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Better Business Cases™ (based on The Five Case Model) by Mind Map: Better Business Cases™ (based on The
Five Case Model)
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Better Business Cases™ (based on The Five Case Model)

Better Business Cases™ is a trademark of Her Majesty’s Treasury. Trademarks are properties of the holders, who are not affiliated with mind map author.

Interactive Better Business Cases™ Glossary

Better Business Cases™ - a structured, iterative based business case development process. The primary objective of Better Business Cases™ is to improve decision making through fit for purpose business cases. The Better Business Cases™ can be easily integrated with OGC Gateway™ Reviews. The Better Business Cases™ Programme has been jointly developed by: HM Treasury and Welsh Government.

Large, complex proposals at the project level are developed in 3 iterations through

1. Strategic Outline Case (SOC)

The key purpose of Strategic Outline Case is to:, Establish the strategic context for the spending proposal, Evidence the case for change, Establish the preferred way forward

Provides strategic context and confirms fit

Makes case for change

Refines the long list of options into a shortlist

Identifies preferred way forward

Indicates probable costs, benefits and risks

Outlines delivery arrangements

2. Outline Business Case (OBC)

The key purpose of the Outline Business Case:, Revisit the SOC assumptions and main findings, Establish the preferred option, Put in place the arrangements for the procurement of the scheme

Revisits the case for change

Identifies the option which best optimises balance of public value (cost, benefits and risk) to the UK (NPV)

Confirms procurement strategy, potential deal and affordability

Identifies resources and management arrangements to ensure successful delivery

3. Full Business Case (FBC)

The key purpose of the Full Business Case:, Revisit OBC assumptions and main finding, Evidence that the most economically advantageous tender (MEAT) for the scheme has been accepted, Establish that the management arrangements for successful delivery are in place

building on the OBC, taking the chosen option through procurement, putting in place delivery plans and providing the final detailed costing of the scheme

Confirms public value and that the most economically advantageous offer is being procured

Sets out the commercial and contractual arrangements for the deal

Confirms affordability and the plans for successful delivery

Revisit Economic Case

The Five Case Model (1)

the Strategic Case

Question, Is there a compelling case for change?

Goal, strategic fit and clear investment objectives, there is a compelling case for change

This strategic case requires the spending authority to demonstrate how the spending proposal fits in relation to national, regional and local policies, strategies and plans and furthers the required outcomes.

It also requires the spending authority to demonstrate that the spending proposal has clear and concise spending objectives, which are specific, measurable, achievable, relevant and time constrained (SMART).

Content of the Strategic Case, Strategic Context, Organisational Overview, The Case for Change, Spending Objectives, Existing Arrangements, Business Needs - current and future, Potential Scope, Benefits and Risks, Constraints and Dependencies

the Economic Case

Question, Does the recommended option optimise public value?

Goal, optimising value for money, the way forward optimises value for money

It explains how this is achieved by, identifying and appraising a wide range of realistic and achievable options, known as the “long list”, in terms of how well they meet the spending objectives and critical success factors agreed for the scheme; and subjecting a reduced number of options, known as “the shortlist”, to cost benefit analysis (CBA).

The key to a well scoped and planned scheme is the identification of the right range of options, or choices, in the first instance; because if the wrong options are appraised the scheme will be sub-optimal from the outset.

The “preferred option” is then subjected to sensitivity analysis in order to test its robustness.

The output of the economic case should never be a one number answer; rather it consists of an appraisal summary table which includes the preferred option NPV, risk analysis and sensitivity figures with switching values, a distributional analysis (where relevant), information on qualitative costs and benefits which may be decisive and information of other viable alternative options.

Content of Economic Case, Critical Success Factors (CSFs), Main Options - Long listed Options (10+), Short Listed Options (including do minimum, 3 or 4 is the recommended number), Status quo; do nothing option (unless this is not credible), Economic Appraisals of Costs and Benefits with CBA, Distributional Analysis (where relevant), Optimism Bias adjustment, Risk Assessment, Sensitivity Analysis, The Preferred Option

the Commercial Case

Question, Is the potential Deal achievable and attractive to the market place?

