Version 1
Issued: 14 September 2015
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Business Case Template
This document provides a template for an Outline Business Case (OBC) in
support of Alternative Delivery model for Buidling Control. This is an iterative
process and the whole review process should be seen as an on-going
exercise, as the environmental and organisational circumstances can change
at any time, so if a business case for change is not viable at this point, it
should be considered again in the future.
Local authorities using the same structure and evaluation methodology
provides a valuable opportunity at a relatively early stage to assess the
synergies and similarities between authorities considering new models of
delivery. If at this stage there are clear differences then it allows at an early
stage to look at alternative solutions or partners.
The template below can be used in line with OBC guidance document, in
particular the ‘Developing your Outline Business Case’ section. Links to areas
of the document relevant for populating sections of the OBC are contained in
the Template.
[insert authority name/s]
Outline Business Case (OBC) for [insert description of
preferred model]
Executive Summary [see pages X-X]
The Executive summary needs to provide a short overview of the key aspects
of the business case without going into the detail and should include:
1. Introduction and background (context and why change is needed)
2. Vision, Priorities and Drivers (the case for change)
3. Options appraisal (options considered including ‘do nothing’)
4. Preferred option
5. Financial analysis
6. Recommendation
Stage 1: Vision [see pages X-X]
The vision helps to create the buy-in for the change and the ‘Why’ i.e. the
reasons and impact for the change and ‘knowing what you ultimately look to
achieve’ to inform the shape of the Target Operating model and should
include:
1. Overall aims and priorities [see pages X-X]
2. Council/s strategies [see pages X-X]
3. Key Drivers/ Benefits [see pages X-X]
4. Risks, Issues, Benefits and Opportunities [see pages X-X] and Tools
(SWOT, PESTLE) [see pages X-X]
5. Having identified the council strategic priorities/factors these should be
evaluated as to the level of importance to assist in identifying what is
most importance to the organisation e.g. scale 1-5 [see pages X-X and
section 3 of the ‘Generic Business Case’, Detailed results of CEO
Questionnaire]
6. Supporting Tools [see pages X-X]

(SWOT) Strengths, Weaknesses, Opportunities, Threats [see pages XX]
https://app.box.com/OBCGuidance

(PESTLE) Political, Economic, Sociocultural, Technology, Legal,
Environmental [see pages X-X]
https://app.box.com/OBCGuidance
Stage 2: Options Appraisal [see pages X-X]
Considers and provides analysis against a variety of options to deliver the
strategic vision for the service against the existing provision.
It should be noted that multiple versions of the analysis can also be created
(for instance an exercise undertaken by a single council and another in
partnership with a second council) the whole review process should be seen
as an on-going exercise, as the environment (stage 1) and organisational
circumstances can change at any time, so if a business case for change is not
viable at this point, it should be considered again in the future.
The section should include:
1. The results from the options appraisal exercise should be expanded to
explain why the highest scoring options have been provided have ranked
so highly against the criteria
Against the Strategic Priorities (n.b. it may be that your authority has
additional specific priorities that should be created) create the matrix for
the alternative delivery models (‘Alternative Delivery Models’ Section 5
[see pages X-X]).
Collate the pros and cons for each model options against the Strategic
Priorities [see pages X-X].
Supporting Tools

Options Appraisal Criteria for Alternative Delivery Models
https://app.box.com/OBCGuidance
2. For each Strategic Priority/driver consider and evaluate the pros and cons
associated with each delivery option and score 0-3 (0 = does not meet
criteria – 3 = exceeds criteria) [see pages X-X].
Calculate the score: ‘the scored importance of the priority/factor’ X
‘meeting the criteria.
Supporting Tools

Options Appraisal Matrix (OAM) Tool
https://app.box.com/OBCGuidance
Stage 3: Preferred Option [see pages X-X]
Developing the preferred option should be based on a set of ‘organisational
design principles’ and needs to consider:

the drivers [see pages X-X] of the organisation

where appropriate best practices from previous organisation(s) worked
well in the previous councils [see pages X-X]

Citizen expectation has been considered

the skills and talents of the organisation required for the future.
The preferred option stage sections should include:
1. Staffing and roles required (e.g.
Administrative etc) [see pages X-X]
Management,
Professional,
2. Support services (e.g. HR, Payroll, Finance and Legal support) [see
pages X-X]
3. ICT Requirements [see pages X-X]
4. Accommodation [see pages X-X]
5. Organisation structure [see pages X-X]
6. Governance [see pages X-X]
Stage 4: Financial Analysis [see pages X-X]
The process of estimating cost versus benefit is not always as simple as it
sounds. There are a number of assumptions that have to be made. For
instance the preferred option may require purchase of ICT for a mobile
platform, however, this may be something that would be required for the
current model (if not immediately then within the next 5 years) and therefore
needs to be considered. Costings should be seen as an iterative process,
which is updated as and when more information becomes available.
Stage 4 of the OBC Framework suggests focusing on four key areas:

Costs & Benefits

Charging

Company Costs

Council Costs
Stage 4 are tested against those for Stage 3 to ensure that there is
consistency.
To add to the importance of change, comparative costs and missed
opportunities presented by ‘doing nothing’ and/or making minor revisions to
the current service should be included.
The information should be captured initially in a simple matrix
Cost Benefit Analysis
Current
Years 1-5
Total
Costs – On-going
(Direct Operating, Support Services)
Costs – One-off
(Set-up, Implementation and Transition)
Benefits – Revenue
(Revenue fee income from householders,
other LAs Additional income stream)
Benefits – Cost savings
Benefits – ‘Non monetary’
More comprehensive information on estimating costs is contained in stage 4
of ‘Developing your Outline Business Case’ [see pages X-X].
Supporting Tools

Cost Benefit Analysis Template
https://app.box.com/OBCGuidance
Stage 5: Set-up and Planning [see pages X-X]
In order to enable further work to be undertaken, buy-in to the proposal is
required. Key decision-makers should be assured that the implementation will
be undertaken in a logical and fully-considered manner, following good
practice principles. This section of the OBC will provide the opportunity to give
these assurances.
The checklist should consider:
5.1 Set up [see pages X-X]
It is imperative for the successful planning and implementation of the new
organisation that sufficient resources and expertise are allocated to the
project – internal and or external (which needs to be factored into the set up
costs).
There are a number of key activities that need to be undertaken. A list of
factors that need to be considered and acted upon are listed below:
1. Formation of a Project Team – Explanation of what is required and
who will be doing it.
 Senior Sponsors / Champions of the implementation
 Programme / Project Management (internally or externally
sourced)
 Input from other council functions - Programme of agreed
actions by others and timelines including Finance, Legal, HR,
ICT etc.
2. Creation of Project Working Groups - Example areas might include
those listed in the ‘Planning’ section of this document [see pages X-X].
3. Set up of Programme Board – Comprised of senior decision-makers
of each organisation.
4. Project Partnership Document – When agreement has been reached
a Project Partnership Document (or Terms of Reference) should be
drawn up to cover core aspects of the agreement plus important
operational factors.
5. Agreed Project Set-up costs and sources of funding This
information should also be captured as part of Stage 3 – Financial
Analysis [see pages X-X].
6. Readiness Assessment – Organisations can use the tool to stimulate
discussion about how to be better prepared for change [see Appendix
X].
Supporting Tools

Readiness Matrix
https://app.box.com/OBCGuidance
5.2 Planning [see pages X-X]
Plans and Project Working Groups [see pages X-X]
Whilst an overall project plan is required in order to successfully deliver the
implementation there are a number of additional plans (that need to be
integrated into the overall plan) that are also need to be created and
managed.
These may include amongst others:

ICT Plan

Procurement plan

Communications Plan

Marketing Plan

HR Plan

Accommodation Plan

Business Plan
Supporting Tools

RACI Template
https://app.box.com/OBCGuidance
Risks & Mitigation [see pages X-X]
Aligned to the plans it is important to understand the risks to the successful
completion of the project and assess the likelihood of the risk occurring and
the significance or impact this could have on achieving the desired outcomes.
Risk management is a well established practice and there are a number of
Risk Analysis tools that can assist in:

Evaluating risks

Creating risk responses (e.g. mitigation)

Monitoring risks and

Reporting on risks.
If it is decided to use the tool provided with this guidance, it should be used in
line with the risk management approach of the authority(s).
The outputs of this assessment should be captured here.
Supporting Tools

Risk Matrix
https://app.box.com/OBCGuidance
What activities need to be considered? [see pages X-X]
The approach taken here is to look on a practical basis at what needs to be
considered and actions taken in key areas. These have been captured under
the following headings of:

Governance & Legal [see pages X-X]

Shareholder Agreement [see pages X-X]

Service Contract [see pages X-X]

New partners [see pages X-X]

Exit arrangements [see pages X-X]

Supplier contract arrangements [see pages X-X]

For a wholly owned company (LATC) [see pages X-X]
There are a number of considerations in respect of the business itself:

Business [see pages X-X]

People and Organisation [see pages X-X]

Technical [see pages X-X]

Customers / Stakeholders (external groups) [see pages X-X]
Roadmap [see pages X-X]
A project roadmap is a useful visual tool for communicating the project
ambitions and project goals alongside a timeline to stakeholders. The
roadmap should be developed based on detailed project plans.
The roadmap can be used to:

Simply communicate project plans and goals

Manage stakeholder expectations

Generate a shared understanding across teams involved

Communicate plans with other important teams / organisations
An example roadmap to deliver the implementation of a New Organisation is
provided below: