BUSINESS CASE PROCEDURE
CONTENTS
1 PURPOSE .............................................................................................................................................................1
2 SCOPE ..................................................................................................................................................................1
3 PROCEDURE .......................................................................................................................................................1
4 RESPONSIBILITIES .............................................................................................................................................3
Compliance, monitoring and review ......................................................................................................................3
Reporting ...............................................................................................................................................................3
Records management ...........................................................................................................................................3
5 DEFINITIONS .......................................................................................................................................................3
Terms and definitions ............................................................................................................................................3
6 RELATED LEGISLATION AND DOCUMENTS ....................................................................................................3
7 FEEDBACK ...........................................................................................................................................................3
8 APPROVAL AND REVIEW DETAILS ...................................................................................................................3
9 APPENDICES .......................................................................................................................................................4
Appendix 1- Business Case Development and Approval Diagram ......................................................................4
Appendix 2 - Business Case Approval Diagram ...................................................................................................5
1 PURPOSE
To articulate when a business case should be prepared.
2 SCOPE
2.1 These guidelines are intended to assist in the preparation of business cases. They should aid users in
identifying when to prepare a business case that:
is aligned to the University’s strategic objectives;
addresses current and future needs; and
addresses ‘better practice’ project management issues.
2.2 The level of detail required for each business case must be appropriate to the nature of the proposal, and
enable sound judgment to be made of the project/program merits to determine whether it will be supported
and also address the requirements of the reviewing officer/committee.
3 PROCEDURE
3.1 A Business Case is required when the initiative involves the establishment of a new venture, new campus,
campus extension, additional space or space modification, new course over $1M, new delivery site or
represent a major change in business which is outside the approved budget.
3.2 All new initiatives are to go through a two-step process:
1) Preliminary evaluation – complete the New Initiative Business Case Brief Template
2) Business Case development – complete the Business Case Template
3.3 Our Approach is evidence based, thoughtful and focused. A Business Case is founded on the following
principles: quality analysis, risk analysis and strategic alignment.
3.4 The Business Case Process is outlined in Diagram 1.
Business Case Procedure Effective Date: 12/05/2017
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Business Case Process Overview
Evaluate
Strategic Objectives Initiation Plan Approve Deliver Business As Usual
and Close
Confirm the scope of the Approval for a Business Complete the work Evaluation activities
Define the business project/’ purchase, define Case will be dependent will include:
defined in the Business
need for the new the problem and solution on the total cost of the Outcome
Case to satisfy the
project/ purchase and requirements and what Business Case. Lesson Learnt
project specifications
obtain approval to the investment will All Business Cases are Audit/ reviews
prepare a business achieve. It is expected that to go to Executive
case. consultation/ Management
Triggers: collaboration activities Committee for review,
Outside Approved have occurred with the consideration and
Budget and is relevant stakeholders. The forwarding to the
Total costs > $1M aim is to provide a appropriate
New venture detailed justification to Committee and
New delivery site enable the Project Council (where
New campus Sponsor to promote the required) for approval.
project/ purchase and Total costs > $1M must
pursue funding and go to Council
resourcing.
Note: New courses considered business as usual are to follow the Higher/ Vocational Education Coursework Qualifications Policy and Procedure. Courses greater that $1M will require a Business Case
Business Cases are only required if outside the current approved budget
Diagram 1: Business Case Process Overview
3.5 The Business Case development and process is outlined in Appendix 1 and Appendix 2.
3.6 The aim of the Business Case is to provide information on the benefits, costs for the life of the initiative and
risks involved with a proposal. It forms the basis for effective decision making. A Business Case captures
both the business need and how the proposed investment meets that need. Business cases are evaluated to
ensure:
The investment has value, importance and relevance
The implementation will be properly managed and achieve a sustainable outcome
The university has the capability to deliver the benefits.
3.7 The expectation of the Business Case is to analyse options. A robust Business Case should:
Provide a compelling case for change
Put in place plans for successful delivery – benefits, risk management and evaluation
Cover the economic, financial, commercial, staff, training, structural and management aspects of the
project
Assurance that the preferred option is the correct option, right investment, affordable and provides value
for money.
3.8 Stakeholders who have high influence and / or are highly impacted by the proposal and are able to provide
the best evidence are to be involved in the development of business cases.
3.9 Details of an officer’s financial delegation are as they appear on the Financial Delegations Register
maintained by the Finance and Planning Division. The Register can be accessed via StaffNet.
3.10 Where the total cost is >$1M and outside the approved budget, a business case must be approval by the
University Council.
3.11 Once the Business Case has been approved, the Business Case is considered Final.
3.12 Any adjustments (including financial) to the Final Business Case requires Executive Management Committee
approval and University Council approval, as required.
Business Case Procedure Effective Date: 12/05/2017
Reference Number/Code: 3090 Page 2 of 5
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3.13 Contact Finance and Planning Division for help by emailing [email protected]
4 RESPONSIBILITIES
Compliance, monitoring and review
4.1 Overall responsibility for implementation of this policy resides with the Vice-Chancellor.
4.2 The Deputy Vice-Chancellor, Finance and Planning is responsible for advising the University on how to
manage and develop business cases.
