What a Business Case must prove
A decision document, not a sales document.
A Business Case is the evidence and reasoning needed to justify a decision. It is not a description of the project you already want to deliver.
A credible Business Case must demonstrate that the proposal:
- Addresses a genuine and strategically important need.
- Offers better value than the available alternatives.
- Can be sourced through a viable commercial arrangement.
- Is affordable and has an agreed source of funding.
- Can be governed, delivered and evaluated successfully.
Strategic case
Is there a compelling case for change?Economic case
Which option offers the best public value?Commercial case
Can the required deal be secured?Financial case
Is the proposal affordable?Management case
Can the proposal be delivered and evaluated?A PRINCE2 Business Case is the management product that records and maintains the project's justification. HM Treasury's Five Case Model is the method used to develop and scrutinise many UK public-sector investment proposals. This resource is a Five Case Model template.
It is aligned with HM Treasury's Five Case Model guidance updated on 30 June 2026. It is not an official HM Treasury template, and your organisation may require additional approvals, evidence or formatting.
Choose the approval stage
The stage changes the evidence and the decision.
The three stages are not different names for the same draft. The evidence, analysis and certainty deepen as the proposal moves towards commitment.
Strategic Outline Case
- Establish the case for change and define SMART objectives.
- Identify business needs and potential scope.
- Generate a broad longlist and produce an initial shortlist.
- Identify the preferred way forward.
- Give an initial view of commercial, financial and delivery arrangements.
Decision normally sought: Approval to accept the case for change and preferred way forward, and to develop the Outline Business Case.
Outline Business Case
- Revalidate the case for change.
- Appraise the shortlisted options in detail.
- Analyse social costs, benefits, risks and uncertainty.
- Identify the preferred option.
- Develop the procurement, financial, governance and delivery arrangements.
Decision normally sought: Approval of the preferred option and authority to proceed to procurement.
Full Business Case
- Confirm that the strategic case remains valid.
- Revisit the preferred option using the procurement results.
- Confirm that the selected offer still represents value for money.
- Finalise commercial, financial and delivery arrangements.
- Confirm governance, benefits, risk and evaluation controls.
Decision normally sought: Approval to commit funding, sign contracts and proceed with delivery.
Copyable Business Case template
Start here. Replace every prompt with verified evidence.
Copy this structure into Word or your organisation's approved template. Retain the headings that your approval route requires, remove every drafting prompt and make the final document specific to the proposal.
Document details
[Insert title]
[Insert organisation]
[SOC, OBC or FBC]
[Insert name and role]
[Insert name and role]
[Insert version and date]
[Insert classification]
[Insert approval date]
Document control
| Version | Date | Author | Change made | Approved by |
|---|---|---|---|---|
| [Version] | [Date] | [Name] | [Describe the change] | [Approver] |
Executive Summary
Write this last. It must allow a senior decision maker to understand the complete argument and exact decision required without reading the entire document.
[In one paragraph, explain what is proposed, the problem it addresses and why a decision is required now.]
[Summarise the case for change, strategic alignment, objectives and consequences of continuing with current arrangements.]
[Summarise the options considered, appraisal undertaken and why the preferred way forward or option offers the best balance of benefits, costs and risks.]
[Summarise the sourcing route, market considerations, risk allocation and contractual approach.]
[State the whole-life cost, funding source, budget impact, contingency and affordability position.]
[Summarise governance, delivery, major risks, benefits and evaluation arrangements.]
[State the exact approval, funding, procurement or delivery authority required. Do not make the decision maker infer it.]
1. Strategic Case
Prove why intervention is required.
Establish the need before discussing the preferred solution. Starting with a product, building, system or supplier and working backwards destroys credibility.
[Identify the policies, strategies, regulatory requirements, board decisions and portfolio objectives supported. Explain the direct relationship, not merely a list of titles.]
[Describe the current operating model, assets, systems, suppliers and processes. Quantify performance using cost, capacity, delay, demand, failure or outcome data.]
[Define the problem or opportunity without referring to the preferred solution. Separate causes from symptoms and cite the evidence.]
[Explain the credible position without the intervention, including costs, consequences and risks. Business as usual is not automatically the same as doing nothing.]