Goal, attractiveness to the market and procurement arrangements, the potential deal with the market is commercially viable

It requires the spending authority to set how the “preferred option” for spend will be procured competitively, in accordance with European Union (EU) and Word Trade Organisation (WTO) rules and the current regulations for the public sector procurements

Requires the spending authority to clearly specify the service requirements for the spending proposal in output terms, together with the anticipated charging regime and the allocation of risk in the each of the design, build, funding and operational (DBFO) phases of the proposed scheme.

Content of Commercial Case, Procurement Strategy, Service Requirements, Charging Mechanism, Risk Transfer, The governing principle is that risk should be allocated to the party best able to manage it, subject to the relative cost., Key Contractual Arrangements, Personnel (TUPE) Implications, TUPE (Transfer of Undertakings (Protection of Employment) Regulations 2006), Accountancy Treatment

the Financial Case

Question, Is the spending proposal affordable?

Goal, affordability, the proposal is affordable

The Financial Case demonstrates that the “preferred option” will result in a fundable and affordable Deal.

This section of the business case requires the spending authority to set out the capital and revenue requirement for the spending proposal over the expected life span of the service, together with an assessment of how the Deal will impact upon the balance sheet, income and expenditure account and pricing (if applicable) of the public sector organisation.

Content of Financial Case, Public Capital and Revenue Requirements, Net Effect on Prices (if applicable), Impact on Balance Sheet, Impact on Income and Expenditure Account (if applicable), Overall Funding and Affordability, Commissioner Support (if applicable)

the Management Case

Question, How will the proposal be delivered successfully?

Goal, deliverability and plans for delivery, the proposal can be delivered successfully

This section of the business case requires the spending authority to set out the capital and revenue requirement for the spending proposal over the expected life span of the service, together with an assessment of how the Deal will impact upon the balance sheet, income and expenditure account and pricing (if applicable) of the public sector organisation.

It also requires the spending authority to specify the arrangements for monitoring during implementation and for post implementation evaluation, as well as for Gateway reviews (if applicable), and the contingency plans for risk management of the scheme.

Content of Management Case, Programme and Project Management Methodology (PPM) and Structure, Programme and Project Management Plans, Use of Specialist Advisers, Change and Contract Management Arrangements, Benefits Realisation, Risk Management, Monitoring during implementation (proportionate), Post Implementation Evaluation Arrangements, e.g., Project Evaluation Review (PER, Post Project Review (PPR), Post Implementation Review (PIR), Contingency Arrangements, Plan B in case it all goes wrong

What is a Better Business Cases™?

BBC is a structured, porocess based way that stakeholders can work and think together to provide a business case, with fit for purpose analysis, which gives confidence to decision makers that investing in a proposed programme or project is justified following the five case model.

A structured way of thinking

A step-by-step approach

A way of working together

A way to bring convergence, coherence and cohesion

A tool of international good practice (UK, Australia, New Zealand)

The primary objective of Better Business Cases (BBC) are to:

improve decision making through fit for purpose business cases.

The secondary objectives of Better Business Cases (BBC) are to:

reduce the costs of developing business cases

make the business case production and review process more efficient

conform with recognised good practice

The supporting principles are:

Quality analysis

Thinking not writing

Fit for purpose effort

No surprises

Governance and ownership

Alignment with other management processes

The Better Business Cases™ accreditation and certification scheme has been developed by the BBC Programme with APMG International.

The scheme and exam are based on the HM Treasury’s “Green Book Guidance on Public Sector Business Cases Using the Five Case Model”.

