In all cases, the business case must be written and approved prior to any major commitment of resources. A business case is the most important document you will ever need to write for a project. But what about the reduced errors, rescheduled appointments and customer contract cancellations? Under the latest procurement rules it is possible to reserve certain contracts for tendering by organisations that meet certain criteria. The 2nd business case example is more business focused. Don’t worry we won’t send you spam or share your email address with anyone. The way in which pension liabilities could be shared between the council and the delivery model must be considered. In fact, it should be as short as possible, and only include the most important information. This is done using a business case. It helps an organisation be clear about why a project is needed, and what the results of the investment will be. For each step, explain how the system responds to … It explains why your organisation will invest time and resources into a project. (e.g. The overarching aim is to demonstrate that these options will be justifiable on the basis of value for money. However, as you have seen in this article, a business case is something which you can find useful when taking major decisions in your own personal life. Blog: 7 Steps to Writing Business Use Cases. We found that councillors were very concerned about this. Explain contingencies for when the goal cannot be achieved. This option carries a degree of risk that the contract may not be awarded to the new delivery model. The project lasts 1 year which is why the project costs are zero after year 1. The purpose of use case diagram is to capture the dynamic aspect of a system. A council may (or may not) feel that an asset lock is required for any new entity. A business case outlines for a decision maker the benefits and business value of a proposed initiative. Choose from a full range of virtual classroom project management courses, a PRINCE2 course, or an agile project management course to boost your career. In particular, it gave finance colleagues in the council confidence that the organisation could survive and thrive as an independent organisation. It includes 2 business case examples and a free business case template for you to download. This site uses cookies to enhance your user experience. This publication is available at In this example, there are 2 options (other than do nothing) which have been examined. An effective Use Case should provide a detailed step-by-step description of how the system will be used by its actors to achieve the planned outcome. do nothing, do something, or do something else – (answers the question ‘What’s the best option?’); The expected benefits – in measurable terms – (answers the question ‘What’s the return?’); Costs – both project and operational - (answers the question ‘How much will it cost?’); Timescales – for the project and for realizing benefits - (answers the question ‘How long will it take?’); Investment appraisal – weigh up costs, times, risks against benefits - (answers the question ‘Is it worth it?’); Major risks - (answers the question ‘What if?’). There are some instances in which the risk of challenge is much lower – for example, where the new delivery model is owned by the council and therefore subject to the Teckal exemption. Typically councils will seek specialist advice on procurement, either from their procurement team or external experts. are the costs and timescales in the project plan correctly reflected in the business case?). Here is a good video from the Yale SOM Consulting Club. Describes the overall deliverability of the preferred option and considers practical aspects such as implementation timescales and pathways. But she doesn't have any user account. Well, these are in fact something else – they’re called outcomes. While staff are employed by the council, this liability remains the responsibility of the council. This should consider aspects such as commissioning arrangements, an assessment of the current marketplace, and how the new service will be planned and managed in accordance with relevant procurement regulations. It’s initiated by an actor, provides value to that actor, and is a goal of the actor working in that system. The name of this role is different across organisations, but commonly this role is known as a project sponsor, or project executive. Nottinghamshire has a committee structure and therefore we had good interaction with councillors. Use the following business case study example and format to create your own. This can be determined through considering the likely costs and benefits of the new delivery model (in terms of both finances and service outcomes). Attend our half-day virtual training on how to write a compelling business case. A+ AIRLINES CASE. In either case, you write a business case to ensure the investment is worthwhile. To download a business case template, click here. Typically, in an organisation this activity is a project. For an organisation to decide if an investment is worthwhile, however, there are several different ways in which it can decide about the investment. The costs of doing the project or activity is the next important bit of information. Think of it as weighing up the pros and cons and then taking a sensible decision. This quickly describes the selected option and the key benefits it will bring. With so many competing claims being made on scarce funds, organisations need the assurance that the decision they are taking is the right one. The commercial case outlines the procurement and contracting implications of the preferred model. Part 2 The investment technique used in this example is called net benefits. It may be a good idea to use a format that has precedence within your local authority. The development of a business case is sometimes (but not always) required by the council. Also be clear about how the council will control the service for example through a contract. A business case may not be required where there is agreement to proceed straight to