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Business case

The 3 phases of a business case

You should develop your business case over time. It is an iterative process, with extra detail added at each phase.

The amount of detail you need depends on the level of risk and investment. For example, a business case for £1,000 could be about 1 or 2 pages long, but a business case for a £1m project can be over 50 pages long.

The 3 main phases are:

  1. Strategic Outline Case
  2. Outline Business Case
  3. Full Business Case

Strategic Outline Case (SOC)

This is the initial stage. It is used to support an investment for a new project.

You will:

  • set out the problem to be solved
  • make the case for change
  • develop a long list of options
  • agree a short list of options

At the SOC stage, most of the work should focus on the Strategic Case, with early development of the Economic Case. The Commercial, Financial and Management Cases only need high‑level thinking at this point. Programmes usually develop each case slightly further than projects at this early stage.

Outline Business Case (OBC)

This stage builds on the approved SOC to confirm the solution which offers optimal value for money.

You will:

  • determine value for money
  • prepare for the potential deal
  • confirm funding and affordability
  • plan for successful delivery

At the OBC stage, each part of the business case becomes much more detailed. Projects should have well‑developed Strategic, Economic, Commercial, Financial and Management Cases. For programmes, all five cases are typically completed in full at this stage.

Final Business Case (FBC)

This builds on the approved OBC and takes the chosen option through procurement, putting in place delivery plans and providing the final detailed costing.

You will:

  • procure the solution
  • create a contract for the deal
  • ensure successful delivery

At the FBC stage, the preferred option is taken through procurement and fully validated. All five cases should now be complete, confirmed and evidence‑based. This stage finalises contracts, costs, risks, benefits, delivery plans and governance.

The FBC stage applies only to projects — programmes do not produce an FBC. Instead, each project within a programme will have its own FBC.

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