BBC Benefits

For Organizations, Reduction in unnecessary spending and consultancy costs, A process and guidance designed to optimize value from change initiatives, A clear, proportionate approval process and improved, more informed decision making, Complements existing best practice, Short courses minimize disruption to business as usual

For Individuals, Understanding of an established and proven methodology which can be applied at both strategic (macro) and tactical (micro) levels, Recognized certification for a core business competency for so many in mid and senior management roles

The Business Case Development Process Overview (1)

This development of the 5 case BC has been broken down into 6 stages (from 0 to 5, also called phases) having 10 steps resulting in 35 actions which are both numbered sequentially 1 – 35 (not for each step / stage).

It is iterative - as the business case is developed, it is necessary to review previous steps in order verify the continued applicability of work undertaken in the earlier stages.

The process is also flexible - the quantity and the depth of the work undertaken should be proportionate and tailored to the costs, benefits, risks and other requirements of each particular proposal.

Stages (6) –> Steps (10) –> Actions (35)


Stage 0 (has 1 step), Determining a strategic Policy or Programme which provides the context through preparing the Strategic Outline Programme (SOP), A single SOP may result in multiple sub programmes and / or projects., Step 1 - Ascertain strategic fit (has 1 action), Action 1 - Ascertain strategic fit, Overall synergy and a holistic fit., Strategic Context, Overview of the organisation, Relevant National Policies and Strategies, Relevant Local Business Strategies, Programmes and Operational Plans, Use Investment Logic Mapping (ILM) process with ILM facilitator and the right stakeholders., The Investment Logic Mapping (ILM) approach can help to provide a clear understanding of why an investment is being considered., Investment Logic Mapping (ILM) is part of a suite of tools and practices that support strategy development and planning., The Investment Logic Map (ILM) is developed in a series of two-hour workshops with key stakeholders, including an investor, business and project managers., These workshops enable stakeholders to identify the need for a potential investment, and validate that the potential investment aligns with key organisational outcomes., The process for projects and programmes varies slightly. The output of the first workshop for both projects and programmes is an initial Investment Logic Map (ILM)., One of the useful outputs of the ILM workshops is a graphic representation of the relationship between the problems, and the benefits that are expected if the problems are successfully addressed., The questions that are answered when developing the ILM are:, What is the problem?, What benefits does any investment need to deliver?, What are possible strategic responses to the problem?, The policies, strategies, programmes and projects within an organisation should be in alignment and the ‘critical path’ for deliverables and delivery timescales understood and documented by qualified practitioners using a recognised PPM methodology and best practice tools and techniques., After Step 1 there should be now:, A clear understanding of the strategic context for the spending proposal in terms of how it provides holistic fit and delivers synergy with other components within the programme blue print and implementation strategy., Stage output:, Strategic Outline Programme (SOP), Stage outcome:, ‘Strategic fit‘, Stage review:, OGC Gateway Review™ 0 - strategic fit

