Sponsoring Organization

Sponsoring organization is an entity responsible for providing the project’s sponsor and a conduit for project funding or other project resources. Moreover, in a project management, a business case describes the information from a business standpoint to determine whether or not the project is worth the required investment.

Business case is created as a result of some elements such as, market demand, organizational need, customer request, technological advance, legal requirement, ecological impacts and social need. These contain elements of risk that must be addressed. Business case must be periodically reviewed that the project is on track to deliver the business benefits. In the early stages of the project life cycle, periodic review of the business case by the sponsoring organization also helps to confirm that the project is still aligned with the business case.

The project manager is responsible for ensuring that the project management effectively and efficiently meets the goals of the organization and those requirements of a broad set of stakeholders, as defined in the business case. On the other hand, there is the idea of post-project quality costs that may be incurred because of product returns, warranty claims, and recall campaigns. Therefore, because of the temporary nature of projects and the potential benefits that may be derived from reducing the post-project cost of quality, sponsoring organizations may choose to invest in product quality improvement.

This term is defined in the 5th edition of the PMBOK.