Appendix E
Template for the Gateway 3 Business Case Process Business Case
Business Case (Gateway 3) Template
Purpose of Document
The purpose of this document is to set out in detail the justification for the undertaking of a project based on the strategic objective, cost of the development and the identified benefits the Client will see post implementation. The business case should clearly say why the effort and time will be worth the investment. It should also provide reassurance that the project will be managed throughout the implementation stage and how the benefits identified will be measured. Provide reference to the approved Project Mandate and Project Proposal documents.
Project Details
| Project Name |
| Project Sponsor |
| Project Manager |
| Proposed Start Date |
| Proposed Completion Date |
Document Control
| Version No. | Date | Details of Change | Authors |
|---|---|---|---|
Executive Summary
The executive summary is a high-level summary of the Business Case. It should include pertinent information to convey to the reader an understanding of the whole document in a clear and concise manner. It may be organised using the Business Case Section headings.
Table of Contents
PURPOSE OF DOCUMENT 229
EXECUTIVE SUMMARY 231
SECTION 1: STRATEGIC CONTEXT: THE CASE FOR CHANGE 231
1.1 Organisational Overview 231
1.2 Project Background / Rationale 231
1.3 The Drivers for Project 231
1.4 Risk and Impacts of Not Continuing with the Project 231
SECTION 2: STRATEGIC CONTEXT: THE SOLUTION 232
2.1 Project Purposes 232
2.1.1 Project Goal 232
2.1.2 Project Objectives 232
2.1.3 Project Outcomes 232
2.2 Project Scope 232
2.3 Critical Success Factors (CSFs) 233
2.4 Strategic Fit 233
2.5 Project Benefits and Benefits Realisation Plan 233
2.5.1 Main Benefits Criteria (if Applicable) 233
2.5.2 Main Project Dis-Benefits 233
2.5.3 Benefit Realisation Register 233
2.6 Costs 234
2.7 Timeline 234
2.8 Project Constraint 234
2.9 Project Dependency 236
2.10 Project Assumptions 236
2.11 Project Risks 237
2.11.3 Risk Register 237
SECTION 3: SUSTAINABILITY IMPACT ANALYSIS 238
3.1 Sustainability Impact 238
3.2 Sustainability Action Plan 238
SECTION 4: OPTIONS APPRAISAL SUMMARY 238
4.1 Summary of Options Considered 239
4.2 Option Evaluation Criteria 239
4.2.1 Cost-Benefit Analysis 240
4.3 Rationale for Preferred Option 240
SECTION 5: IMPLEMENTATION PLAN 240
5.1 Project Governance 240
5.2 Project Management Strategy 240
5.3 Project Milestones Plan 241
5.4 Risk Management Plan 241
5.5 Change Control Strategy 241
5.6 Project Assurance Strategy 241
APPENDIX 241
PROJECT REVIEWER DECISION TO PROCEED 241
The writings in italics are for guidance only and should be deleted once you have completed your form. Further information is available in the associated Business Case guidance document.
Section 1: Strategic Context: The Case for Change
This section describes the current situation and explains the need for the project from the perspective of the sponsoring Department, Service or School.
1.1 Organisational Overview
Please provide an overview of the sponsoring Department, Service or School. The overview should include Strategic Goals and Objectives, Current activities and Services, a high-level organisational structure and key stakeholders and clients. Existing capacity (financial and human resources may be included at discretion.
1.2 Project Background/Rationale
Please describe the background to the project as well explain the current state of affairs including the issues or opportunities which the project seeks to address (Business need). Include any changes since the submission of the Project Proposal (Gateway 2).
1.3 The Drivers for Project
Please identify both internal and external drivers for the project and link them to the business need.
1.4 Risk and Impacts of Not Continuing with the Project
List the consequences of not proceeding with the project .
Section 2: Strategic Context: the Solution
This section explains the nature and purpose of the project and how the project can solve the problems identified in Section 1 of the Business Case. It describes the project deliverables, benefits, alignment with the overall strategic objectives of the Client, costs, risks and other considerations which can affect the successful delivery of the project.
2.1 Project Purposes
The project purposes subsection describes what the project is all about and the expected outcome from the project.
2.1.1 Project Goal
Please provide a simple statement on what the project is about.
