Decision Support

Business cases are used in a variety of settings and industries and for a range of applications. Project proposals, funding submissions, and feasibility plans are all forms of business cases. While there are many other potential examples, it is clear that whether used in the private or public sectors, business cases are an important tool for articulating the impacts of changes, engaging support for change and demonstrating accountability.

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The development and approval of a ‘business case’ is embedded in the practices of business and government alike.  Established project management methodologies include ‘business justification’ at the heart of the project, and while not prescribing in its form, the role is clear, that is to:

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• Demonstrate the need for the project

• Identify the benefits

• Identify the risks

• Identify the costs

• Identify the timeframe

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Business case principles have been broadly adopted as a critical component of an investment lifecycle that provides decision-makers with sufficient information to understand the business objectives and benefits, scope, costs, risks and timing to make a decision on whether to approve the project’s implementation.

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Best practice indicates that a business case should present analysis across a range of domains:

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1. Concept and need (includes identification of problem being resolved and scope)

2. Alignment with mission, purpose and goals (includes conformity with existing policy)

3. Options (and the rationale for choosing the solution proposed)

4. Costs (incl. project & operational requirements)

5. Benefits (financial and non-financial)

6. Expected impacts and outcomes

7. Risks (including how they are likely to affect the investment, and outline strategies for mitigating them)

8. Uncertainty, dependencies, and assumptions

9. Implementation (including readiness for next phase. timelines, resources, the procurement strategy, benefit realisation and governance)

10. Communication strategy

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