A sound business case forms the basis of effective and quality investment decisions. It provides a framework for structured thinking, robust scoping and realistic planning to validate those decisions. It also ensures clarity and scrutiny.

Declining fiscal space and ever-increasing demand for public services presents a unique challenge for public spending. This requires sharpened prioritisation of spending proposals to ensure it is put to best use, i.e., ‘value for money’. Therefore, business cases are important in terms of helping an authority make a fully informed capital spending decision.

Applying a well-developed process will ensure that a business case is:

  • Rigorous – it supports analysis by verifiable data and evidence based assumptions
  • Broad – it considers a wide range of qualitative and quantitative factors including the overall project rationale, the economic case for investment, and the risks of action versus inaction 
  • Proportionate – the process matches the level of project risk i.e., the need for robust analysis should complement the need for agility and responsiveness

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A business case needs to be a ‘live’ document that explains the following for you:

  • Business need – Where are we now and where do we want to be?
  • Strategic fit – Is the potential project aligned with our wider strategic objectives?
  • Critical success factors – What are the factors critical to achieving our desired outcomes?
  • Delivery option – What are the options available to us? What is our preferred option and why? 
  • Commercial structure – How will we formalise our relationship with various project parties e.g. suppliers, customers etc.? How will we procure the required services
  • Financing – How much capital do we need? How will it be sourced?
  • Affordability – Can we afford this project? Does it represent value for money?
  • Risks – What are the risks involved in undertaking the project? How will we manage them?
  • Management – How will we govern this process? e.g. project milestones, project management, etc.

By answering these questions, the business case will provide you with a shared understanding of what a “good” outcome looks like. It will also keep all the stakeholders coherently focussed in the direction of travel for a project.

Our Offer

We pride ourselves on the quality of our Business Case Development skill that creates success stories. While working with you, we can apply our experience to ensure that you make informed decisions in this challenging environment.

We have worked with various public sector bodies and have extensive experience of developing robust business cases. Using the HM Treasury’s Green Book methodology, we support you in demonstrating and achieving value for money for your strategic capital spending decisions. 

Our team within the Infrastructure Advisory Group brings a variety of skills, experience and expertise needed for Business Case Development. Our board includes economists, accountants, financial modellers, ex-civil servants, ex-bankers, project managers, and asset managers, covering power and utilities, transport and social sectors.

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