[Project name] Business Case

PROJECT DETAILS
Project/Programme Name Project Sponsor Project/Programme Manager Start Date Completion Date

DOCUMENT DETAILS
Version Status (Draft or Approved) Date Author/Editor Details of Change

Contents: Project Details ........................................................................................................................................ 1 Document Details................................................................................................................................... 1 Guidance for managers: ......................................................................................................................... 2 1. Executive Summary ............................................................................................................................ 3 2. Purpose .............................................................................................................................................. 3 3. Background ........................................................................................................................................ 3 4. Strategic Case ..................................................................................................................................... 3 5. Economic Case ................................................................................................................................... 3 6. Financial Case ..................................................................................................................................... 4 7. Commercial Case ................................................................................................................................ 4 8. Achievability - Project Management Case ......................................................................................... 5 9. Conclusion .......................................................................................................................................... 5

Business Case [name of project]

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GUIDANCE FOR MANAGERS:

This guidance has been produced to develop a single consistent approach to the preparation of business cases within Facilities and should be used in all future business cases. Non-facilities projects should use the alternative MMU Business Case The business case should comprise of 5 key aspects: 1. Strategic case - what do you want to do & how does your proposal fit with the universities corporate aims & objectives 2. Economic case - what options have you considered, what are the cost implications & which is the recommended option 3. Financial case - how are you going to fund your preferred option? 4. Commercial case - how are you going to procure (or recruit) your preferred option & is there availability out in the marketplace 5. Achievability case - how are you going to manage delivery of the preferred option These elements will help to facilitate management approval and secure financial commitment, by fully justifying the need and demonstrating overall value for money to the University. The business case will also provide a framework for planning and management of the business change, and enable on-going viability to be monitored. The structure and content of the business case is also in line with the Office of Government Commerces guidelines for public sector. Depending on value, business cases will require either a minimal level of content or more detailed content. These thresholds are: Purchase < less than 5,000 Minimal Content Purchase > greater than 5000 Detailed Content Business cases should be set out with the format below, where guidelines have been provided as to the type of information to be included. To further assist, two appendices are attached to this guidance, which provide details of what could be included in the minimum contact and detailed business cases. This information is not prescriptive or exhaustive and some areas may not apply due to the nature of the business case.

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1. EXECUTIVE SUMMARY
Provide summary of the project extracted from completion of the headings below.

2. PURPOSE
Should set out brief summary of purpose of business case. For example the purpose of this business case is to obtain Facilities SMT/Executive approval to proceed with Phase 1 of Project X

3. BACKGROUND
Should set out more detail on what Project X is, the current position, the current problem and why change is needed

4. STRATEGIC CASE
The Strategic Case should explain how the scope of the proposed project fits with MMU strategic aims and objectives, the benefits to be gained and how it supports the case for change. Provide a small explanation of what the purpose of the Strategic Case section is and use the following suggested sub headings to assist in developing this part of the case. Strategic Case Sub Heading Strategic Aims & Objectives Project Contribution to Strategic Aims & Objectives Strategic Benefits Project Aim Stakeholders Project Objectives/Business Need Success Criteria Constraints Information Needed MMUs high level objectives How well the project meets the above objectives What benefits will the project deliver to MMU What has to be done to achieve the above objectives and benefits List who needs to be involved. Add roles and responsibilities under Project Management section later What specifically has to be done to ensure the project is delivered on time, to cost etc. How will the project be judged to be a success Whats going to hinder project delivery? For example, time, not having full picture, clauses in existing agreement What internal/external factors is the project dependant on? For example, changes in business direction on completion of business strategy. Highlight the top 5 risks and complete a risk register as an annex.

Dependencies

Risks

5. ECONOMIC CASE
The Economic Case should describe the options open to MMU to satisfy its requirements and presents an evaluation, both economic and non-financial of the costs and benefits associated to each of those options. This section should also include environmental and sustainability considerations, in order to demonstrate commitment to reducing impact in these areas. It also makes recommendations as to the preferred option for final selection and implementation. Provide a small explanation of what the purpose of the Economic Case section is and use the following suggested sub headings to assist in developing this part of the case.

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Economic Case Sub Headings Long List of Options Benefits Appraisal/SWOT Analysis

Short List of Options Environmental, Sustainability and CSR

Information Needed Show summary of options identified How well does each option meet business need, strategic fit, impact on IT, can be delivered, meet business benefits, addresses risks for example Show advantages/disadvantages/risks of each option To include reasons why they have been short listed Demonstrate how the case will support and add value to these areas from an organisational perspective. To include Discounted Cash Flow(DCF) calculations and Net Present Values(NPV) To include reasons why this option has been chosen

Options Appraisal of Short List Preferred Option

6. FINANCIAL CASE
The Financial Case should describe how the preferred option is to be funded. Provide a small explanation of what the purpose of the Financial Case section is and use the following suggested sub headings to assist in developing this part of the case Financial Case Sub Headings Funding Requirement & Availability Information Needed How much will project cost and does MMU have the money? Need to confirm this with finance when DCFs have been completed Are there any key areas, which if subjected to sensitivity analysis could affect overall NPV for short list of options? What impact will they have on the preferred option NPV? For example consultants costs, space planner costs, my time etc

Key Sensitivities

Costs To Progress To Next Stage

7. COMMERCIAL CASE
The Commercial Case describes the procurement strategy proposed to secure the preferred option. Provide a small explanation of what the purpose of the Commercial Case section is and use the following suggested sub headings to assist in developing this part of the case. Commercial Case Sub Headings Initial Statement of Service Requirements Marketplace Assessment Suggested Procurement Approach Proposed Terms To Be Negotiated Information Needed Provide summary of Output Specification and attach main Output Specification as an Appendix Is the market willing and capable of delivering what is required? Include whether OJEU is needed What terms will we be looking for? For example, Charging Mechanisms, Risk Allocation & Transfer, Contract Length, Flexibility, Key Clauses Impact of project on staff. Discussions held with trade unions

Human Resource Issues

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8. ACHIEVABILITY - PROJECT MANAGEMENT CASE

The Project Management Case should describe the deliverability of the Project. Its primary purpose is to provide details of the project management methodology and approach to be adopted in order to meet the Projects objectives. Provide a small explanation of what the purpose of the Project Management Case section is. Then use the following suggested sub headings Project Management Sub Headings Roles & Responsibilities Information Needed What the Project Board, Investment Decision Maker, Project Owner, Sponsor, Manager have to do to deliver the project What key things do we have to deliver to meet deadline of? What approach is to be taken to managing the project How are risks to be monitored What procedures are to be followed to stop project creep What internal and external reviews will the project be subjected too. For example, Gateway Review. When will this take place? How and when will internal QA Reviews be undertaken by Project and Programme Office Will a Post Project Review be completed and how will this be implemented? If applicable, mention the Internal Audit, which is being carried out, on the project prior to Facilities taking over responsibility.

Project Milestone Plan Project Management Strategy Risk Management Strategy Change Control Assurance Reviews

9. CONCLUSION
Provide an overall recommendation and state what approval is being sought. For example, in this case, approval is sought to proceed and commit funds to the next stage with a further full business case to be submitted for approval before contract let. --------------------------------------------------------------------------------------------For Facilities only: Any queries regarding the content of this guidance, or assistance required with completing a business case should be directed to: Tracey Ganly (Facilities Contract & Budget Performance Manager) t.ganly@mmu.ac.uk Tel: 0161-247-1314

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