the business planning phase. For this project, it’s a simple decision for the couple to decide if it’s worth spending money over the next 5 years to give their kids better schooling and to save John 2 hours a day commuting. How to write a business case The purpose of the business case is communication. If the proposal is for library services to be delivered through a new delivery model, several typical procurement routes are available to the council. What you should always remember is that a business case does not have to be a huge long document. Examines some of the technical areas like contracting, procurement rules, state aid issues and other related topics. The tools you use to create one are also many and varied. In the process we ran 2 councillor workshops on the legal form and the contracting arrangements to ensure councillors were able to have cross party involvement. Therefore, a business case gives confidence to senior managers when deciding to invest in one project rather than another. First, the timescale of the project or activity – in this case 3 months to find a new house and move there. By absorbing the meaning of use case diagrams, alternate flows and basic flows, you will be able to apply use cases to your projects. You may also use a business case to justify an investment you make in your personal life. For government organisations, justification is probably not a commercial one, but could be based upon giving value for money to achieve certain benefits. Projects should not just start on a whim or because of vanity – although a lot of money has been wasted over the years on such projects. The potential for any additional traded services should be considered. In this case, the kids will get a better education, and John will save time each day. Lastly, some sensitivity analysis should be undertaken on the financial model. This document covers the business actors (or system), goals, pre-conditions, post-conditions, basic flow, alternate flow, options, exceptions of each and every business flow of the system under requirements. You’ve accepted all cookies. Moreover, it should only contain enough information to help decision making. A business use case is described in technology-free terminology which treats the business process as a black box and describes the business process that is used by its business actors, while an ordinary use case is normally described at the system functionality level and specifies the function or the service that the system provides for the user. Business cases can be used by many different levels of management within an organisation. Suppose you and your spouse are considering moving to a new home. Define what that user wants to do on the site. It’s also important to understand how long the investment of resources will take. It also demonstrated that we were serious about our future and recognised that we would need new skills, particularly financial and commercial skills. You will need to weigh up the pros and cons of moving. It will take only 2 minutes to fill in. At this stage some consideration should be given to what these assets are, as well as: An asset lock is a constitutional provision designed to ensure that the assets of the delivery model (including any profits or other surpluses generated by its activities) are used for the benefit of the community. Don’t spend unnecessary time though adding information which isn’t required. Claim your discount now! In addition to the procurement route, you should also consider a number of other technical areas including: Should the delivery model be awarded the core contract, the arrangement between the delivery model and the council will be formalised in a series of legally binding agreements. This article explains how to write a business case. Susan: She is a publisher who would like to give advertisements online. This shows that the company will start to get a return on its investment sometime towards the end of year 2. The writer (s) should have knowledge and expertise regarding relevant business operations, and must be open to accepting input from other team members and business leaders. For each use case, decide on the normal course of events when that user is using the site. Your project sponsor will have to read your business case before they approve it, and you don’t want to make their job any harder than it already is! 4. You can change your cookie settings at any time. That means that the benefits can be measured later. a project) undertaken by your organisation. It is helpful to consider this from a number of perspectives, including: Whether there is any change to the services the council would consider funding for delivery on an ongoing basis. Use Cases may or may not result in achieving a goal by the ‘Actor/User’ on interactions with the system.In Use Case… The first example is one which you might find useful for taking decisions in your personal life. We’ll send you a link to a feedback form. The expected benefits of reduced overheads are clearly stated. That’s because it justifies the investment. For example, a business case that is being used to justify further exploration of a particular delivery model option might contain fairly high-level information around the likely costs and benefits of any new model. Use Case depends on ‘User Actions’ and ‘Response of System’ to the User Actions.It is the documentation of the ‘Actions’ performed by the Actor/User and the corresponding ‘Behaviour’ of the System to the User ‘Actions’. The 5 year financial model should also consider any planned efficiencies. Does the business case conform to organisational accounting standards (e.g. If you can’t make your case in a page or two, it’s probably not a very good idea. In this tutorial, we will explain in detail how to make use of the Model Transitor function to establish traceability between use cases with business processes. We will look into some specific purpose, which will distinguish it from other four diagrams.Use case diagrams are used to gather the requirements of a system including internal andexterna… Be very clear