Receives inputs from: NP4456: 2007/PMBoK -
Stakeholder Management
Improving Project Management Practice 445

4 Conclusions
This research was carried out with the intention of containing a practical and useful
contribution that would guarantee the creation of value in the company.
It is intended to offer PM professionals, particularly in local management compa-
nies, such as the company where the study was conducted, to offer processes and
instructions on how to improve PM practices in organizations with a low level of
management maturity of projects, using a BC model.
As Hobbs states [16], “PM is the skill of moving from ideas to results and, as such,
is applicable to every significant initiative we are given or come up with ourselves.
Today, individuals, organizations and nations need more than ever a PM skill in the
world that values individual and collective initiative above just about any other
attribute”.
As such, and to think about PM, it is first necessary to identify the best management
practices of existing projects in general and how it is done in a public management
environment.
Table 7. Business case - evaluation and closure
Document Field
Evaluation and Closure
Description
18. Compliance
Requirements
When starting the project closure, it is necessary to evaluate the
degree of compliance with the general objectives and
requirements identified. This should consider:
•Degree of achievement of the general objectives;
•Competitive advantages and benefits achieved;
•Protection and exploitation of results;
•Definition of means and dissemination of results;
•Compliance with deadlines and activities;
•Compliance with the budget;
•Project replanning.
Receives inputs from: NP4457: 2007, PMBoK - Integration
Management, Scope Management, Cost Management, Human
Resource Management, Procurement Management, Time
Management, Communications Management
19. Lessons Learned Project closure only takes place after lessons learned have been
documented. This field is of great importance as it assesses
opportunities identified throughout the project and that can be
used to start new projects and/or projects underway
Receives inputs from: PMBoK - Integration Management
20. Project Closure The completion of this field by the Project Manager, Portfolio
Manager and Administration, concludes the project
management by closing it
Receives inputs from: NP4456: 2007/PMBoK - Stakeholder
Management
446 F. Martins et al.

The need to develop a business case model led to an understanding of the whole
business. A business analysis approach was used to ensure that all projects were
substantiated.
Thus, with a defined BC model, which would still support the management of the
whole life cycle of a project in this, it was possible all this management with the
introduction of various tools and techniques.
The development of this proposal focused on the fulfilment of all the requirements
imposed by the norm NP4457:2007 [5], by the internal processes in force, people and
organizational knowledge.
The proposed model follows inputs from PMBoK and PRINCE2, however, and as
Bell [17] indicates, these methodologies are different but have several complementary
elements.
The proposal was inserted into the integrated management system, thus validating
the result of several months of work.
In the long run, and considering the maturation of GP practices, the main objective
is the standardization of integrated GP processes with the integrated management
system of TUB and other local administration companies.
This work has been supported by COMPETE: POCI-01-0145-FEDER-007043 and
FCT –Fundação para a Ciência e Tecnologia within the Project Scope: UID/CEC/
00319/2013.
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