Detailed Business Case
Revisit Strategic Case:
Need to Invest
Economic Case:
…..What you are seeking to achieve?
Existing
arrangements
Summarise the current state.
Business
Needs
Describe the business gap, the difference
between the current state and the desired
future state.
What degree of change is required to
successfully achieve the objective? What
is a core must have? What is desirable,
aspirational or out of scope?
If the objective is successfully achieved,
who will benefit, how and how we
measure the gain (or loss)?
What contingent events could impact on
the achievement of the objective?
What are the limiting parameters within
which the investment must be delivered?
What other actions outside the scope
does success depend on?
Scope
Benefits
Strategic Context
Risks
Insert a summary of the
organisational overview,
operating environment and
how the investment
proposal aligns to relevant
Government, regional,
sector and organisational
strategies.
Status Quo
Objective 1:
Constraints &
dependencies
Objective 2:
Option 2
Financial Costing
Option 3
Option 4
Year
One
Total
Capital
Expenses
$.....
$.....
Operating
Expenses
$.....
$.....
Total
Revenue
$.....
$.....
Capital
Funding
Required
$.....
$.....
Operating
Funding
required
$.....
$.....
Appraisal Period (years)
To …………
Capital Costs ($m)
Whole of Life Costs ($m)
Cost-Benefit Analysis (of monetary benefits and costs at the Public Sector Discount Rate)
Net Present Value of Benefits
($m)
Net Present Costs ($m)
Benefit Cost Ratio
Net Present Value (NPV, $m)
Multi-Criteria Analysis (ranking of non-monetary benefits and costs, if any)
Benefit Criteria 1
Benefit Criteria 2
Benefit Criteria 3
Existing
arrangements
Affordability and
Funding: Summarise
Preferred Option:
Business
Needs
The Preferred Option: Insert a description of the choice of the preferred option , its robustness
and sensitivity to key assumptions.
…………………
Objective 3:
Financial Case:
Determine Potential Value for Money
Investment Objectives and Case for Change
What is the clear need for
investing in change. List:
• key drivers (problems or
opportunities)
• root causes and effects of
problems.
NZ Treasury 24 February 2014
To …………
Commercial
Case:
Existing
arrangements
the ability of the
organisation to meet
the capital and
operating costs of the
preferred option.
Prepare for the Potential Deal: Insert an outline of the deal , including
services to be procured, risk sharing, payment arrangements , intended
contractual arrangements and accounting treatment.
Business
Needs
…………………
Management Case:
2014
Strategic
Assessment
completed dd
mmm yyyy
• Gateway 0 ……
2015
Programme
Business Case
completed dd
mmm yyyy
• Gateway 0 ……
Approval
Sought
2016
Indicative
Business Case
due dd mmm
yyyy
• Gateway 1…..
Approval
Sought
Detailed Business
Case due dd
mmm yyyy
• Gateway 2 …..
Approval
Sought
Procurement
phase: due dd
mmm yyyy
• RFP …..
• Gateway 3 …
• Implementation
plan …
• Contract sign
2017
2018
Implementation
phase: due dd
mmm yyyy …..
Plan for Successful Delivery:
Insert a brief description of the
project management strategy and
planning arrangements, including
governance, reporting, benefits
management, risk management,
change management and post
project evaluation.