We're halfway through our 10-week programme, which is designed to demystify and dive deep into the key elements of the Business Case process. We've already established that creating a compelling Business Case is essential for securing project approval and funding. However, the structure and focus of a Business Case can vary significantly depending on the approval route it must follow.
So, have you:
Worked out who needs to approve the scheme?
Worked out what documentation they need to have to approve it?
Worked out what report structure is needed?
Internal Approval: Aligning with HM Treasury’s 5 Case Model
For internal approvals, following internally issued guidelines is crucial. Typically, this involves aligning your Business Case with HM Treasury’s 5 Case Model, here's a breakdown of the model:
✏️ Top Tip: Avoid Wasted Time and Effort!
When managing multiple stakeholders, each with their own approval routes, it's crucial to ensure your Business Case includes sufficient detail for each Board or Panel. This approach is essential to avoid wasting time on unnecessary content and to prevent omitting critical sections, which could lead to delays or refusal of the Business Case.
Also, depending on who will be approving and the stage of development of the project, the report will need to present different levels of information. A typical process for NHS approval is set out below.
💷 Funding Requests of less than £25m from NHS England
If you are seeking funding for less than £25m from NHS England, an alternative approach, referred to as the Short Form Business Case (SFBC), may be appropriate. The SFBC combines the OBC and FBC details for a single submission and approval. If funding required is less than £10m, then a Programme of Funding template may be sufficient.
📈 Different economic and financial modelling templates
In addition to different reporting templates, there are also different economic and financial modelling templates subject to the approach taken and size of the project. For example:
a short form template typically requires the submission of a Value for money (VFM) template,
whereas the full business case process (SOC, OBC then FBC) typically requires a Comprehensive Investment appraisal (CIA) model to be submitted.
📋The document attached below sets out a high level summary of the key differences between reporting and approval approaches, click to download.
✏️ Top Tip: Check with the relevant approval bodies that they are happy with the approach in advance.
We recommend that you check with the relevant approval bodies that they are happy with the approach in advance. Ultimately, the only purpose of a Business Case is to receive approval to progress with your scheme, enabling access to funding.
⭐Success Story: A new Healthy Living Centre for Kent & Medway ICB
The hybrid approach (an internally approved OBC and SFBC for NHSE submission) was recently developed and adopted as part of gbp consult's work with Kent & Medway ICB, who were seeking approval from NHSE to develop a Healthy Living Centre within a local shopping centre.
Having been a priority scheme for many years, this Business Case, and a £13.2m of funding was successfully approved by NHSE in June 2024, with work expected to commence on the internal reconfiguration and fitout in Q3 of 2024.
This approach was reviewed and agreed, based on close collaboration with NHSE approving team. Mike Gilbert, Executive Director of Corporate Governance, NHS Kent and Medway said:
"gbp consult were instrumental in getting this programme over the line. Their extensive knowledge, experience and capability in developing complex technical capital business cases with multiple stakeholders was evident from the get-go."
Need help now?
Arrange a conversation with our expert Business Case Team. Contact Ian Sabini, Managing Consultant on: ian@gbpconsult.co.uk
Coming up next in our series of Business Case Club Blogs:
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