Stage 1 (has 2 steps), Scoping the scheme and preparing the Strategic Outline Case (SOC), Step 2 - Make the ‘case for change’ (has 3 actions), Action 2 - Agree strategic context, What are key spending objectives?, Specific, Measurable, Achievable (Attainable), Relevant (Realistic), Time-bound (Time-constrained, Timely, Time-specific), What are current arrangements?, processes, unit costs, etc., What is the problem we’re trying to address?, What is including and what isn’t for the project?, scope, Benefits, key benefits, Risks, key risks, Constraints, key constraints, Dependencies, key dependencies, Action 3 - Determine spending objectives, existing arrangements and business needs, Economy, Reducing cost, Efficiency, Improving throughput / performance and unit cost, Effectiveness, Improving quality outcomes, Re-procurement, Provision of new services, Statutory Compliance, e.g. Health and Safety, EU legislation, environmental, meet policy changes ..., Action 4 - Determine potential business scope and key service requirements, Potential business scope, Scope of the project from the standpoint of the business, in terms of affected business areas, functionality and organisation., Key service requirements, Highlight the required services, which will form the basis of the ‘statement of needs’ (SON) or ‘statement of service requirements’ (SSR) for the project, Potential business scope Matrix, Action 5 - Determine benefits, risks, constraints and dependencies, Benefits and Benefits Criteria, The benefits criteria should be developed by the parties most directly affected by the proposal - usually the main stakeholders and customers (users) of the proposed services., The benefits criteria fall into 4 main categories:, cash releasing benefits (CRB), financial but non-cash releasing benefits (non CRB), quantifiable (or quantitative) (QB), non quantifiable (or qualitative) benefits, Note: cash-releasing and non cash-releasing benefits equate to cashable and non-cashable benefits in MSP® standard, Risks, The main risks associated with the project and the proposed ‘counter measures’ should be identified at this stage., These risks will fall into the following key categories, Constraints, Constraints are externally imposed and must be identified and managed from the outset, such parameters may include acting in accordance with a particular Government policy, directive, initiative or regulation and remaining within a spending or affordability envelope for the scheme., In general constraints schould be very few., Dependencies, Any actions or developments required of others should be considered if the ultimate success of the project is dependent upon them., This could entail the successful delivery of the outputs associated with another project in the overall programme of which the spending is an integral part., After Step 2 there should be now:, Clear SMART spending objectives for the project., A clear understanding of the existing arrangements., A clear exposition of the business needs., A clear understanding of the potential scope for the project and/or procurement., A clear statement of the associated benefits, risks, constraints and dependencies for the project., Step 3 - Exploring the ‘preferred way forward’ (has 3 actions), Action 6 - Agree critical success factors (CSFs), Action 7 - Determine long list options and SWOT analysis, The purpose of this action is to identify as wide a range of options as possible that meet the spending objectives, potential scope and benefits criteria identified in step 2., It also involves looking at the associated strengths, weaknesses, opportunities and threats (SWOT)., The HMT Treasury’s Green Book suggests in the order of a dozen main options in the first instance., This is known as the ‘long list’.,, Best practice suggests that these options should be generated by working parties (brainstorming exercises) comprised of senior managers (business input), stakeholders and customers (user input) and specialists (technical input)., Options framework, The options framework provides a simple and straightforward approach to the identification and assessment of a broad range of relevant options - a.k.a. the long list., The Options Framework systematically analyses 5 categories of choice:, Scoping options, coverage: who, what, where etc., Service Solution options, how: technical, Funding options, how: $/£, Implementation options, when: phasing and time, Service Delivery options, who: provider / supplier, To answer all those questions use an options framework. This will give you the preferred way forward or the preferred option., Preferred Way Forward vs Preferred Option, Preferred Way Forward, Provides management with a recommended direction of travel, following the initial assessment of the long list upon completion of the SOC., Recommended option following analysis., Preferred Option, Is the recommended VFM choice, following the detailed appraisal of the short list upon completion of the OBC., Summary of OBC conclusion., To use the options framework, the following actions should be taken:, Identify the options within the first category of choice, e.g. scope, Assess how well each option meets the evaluation criteria (the spending objectives and CSFs)., Decide whether each option is ‘out’, ‘in’ or a ‘maybe’., OUT = whether it should be discounted (D) immediately, IN = carried forward (CF), either as the preferred choice in the category, MAYBE = possibility for consideration, Consider the options for the delivery of the preferred choice (e.g. scope) in relation to the next category of choice, e.g. service solution, Repeat above the process for all other categories of choice, Action 8 - Recommend a preferred way forward, This action recommends a potential way forward, for the approval of management, based on the appraisal of the main options (long list) for the successful delivery of the proposal., In practice, this will consist of a ‘direction to travel’ for the delivery of the scheme, supported by a limited number of attractive options – known as the ‘short list’ – for further evaluation in the OBC., Short-listed options, These must include:, The “do nothing”, “do minimum” or “status quo”, which provides the benchmark for VFM throughout the appraisal process., The “reference project” (or Outline Public Sector Comparator (PSC), it often referred to within the OBC., Two other realistic options, based on realistic “second choices”., possibly a more or less ambitious version of the reference project., Options framework: short list (example with 4 possible Options), Legend, PWF – Preferred Way Forward, CF – Carried Forward, D – Should be discounted, After Step 3 there should be now:, Clear understanding of the project’s critical success factors (CSFs)., A long list of 10 to 12 options , which have been subjected to SWOT analysis., An emerging preferred way forward., A shortlist of 3 to 4 options with indicative costs, as a minimum requirement, for full evaluation in the OBC., An outline consideration of the financial, commercial and management cases for the project., Stage output:, Strategic Outline Case (SOC) / SOC review criteria, Stage outcome:, ‘Robust case for change‘, Stage review:, OGC Gateway Review™ 1 - business justification or Health Check 1

Stage 2 (has 4 steps), Planning the scheme and preparing the Outline Business Case (OBC), Step 4 - Determining Value for Money (has 5 actions), Action 9 - Revisit SOC and determine short list, including the Reference Project (outline PSC), Action 10 - Prepare the economic appraisals for short-listed options, Action 11 - Undertake benefits appraisal, Action 12 - Undertake risk assessment/appraisal, Action 13 - Select preferred option and undertake sensitivity analysis, After Step 4 there should be now a clear understanding of the preferred option, which is supported and evidenced by:, A revisited and updated OBC long list., A revisited and updated OBC short list., Economic appraisals (NPVs) for the short-listed options – risk adjusted (in monetary value / quantitative) and applying optimism bias., Assessments of both the non-financial risks and benefits., An assessment of the uncertainties (sensitivity analysis)., A detailed description of the preferred option., Step 5 - Preparing for the potential deal (has 5 actions), Action 14 - Determine procurement strategy, Action 15 - Determine service streams and required outputs, Action 16 - Outline potential risk apportionment, Action 17 - Outline potential payment mechanisms, Action 18 - Ascertain contractual issues and accountancy treatment, After Step 5 there should be now:, The procurement strategy, including the proposed procurement methodology and the use of EC/WTO procurement processes., The scope of the potential deal and required services., Implementation timescales for the proposed deal., The supporting payment (or charging) mechanism., The (recognised) contract being proposed for use and key contractual issues, including TUPE (if applicable)., A draft OJEU notice and statement of requirements (to support the above)., Step 6 - Ascertaining affordability and funding requirement (has 1 action), Action 19 - Prepare financial model and financial appraisals, After Step 6 there should be now clear understanding of:, The capital and revenue implications of the preferred option and deal., The impact on the income and expenditure account and the organisation’s charges for services (if applicable)., The impact on the budget, other sources of available funding and any shortfalls., The impact on the balance sheet., There should also be written evidence of commissioner and stakeholder support., Step 7 - Planning for successful delivery (has 5 actions), Action 20 - Plan programme management and project management – strategy, framework and outline plans, Action 21 - Plan change management – strategy, framework and outline plans, Action 22 - Plan benefits realisation – strategy, framework and outline plans, Action 23 - Plan risk management – strategy, framework and outline plans, Action 24 - Plan post project evaluation – strategy, framework and outline plans, After Step 7 there should be now clear understanding of:, The project management arrangements., The change management arrangements., The benefits realisation arrangements, including an attached benefits register., The risk management arrangements, including an attached risk register., The post project evaluation arrangements., Stage output:, Outline Business Case (OBC) / OBC review criteria, Stage outcome:, ‘Planned procurement for VFM solution‘, Stage review:, OGC Gateway Review™ 2 - delivery strategy or Health Check 2

