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Business Case - Detail
Business Cases provide the justification for an investment of public money. Business Cases must be produced for all public sector expenditure, but with levels of effort and detail in proportion with the scale of proposed investment. Business Cases should be seen as ‘living documents’, regularly revised and updated to reflect the latest position. The Business Case in its fullest form has three major iterations as illustrated below, but not all investments will require all three versions prepared separately. For smaller project expenditures, an Outline Business Case (OBC) (which is developed and refined) may fulfil all the requirements necessary for formal approval.
| Case Type | Description | Approvals |
|---|---|---|
| Strategic Outline Case (SOC) | A first cut at describing the proposal in a Business Case format. Some of the NIPG information will not be available at this early stage but as much as is available should be documented. An SOC can be a useful decision making tool in assessing viability and allowing senior managers to prioritise where scarce resources should be directed | There is no formal DFP approval required at SOC stage but it may be useful to give DFP sight of the SOC for information |
| Outline Business Case (OBC) | The OBC represents a substantial piece of work in terms of structure and detail. All of the areas highlighted in the NIGEAE and related DAO letters should be addressed, providing a comprehensive analysis of options and a preferred option identified | If estimated expenditure is above delegated limits, formal DFP approval is required |
| Full Business Case (FBC) | Usually only applies where a contract is involved and short-listed bidder responses are being analysed and documented. This final iteration provides more robust information on objectives, costs, benefits, risks, assumptions and other estimates. The FBC is particularly informed by the outcome of the procurement process. Additional requirements exist for Private Finance Initiative (PFI) or Public Private Partnership (PPP) projects were there is usually a need to include a fully developed Public Sector Comparator (PSC). | If the OBC has been formally approved by DFP, approval of the FBC will normally be required |
Business Case production should be guided by the procedures set out in the organisation. For the NI public sector this is the NIGEA, related Dear Accounting Officer (DAO) letters and best practice in Programme and Project management. For a Programme it provides an aggregation of information from other parts of the Programme and from Project level. For a Project, it may be informed by the Project Brief.
The main roles and responsibilities relevant to PPM business cases are outlined below:
| Role | Description |
|---|---|
| Senior Responsible Owner | Owner, responsible for ensuring that the Business Case is treated as a ‘living document’. Ultimately responsible for ensuring that the project meets its objectives and realises projected benefits |
| Programme or Project Manager | Usually given responsibility for production of the Business Case and co-ordinating relevant business side input |
| Economist | Important in reviewing quality of draft Business Cases before approval. DFP Economists provide expert input on behalf of DFP Supply during the formal approval process |
| Finance Branch | Cases must go through relevant Finance Branch on route to DFP for formal approval with regard to affordability. Also involved in Business Cases requiring lower level approvals |
| DFP Supply | NI Treasury equivalent and formal approvers of all Business Cases exceeding delegated limits |
| Programme or Project Board | Sign off of all Business Cases and approval of internal Business Cases falling below delegated limits |