[State measurable outcomes, each with a baseline, target, target date and evidence source.]
| Objective | Baseline | Target | Target date | Evidence source |
|---|---|---|---|---|
| [Objective] | [Current position] | [Required position] | [Date] | [Source] |
[Translate the objectives into capabilities or service outcomes. Do not define the needs so narrowly that only one solution can satisfy them.]
[State what is in scope, out of scope, required outputs, service levels and key assumptions.]
[List expected benefits with baselines, targets, owners and measurement dates. Record strategic risks, constraints and dependencies.]
Strategic Case scrutiny questions
- Is the problem supported by evidence?
- Are causes distinguished from symptoms?
- Is the relationship with strategy explicit?
- Are the objectives measurable?
- Is business as usual credible?
- Could several different solutions satisfy the stated needs?
- Are benefits, risks, constraints and dependencies visible?
2. Economic Case
Show that the recommendation emerged from the analysis.
The Economic Case identifies the option that offers the best public or organisational value. It must not look as though the appraisal was built to justify a decision already made.
[State the requirements an option must satisfy to remain viable, why each is essential and how it will be assessed.]
[Include business as usual, do minimum, alternative service solutions, delivery models, scopes and implementation approaches.]
| Option | Description | Objectives addressed | Advantages | Disadvantages |
|---|---|---|---|---|
| Business as usual | [Description] | [Objectives] | [Advantages] | [Disadvantages] |
| Do minimum | [Description] | [Objectives] | [Advantages] | [Disadvantages] |
| [Option] | [Description] | [Objectives] | [Advantages] | [Disadvantages] |
[Assess every option consistently. For each rejected option, record the reason, evidence, assumptions, participants and whether new evidence could change the conclusion.]
[At SOC, state the shortlist to be appraised at OBC and why one option currently represents the preferred way forward. Do not present it as the final preferred option.]
[At OBC, compare whole-life social costs and benefits, financial costs, risks, distributional and environmental impacts, deliverability, optimism bias and evidence quality.]
[Test the cost, demand, benefit, risk and timetable assumptions most capable of changing the decision. Identify switching points where possible.]
[Describe the final preferred option, why it offers the best value, its principal disadvantages and why those trade-offs are acceptable.]
Economic Case scrutiny questions
- Were materially different options considered?
- Are the appraisal criteria independent of the preferred solution?
- Is business as usual included as the counterfactual?
- Are costs, benefits and risks assessed consistently?
- Are optimism bias and uncertainty addressed?
- Would the conclusion survive a reasonable change in assumptions?
- Is the trade-off behind the preferred option explicit?
3. Commercial Case
Demonstrate that the required deal is viable.
Show that the people, services, technology or assets required can be sourced through a defensible commercial arrangement.
[State what must be obtained and the outputs, outcomes, acceptance criteria or service levels the supplier must deliver.]
[Describe market size, maturity, capacity, constraints, supplier capability and competition risks.]
[State the proposed route to market, alternatives considered and why the selected route fits the value, urgency, complexity and risk.]
[Allocate each commercial risk to the party best able to manage it. Explain the reason and mitigation.]
[State whether payment follows milestones, outputs, availability, usage or outcomes. Define performance measures and remedies for underperformance.]
[Cover contract length, extensions, breaks, intellectual property, data, liability, change control, disputes, exit, transition and contract management.]
Commercial Case scrutiny questions
- Does the market have the capacity to deliver?
- Is the procurement route justified?
- Are requirements expressed as outputs where appropriate?
- Is risk allocated to the party best able to manage it?
- Does the payment mechanism reward the required behaviour?
- Are exit and transition arrangements credible?
4. Financial Case
Prove affordability, not merely value.
A proposal can represent strong value and still be unaffordable. State the financial cost, budget impact, funding source and response to uncertainty.
[State costs by year and category. Confirm whether figures include VAT, inflation, contingency and recoverable costs.]
| Cost category | Year 1 | Year 2 | Year 3 | Later years | Total |
|---|---|---|---|---|---|
| Capital expenditure | [£] | [£] | [£] | [£] | [£] |
| Revenue expenditure | [£] | [£] | [£] | [£] | [£] |
| Internal resources | [£] | [£] | [£] | [£] | [£] |
| Change and training | [£] | [£] | [£] | [£] | [£] |
| Monitoring and evaluation | [£] | [£] | [£] | [£] | [£] |
| Contingency | [£] | [£] | [£] | [£] | [£] |
| Total | [£] | [£] | [£] | [£] | [£] |
[Record the material volume, demand, inflation, timetable, staffing, supplier and asset-life assumptions. State the evidence source and confidence level.]
