Section Menu

Business Case Template Guidance

Business Case Guidance                                                   

These guidance notes are designed to help you construct or update your business case and decide the content and level of detail necessary.  The Business Case template can be used when developing a new business case, updating it during the project or when assessing benefits realisation.  Please see these notes for general advice on how to complete the template as well as helpful information on specific sections.

Project/Programme Details:

Name
Sponsor
Manager
DTI Group
Objective No.
Start Date
Completion Date

Document Details:

Matrix Doc Ref
Version No.
Status
Approved/Draft
Approved by 
Issued Date
Last Update Date

Background
Background – describe the potential change, idea, and problem.  Why it should be done now and what are the implications of not doing it.

Scope
In this section you need to describe what the scope of the project is, its key objectives, deliverables and purpose.  What business benefits will accrue?  Are there any events, work or other projects that are either dependent on the outcome of this project or that the project will depend on.

Objectives
Objectives – these are a summary of what you want the project to achieve when it has been completed.   So, it may start, “Completion of this project will result in…."   Your objectives should be SMART – specific, measurable, achievable, realistic and timely.   Avoid words like improve, optimise, clarify, help etc.   These are vague words that mean you cannot measure your result.  Objectives should be linked to Objective Delivery Plans.

DTI Strategy
How does this project fit with DTI strategy?  What objective delivery plans are supported?

Options
In this section you need to describe and evaluate the different options and give reasons why the preferred option was chosen.  What criteria were used to decide that this was the best value option? Benefits should be valued in cost terms wherever possible.  Even if it is not possible to value all the benefits of a proposal, it is still important to consider valuing the differences between the options.  You may also wish to consider what would be the implications of not carrying out the work.

Proposed Solution
Identify the selected option and how you propose to implement the change.  This should cover any feasibility issues not covered elsewhere (Project Management principles, Next steps, etc.).  The rest of the business case should be based on the identified solution. (See below)

Benefits
Summarise the main benefits, who is responsible for them and how will they be realised.

Wherever possible try and give them a value so that they can be properly quantified.   This will make it easier to measure whether they have been realised.  The purpose of valuing benefits is to consider whether an option’s benefits are worth its costs, and to allow alternative options to be systematically compared.  Even if it is not feasible to value a benefit, it is still important to consider valuing the differences between the options.  Where there are significant elements that cannot be valued in money terms e.g. they are social rather than financial, these still need to be brought out in your assessment.  You should take into account, if possible all the tangible and intangible benefits that you believe will accrue not just those benefiting DTI. 

You should also outline the benefits realisation plan, method of evaluation, timing of the benefits coming on stream, the scope of coverage and who will be responsible for delivery.

Examples of the different types of benefits

Typical benefits of a policy project could be:

Compliance with an EU directive

Compliance with a manifesto commitment

Improvements in competitiveness

Protection of consumers

Improvements to market competitiveness

Equality and diversity objectives

See better policy making intranet site for further guidance

Typical benefits of Internal change projects:

Cost savings

Avoided costs

Efficiency improvements

Staff motivation with consequent reductions in sickness and improved recruitment and retention

Elimination of waste

Typical benefits of consultancy projects:

Transfer of knowledge from consultant to DTI

Opportunities to disseminate the results across the Department or Whitehall

More efficient use of resources if rare skills need to be available for a short space of time.

See consultancy guidance for further information

Typical benefits of IT project:

Rationalisation of staff costs

Ease of use for customer

Increased exposure for DTI and for its services

See IT guidance for further information

If you have a Capital project it is essential that you refer to the Treasury Green Book -   Appraisal and Evaluation in Central Government 

http://www.ogc.gov.uk/sdtoolkit/reference/ogc_library/related/Green_Book_03.pdf

Risks
In this section, you should identify the key risks impacting the project and how you propose to manage them.  Remember to identify opportunities and how you will exploit them as well as things that may go wrong.

Dependencies
Dependencies – are there any events or work that are either dependent on the outcome of this project or that the project will depend on.

Affordability
What resource will be required, including staff resources and where will this resource come from?  (e.g. will anything be stopped?)  No project should go forward without adequate understanding of resourcing requirements.  Those responsible for providing resources must indicate they have approved the undertaking (Stakeholders).

Analysis of costs and Phasing of expenditure
Administration, Capital and Programme expenditure should be shown separately for each financial year of the project.  Administration costs should include the costs of managing the project.  Any costs that have already been incurred should be ignored, what matters are costs about which decisions can still be made.

If it is helpful show separately a sheet identifying the costs vs. the benefits gained in each financial year.   This can be discounted to show the “present value” of the entire project. 
 
Stakeholder engagement
Who are your key stakeholders and how will you engage with them throughout the project?  You need to keep them informed and ensure they are “bought-in” to the project at key stages. (See also Stakeholder Management)
 
Change control procedures
Explain how a change of personnel, scope or objectives will be handled.  You may also wish to mention succession planning e.g., if the SRO leaves their post who will be responsible for realising the business benefits

Critical success factors
Use this section to outline the things that must go right to ensure the success of the project by delivering the objectives and benefits.  Does the project need to deliver ALL OBJECTIVES AND BENEFITS to be successful?
 
Procurement procedures (if applicable)
Use this box to explain your proposed procurement route e.g. is it under a framework agreement.  If you are intending to use single tender action, the reasons for doing so should be fully explained here.