Business Case Template
Definition
Business Case Template
A business case template is the standard structure an organisation uses to argue for an investment decision, so that competing proposals can be compared on the same terms. Comparability is the point — a template exists to stop every author inventing their own case.
Without one, approval meetings turn into arguments about format. One proposal quantifies benefits over three years, another over seven, and a third describes them qualitatively — so the committee cannot rank them at all.
Tiering matters as much as content. One template applied to a fifty thousand and a fifty million decision either overburdens the first or underserves the second.
The template fixes the questions and the period. Authors keep discretion over the answers, and reviewers know exactly where to look for the number they need.
Its most useful section is usually the one authors resent. A properly written do-nothing option forces an honest statement of what happens if the money is not spent — and that comparison is what the decision actually rests on.
Key takeaways
- The template’s purpose is comparability between proposals, not thoroughness for its own sake.
- A credible do-nothing option is what makes the preferred option meaningful.
- Benefits need an owner, a measure and a date, or they are assertions.
- Appraisal period and discount treatment must be fixed by the template, not by the author.
How it works
The best-known public structure is the five case model, which asks whether a proposal is strategically needed, economically sound, commercially viable, financially affordable and capable of being delivered. Each case can fail independently.
That independence is the design feature. A proposal can be strategically compelling and commercially undeliverable, and treating the five as one narrative hides exactly that kind of problem.
Optimism bias is why templates ask for ranges rather than point estimates. Costs are routinely understated and benefits overstated at approval, and an explicit adjustment is more honest than a confident single number.
The template should also state what happens after approval. Naming the review points and the benefit measurement dates at the start is what prevents a case from becoming a document nobody revisits.
| Case | Question it answers | Typical evidence |
|---|---|---|
| Strategic | Why do anything at all | Link to stated objectives |
| Economic | Is this the best option | Options appraisal, do-nothing baseline |
| Commercial | Can it be procured | Market engagement, pricing structure |
| Financial | Can it be afforded | Funding source, cash profile |
| Management | Can it be delivered | Plan, governance, benefits tracking |
UK public practice sets the reference. The Treasury’s Green Book publishes guidance on “public sector business cases using the five case model”, alongside templates for projects and programmes.
Procurement rules push the same discipline earlier. The Federal Acquisition Regulation requires agencies to “perform acquisition planning and conduct market research for all acquisitions”, which is the commercial case made before commitment.
Examples
Templates differ in weight rather than in structure, and matching the weight to the decision is what keeps them used. The three below scale from a page to a full submission.
A mid-sized firm uses a two-page template for anything under a threshold. It carries only the do-nothing option, the cost benefit analysis summary and the funding source.
A group evaluating a sourcing arrangement uses the full five cases. The commercial case turns on total contract value outsourcing across the whole term, not the first year’s price.
A technology function ties each case to a tracked benefit. Post-implementation review against the stated outsourcing ROI is scheduled at approval, not agreed later.
Related terms
A business case draws on several disciplines that each supply part of its evidence base. The entries below cover those inputs and the roles that typically produce them for the author.
- Business analyst: usually drafts the options appraisal and the benefits.
- Budget: the constraint the financial case has to work within.
- Milestone based pricing: a commercial structure the case may propose.
- IT project manager: owns the management case and its delivery plan.
FAQ
How long should a business case be?
As long as the decision warrants. A tiered template with a short form below a spend threshold keeps small decisions from consuming disproportionate effort.
What is the do-nothing option for?
It establishes the baseline. Without it, every option looks better than the alternative of not acting, which is rarely true.
Who owns the benefits?
A named business owner, not the project. Benefits assigned to a project disappear when the project closes, which is usually before they are realised.
Should the case be revisited after approval?
Yes, at each major gate and after implementation. A case never revisited teaches the organisation nothing about the quality of its own forecasts.
What makes approvers reject a case?
Unowned benefits, a missing do-nothing option, and optimism that the delivery plan does not support. Format problems are rarely the real reason.
Can it be written by an external adviser?
Drafted, yes. The benefits must still be owned internally, because the organisation is the party that has to deliver them.
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