2.1.2 Project Objectives
Please break down the project Aim into specific objectives to enable the achievement of the stated Aim. Objectives should be SMART (specific, measurable, achievable, realistic, time-bound).
2.1.3 Project Outcomes
Please describe at a high level the expected project outcome(s). This is not the project output but rather the desired state of affairs, in other words, what the project is intended to achieve. The project outcomes provide a link between the project objectives and the benefit to be derived from the project.
2.2 Project Scope
Please describe the boundary (in-scope, and out-of-scope) of the project. The description should be in terms of identified business needs and any changes since submission of the Project Proposal. This may be considered along a continuum that may include the following:
Table 1 Project scope boundaries.
| Project Boundary | Included | Excluded |
|---|---|---|
| Minimum scope: Essential requirement/project outcomes | ||
| Intermediate scope: Essential and desirable project outcomes | ||
| Maximum scope: Essential, desirable and optional project outcomes |
Consider if there are overlaps with other projects. Further information is provided in the Business Case Guidance document.
2.3 Critical Success Factors (CSFs)
Please list and quantify the CSFs for the project against which the successful delivery of the project will be assessed as well as used in the evaluation of options. Further information is available in the Business Case Guidance document.
2.4 Strategic Fit
Please demonstrate how the project fits within the broader Client strategic context and its contribution towards the achievement of Client priorities by completing the Table below.
Table 2 Project strategic fit.
| Sub-Strategic Priorities | Key Benefits and Measures | Rating | |||
|---|---|---|---|---|---|
| H | M | L | |||
| 1 : 1 | Academic Growth and Diversification: Increase in the number of students’ enrolment in all areas: UG, PGT, PGR and Overseas. | Key benefits | |||
| Key measures | |||||
| 2 : 1 | Education and Student Experience: Programme/courses development with industrial partnership | Key benefits | |||
| Key measures | |||||
| 2 : 2 | Education and Student Experience: Provide opportunity for students to develop as active partners, become self-aware and responsible; provide opportunity for wider learning and contact to students both with peers and internal external facilitators. | Key benefits | |||
| Key measures | |||||
| 2 : 3 | Education and Student Experience: Opportunities to develop students’ graduate skills, attitudes, personal competencies and attributes | Key benefits | |||
| Key measures | |||||
| 3 : 1 | Research and Enterprise: High-quality research with both nationally and international impact; increased research and commercial income | Key benefits | |||
| Key measures | |||||
| 3 : 2 | Research and Enterprise: Development of new and existing institutional and industrial partnerships | Key benefits | |||
| Key measures | |||||
| 4 : 1 | International Priorities: Increase in international students’ enrolment | Key benefits | |||
| Key measures | |||||
| 4 : 2 | International Priorities: Reputational risk management and enhancement of the Client’s international profile | Key benefits | |||
| Key measures | |||||
2.5 Project Benefits and Benefits Realisation Plan
2.5.1 Main Benefits Criteria (if Applicable)
Please describe in detail the main benefits associated with satisfying the scope of the project. Where possible this could be expressed in monetary form but bear in mind that some benefits may be qualitative in nature .
Table 3a Project benefits.
| PROJECT BENEFITS | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Type | Tick as Appropriate | ✓ | Please Explain and Include Value as Applicable | One-Time Value (£) | Annual Value (£) | |||||
| Financial Benefits | A | Cash releasing, e.g. cost avoidance | ||||||||
| B | Non-cash releasing, e.g. staff time saved | |||||||||
| C | New income | |||||||||
| D | Additional income | |||||||||
| Non-Financial Benefit | E | Strategic fit | Cross reference with Section 2.4 to identify the strategic fit. | |||||||
| F | Competitive advantage | |||||||||
| G | Competitive response | |||||||||
| H | Operational improvement/ management | |||||||||
| I | Others, e.g. staff moral | |||||||||
| Risk Avoidance | J | One-time value (£) | Annual value (£) | |||||||
| Additional Information | ||||||||||
2.5.2 Main Project Dis-Benefits
Please describe any dis-benefit associated with the project.
