The Transport Agency uses a business case approach to guide our planning, investment and project development processes. It is a principles-based approach that clearly links our strategy to outcomes, and defines problems and their consequences thoroughly before solutions are considered. This approach ensures a shared view of problems and benefits early in the transport planning process without requiring that the work has to be done in a particular way.
Early engagement
A business case approach encourages early engagement with stakeholders to confirm:
- fit with strategy and need to invest
- the way forward with short-listed options
- that the best value option is affordable and deliverable and that the risks are acceptable.
New programmes/activities in the 2015–18 National Land Transport Programme are expected to follow the business case approach.
Benefits from using the business case approach
The key benefits for our stakeholders include:
- decision makers – better strategic alignment, value for money and evidence-based assurance
- project managers– early engagement and influence on direction
- business case developers– clear expectations with flexibility and permission to take a risk-based, right-sized approach
- reviewers – early engagement and common language
- stakeholders and public – early engagement and influence on direction
- private sector suppliers– certainty of implementation.
How the business case approach works
A project's business case is built progressively – starting with a strategic case, then a programme business case, progressing to an indicative business case and finally a detailed business case – with decision points along the way that determine whether the investment is worthwhile in relation to the desired outcome. And at every step of the way, there's a strong connection between strategy and outcomes.
Strategic case – sets the strategic context and presents a shared understanding of the scale and significance of problems, the outcomes sought and the benefits desired. This stage is a central pillar to subsequent business case stages and enables the Transport Agency to provide early investment signals to our partners. Investment logic mapping (ILM) is at the heart of this stage.
Programme business case– identifies an optimal mix of alternatives and options, but doesn't look at detailed solutions at this stage. The preferred programme could include a broad mix of activities that might be delivered by multiple parties over a period of time. This business case will receive official Transport Agency support, including assessment of strategic fit. An anticipated effectiveness and efficiency assessment is also undertaken at a programme level.
Indicative business case– further develops specific activities. It provides a long list to short list of options and it recommends a preferred way forward as part of the short-listed alternatives. An indicative business case receives official Transport Agency support, including assessment of strategic fit and effectiveness, with anticipated efficiency assessment.
Detailed business case– confirms an activity that comes from the detailed programme (previously called 'package') of activities and confirms the overall assessment profile. It includes a more detailed reporting of economic, financial and commercial aspects of the activity.
Futher handyHandy tools to help with the business case approach
The BCA strategic options toolkit is a bank of ideas to help programme business case developers explore options to deliver the benefits identified in the strategic case.
A short guide to our business case approach– this is just a new name for the handy guide to our business case approach.
An overview of the business case approach is set out in the Planning & Investment Knowledge Base .