A robust business case is central to achieving investible projects and goes a long way to ensuring the right outcomes are achieved. Essentially, it’s about whether the figures stack up. Is the scheme good value when all the benefits are taken into account, or would it be better to invest in something else?
All organisations and their stakeholders operate in a complex, interdependent network of environmental factors. Social, economic, political, regulatory, environmental and technological uncertainties all pose risks and offer opportunities for organisations’ ability to realise their core purpose and apply their capabilities.
An objective, robust optioneering and appraisal process goes a long way towards delivering effective infrastructure and securing investment.
Improve project performance
Freed from short-term operational concerns, the business case process can take a holistic view of your organisation’s objectives and any external pressures affecting it, ensuring the chosen solution achieves the desired outcomes.
Far from merely providing ‘concrete and steel’, all organisations involved in delivering infrastructure can have a significant role in creating a future society that is prosperous, equitable and sustainable.
Unlock development by capturing the big picture
The business case process is at the heart of appraising a proposed solution against alternatives and the ‘do nothing’ scenario. To accurately assess the costs and benefits of a scheme, a broad, multicriteria picture must be created of the economic, social and environmental impacts of each option.
Considering a broader set of measures in the cost-benefit analysis than just the immediate utility of new infrastructure tends to unearth some previously unlikely options. Analysis of all outcomes and how they are distributed can reveal an outsized positive or negative effect of an intervention on some sub-groups or regions, for example, while the social outcomes can be monetised using standard guidance to provide a transparent but exhaustive measure of true impact.
Five case model
Business cases are typically structured around the iterative ‘five-case model’, with appropriate detail applied to each case as the scheme proposal develops.
The strategic case
What are the project objectives set by its sponsors and funders and the stakeholders they serve?
The economic case
Do the costs and benefits of a proposed solution provide good public value compared with other options, including ‘do nothing’?
The commercial case
Will the procurement and charging mechanisms of the proposed solution result in a viable, well-structured deal?
The financial case
Does projected life-time expenditure on the preferred option and the revenue it will generate offer a fundable, affordable deal?
The management case
Is the programme deliverable in a manner that will meet the objectives of all stakeholders?
See our business case brochure for more information: