Strategic business case template

Strategic business case template

Document title Contact details Approved by Date approved Document review

Strategic business case template Development Strategy, 08 8999 6035, EconomicInnovation.DTBI@.au

TBA Annually

Version Date

1.0

17 July 2019

Author

Changes made First version

Acronyms NT NT Government

Full form Northern Territory Northern Territory Government

Please read in outline view for best navigational experience.

What is a Strategic Business Case?

The Strategic Business Case identifies the strategic need of the proposed project, as considered against the identified objectives and priorities of the NT Government. It includes a high-level analysis of costs and benefits of the options to address the need, including the `business-as-usual' approach, and risk profile of the potential approaches to addressing the strategic need identified.

This template must be completed, submitted, reviewed and approved by the appropriate authorities.

Why use this document?

The guidance in this document aims to clarify the NT Government's expectations for Strategic Business Cases, which aligns to the NTPDF.

Providing a framework for project development assists in:

? the consistent assessment of Business Cases to achieve the best value for Territorians

? reducing the costs and time taken to develop Business Cases, and

? ensuring Business Cases meet NT and Federal Government requirements.

When would you develop a Strategic Business Case?

The Strategic Business Case should be completed very early in the strategic assessment and planning stage of a project. This document is the outcome of Phase 1 of the NTPDF as illustrated in the following diagram.

Strategic business case template

Further help and additional guidance

The NTPDF outlines details on project development in the NT Government. The NTPDF is a tool to guide project development to ensure government facilitated and funded projects are well defined and that government resources are invested in the right projects. Support can be provided at any stage of a project's lifecycle by the Economic Innovation Division of the Department of Trade, Business and Innovation by telephone on (08) 8999 6035 or via email at economicinnnovation.dtbi@.au. The NT Government also encourages users of the NTPDF to leverage the specialist skill sets available across agencies to help validate, check and/or collaborate on a project.

Strategic business case template

Contents

What is a Strategic Business Case? ................................................................................................................................3 Why use this document? ...............................................................................................................................................3 When would you develop a Strategic Business Case? ............................................................................................3 Further help and additional guidance .........................................................................................................................3

1. Executive Summary .......................................................................................................................................................6 1.1. Statement of Need..................................................................................................................................................6 1.2. Project Description .................................................................................................................................................6 1.3. Project Cost Estimate.............................................................................................................................................6 1.4. Budget Impact Summary .......................................................................................................................................6 Project Development Funding (Summary of Section 5)..................................................................................... 6 Indicative Project Costs (Summary of Section 5) ................................................................................................ 7 Staffing Impacts Summary ....................................................................................................................................... 7 1.5. Delivery Model ........................................................................................................................................................7

2. Needs Analysis................................................................................................................................................................7 2.1. What is the Strategic Need? .................................................................................................................................7 2.2. Alignment with Government Priorities...............................................................................................................7 2.3. Stakeholder Input....................................................................................................................................................8

3. Project Outline................................................................................................................................................................8 3.1. Project Description and Level Classification .....................................................................................................8 3.2. Proposed Project Outcomes.................................................................................................................................8 Developing Robust Key Performance Indicators ................................................................................................ 9 Determining Benefit Metrics ................................................................................................................................... 9 3.3. Project Assumptions and Dependencies............................................................................................................9

4. Options Analysis.......................................................................................................................................................... 10 4.1. Base Case............................................................................................................................................................... 10 4.2. Strategic Options Analysis ................................................................................................................................. 10 4.3. Recommended Strategic Option....................................................................................................................... 11 4.4. Project Option Analysis ...................................................................................................................................... 11 4.5. Recommended Project Option .......................................................................................................................... 11 4.6. Scope of Works and Services ............................................................................................................................ 12 4.7. `Out of Scope' Works and Services .................................................................................................................. 12

5. Financial Assessment.................................................................................................................................................. 12 5.1. Preliminary Project Cost Estimate .................................................................................................................... 12 5.2. Preliminary Project Funding Analysis............................................................................................................... 13

