Business Case BABOK Technique 10.7: Elements, Tasks, Exam Traps
BABOK technique 10.7 explained: need, desired outcomes, alternatives incl. do nothing, recommendation, where it sits in Strategy Analysis, and how real business cases differ.
A business case in BABOK is technique 10.7: a justification for a course of action based on the benefits to be realized [1]. For the CBAP exam (120 questions, 210 minutes [2]), the business case BABOK technique matters most in Strategy Analysis, which carries 15% of the blueprint, and in Requirements Analysis and Design Definition (30%) [2]. Expect scenario questions about the do-nothing option and about who recommends a solution.
Last verified: October 2026 (CBAP exam facts on iiba.org; BABOK Guide v3 section numbers on the IIBA Knowledge Hub).
This article goes deeper than our short overview of business cases and value modeling. It covers the technique's elements, the tasks that use it, its boundaries with a project charter and with Financial Analysis (10.20), and how practitioners actually run business cases.
What the business case BABOK technique is
A business case is the document that captures the rationale for undertaking a change [3]. BABOK Guide v3 places it in chapter 10 as technique 10.7 [1]. It is not a task. In an older edition of the guide, techniques sat in chapter 9 and "Define Business Case" was task 5.5 [4]. If a study resource calls it a task, check which edition it follows.
The technique answers one question for a decision-maker: is this change worth funding, and in which form? An IIBA article on the technique says a business case should give "enough detail to inform and request approval from decision-makers", without going far into implementation method [3].
The four elements of BABOK 10.7
BABOK 10.7 has four elements: need, desired outcomes, alternatives, and a recommendation. An IIBA article summarizes them as define the need, determine the desired outcomes, assess constraints, assumptions and risks, and recommend a solution [3].
Element
What it contains
Exam signal
Need Assessment
The problem or opportunity and why it matters now
"The sponsor asks why this change is needed"
Desired Outcomes
Measurable results the change should deliver, not features
Outcome stated as a metric, not as a system
Assess Alternatives
Each option, including doing nothing, assessed on scope, feasibility, assumptions, risks, constraints, and financial value [5]
The most valuable option, with the reasoning behind it
"What should the BA present to the sponsor?"
Two points get tested. First, desired outcomes are not requirements. They describe the future state the business wants, so they connect to the Balanced Scorecard technique and to metrics, not to a feature list. Second, the alternatives element includes costs for each option. One practitioner guide says the case should include "implementation and operational costs for every alternative" [5].
Where BABOK uses business cases
Business cases appear mainly in Strategy Analysis, with a hand-off to Requirements Analysis and Design Definition. IIBA's own task cards list Business Cases among the frequently used techniques for Define Future State and Define Change Strategy, but not for Analyze Current State or Assess Risks [6]. The cards add that the full technique list is in the guide itself [6].
Task
Purpose (short)
Role of the business case
6.2 Define Future State
Determine the conditions needed to meet the business need [6]
Captures desired outcomes
6.4 Define Change Strategy
Develop and assess alternative approaches and select the recommended one [7]
Records alternatives and the recommendation
7.6 Analyze Potential Value and Recommend Solution
Estimate the potential value of each design option [8]
Value logic is reused when design options are compared
For 6.1 Analyze Current State, the frequently used list instead includes benchmarking and Business Capability Analysis [6]. In exam terms, the current state feeds the need assessment, and the business case formalizes it. The wider knowledge area is covered in our Strategy Analysis guide.
Business case vs project charter vs Financial Analysis
A business case asks whether to invest; a project charter authorizes a project after that decision; Financial Analysis supplies the numbers. BABOK describes 10.20 Financial Analysis as a way to understand "the financial aspects of an investment, a solution, or a solution approach" [9].
Artifact
Main question
Typical owner
When
Business case (BABOK 10.7)
Should we act, and which option?
Sponsor, with BA analysis
Before funding
Financial Analysis (BABOK 10.20)
What are the costs, benefits, and returns? [9]
BA or finance
Inside the business case and later evaluation
Project charter (PM practice)
Who leads, with what authority and constraints?
Sponsor and PM
After approval
Project managers mostly agree on the order. In a long forum thread, most posters said the business case comes first; one manager cited the PM standard that "a business case is an input for a project charter" [10]. Another poster disagreed: if a customer request or a legal requirement triggers the work, a charter can come first [10].
How to build a business case step by step
The steps follow the four elements, with a review loop at the end.
State the need. Start from the problem or opportunity, not from the numbers. A lead BA in financial services gives the same advice [11].
Write desired outcomes as measures. Use metrics a sponsor already tracks.
Generate options, then cut. The same practitioner suggests to "consider all viable options before narrowing down to 2-3 choices" [11].
Always add do nothing. A BA training leader lists doing nothing as an alternative to evaluate [12]. A BA writing about a banking case frames it as assessing the consequences of not acting or of delaying [13].
Assess each option. Scope, feasibility, assumptions, risks, constraints, and Financial Analysis [5].
Recommend and explain. Give the reasoning, not only the score.
Revisit at gates. One project manager says the business case should be reviewed at every gate to confirm the project is still relevant [14].
Worked example: parcel lockers for an online retailer
A mid-size online retailer sees failed home deliveries driving support contacts and refunds. The BA drafts a business case for the delivery team. The figures below are illustrative.
Option
One-off cost
Yearly run cost
Expected yearly benefit
Main risk
A. Do nothing
0
0
0 (failed deliveries keep rising)
Competitors offer lockers first
B. Partner with a locker network
40,000
90,000
160,000
Partner pricing changes
C. Build own lockers
600,000
120,000
210,000
Site permits and capex
Need: failed first-attempt deliveries and the support load they create.
