The Business Case is used to obtain commitment and approval for investment in business change (a project), by providing the rationale for the investment. It is prepared by the college or unit sponsor and, if a commitment to proceed is obtained, the project will be monitored against the business case on an ongoing basis.
For larger projects, the business case should be developed in three stages:
- Preliminary Business Case: Confirms the strategic fit and business need—typically this will require one or two pages.
- Outline Business Case: Supports the preferred option for moving forward (including procurement strategy, where applicable). If the project requires Board approvals, Board Information Items are prepared.
- Full Business Case: Contains the validated assumptions that support the investment decision—the length will vary depending on the scale of the project. If the project requires Board approvals, a Request for Decision is prepared and presented to the Board by the Executive Sponsor.
The level of detail required at each stage depends on organizational standards and the scale or complexity of the project. For small projects, you may only need to produce the business case in one stage, with confirmation of prices, funding availability etc.
A minimal business case provides information similar to an Executive Summary containing the following:
Origin of Request and Advanced Consultation
Give a brief historical sketch: Why did this proposal arise? What previous decisions are relevant? Does this report deal with a specific project? If so, is the project in compliance with the University planning documents? What other bodies or officers (e.g. Board Committee, Committee, Deans) have reviewed or approved this proposal? Has there been consultation with those who might be affected by this proposal? Is there a communications strategy in place?
Existing Policy and Impact of Decision Requested
What is the current policy, procedure, or protocol in dealing with the matter? What impact will the decision have? What will change and who will be affected?
Current and Future Implications
Operational Justification for Proposal:
Why is the business change (project) needed now? What key benefits will be realized?
Budget:
Operating Budget
What is the financial impact of this proposal?
Example: $$$$ per annum from the Operating Budget.
Capital Budget
What will it cost and where will the money come from? What revenues will be received and where will the money go?
Example: $$$$ start up funding from the President's Office
Health and Environmental:
What are the health and environmental impacts of this proposal?
Example: Notable health and environmental benefits should accrue.
Legal or Governmental:
What legal obligations will the University incur? Is the proposal within the statutory powers of the University?
Discussion Summary
In this section the rationale or argument for why the business change (project) should proceed is provided. It provides an answer to the question: "Why should the Executive approve this resolution?"
Consider including the following information in this section:
- Objectives
- Description of the Recommended Option
High level cost-benefit analysis for meeting the business need, including an analysis of "soft" benefits that cannot be quantified in financial terms
High level plan for achieving the desired outcome, with key milestones and major dependencies (e.g. interface with other projects)
- Outline of Achievability
Outline contingency plans (e.g. addressing failure to deliver service on time)
Major risks identified and outline plan for addressing them
If an external provider is involved, the vendor's plans for addressing risks
Skills and experience required
