What is a Business Case? The Business Case is a one-off, start-up document used by senior management to assess the justification of a proposed project, or to assess the options for a project that has already received funding. If approved, it confirms senior management support and/or resourcing for a recommended course of action (option). Why would you develop a Business Case? A Business Case is developed to: gain approval to proceed with a project; obtain resourcing for a project through internal departmental processes; or where resourcing is already available, to document what the project will accomplish for the funding and how (gain agreement on the project scope). The document enables those approving the resources to analyse the rationale for the project by assessing the economics and impact of the project and comparing these against other factors, such as the major risks and the prevailing political environment. Where an Agency, Division or Business Unit has a number of project initiatives, the Business Case can be used as a tool to prioritise the various initiatives. When would you develop a Business Case? Approval to develop a Business Case is usually obtained from the Project Sponsor or Proposer. This may be as a result of acceptance or approval of a preceding stage such as a Corporate Plan for a Department, a Business Plan for a Business Unit, or a Project Proposal. The Business Case expands the proposals developed in these documents in order to: obtain approval for resourcing for the preferred option; attain agreement on the scope of the project; and gain authorisation to proceed to the next step of the project (usually the Project Business Plan). Alternately, direction may be given by the proposer of a project to proceed directly to the development of a Project Business Plan. This may cause problems if the scope has not been agreed or if there has been no assessment whether the resources are sufficient for the scope. Integration Process This document is a one-off start-up document. It will not be updated and/or revised as the project progresses. Relevant sections of the Project Business Case may be integrated into any subsequent project management documentation should the project proceed. What you need before you start: Agreement to proceed with the development of the Business Case from the Project Sponsor or Proposer. Agreement establishing the scope of the Business Case. Knowledge and understanding of the development of a Business Case, as outlined in the Tasmanian Government Project Management Guidelines. Also advisable: Any of the following documents – Project Proposal Strategic Information Systems Plan Process Review Report Feasibility study
Quality Consultants. Quality Management Briefly describe the approach to quality management, which may include: methodologies and standards; change, issue, and problem management; and review and acceptance procedures. Organisational Impact How will the work undertaken during the project impact on the organisation and how will these impacts be addressed. Outcome Realisation Outcome Realisation refers to the management of the utilisation of outputs to meet the target outcomes, and bring about longer term benefits. Outline how outputs will be managed once they are delivered, and who will be accountable. This may change throughout as the project evolves, and will be detailed in a standalone Outcome Realisation Plan (see template and guide at ). Post Project Review Briefly describe the approach to capturing the lessons learnt throughout the project and what review will be done to assess whether the initiative delivered the intended benefits. Appendices Appendices can help the document flow better, especially during the analysis and justification sections (i.e. during the “argument” parts) by extracting information out of the body of the document for reference. For example, the following may be useful: A detailed cost/benefit/risk analysis for each option (only if required) A risk analysis plan.