The Strategic Outline Case (SOC) is about establishing the strategic need and broad options. High-level, analogous estimates are appropriate here to indicate scale and inform the ‘long list’ of options, provided the inherent uncertainty is clearly communicated. This balances the need for financial insight with the model’s staged approach to precision.

A core principle of the Better Business Cases approach is to make the implicit explicit. ‘Future-proofing’ often relates to strategic resilience and flexibility, which can and should be quantified where possible. Techniques like real options analysis attach financial value to the ability to adapt, ensuring this critical strategic consideration is fairly evaluated against the NPV.

The Commercial Case must demonstrate the deal is viable and achievable. For innovative commercial models like gain-share partnerships, viability heavily depends on the buyer’s own commercial maturity and skills to manage the relationship, govern performance, and handle shared risks. Without this capability, the model is likely to fail, regardless of its theoretical benefits.

Skepticism about benefits is common. The Management Case is specifically designed to provide confidence that benefits will be realized. A detailed benefits realization plan—assigning owners, defining measures, establishing baselines, and outlining tracking processes—demonstrates rigorous forethought and management control, which is more convincing than arbitrary adjustments or mere authority.

While metrics like payback and IRR are important for the Economic Case, the primary purpose of the Financial Case is to prove affordability from the organization’s accounting perspective. It must translate the total costs into the specific budget impacts (capital and revenue) year-by-year, showing when funds are needed and from which budget lines, ensuring the spending profile is manageable.

Even for a ‘must-do’ project, the SOC stage is crucial. It establishes the strategic *why* behind the legal need and, most importantly, explores the range of potential *how*s. There may be multiple options for achieving compliance, with different costs, risks, and secondary benefits. The SOC ensures the organization chooses the best strategic route to meet the obligation.

The ‘do nothing’ or ‘business as usual’ option is a critical baseline. To be useful, it must be explicitly described in terms of its future consequences—the ongoing costs, risks, and foregone benefits of not changing. This creates a realistic picture of the trajectory the organization is on, against which the costs and benefits of change can be fairly assessed.

Discounting in a DCF model is a fundamental economic principle based on the time value of money. It reflects the opportunity cost of capital—money could be invested elsewhere to earn a return—and general human preference for current consumption over future consumption. It allows for a fair, like-for-like comparison of costs and benefits occurring at different times.

The SRO is the cornerstone of effective governance for a business change project. The Management Case must clearly appoint this individual, as they are personally accountable for driving the change and realizing the benefits outlined in the business case. This ensures end-to-end accountability from case development through to benefits realization.

The Strategic Outline Case (SOC) is about establishing the strategic need and broad options. High-level, analogous estimates are appropriate here to indicate scale and inform the ‘long list’ of options, provided the inherent uncertainty is clearly communicated. This balances the need for financial insight with the model’s staged approach to precision.0