about the benefits to the council as well as benefits to the service. You can download an example business case template here. Writing a business use case document is pretty simple and this will serve as a checklist to confirm the features of your application. Second, the time over which the benefits shall be realized. A dis-benefit is something which you know will happen because of the project and it has negative consequences for the organisation. the time over which benefits are expected to be realized). Let’s look at an example. After all, there is usually more than one option. They are: The next section covers the seventh stage of the process - developing a business plan. On this project, the costs of moving to a new house will be £5,000. For a project in an organisation, this is usually referred to as the operational costs of maintaining and operating the projects outputs e.g. State aid is any advantage granted by public authorities (including councils) through state resources on a selective basis to any organisations that could potentially distort competition and trade in the European Union. Where possible, you should engage with these stakeholders before the meeting to ensure they have an opportunity to air any concerns or ask any questions. The spare parts required to fix the heater are recorded on a form which is given to staff to process back in the office. The purpose of a business case is to weigh up the costs and benefits of a suggested course of action and thereby present the argument for a new way of delivering library services. project costs and ongoing operational costs) are weighed against the expected benefits over the same time period. We use cookies to collect information about how you use GOV.UK. Here is a sample business use case, Users and their Roles: 1. We use this information to make the website work as well as possible and improve government services. It contains the following core elements: Outlines the overarching strategic context and identifies key drivers for the council considering a library services delivery model. The reasons for the project are clearly spelled out when describing the 3 current problems which the company faces. The development of this model is particularly important for nascent organisations, in order to demonstrate the viability of the proposition. You will already have done a lot of this thinking during the function stage. From developing a case for change and case for externalisation, you will have undertaken some of the thinking required to inform the business case process. You might not call it that, but that’s what it is. Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned. The model will outline anticipated levels of income and expenditure and should calculate profit and loss and cash flow over the 5 year period. Typically, one or two people take on the duty of writing a business case. The benefits of a project or activity are the positive things you’re going to get back in return for your investment of time and money. They should think about state aid early and seek advice to avoid problems and save time. Can you describe the problem that prompted you to seek our services? A business case is owned by the person who is funding the project. Before approving it, they need to have confidence that the problems have been addressed and the right solution has been selected, that the benefits are achievable and realistic, when the investment will pay off, and how big will the return on investment be. The use case description is a written account of the sequence of steps performed by an analyst to accomplish a complete business transaction. Typically the management case would cover the following areas: Likely timescales for establishment of the new organisation, with consideration given to how the different activities relate to each other. We write as if we’re still writing up scientific experiments, starting with the aims and building up to the conclusions. As redundancy costs are in part calculated by the length of continuous service (protected under TUPE), it is essential that the council and delivery model reach agreement in terms of a risk sharing arrangement to cover this liability, should part of it materialise. Figure 3: Use case with Business Rule Statements within Use Case Steps (so business rules are positioned where needed) ... A positive is that we can write use cases (or simulate them using Visualization software) without necessarily knowing all of the business rules up front. The purpose of a business case is simple – it’s used to justify an investment in an activity. The first step to know when you are learning how to write a business case study is to identify the best possible avenue for data. For example, a public health campaign extolling the benefits of flu-vaccinations for elderly people, might be judged as giving greater value for money than having no campaign, and instead relying on treating patients in hospital once they have contracted the virus. 3. The term business case frequently refers to a written document that is submitted for review or presented at a meeting, but can also apply to an informal, spoken proposal. Special offer available on BCS Business Analysis Foundation online course. Again, there are 2 costs – project costs and the ongoing operational costs over the benefits realization timescale. Even when we’ve managed to cut down what we’re saying, many of us still write in the wrong order. We will now give you 2 business case examples. The document may be used within a formal decision-making process to allow the council to agree an intention to further explore, or implement, the new delivery model. In this article we’ll give you 2 business case examples, provide you with a simple business cas… A great way for writing effective use cases is to walk through a sample use case example and watch how it can be leveraged to something complex. Identify the users for each function, and write the steps for the normal course of events. Depending upon its needs, your organisation may have different business case templates, each one