4.3 In accordance with the CQUniversity Code of Conduct, it is the responsibility of all staff (commensurate with
their roles, functions and span of control) to comply with the requirements embodied in this Procedure.
Reporting
4.4 No additional reporting is required.
Records management
4.5 Staff must maintain all records relevant to administering this procedure in a recognised University
recordkeeping system.
5 DEFINITIONS
5.1 Terms not defined in this document may be in the University glossary.
Terms and definitions
Total Cost: The whole-of-life costs which include the cost of planning, design, construction/acquisition,
operation, maintenance, renewal / rehabilitation, depreciation, and replacement / disposal.
6 RELATED LEGISLATION AND DOCUMENTS
CQUniversity New Initiative Business Case Template
CQUniversity Business Case Template
Queensland Government, Project Assessment Framework, Business Case Development, July 2015
Queensland Government, Project Assessment Framework, Policy Overview, July 2015
7 FEEDBACK
7.1 University staff and students may provide feedback about this document by emailing [email protected].
8 APPROVAL AND REVIEW DETAILS
Approval and Review Details
Approval Authority Vice-Chancellor and President
Advisory Committee to Approval Authority Vice-Chancellors Advisory Committee
Administrator Deputy Vice-Chancellor (Finance and Planning)
Next Review Date 12/04/2020
Approval and Amendment Details
History
Original Approval Authority and Date Vice-Chancellor and President
Amendment Authority and Date University Secretary, 13 March 2012; Vice-Chancellor and President
12/04/2017.
Notes This document expires and replaces the existing Business Case Principles.
Business Case Procedure Effective Date: 12/05/2017
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9 APPENDICES
Appendix 1- Business Case Development and Approval Diagram
Business Case Development and Approval Diagram
New Project
Is the planned Project/ Purchase to have: New Project to follow University
Involves the establishment of a new venture, campus, program or delivery site? NO financial, budget and procurement
Represent a major change in business? procedures
YES
Develop Project brief of the idea outlining; strategic fit, problem, opportunities, constraints, potential
investment project team and sponsor.
Project Manager
Project brief endorsed
Relevant supervisor
YES
INITATE
Project brief forwarded to Senior Executive Meeting for discussion and decision
Project Sponsor
Project brief approved
Senior Executive Meeting
YES
Project Manager informed of decision
Project Sponsor
Project Team formed
Project Manager
Develop Proposed Business Case
Project Manager
Revenue, Expenses, Capital Costs, Divisional Costs &
Courses, Student Numbers, Infrastructure and IT requirements
Risk
EFTSL & Staff Numbers Director Facilities Management &
DVC, Provost, Management Accountant & Senior
Provost Chief Information Officer
Manager Strategy, Planning and Risk Management
Complete Financial Analysis & Modelling
DVC (Finance & Planning)
Proposed Business Case model reviewed and supported
Vice-Chancellor, SDVC, DVC (Finance & Planning), Project Sponsor
YES
Proposed Business Case reviewed and updated
PLAN
Project Manager
Proposed Business Case reviewed and endorsed to go to Executive Management Committee
(EMC)
Project Sponsor
YES
Final Business Case forwarded to EMC for discussion and decision
Project Sponsor
AMENDMENTS Business Case approved
AND Executive Management Committee
RESUBMISSION
Endorsed for Planning and Resources Committee (PRC) to approve
Business Case approved
Planning and Resources Committee
Endorsed for CQU Council to approve
Business Case approved
APPROVE
University Council
YES
Budget Allocation
Is this a strategic imitative?
NO YES
Approved Business Case to be identified in
Budget i.e. Forecast 1, Forecast 2 or Budget and Assign Budget and Account Number
Account Number assigned DVC (Finance & Planning)
DVC (Finance & Planning)
Dashboard monitoring established for
project
DVC (Finance & Planning)
Project Implemented as per the Project
DELIVER
Management Framework (PMF)
Project Team
and CLOSE
EVALUATE
Project Evaluated
Project Team
* Total Cost – The whole of life costs; planning, design, construction/ acquisition, STOP
operation, maintenance, renewal/ rehabilitation, depreciation and replacement/ disposal
Business Case Procedure Effective Date: 12/05/2017
Reference Number/Code: 3090 Page 4 of 5
Once PRINTED, this is an UNCONTROLLED DOCUMENT. Refer to Policy Portal for latest version
CQUniversity CRICOS Provider Code: 00219C
Appendix 2 - Business Case Approval Diagram
Business Case Procedure Effective Date: 12/05/2017
Reference Number/Code: 3090 Page 5 of 5
Once PRINTED, this is an UNCONTROLLED DOCUMENT. Refer to Policy Portal for latest version
CQUniversity CRICOS Provider Code: 00219C
