Certopolis

Project Management Professional (PMP)

Business case basics: SMART objectives, BAU and strategic fit

A business case shows why a project should go ahead and which option gives the best value. The Green Book builds it from five linked cases. The strategic case sets the rationale: case for change, SMART objectives, business as usual and strategic fit.

The Five Case Model

The Green Book's Five Case Model has a strategic, economic, commercial, financial and management case. They are not five separate business cases but linked views of one proposal, developed together.

There is no need to add a separate case for environmental, legal, regulatory or ethical concerns. They can be objectives, critical success factors the proposal must meet, or social costs and benefits. The Green Book's example of a critical success factor is a 25 percent cut in a refurbished building's emissions compared with business as usual.

SMART objectives

Objectives must be specific, measurable, achievable, realistic and time-limited, so they can be monitored and evaluated. In setting them, ask who benefits, how many, where, and by when. Use as few objectives as possible. 'Improve services for residents' is not SMART: it has no measure, target or date.

Business as usual and strategic fit

Business as usual (BAU) is the outcome expected if current arrangements continue. It is the benchmark for every option. BAU does not mean doing nothing: continuing carries its own costs, benefits and risks. The Green Book says not to normalize BAU to zero, and to present options in absolute terms rather than as differences from BAU. Overstating BAU's costs makes change look too attractive; understating them makes it look too unattractive.

Strategic fit is how well the proposal aligns with the wider objectives of its organization: the programme, portfolio or policy above it, the organization's other proposals, and relevant work by other public bodies.

Where the exam catches people

  • Believing business as usual costs nothing: the Green Book says continuing current arrangements carries its own costs, benefits and risks.
  • Believing options should be shown as differences from BAU: the Green Book says present them in absolute terms and do not normalize BAU to zero.
  • Believing an environmental target needs its own extra case: it can be an objective, a critical success factor or a social cost or benefit.
  • Believing a broad aim is an objective: without measure, target and date it cannot be evaluated.

Written from PMI's documentation

Try 3 questions on this

Pick an answer to see why each option is right or wrong.

  1. While reviewing a draft business case, the project manager finds its main objective reads 'improve services for residents', with no measure, target or date. Evaluators say they could not tell whether it was achieved. Which of the following should the project manager do?

    Right. In the game that’s Renown for your Business Environment building.

    Not that one: C is right. In the game your Business Environment building would lose a little Renown, and this question would come back later.

    Written from www.gov.uk/government/publications/the-green-book--2/the-green-book-2026

  2. Before approval, the project manager checks how a proposal aligns with the objectives of the portfolio above it and with the organization's other initiatives. Which of the following is the project manager assessing?

    Right. In the game that’s Renown for your Business Environment building.

    Not that one: D is right. In the game your Business Environment building would lose a little Renown, and this question would come back later.

    Written from www.gov.uk/government/publications/the-green-book--2/the-green-book-2026

  3. While appraising options to replace an ageing records system, a team member enters the business-as-usual option with no costs, since keeping the current system means doing nothing. Which of the following should the project manager do?

    Right. In the game that’s Renown for your Business Environment building.

    Not that one: C is right. In the game your Business Environment building would lose a little Renown, and this question would come back later.

    Show the full explanation and doc quotes

    Its description must be fair, because overstating or understating those costs makes the change look unduly attractive or unattractive.

    Written from www.gov.uk/government/publications/the-green-book--2/the-green-book-2026