ANAO - Planning and Approving Projects

Important aspects of the business case

The diagram below indicates aspects of a business case of particular importance for executive involvement.²¹

As indicated in the previous sub-section (page 56), there are strong interdependencies between these aspects. This interdependence means that, to a large extent, the business case needs to be developed as a whole, and that there may be iterative adjustments to the business case as new information or ideas in one area lead to consequential changes in other areas of the business case.

Some examples of such interdependencies are:

mitigation of identified risks is likely to change the scope or requirements statement;
data issues may represent a risk, or require expanded governance arrangements; and
the requirements need to correspond with the quantified costs and benefits.

Diagram of eight aspects of a business case of particular importance for executive involvement,namely: 1 outcomes and cost, 2 project requirements statement, 3 options, 4 risks and assumptions, 5 operational requirements, 6 communication, 7 implementation approach, and 8 project governance and control.

These elements of the business case are discussed in the following sub-sections. A small version of the above diagram, with the current element shown distinctively, is included in the margin of each sub-section as a reminder of the context.

21: This Guide highlights areas for executive attention. The Guide is intended to complement detailed advice on preparation of business cases aimed at action officers, such as the ICT Business Case Guide issued by the Department of Finance and Deregulation. Agencies may use a structure for business cases which varies from that listed here.

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