[Explain affected budgets, capital and revenue treatment, accounting implications, assets, liabilities, depreciation, tax and VAT. Confirm the position with finance.]
[Identify the funding source, whether it is confirmed, conditional or requested, the budget holder and approval date.]
[Show how expenditure fits the available budget and planning period, how contingency relates to risk and what happens if cost, demand or timing assumptions change.]
Financial Case scrutiny questions
- Are all capital, revenue and internal costs included?
- Are the cost assumptions transparent?
- Is contingency linked to risk?
- Is the funding source confirmed?
- Does the expenditure fit the relevant budget years?
- Have accounting and budgeting treatments been agreed?
- What happens if cost, demand or timing assumptions change?
5. Management Case
Show that the proposal can be controlled and delivered.
A delivery plan containing optimistic milestones is not a Management Case. Cover accountability, capacity, change, benefits, risk, contracts and evaluation.
[Name the SRO, board, delivery lead, finance and commercial leads, benefits owners and approving authority. Define assurance and escalation thresholds.]
[Set out phases, milestones, dates, owners, dependencies, control points, resources, critical path, transition, readiness and schedule contingency.]
| Phase or milestone | Target date | Owner | Dependency | Approval or control point |
|---|---|---|---|---|
| [Milestone] | [Date] | [Owner] | [Dependency] | [Decision] |
[Identify affected groups, the operational and behavioural change, communications, consultation, training, readiness, transition support and resistance management.]
[For each benefit, state the baseline, target, owner, measurement method, realisation date, dependencies and corrective action.]
[Record cause, event, consequence, probability, impact, owner and response. Define review frequency, escalation, appetite, reporting and links to contingency.]
[State who manages the contract, required capability, performance reporting, change control, disputes, underperformance, exit and transition.]
[Define how progress, expenditure, outputs, outcomes and risks will be monitored. State evaluation questions, data sources, baselines, owners, timing and cost.]
Management Case scrutiny questions
- Is one person clearly accountable for delivery?
- Are approval and escalation authorities defined?
- Is the plan based on realistic capacity and dependencies?
- Are change and transition activities funded?
- Does every major benefit have an owner?
- Does every major risk have an owner and response?
- Are contract management arrangements resourced?
- Can success be measured against an established baseline?
Final recommendation and check
Make the decision unmistakably clear.
Having considered the Strategic, Economic, Commercial, Financial and Management Cases, it is recommended that: [insert numbered recommendations]. Approval is requested to: [state the exact authority required].
Final Business Case quality check
- Is the decision required unmistakably clear?
- Does the evidence support the case for change?
- Are the objectives measurable?
- Is business as usual credible?
- Were genuinely different options considered?
- Can every rejected option be defended under scrutiny?
- Does the preferred option emerge from the evidence?
- Are value for money and affordability treated separately?
- Are commercial assumptions grounded in market reality?
- Are all material financial costs included?
- Is funding confirmed rather than assumed?
- Are governance and escalation authorities clear?
- Are the delivery timetable and resources credible?
- Does every major benefit and risk have an owner?
- Would the recommendation survive challenge from someone who prefers another option?
If not, the Business Case is not ready for approval.
Editable Word version
Use the page now. Use the document when you need the working file.
The page above gives you the full structure, prompts and scrutiny questions needed to begin drafting. The editable Word version goes further with integrated drafting guidance, removable prompts, document-control fields and stage-specific support across SOC, OBC and FBC.
The resource unlocks shortly after the trial period.
Explore Prepare2Lead membershipIncluded with paid Prepare2Lead membership, from $97 a month.Important note
This working template supports structured drafting. It does not replace your organisation's approved templates, financial analysis, commercial advice, assurance process or professional judgement.
Never use artificial intelligence to invent evidence, costs, benefits, risks, market conditions or stakeholder support. It can help organise verified material, but responsibility for the Business Case remains with its authors and approving body.