Table 3b Project dis-benefits.
| Description | Stakeholder Group (as Applicable) | How and When |
|---|---|---|
| Dis-benefit 1 | ||
| Dis-benefit 2 | ||
| Dis-benefit 3 |
2.5.3 Benefit Realisation Register
Please complete the project benefits register as an appendix to this document. The register sets out the responsibility for the delivery of benefits, their measurements and time frame for realisation. The benefits register template may be downloaded from here .
2.6 Costs
The costs of the project should be estimated using the standard cost estimation practices. Please indicate the person responsible for estimating the project costs and the standard method used. While a summary of the estimated costs of the project is required to be provided in the main body of the Business case, a detailed breakdown of costs is to be also provided as an appendix to the document .
Table 4 Summary of the estimated project costs.
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Estimated Capital Costs (as Applicable) | |||||
| Hardware | |||||
| Software | |||||
| Others | |||||
| Total | |||||
| Estimated Revenue Costs (as Applicable) | |||||
| Staff costs – external | |||||
| Staff costs – internal (backfill) | |||||
| Maintenance charges | |||||
| Other non-pay costs, e.g. contingencies, inflation costs | |||||
| Total | |||||
Please provide advice on the following:
| |||||
2.7 Timeline
Please provide an overview of the timescale for the project. Highlight deadline dates associated with key milestones.
2.8 Project Constraint
Please provide a summary of the constraints within which the project is expected to be undertaken. Also highlight any changes since the submission of the Project Proposal.
Table 5 Summary of project constraints.
| Project | Brief Description of Constraint |
|---|---|
| Constraint 1 | |
| Constraint 2 | |
| Constraint 3 |
For each of the above, any changes since the submission of the Project Proposal should be highlighted .
2.9 Project Dependency
Please list all project dependencies (if applicable) which need to be managed for the entire duration of the project. Any changes since the submission of the Project Proposal should be highlighted.
Table 6 Summary of project dependencies.
| Project | Type of Dependency | Brief Summary of Linkages |
|---|---|---|
| Project A | Dependent on this project | Requires delivery of output x, y and z from this project |
| Project B | This project depends on B | Requires project B to deliver products a, b and c |
2.10 Project Assumptions
Please list and describe all assumptions, for instance with scope definition, benefit realization and cost, and the potential impact they could have on the project if not addressed. The Table below could be used for the purpose
Table 7 Summary of project assumptions.
| Number | It Is Assumed that: | Effects on Project |
Reliability Level: High/Medium/Low |
|---|---|---|---|
| Assumption 1 | |||
| Assumption 2 | |||
| Assumption 3 |
N.B.: Assumptions, constraints and dependencies are significant sources of risks and issues for any project. It is therefore important that the relationship among them are consistently made clear. The information is both useful in the planning stage of the project and during options analysis. They also have a big impact on benefit realisation if proved to be false or unreliable.
2.11 Project Risks
Risk Identification
Please identify the potential risks to the project and assess them in terms of their probability of occurrence and impact. Consider risk for the entire life cycle of the project including both project delivery risks and project outcomes risks. More information is available in the Business Case guidance document.
Table 7a Risk identification for the project.
| Project Delivery Risk | ||||
|---|---|---|---|---|
| Risks ID | Risks | What Is at Risk |
Source (How Can the Risk Occur) | Impact (What Would Be the Effect of the Risk) |
2.11.2 Risk Assessment
Please assess the identified risk in terms of their impact and probability of occurrence. A risk assessment matrix (RAM) should also be produced to prioritise the identified risks. Based on your assessment, please categorise the assessed risks as minor, medium and/or major.
You may consider producing the table below in a landscape layout.
Table 7b Risk assessment for the project.
| Risks ID | Probability (P) | Impact (I) | Risk Score (PXI) | Risk Category | Tolerance Rating* |
|---|---|---|---|---|---|
2.11.3 Risk Register
Please complete the initial Risk Register as an appendix to this document. The Risk should describe the attributes of each major and medium risks as well as assign responsibility for the management of identified risks. The information in the risk register for each risk should include a risk ID, risk statement, impact/probability rating, risk prioritisation level, mitigation action, risk status and risk owner. A template is provided and can be downloaded from this link.
Section 3: Sustainability Impact Analysis
This section describes the impact the project will have on project stakeholders (including the Client) and on sustainability.