Stage 3 (has 3 steps), Procuring the solution and preparing the Full Business Case (FBC), Step 8 - Procuring the VfM solution (has 3 actions), Action 25 - Revisit the case for change, Action 26 - Revisit the OBC options, including the PSC, Action 27 - Detail procurement process and evaluation of best and final offers (BAFOs) (in £s), After Step 8 there should be now clear understanding of:, Any alterations to the strategic context and the case for change., The entire procurement process and service providers’ offers., How the selection of the preferred service provider was made on the basis of an updated PSC (if applicable) and the spending appraisals, including the benchmark for VFM, using HM Treasury Green Book rules., Step 9 - Contracting for the deal (has 2 actions), Action 28 - Set out the negotiated deal and contractual arrangements, Action 29 - Set out the financial implications of the deal, After Step 9 there should be now clear understanding of:, The financial implications of the proposed deal, both in terms of the organisation’s contractual obligations and associated spend in support of the required services., Step 10 - Ensuring successful delivery (has 6 actions), Action 30 - Finalise project management arrangements and plans, Action 31 - Finalise change management arrangements and plans, Action 32 - Finalise benefits realisation arrangements and plans, Action 33 - Finalise risk management arrangements and plans, Action 34 - Finalise contract management arrangements and plans, Action 35 - Finalise post project evaluation arrangements and plans, After Step 10 there should be now clear understanding of:, How the project will be managed., How change within the organisation will be implemented., How the benefits will be realised., How the business and service risks will be mitigated and managed., How major contract change will be handled over the longer term., How the project will be reviewed periodically., What the contingency plans are in the event of service failure., Stage output:, Full (or Final) Business Case (FBC) / FBC review criteria, Stage outcome:, ‘Recommended service provider and solution‘, Stage review:, OGC Gateway Review™ 3 - investment decision or Health Check 3

Stage 4 (has no steps), Implementation, [stage has no steps and no actions], Stage review:, OGC Gateway Review™ 4 - investment decision or Health Check 4

Stage 5 (has no steps), Evaluation, [stage has no steps and no actions], Stage review:, OGC Gateway Review™ 5 - benefits realisation or Health Check 5

These stages correspond directly to the OGC Gateway Review stages (0 to 5), of which review stages 0 to 3 are the primary focus of the business case development process.

Combining Business Case Process (Stages) and OGC Gateway™ Reviews

OGC Gateway™ Reviews

Independent and impartial reviews at critical phases reporting to SRO

Risk Potential Assessment (RPA) – high, medium and low

External and internal reviewers

Traffic light system (a.k.a. RAG traffic system)

Combining OGC Gateway™ and Business Case Process

Gateway™ Reviews - Traffic light system

Green, Successful delivery of the project to time, cost and quality appears highly likely and there are no major outstanding issues that at this stage appear to threaten delivery significantly.

Amber/Green, Successful delivery appears probable; however, constant attention will be needed to ensure risks do not materialise into major issues threatening delivery.

Amber, Successful delivery appears feasible but significant issues already exist, requiring management attention. These appear resolvable at this stage and if addressed promptly, should not present a cost/schedule overrun.

Amber/Red, Successful delivery of the project is in doubt, with major risks or issues apparent in a number of key areas. Urgent action is needed to ensure these are addressed, and whether resolution is feasible.

Red, Successful delivery of the project appears to be unachievable. There are major issues on project definition, schedule, budget, quality and/or benefits delivery, which at this stage do not appear to be manageable or resolvable. The project may need re-scoping and/or its overall viability reassessed.

This freeware, non-commercial mind map was carefully hand crafted with passion and love for learning and constant improvement as well for promotion the Better Business Cases™ and the 5 Case Model and as a learning tool for candidates wanting to gain Better Business Cases™ qualification. (please share, like and give feedback - your feedback and comments are my main motivation for further elaboration. THX!)

Questions / issues / errors? What do you think about my work? Your comments are highly appreciated. Please don't hesitate to contact me for :-) Mirosław Dąbrowski, Poland/Warsaw.


The Five Case Model Official publications

The Five Case Model - Guidance

The Better Business Cases™ consists of: 1 Model., 5 Case types, 1 Process, 6 Stages, 10 Steps, 35 Actions, 5 Documents

Documents (5)

1. Strategic Outline Programme (SOP)

2. Strategic Outline Case (SOC)

3. Outline Business Case (OBC)

4. Full Business Case (FBC)

5. Business Justification