Recommendation: option B. Its net yearly benefit (70,000) pays back the 40,000 one-off cost within the first year. Option C nets 90,000 a year, so its 600,000 investment needs more than six years to pay back and adds capital risk.
Do nothing is not zero cost here. It is the baseline the other options are measured against. A UK central-government checklist for reviewing business cases makes the same point: it asks whether business as usual has been quantified and whether there is a realistic "Do Minimum" option [15].
Experts disagree on what a business case is for
Practitioners agree on the elements but not on the purpose of the document.
1. It is a decision tool. This is BABOK's view: justify a course of action by its benefits [1]. Practice guides for BAs follow the same line and stress conservative estimates; a BA training leader writes that "Conservative estimates build trust" [12].
2. It is a bid for approval. A PMI Fellow writing in 2026 argues that business cases are built to win funding, not to predict outcomes. In his words, "The costs had owners. The benefits had authors." [16]. He proposes staged funding, a named benefit owner, and reference-class forecasting [16].
3. It is a living document. A BA community author argues it should be "a living document that is carefully managed", in three forms: outline, full, and one-page [17]. A project manager in a 2016 forum thread adds gate reviews [14].
4. Delivery teams should not question it. This is a minority view. In a forum thread about flawed business cases, a PMO director wrote that realizing benefits is "not the responsibilities of the project manager" [18]. Others in the same thread disagreed. A retired practitioner said to continue only while benefit exceeds the cost to complete [18].
The dispute is real. Positions 1 and 3 match BABOK. Position 2 describes how many organizations behave.
Common misconceptions
"Do nothing is optional." It is the baseline. Without it, the case cannot show what the change adds [15].
"Business case equals ROI." ROI is one output of Financial Analysis (10.20) [9]. The case also needs the need, outcomes, risks, and a recommendation [3].
"The BA approves the business case." The BA analyzes and recommends. The sponsor or another decision-maker approves [3].
"Once funded, it is done." Practitioners recommend gate reviews [14].
"More detail is better." IIBA advice is to give enough detail for approval, not implementation design [3].
Practice Questions
Question 1
A BA is defining the change strategy for a new self-service portal. The sponsor wants only two options compared: build in-house or buy a SaaS product. What should the BA do?
A. Compare the two options, as the sponsor requested
B. Add a do-nothing option as the baseline for comparison
C. Write the project charter first
D. Elicit detailed functional requirements for both options
Answer: B. Business cases assess alternatives, and doing nothing is the baseline that shows what each option adds. A charter comes after approval, and detailed requirements are out of scope at this stage.
Question 2
Which output best describes what a business case adds to Define Change Strategy (6.4)?
A. A prioritized backlog of requirements
B. A recommended approach with the reasoning behind it
C. A signed authorization naming the project manager
D. A traceability matrix
Answer: B. Task 6.4 develops and assesses alternative approaches and selects the recommended one. Authorizing a project manager is a project charter, not a business case.
Question 3
A business case lists "deploy a CRM" as its desired outcome. What is the main problem?
A. The outcome is too measurable
B. The outcome describes a solution, not a business result
C. CRM projects cannot have business cases
D. Desired outcomes belong in the charter
Answer: B. Desired outcomes describe measurable business results, such as a retention rate. "Deploy a CRM" is one alternative, and it belongs in the alternatives assessment.
Conclusion: the gap between BABOK and real business cases
BABOK treats the business case as an objective comparison of options. Real business cases often skip the measurement of benefits and serve as approval instruments.
Area
Standard
Reality
Delta
Benefit identification
Need and desired outcomes defined up front
65% of surveyed organizations were not satisfied with how they identify benefits [19]
Under-used
Benefit valuation
Financial value assessed for each alternative
69% did not adequately quantify the value of benefits [19]
Reduced to partial valuation
Purpose
Justification based on benefits
Described by a senior practitioner as a bid for approval [16]
Reduced to an approval tool
Do nothing
Assessed as an alternative
Public-sector review checklists ask for business as usual and a do-minimum option [15]
No gap
After approval
The four elements end with a recommended solution [3]
Practitioners disagree on whether delivery teams should revisit the case [18]
Under-used
The survey behind the first two rows covered over 100 European organizations [20]. In short, the exam rewards the BABOK sequence, and practitioners report that the hard part is keeping benefit estimates honest and checking them after funding.
Related techniques
Business cases borrow inputs from several other techniques. Benchmarking and Market Analysis shows what competitors already offer, which sharpens the need assessment. Decision Modeling and Decision Analysis helps compare options with several criteria. To see all 50 techniques by knowledge area, use the BABOK techniques map. To practice CBAP scenario questions, try the CBAP exam simulator.
FAQ
What is a business case in BABOK?
It is technique 10.7 in BABOK Guide v3. It justifies a course of action by the benefits it should deliver. It covers the need, desired outcomes, alternatives including doing nothing, and a recommended solution.
Which BABOK tasks use the business case technique?
IIBA task cards list it as a frequently used technique for 6.2 Define Future State and 6.4 Define Change Strategy. Its value logic also supports 7.6 Analyze Potential Value and Recommend Solution.
Is a business case the same as a project charter?
No. A business case argues whether and how to invest. A project charter authorizes a project and names its manager, usually after the business case is approved.
Does the business analyst approve the business case?
No. The BA analyzes options and recommends one. A sponsor or another decision-maker approves funding.
How many CBAP questions cover business cases?
The CBAP blueprint gives weights by knowledge area, not by technique. Strategy Analysis carries 15% of the exam, so business cases appear mainly within that share, with some overlap into Requirements Analysis and Design Definition.
