www.advisian.com

February 2017

Building a strong Business Case

In today’s world of tight fiscal constraints, clearly articulating the need and value of investments has never been more important…

Articulate why it is strategically

important to change

Decisions to invest in a project requires a relevant business case to:

Detail why this is the best option for

investment

Outline how the project can be delivered to

achieve intended benefits

Clearly define the scope, cost

and risks

Show how the net triple-bottom-line

provides value-for-money

The business case must…

TELL A STORYabout why the investment is needed in a way that resonates with an external audience

The business case must…

CONTAIN EVIDENCEand analysis that justifies a proposed investment in a structured and well-written format

The business case is a…

METHODthat provides a way of thinking to objectively assess the merit of an investment

The business case must clearly…

DEFINE THE SCOPEand why, and the impact of an investment

The business case provides a

RECORDthat can be used at the completion of a project to evaluate whether benefits were realised and the project was delivered as intended

The business case becomes a…

CRITICAL TOOLfor accountability for delivering the project and for ensuring the benefits are realised as intended

How to build a strong business case

Before preparing a business case the context and rationale for a proposed investment must be considered.

This overall context, its inter-relationship with other services, and the service delivery priorities of the organisation, is crucial.

What is the service or market failure, root causes and the broader consequences?

Outline the strategic context and define the problem1.

e.g. are there capacity constraints, reductions in service levels, customer complaints etc.

Gather evidence underpinning the problem2.

Will the outcomes of this investment make a positive, tangible contribution to the goals and strategic priorities of the organisation?

Articulate the benefits and strategic alignment of the investment3.

e.g. demand management, implementation of new technologies, new asset solutions etc.

Identify and analyse the strategic options to tackling the defined problem4.

To what degree do each of the options deliver the intended benefits?

Assess the shortlisted options against the base case5.

What is the best option, how and when will it be delivered, what will be the commercial and financial strategy, what approvals are required and what are the next steps?

Provide a recommendation solution to address the defined problem6.

A business case provides the evidence that a proposal: will align the organisation towards achieving its strategic goals; will provide value-for-money; and can be delivered.

• Well-written and credible• Reflects early engagement with customers, users and

stakeholders • Evidence based• Clearly justifies why an intervention is needed• Canvasses a broad range of options aligned to objectives• Demonstrates a fit-for-purpose, targeted solution • Provides economic and financial rationale • Details a practical and achievable implementation plan

Features of a strong business case