Scoping Document (Jun 2012)
Name of tertiary institution:
Name of proposal:
Senior Responsible Owner (i.e. Chief Executive)
Version Control
Date
Version
Document Revision History
Document Reviewer
Purpose
1. The purpose of this document is to secure early agreement, and agree subsequent changes, between the
tertiary education institution (TEI), its advisors (if any) and the Tertiary Education Commission (TEC) to
ensure the level of proposed effort and assurance through each part of the business case development
process is commensurate with the scale and risk of the proposal.
2. This includes agreement on:
a.
the scale and risk of the proposal, using the Risk Profile Assessment tool and the scalability matrix;
b.
whether the solution to the problem being addressed by the business case is likely to be a discrete
project, or would be better addressed through a larger programme of work;
c.
whether further work is required to clarify the problem/opportunity and the possible options, benefits,
strategic responses and solutions; 1
d.
the level and depth of analysis required in various stages of the development of the business case;
e.
the level and depth of independent quality assurance required in various stages of the development
of the business case;
f.
level of effort and cost for development and assurance; and
g.
the timing and nature of engagement and decisions required including how these fit with other
processes required by the TEI (i.e. council approval) or by the TEC (i.e. Budget processes).
Process

Complete Section One and send whole document in MS Word format, along with your completed
Risk Profile Assessment, to teifm.info@tec.govt.nz.

Section Two will be agreed between the TEC and the TEI at a later stage.
1 Most programme business cases require a Strategic Assessment and some project business cases, particularly
projects that require a two-stage business case, require an Investment Logic Mapping (PDF, 37kb) exercise.
Better Business Cases: Tertiary Education Sector Single-Stage Scoping Document | 1
Business Case Scoping Document
Section One – TEI to complete
Summarise the nature of the problem/opportunity the proposal is seeking to address and possible solutions
(use the headings below as a guide)
Problem

Describe the problem that needs to be addressed (both the cause and effect).

What evidence is there to confirm the cause and effect of the problem?

Does the problem need to be addressed at this time?
Benefits

Describe the expected benefits from fixing the problem.

Provide some possible key performance indicators that will be used to provide evidence that the benefits have
been delivered.

Why are the benefits so important to the institution?
Possible Strategic Responses

Summarise a range of possible strategic responses to the problem and the rationale for their inclusion.

Why are the proposed strategic responses the most effective possible responses to the problem?

Are the proposed strategic responses feasible?
Possible Solutions

Summarise a range of projects (i.e. solutions) which are consistent with the strategic responses listed above.

Why are the proposed solutions the best way to respond to the problem and deliver the expected benefits?

Can the solutions be delivered (i.e. costs, risks, timeframes, governance etc)?
Section Two (to be completed jointly by TEI and TEC after sending Section One to
the TEC)
Scale and risk
Scalability matrix category agreed in terms of
risk2 and scale3?
Low risk –
Low risk –
High risk –
High risk – large
small scale
large scale
small scale
scale
Programme or project?
Investment Logic Mapping required?
Yes or No
Proposed level and effort of analysis (depending on the scale and risk)for business case development
Type of business case
Single-Stage –
Single-Stage –
light
full
Two-stage
Other (please
indicate)
2 This is informed by a SSC Gateway Risk Profile Assessment self assessment, available at
http://www.ssc.govt.nz/gateway-rpa-agency-responsibilities .
3 The scale should be expressed as an estimated range of whole of life costs (WOLC) as defined in Cabinet Office
circular CO(10)2 Capital Asset Management: Expectations, available from the Cabinet Office web-site at
http://www.dpmc.govt.nz/cabinet/index.htm
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Proposed scope of analysis, to support the
evidence required against the Key Review
Criteria (see Appendix A for example for a
single-stage business case)?
Proposed methodological approach to options
analysis? (full, moderate or light as per
Appendix B)
Agreed amount of effort and cost for business
case development
Proposed level and effort of business case assurance and assessment
Level of Quality Assurance
Agreed level:
Gateway Review, for high risk projects
Yes or No
How will the TEI and the TEC engage during
the development process? Include a proposed
timetable with key milestone dates.
Agreed amount of effort and cost for business
case assurance and assessment
Decision maker
Who will make the decision?
When will the decision be made?
Fit with budget/funding process?
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Appendix A: High-Level Assessment Criteria (single -stage)
SINGLE STAGE BUSINESS
CASE
Examples of main evidence
required
Comments
Key review criteria by case4
Strategic Case
1. Is the proposed project an integral
part of the institution’s business


strategy?
2. Is the proposed investment

Extracts from business and
other relevant strategies
Reference to relevant
government (i.e. Tertiary
Education Strategy) and
organisational policies
Relevant extracts from
business and other strategies
sufficiently large and stand alone
to form a project or could it be

Reference to scoping
documentation

SMART spending objectives
- specific
- measurable
- achievable
- relevant
- timely
Evidence of stakeholder and
customer involvement and
support
Clear statement of business
outcomes and service outputs
Statement of any security and
confidentiality issues
more sensibly undertaken as part
of another programme or project?
3. Are the investment objectives and
underpinning business needs
defined clearly and supported by
the key stakeholders and

customers?
4. Is the scope for potential change
to current services and business


processes clearly defined?
5. Have the main benefits been
clearly defined by key


stakeholders and customers,
alongside arrangements for their
realisation?


