Incorporating benefits into improvement business cases

This page provides a brief overview on the inclusion of benefits and measures in improvement business cases, focusing on the different phases of the Business Case Approach (BCA):

• point of entry
• strategic case
• programme business case (PBC)
• single-stage business case (SSBC), and SSBC lite
• indicative business case (IBC)
• detailed business case (DBC).

The guidance on each of these business cases phases should be read in conjunction with the high-level step-by-step guidance on how to select benefits and measures.

Read step-by-step guidance on how to select benefits and measures

Point of entry

The point of entry (PoE) involves discussion and agreement on the approach and effort required to progress an investment proposal, including:

• developing an initial view on alignment of a potential investment with strategic priorities
• deciding whether to progress to business case development.

Benefits and measures shouldn’t be specifically developed at this stage, but if the PoE has come out of another process, such as a regional land transport plan (RLTP) or an investment logic map (ILM), any benefits included in those documents should be considered and recorded in the PoE with other relevant information.

Find out more about PoEs

Strategic case

The strategic case is about defining and understanding the problem or opportunity and showing there will be substantial enough benefits to justify investment to investigate the problem further.

The strategic case is more focused on benefits rather than measures, though measures can be included if they are identified:

• in an ILM, which is usual part of developing a strategic case, or
• in earlier thinking, such as an RLTP. 

All businesses cases need to have a strategic case section, but sometimes is initially developed in a standalone phase. Where a standalone strategic case is developed, documentation occurs outside of Transport Investment Online (TIO). This means that benefits and measures developed in a strategic case will need to be manually transferred into TIO at the next phase (programme business case or other activity business bases).

Read step-by-step guidance on how to select benefits and measures

Find out more about the strategic case phase 

Improvement business cases

• The programme business case (PBC) sets out in-depth problems, opportunities and constraints at a strategic level and recommends preferred programme to address the strategic case. 
• The single-stage business case (SSBC) merges the option identification of the indicative business case (IBC) and the detailed analysis of the detailed business case (DBC) into one.
• The SSBC lite is a pared-back version of the SSBC for non-complex activities where the whole-of-life cost is less than $15 million.
• The IBC further develops specific activities, either from a PBC or a ‘standalone’ activity from an SSBC.
• The DBC confirms an activity that comes from the detailed programme of activities and confirms the overall assessment profile.

The process of selecting benefits and measures is the same for all these BCA phases, except that:

• because the PBC is likely to address a broader range of problems and opportunities, there is likely to be a broader range of benefits and measures included.
• because the SSBC, SSBC lite, IBC and DBC are focused on a direct activity, it is expected that the level of the benefits and measures will reflect the specific impacts of that activity, rather than the broader programme (as with the PBC).

If the business case has grown out of another business case (such as a PBC or, the IBC in the case of a DBC), or planning document (such as an AMP), you will need to consider the benefits and measures from the previous process and decide whether to accept or refine them. whether you need to further refine them.

Benefits and measures are used in the assessment tools that can assist with choosing the preferred option (optioneering) and assessment as part of business case development. 

Find out more about benefits in optioneering and priorisation

Benefits and measures are required in several sections of the business case document:

• the strategic case section is the first place that benefits and measures are considered
• further detail is required in the economic case
• roles for ongoing management and monitoring of benefits are required in the management case
• a table at the end of the document allows for all benefits information to be brought into one place.

All details all details about benefits and measures for the preferred option are required to be directly entered into TIO.

Read step-by-step guidance on how to select benefits and measures

Find out more about the BCA on the Waka Kotahi website 

Further information

• For more about measures, read Land Transport Benefits Framework measures manual
• For more about monetised benefits and costs and how to calculate them, read the Monetised costs and benefits manual
• Download a table of all the benefits and measures in the benefits framework [PDF, 1015 KB]
• Find out more about the Business Case Approach (BCA) on the Waka Kotahi website