used for different scales of projects. This is a structure for a business case that was developed by central government. Please read our cookie policy for more information. This is so that the organisation (or family in this case) knows when the resources will be freed up to work on other projects or activities. These agreements are likely to include the following: Confirming the nature of the services to be delivered over a given period, in addition to the contract fee. Graphically, it is an oval with a name, which looks simple but is yet the most commonly used tool in managing business goals or project goals. The purpose of a business case is to weigh up the costs and benefits of a suggested course of action and thereby present the argument for a new way of delivering library services. Should the intention be to establish a new delivery model, it will be in the position to apply for Admitted Body Status, enabling staff who are members of the LGPS to continue with their pension arrangements. Just as we saw in the previous example, the business case contains 2 timescales – the project timescales (i.e. This is done by exploring the strategic context and drivers for the library service’s delivery model. The needs of users of the library should be considered, as there may be the potential to offer additional services that meet local demand. Does the business case include project costs and risks? Kenworthy (1997) outlines the following steps: 1. As you can see from the example, the first thing to be clear about in a business case is the reason for doing the project or activity. The business options which have been considered, including the base business options of do nothing, so something, or do something else; Investment appraisal (or cost benefit analysis); Executive summary – summarizes the key points; The reasons for the project (answers the question ‘Why are we doing this?’); The options considered - e.g. In fact, there’s two problems here – the local school and John’s long commute. Remember - a business case doesn’t need to be a lengthy document. For any activity or project, it’s also important to understand the major risks involved. To ace your DIY case study, follow these tips: Choose your voice carefully Depending on your brand and the content of the case study, you can write it in either the first or third person. For business organisations, justification for a project usually takes a commercial form i.e. This is a way to consider a range of different scenarios in which growth and costs may be lower or higher than the original model. Each thing the use does on the site becomes a use case. Charities (including charitable community benefit societies) and Community Interest Companies have statutory asset locks. This case is realistic … Where these are unknown, sensible assumptions should be made – these could be tested with the council if necessary. Identifying the assets that will transfer from the council, the terms of use, maintenance responsibilities and duration of agreements. Is it clearly defined what will judged a successful outcome? The rules can be complex and getting it wrong can mean recovery of state aid and suspension or withdrawal of aid schemes. Risks are the uncertain things which may or may not happen during the period of the investment. Aren’t they benefits? This section should be clear as to which costs the council is likely to need to cover, and whether any other funding sources are available. There are usually 2 timescales to consider. Once you have established a format, people will become used to writing in that manner. To help us improve GOV.UK, we’d like to know more about your visit today. At this point, the couple knows the total costs over the timescales when the benefits shall be realized. Perhaps an alternative option would have been for John to change his job to one nearer their current house. Without a rock-solid business case your project is unlikely to get a return on investment. Business Use Case. For the LGPS, the delivery model will be required to agree either an open or closed superannuation rate, while the model will be required to arrange a body or indemnity. When the decision is taken whether to invest in this project, the total costs (i.e. That means, remove any waffle, and only include information which helps decision-making. Registered societies can adopt a voluntary asset lock, but only community benefit societies have the option of adopting a statutory asset lock. Whatever form your business case takes, remember one thing – it will help you or your organisation take sensible decisions about committing time and resources to a project or activity. These are the project costs. Alternatively, if your council follows a project methodology such as PRINCE2, the business case can be developed using that methodology. With this approach there is the potential of challenge from other providers, so the council must agree that it is willing to accept this risk. Alternatively, if you prefer to self-study, choose from a range of project management online courses, including a PRINCE2 online course or an agile project management online course. This example contains an executive summary. A business case is the justification for some activity (e.g. This could take the form of a Cabinet meeting or a group of senior leaders or management colleague. A business case may not be required where there is agreement to proceed straight to the business planning phase. Outcomes are the results of the changes which come about by using the new handheld devices. This section may also consider some technical areas, such as the legal form of the new organisation, its proposed governance structure, the mechanism for contracting services, and transfer of any assets to the new delivery model. Write use cases for all of the other functions of the software or business process. The technical issues that caused us most problems included: Staff transferring from the council to any new entity will have built up redundancy liabilities (note – these liabilities will not materialise unless redundancies are made).