Better Business Cases (BBC) is a systematic way to prepare business cases for programmes or projects.
BBC is structured around the proven Five Case Model. The Five Case Model provides a disciplined, step by step approach that helps to ensure that each of the key aspects of a robust investment proposal is explicitly and systematically addressed as part of the business case development process. The five cases are addressed within the business case development process:
BBC was designed to help mitigate the common reasons why programmes and projects fail being: lack of strategic fit, lack of senior management engagement, lack of stakeholder engagement, focus first on funding then value-for-money, lack of supply side engagement; and lack of a systematic approach to considering investment proposals.
We recommended that senior management engage the key stakeholders (ie, those that are either highly influential in the investment decision and/or highly impacted by the change) to ensure strong strategic fit.
BBC is an iterative development process comprising a number of phases. The level of detail and completeness of each of the five cases are built up at different rates during the process using ten steps.
Each phase supports a key decision point.
Note: the Investment funding line above does not indicate a recommended approach, rather it signals what new funding could be sought from the Crown at each phase of BBC development. If new Crown funding is needed, in the first instance it is recommended that funding be sought using a Detailed Business Case as a supporting document. However if that is not possible (eg, where a guarantee of funding is needed earlier in investment development), agencies may request contingency funding to be set aside.
Agencies are asked to provide either an indicative business case, programme business case, or strategic assessment to support the request for a contingency. They are then asked to later provide a detailed business case to support drawdown of funding.
Alignment with the annual budget process
State sector organisations should note that the primary vehicle for allocating investment funding is the annual budget process. Therefore, any business cases requiring a decision by Cabinet should be completed to coincide with the budget and investment panel process. Please refer below.