Little Louie’s Blog

Bank vault smallThe Business Case does more than Just Unlock Capital Funding

The business case is a decision-making tool and a call to action!

A business case is a compelling argument that informs and seeks a decision from a decision-maker to take some form of action.

A decision-maker should expect that a good business case:

  1. Provides business assurance – ie are we are doing the right things? There should be a compelling case for change. I need to know all feasible options have been identified, robustly appraised and that the recommended solution optimises value for me and my stakeholders.
  2. Provides delivery assurance – ie can we do the right things well? For the preferred solution, the case needs to convince me that the planning for successful delivery is well-developed and the risks to meeting my objectives will be well-managed.
  3. Provides financial assurance – ie can we afford it? I need to know if the preferred solution is affordable, where the funding gaps are and any commitments from funders to fill these gaps.

My business case:

  • doesn’t have to be about capital funding. The decision could be to deliver a new service by reallocating existing operating funding, voluntary labour or natural resources.
  • doesn’t have to be about funding change. It could be to seek approval to continue what we are doing currently.
  • does need to be fit for purpose for the decision being sought. The decision usually involves trade-offs between competing choices. If these choices are relatively simple, the risks are low and/or the scale of the investment is small, then the amount of analytical effort should be scaled appropriately.

Better Business Cases is a flexible business case development process that enables us to better inform a wide range of investment decisions by providing assurance to support better decisions and better delivery. It provides us with a systematic framework based around asking and answering five key questions:

  1. Is there a compelling case for change from the status quo?
  2. What is the preferred solution that optimises value (for money)?
  3. Is the preferred solution attractive to suppliers (and to us)?
  4. Is the preferred solution affordable? From either our own resources or from other investors?
  5. Is the preferred solution achievable? Can we successfully deliver the preferred solution to achieve our objectives?

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