Lesson 1, Session 1
In Progress

Overview of a Business Case

Typical Stages of a Project


The key elements of a business case are:

  • The identification, quantification, validation of the opportunities.
  • The financial payback with quantifiable potential benefits and costs of the proposed changes.
  • The assumptions, constraints, risks and timing of cash flows.


This section sets out a more detailed description of the tasks that need to be undertaken to prepare a business case.

  • Identify and confirm the format of the business case with the Business – this includes time frames, the desired level of financial analysis, the required degree of accuracy, any assumptions, presentation, identification of stakeholders, organisation resources.
  • Identify the expectations of management : attitude to hard and soft potential benefits – identify key decision makers, review existing process for project justification, develop straw-man model for business case framework, develop straw-man review and authorisation process, validate the business case approach with the Project Committee.
  • For each project identified in the business case framework, identify the detailed cost profiles and the rules of calculation.
  • Develop a benefit profile for each project (cost focused as well as revenue focused) and the method of calculation – include opportunity description, evidence of validity, assumptions, scenarios, sensitivities, risks, constraints, confirm performance measures and link to benefit areas.
  • Validate the information with the business stakeholders responsible for delivery of the potential benefits, identify preferred scenarios.
  • Create a financial model to consolidate individual project information into a single summary.
  • Specify a potential benefits tracking mechanism to track the costs and potential benefits established in the business case.
  • Present the business case to the Project Committee to ensure agreement of the final presentation.
  • Alter the Business Case to reflect the scenarios agreed upon by the Project Committee.
  • Present the final business case to the Project Committee.
  • Communicate the business case to the organisation.