3.1 Sustainability Impact
Sustainability remains the key enabler for the Client Strategic plans. Please use this section to summarise the impact of the project on sustainability under the following sub-headings :
- Financial Sustainability:
- Environmental Sustainability
- Social Sustainability
3.2 Sustainability Action Plan
If applicable please state what actions are being put in place to remove/mitigate any potentially negative impact on sustainability.
Section 4: Options Appraisal Summary
This section assesses the various options that could address the identified business need including the preferred option. The business case is written on the basis that the preferred option is to be adopted.
4.1 Summary of Options Considered
The preferred option for the project is contained within the body of the Business Case. A summary of other options considered are provided below.
Please list and summarise all the options considered to meet the identified business need including the do-nothing option. The do-nothing option should describe what will happen if the project did not go ahead.
For each option identified, please carry out a SWOT analysis of potential options to narrow down your option to three possible options.
| Options | Strengths | Weaknesses | Opportunities | Threats |
|---|---|---|---|---|
| Option 1 | ||||
| Option 2 | ||||
| Option 3 | ||||
| Option 4 | ||||
| Option 5 |
| Summary Option Ranking | |
|---|---|
| Option 1 | Possible |
| Option 2 | Possible |
| Option 3 | Possible |
| Option 4 | Discounted |
| Option 5 | Discounted |
4.2 Option Evaluation Criteria
The Table below is designed to assist in the assessment of the possible options by considering the financial implications and the non-financial contributions of the three possible options identified above. Please complete it and rank your options based on performances on the indicators.
| Financial Appraisal | Option 1 | Option 2 | Option 3 |
|---|---|---|---|
| Financial Appraisal | |||
| Total project cost | |||
| Total additional on-going costs | |||
| Quantifiable cash benefits | |||
| Net Present Value (NPV) | |||
| Non-Financial Appraisal (Critical Success Factors) | |||
| Project outcome/benefit | |||
| Contribution to client KPI | |||
| Increase student numbers | |||
| Improve NSS? | |||
| Improve space utilisation | |||
| Option Ranking | 3rd | 2nd | 1st |
4.2.1 Cost–Benefit Analysis
A further cost–benefit analysis may be conducted at discretion to further assist in the selection of a preferred option. More information is provided in the Business Case guidance document.
4.3 Rationale for Preferred Option
Please explain the reasons for choosing the preferred option as well as for discounting other options. Consider this in the light of the result of the evaluation criteria.
Section 5: Implementation Plan
This section describes the project management methodology and approach to be adopted for the delivery of the project.
5.1 Project Governance
Please summarise the key roles and responsibilities for those involved in the delivering of the project including the reporting arrangement.
Also advise whether a steering committee or Project Board will be required. If applicable please outline what representatives will be required.
Table 9 Summary of project governance.
| Roles | Name of Personnel | Responsibility (What Each Have to Deliver to the Project) |
|---|---|---|
| Steering committee/project board | ||
| Project sponsor | ||
| Project manager | ||
| Project team | ||
| Project management Office |
5.2 Project Management Strategy
Please summarise the project management approach to be adopted to managing the project
5.3 Project Milestones Plan
Please describe the key things that need to be delivered in order to meet identified deadlines. More information is available in the Business Case guidance document.
5.4 Risk Management Plan
Please summarise risk management strategy to be adopted for the entire project duration. The risk register will be useful in this respect.
5.5 Change Control Strategy
Please describe what procedures are to be put in place to manage changes in project requirement otherwise known as scope creep.
5.6 Project Assurance Strategy
Please summarise the mechanisms to be put in place to monitor the performance of the project, for example the schedule of internal and external reviews.
Appendix
Please append supporting documents to the Business Case here.
- Costs and resources template
- Benefit register
- Risk register
- Option evaluation criteria analysis
- Others
Project Reviewer Decision to Proceed
Please select one of the three options below.
| Project name: | ||
| Date of decision | Reference ID |
| Option: Yes to proceed | ||
| Comments: | ||
| Proceed to full definition and Implementation | Yes/No | Date |
| Option: To review and resubmit proposal | |
| Comments: | |
| To be resubmitted to project Board on | Date |
| Option: No project declined |
| Comments: |
| Decision made by (Signatures) |
| Date: |
| Decision made by (Signatures) |
| Date: |