6. Public Benefit Assessment ........................................................................................................................................ 13 7. Delivery Model Analysis ............................................................................................................................................ 17

7.1. Outline of Key Project Risks .............................................................................................................................. 17 7.2. Procurement Value Drivers................................................................................................................................ 17

Strategic business case template

7.3. Delivery Model Assessment............................................................................................................................... 17 7.4. Short List of Delivery Models ............................................................................................................................ 18 8. Governance Arrangements ....................................................................................................................................... 18 9. Endorsement & Gate Review.................................................................................................................................... 19 Gate Review .................................................................................................................................................................. 19 10. Next Steps .................................................................................................................................................................. 19 Project Development Funding .................................................................................................................................. 20

Strategic business case template

1. Executive Summary

This section is to give a succinct summary of the strategic business case submission and should only include information contained in the body of this document.

1.1. Statement of Need

Summary of Section 2 (Needs Analysis).

1.2. Project Description

Give a brief description of the proposed project's scope. Based on the project's cost and risk-profile, is this a Level 1, 2 or 3 project? (Further guidance on project classification in the NTPDF and, in this document, Section 3: Project Outline). Briefly describe the core benefits targeted by the project.

1.3. Project Cost Estimate

Summary of Section 5 (Preliminary cost estimate).

1.4. Budget Impact Summary

Project Development Funding (Summary of Section 5)

This section takes into account the cost of investigating options and scoping the project.

Budget Impact

Recurrent Capital Offset savings Revenue Implications

Net Funding Requirements

Current Year $000

Future Years $000

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Strategic business case template

Indicative Project Costs (Summary of Section 5)

Detail the high-level indicative project costs (construction and whole-of-life costs).

Budget Impact

Recurrent Capital Offset savings Revenue Implications

Net Funding Requirements

Current Year $000

Future Years $000

Staffing Impacts Summary

Impact Total Additional FTEs

2018-19

2019-20

2020-21

2021-22

1.5. Delivery Model

Summary of Section 7 (Delivery Model Analysis).

2. Needs Analysis

2.1. What is the Strategic Need?

Address the following:

? What is the problem or opportunity? ? What is the evidence to confirm there is a problem? ? Does the problem need to be addressed now? Evidence provided could draw on experience in other jurisdictions or pilots.

2.2. Alignment with Government Priorities

Address the following:

? How does addressing the need align with strategic objectives and priorities of the NT Government? ? How does addressing the need enhance existing NT Government policies or programs or deliver

new ones? ? Is the proposal associated with/required by the NT Government (i.e. legislation, funding or election

commitment)?

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Strategic business case template

2.3. Stakeholder Input

Address the following:

? What other NT Government agencies are impacted by the proposal? (Note: All relevant agencies should be consulted at this early stage of the project's development)

? What input has been sought from other NT Government agencies?

? What input has been sought from external stakeholders?

3. Project Outline

3.1. Project Description and Level Classification

Provide a brief introduction to the project.

Based on the project's cost and risk profile, is this proposal to be treated as a Level 1, 2 or 3 project?

It is expected that each element, in the NTPDF, will be addressed by each project regardless of the project's Level.

However, the level of detail and supporting documentation should be commensurate with the size and complexity of the project. The NTPDF uses levels to provide additional guidance to users of the NTPDF on the level of detail expected in the development of project business cases.

Level 1:

Territory Government contribution of $30 million and over, or as otherwise determined by government1.

Note: All projects above $50 million are required to be considered for a public-private partnership, in line with the National Public-Private Partnership Guidelines and NT-specific guidance material.

Level 2:

$10 million to $30 million.

Level 3:

$500 000 - $10 million.

3.2. Proposed Project Outcomes

This section should provide an overview of what the project aims to deliver and the impacts of the project on NT Government, business and wider community (as applicable).

At a predetermined review date, an evaluation should be undertaken to assess the actual outcomes of a project against the expected outcomes.

Outcomes/benefits incorporated into a benefits realisation will be:

? monetary/non-monetary

1 Includes cash and non-cash contributions (for example, land) towards and/or associated with the project.

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