A well-prepared project business case performs a number of functions. It enables the organisation and its key stakeholders to understand, influence and shape the project’s scope and direction early on in the planning process.
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A well-prepared project business case performs a number of functions. It enables the organisation and its key stakeholders to understand, influence and shape the project’s scope and direction early on in the planning process. It assists decision-makers to understand the key issues and the available evidence base and to avoid committing resources to schemes that should not proceed. It demonstrates to senior management, stakeholders, customers and decision-makers the continuing viability of the project, and provides the basis for management, monitoring and evaluation during and after implementation.
The project business case must consider the organisational strategy, the project mandate and the project brief. The organisational strategy provides the context for the project and is important because experience shows that a proposal begins most effectively when it is launched as part of a clear organisational strategy. The project mandate provides the trigger and context at the start of the project. The project brief develops the concept for the scheme and provides an initial assessment of the viability and achievability of the proposal, prior to formally developing the project business case.
A typical process for developing the project business case aligned with HMT guidance is as follows:
- Ensure the mandate and brief for the project have been completed.
- Undertake the strategic assessment.
- Complete the risk profile assessment.
- Draft the scoping document for the project business case and arrange a meeting with the business case reviewer/approver to agree the content, governance, reporting, assurance and approval arrangements.
- Commence the Strategic Outline Case (SOC).
- Prepare the strategic case following completion of Workshop 1 (Determining the case for change).
- Prepare the economic case following Workshop 2 (Appraising the longlist).
- Provide an overview of the commercial, financial and management case sections.
- Undertake Cabinet Office Gateway 0 (business justification).
- Submit the Strategic Outline Case (SOC) for approval.
- Commence the Outline Business Case (OBC).
- Revisit the case for change.
- Revisit the economic dimension of the case following Workshop 3 (Appraising the shortlist).
- Prepare the commercial dimension of the case following Workshop 4 (Developing the deals).
- Prepare the financial dimension of the case with the finance directorate.
- Prepare the management dimension of the case following Workshop 5 (Successful delivery arrangements).
- Undertake a Cabinet Office Gateway Review 2 (delivery strategy).
- Submit the Outline Business Case (OBC) for approval.
- Following procurement, prepare the Full Business Case (FBC).
- Revisit OBC assumptions for the 5 cases.
- Update the economic appraisals to reflect best and final offers (BAFOs).
- Select the most economically advantageous tender (MEAT).
- Undertake a Cabinet Office Gateway Review 3 (investment decision).
- Submit the Full Business Case (FBC) for approval.
- Monitor project delivery and undertake a Cabinet Office Gateway Review 4 (readiness for service) prior to going live.
- Use the Full Business Case (FBC) to support post-evaluation and benefit realisation.
- Undertake a Cabinet Office Gateway Review 5 (operations review and benefits realisation). Items 14 and 15 may be combined where it makes sense to do so.
- Feed back findings into the strategic planning cycle.
The above process and level of effort will vary depending on the nature of the organisation, the decision being sought and the expectations agreed in the scoping document
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