When to use it
A useful fit
Use it before committing resources and whenever the expected benefit, cost, risk or strategic need changes materially.
Know the limits
Do not treat past spending as a reason to continue. Separate unavoidable future costs from costs you can still avoid.
How to use it
- State the need and credible alternatives, including the minimum viable change.
- Compare future costs, benefits, assumptions and risks on a consistent basis.
- Name a benefit owner and a review trigger that could change the decision.
Worked example
A support team considers replacing a case-management tool. The sponsor compares replacement, targeted improvements and retaining the current tool. When a required integration becomes unavailable, the team reopens the options before authorising migration.
Illustrative scenario by fannarmaximus; not an official exam question.
Common pitfalls
A positive headline benefit is weak evidence if nobody owns adoption or can show how the benefit will be measured.
Attribution & sources
Common investment-governance practice; own-word explanation by fannarmaximus.
The citations below identify authoritative references for this topic. They do not imply endorsement or reproduce the bodies’ competence lists.
- IPMA® (2015). Individual Competence Baseline for Project, Programme and Portfolio Management, Version 4.0 (ICB4). Zurich: International Project Management Association. ISBN 978-94-92338-00-6 (print), 978-94-92338-01-3 (pdf). Free PDF from IPMA®: https://ipma.world/ipma-standards-development-programme/icb4/
- Project Management Institute (2025). A Guide to the Project Management Body of Knowledge (PMBOK® Guide), Eighth Edition, and The Standard for Project Management. Newtown Square, PA: PMI®. ISBN 9781628258295.
- Association for Project Management (2025). APM Body of Knowledge, 8th edition. Princes Risborough: APM. ISBN 9781913305390.