Guide to developing the Project Business Case
GUIDE TO DEVELOPING THE PROJECT BUSINESS CASE
BETTER BUSINESS CASES:
for better outcomes
2018
? Crown copyright 2018
This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives. gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives..uk.
Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.
This publication is available at .uk/government/publications
Any enquiries regarding this publication should be sent to us at public.enquiries@hmtreasury..uk
ISBN 978-1-5286-0460-4 CCS0518648068-1 PU2145
GUIDE TO DEVELOPING THE PROJECT BUSINESS CASE
BETTER BUSINESS CASES:
for better outcomes
2018
Contents
Forewordv
Editors' Note
vii
Chapter 1. Introduction1
What is a project?
1
How does a project align with the strategic planning process?
1
What is the importance of the Project Business Case using the Five Case Model? 2
What are the advantages of the Project Business Case?
3
When should the Project Business Case be developed?
3
What is Project Assurance?
4
Chapter 2. An Overview of the Five Case Model
7
Introduction7
The Strategic Case
7
The Economic Case
8
The Commercial Case
9
The Financial Case
9
The Management Case
10
Chapter 3. The Business Case Development Process
11
Introduction11
The Business Case Development Framework
11
Determining the strategic context and undertaking the Strategic Assessment 12
Stage 1 ? Scoping the scheme and preparing the Strategic Outline Case (SOC) 13
Stage 2 ? Planning the scheme and preparing the Outline Business Case (OBC) 13
Stage 3 ? Procuring the solution and preparing the Full Business Case (FBC) 14
Implementation and monitoring
15
Evaluation and feedback
15
Other interested parties
15
Smaller Schemes and the Business Justification Case (BJC)
16
Responsibility for producing the business case
16
Business Case template
16
Chapter 4. Determining the Strategic Context and undertaking the Strategic
Assessment17
Introduction17
Step 1: Determining the Strategic Context
17
Chapter 5. Scoping the proposal and preparing the Strategic Outline Case (SOC) 19
Introduction19
Step 2: Making the case for change
19
Action 2: Agree strategic context
19
Organisation Overview
19
Alignment to existing policies and strategies
20
Action 3: Determine spending objectives, existing arrangements and business
needs20
Guide to developing the Project Business Case
i
Contents
Determining spending objectives
21
Determining existing arrangements
22
Identifying business needs
22
Action 4: Determine potential business scope and key service requirements 22
Action 5: Determine benefits, risks, constraints and dependencies
23
Identifying the main benefits
23
Identify the main risks
24
Identify the constraints
25
Identifying the dependencies
25
Workshop 1 ? Case for Change
26
Step 3: Exploring the preferred way forward
27
Action 6: Agree critical success factors for the project
27
Action 7: Determine the long-list options and undertake SWOT analysis
28
Identifying options
28
The Options Framework
29
Using the Options Framework to identify the long-list
30
Drafting the long-list
35
Action 8: Recommend a preferred way forward
35
Drafting the short-list
36
Workshop 2 ? Identifying and assessing the options
39
Referencing the Commercial, Financial and Management Cases
40
Chapter 6. Planning the scheme and preparing the Outline Business Case (OBC) 43
Introduction43
Step 4: Determining potential Value for Money (VfM)
43
Action 9 ? Revisit the SOC and determine the short-list
43
Action 10 ? Prepare the economic appraisals for shortlisted options
44
Action 11 ? Undertake benefits appraisal
51
Action 12 ? Undertake risk appraisal
52
Action 13 ? Select preferred option and undertake sensitivity analysis
57
Workshop 3 ? Assessing the Short-listed Options
60
Step 5: Preparing for the potential Deal
61
Action 14: Determine procurement strategy
61
Action 15: Determine service streams and required outputs
62
Action 16: Outline potential risk apportionment
63
Action 17: Outline potential payment mechanisms
64
Action 18: Ascertain contractual issues and accountancy treatment
66
Workshop 4 ? Developing the Deals
67
Step 6: Ascertaining affordability and funding requirement
68
Step 7: Planning for successful delivery
75
Action 20: Plan project management ? strategy, framework and plans
75
Action 21: Plan change management ? strategy, framework and outline plans 77
Action 22: Plan benefits realisation ? strategy, framework and outline plans 78
Action 23: Plan risk management ? strategy, framework and outline plans
79
Action 24: Plan project assurance and Post-Project Evaluation ? strategy,
framework and plans
81
Workshop 5 ? Successful Delivery Arrangements
82
Chapter 7. Procuring the proposal and preparing the Full Business Case (FBC) 85
Introduction85
Step 8: Procuring the VfM solution
85
Action 25: Revisit the case for change
85
Action 26: Revisit the OBC options
86
ii
Guide to developing the Project Business Case
Contents
Action 27: Detail the procurement process and the evaluation of Best And Final
Offers (BAFOs)
87
Step 9: Contracting for the Deal
88
Action 28: Set out the negotiated Deal and contractual arrangements
88
Action 29: set out the financial implications of the Deal
89
Step 10: Ensuring successful delivery
90
Action 30: Finalise project management arrangements and plans
90
Action 31: Finalise change management arrangements and plans
90
Action 32: Finalise benefits realisation arrangements and plans
91
Action 33: Finalise risk management arrangements and plans
91
Action 34: Finalise contract management arrangements and plans
92
Action 35: Finalise Post-Project Evaluation arrangements and plans
92
Chapter 8. Reviewing the Business Case: SOC, OBC and FBC
95
Introduction95
The Strategic Outline Case
95
The Full Business Case
99
Annex A: Case Study showing the relationship between strategy, programme and project103
Annex B: Overview of how to develop the Project Business Case
105
Annex C: Project scoping document
107
Annex D: Overview of steps and actions for the preparation of Project Business Cases111
Glossary113
The Author:
116
The Editor:
116
Bibliography117
Guide to developing the Project Business Case
iii
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.
Related searches
- project management business case example
- project management business case temp
- project business case example
- project business case example pdf
- project business case pdf
- project business case template
- developing a business case pdf
- project business case template excel
- it project business case template
- project business case template word
- project business case examples
- developing a business case template