6. Have the main risks been
identified, alongside
arrangements for their
management and control?
7. Have the key organisational
constraints and business
dependencies been identified?







Outline of benefits realisation
plan
Direct and indirect to the
organisation and wider public
sector
Cash ($) and non-cashreleasing
Ranking of benefits by key
stakeholder
Outline of risk management
strategy
Business risks
Service risks
Likely probabilities and impact
(high, medium, low)
Evidence of critical path
Related programmes and
projects
Assessment of internal and
external constraints
Economic Case
8. Have the critical success factors
(CSFs) for options appraisal been
identified?
4


Prioritised CSFs (high,
medium, low)
Relevant performance
measures
Source: HM Treasury business case guidance (UK)
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9. Has a sufficiently wide range of
options been identified and
assessed within the long -list?
10. Has a preferred way forward been




identified following robust
analysis of the available options?
11. Does the preferred option

represent best value for money or
the most economically
advantageous offer?



Use of any feasibility study
10 to 12 main options – full
description
Use of the options framework
- for business scope
- for potential solutions
- for service delivery
- for implementation
- for funding.
SWOT analysis of options
against:
- spending objectives
- critical success factors
- benefits criteria
- evidence of likely support
from key stakeholders
Rigorous use of investment
appraisal tools and
techniques
All assumptions recorded
Achievable benefits streams
Stakeholders and customers
support
Commercial Case
12. Has the procurement strategy for

Consideration of procurement
options

Potential for innovation within
the provision of services and
solutions
Potential for risk transfer
Potential for new business
and alternative revenue
streams
Likely contract length
Consideration of
- core, desirable and
optional services
- delivery time-scales
(phased improvements
etc.)
- potential payment
mechanisms
- ownership of residual
assets
- service levels and
performance measures
Change management plans
Proposed mechanisms and
milestones
Assessment of personnel
implications
Market research and surveys
Use of standard contractual
terms and conditions
Benchmarks – similar projects
the successful delivery of the
required services been
considered and prepared in
sufficient detail?
13. Is there sufficient scope for a
potential deal, which will meet
organisational needs whilst
offering best value for money?
14. Has the potential deal been




considered in sufficient detail?
The how rather than what.
15. Is there a clear understanding of
the business change agenda?



16. Is the potential deal still likely to
be acceptable and bankable
within the private sector?



Financial Case
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17. Is the solution still likely to be

Financial appraisals for
preferred option, including full
assessment:
- capital and current
requirements
- net effective on prices
- balance sheet impact
- income and expenditure
account
- stakeholder and customers
agreement

Programme Methodology
(e.g. MSP)
Project methodology (e.g.
PRINCE2)
- project board/committee
and structure
- project manager and team
- project plan
- project resources and
budget
- reporting mechanisms
Use of external advisers
- legal
- financial
- other
Outline arrangements for:
- benefits study and
realisation plan
- risk management strategy
and plan
- change management
strategy and plan
- contract management
Arrangements for evaluation:
- peer reviews
- gateway reviews (if
required)
- project implementation
reviews
- post-evaluation reviews
Contingency plans
affordable?
Management Case
18. Are all the necessary
arrangements in place for the

successful completion of the next
phase?




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Appendix B: Proposed methodological approach to options analysis
(full/moderate/light)
Standard
Full cost-benefit analysis
(CBA)/multi-criteria
analysis (MCA)
Moderate cost-benefit
analysis (CBA)/multicriteria analysis (MCA)
Light cost-benefit
analysis (CBA)/multicriteria analysis (MCA)
Model
National Economy CBA
Financial Analysis (CBA
Primer – see Treasury
website)
Financial Analysis (CBA
Primer – see Treasury
website)
Scope
National economy
Institution and selected
sectors (i.e. health, local
economy etc)
Institution only
All resource flows, including
non-monetary costs and
benefits
All resource flows that can
be expressed in monetary
terms.
All resource flows that can
be expressed in monetary
terms.
Non-monetary
benefits and
costs
MCA of intangibles
MCA of intangibles
Ranking of intangibles (if
any)
Uncertainty
Quantitative risk analysis
Sensitivity testing of key
drivers
Sensitivity testing of key
drivers
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