Indicative business case

Overview

The indicative business case (IBC) further develops specific activities. It provides a long list to short list of options and it recommends a preferred way forward as part of the short-listed alternatives. An indicative business case receives official NZ Transport Agency support, including assessment of strategic fit and effectiveness, with anticipated efficiency assessment.

For each activity, an initial appraisal of options is conducted with specific consideration given to these questions:

• Is the option going to alleviate the perceived transport problems and/or maximise potential opportunities identified in the programme business case?
• Is the option consistent with established policy directives?
• Is the option likely to meet the transport planning outcomes identified in the programme business case?
• What are the likely scale and significance of any impacts of the activity?
• Is the option likely to be acceptable to the public, affordable and feasible to construct and operate?
• Is there a clear rationale for the rejection of options on completion of the indicative business case?

See the Indicative business case overview [PDF, 61 KB] for more information.

Key steps

• Confirm that the activity is in the NLTP and SHAMP approved programme.
• Re-check that the strategic case is still fit for purpose. Refer to the P&I knowledge base(external link).
• Undertake a strategic assessment.
• Engage with members of the HNO team, including Project Manager(s).
• Undertake ILM workshop(s) for the activity. (Note: this is normally funded out of overhead and there is no retrospective funding available.)
• Distribute ILM workshop outputs and revisions if required. (This is usually part of the tasks of the ILM facilitator.)
• Prepare funding application for the development of the indicative business case [DOCX, 110 KB], according to delegations.
• Reconfirm strategic fit and investment assessments.
• Confirm the project/activity team.
• Procure professional services.
• Data collection and analyses.
• Understand context, problems, opportunities and constraints.
• Engage with stakeholders and the public.
• Develop options. The following tools are available: multi-criteria analyses [DOCX, 65 KB]; summary table template [DOCX, 65 KB]; options worksheet; develop cost options estimates using methodology from the Cost estimation manual (SM014).
• Assess options.
• Recommend shortlisted options.
• Produce indicative business case.
• Obtain endorsements as required and approvals according to delegations.
• Scope the detailed business case.
• [Refer delegation sheet.]

Benefit realisation

Ensure investment objectives and a monitoring plan that includes developing SMART investment objectives, including KPIs, measures, baseline data and expected outcomes are developed. This may have been undertaken in a previous phase but detail should be added as relevant.

Confirm the investment objectives and assess the preferred option(s) against the investment objectives. This is typically done to a greater level of detail and at the more focused activity level than during a programme business case.

Complete project benefit mapping to the activity level, which should create a clear line of sight between project problems, benefits, investment objectives, measures and KPIs.

Update the project monitoring plan to reflect any developments or improved evidence, using it as a base for completing the benefits realisation framework. Secure key stakeholder, project team and measure owner acceptance, then upload the completed benefits realisation framework to TIO.

If this is part of a wider programme business case, revisit the problems and benefits of the programme and determine the contribution made to the programme level investment objectives by the indicative business case. Document this in the monitoring plan. Update the programme business case if necessary to reflect benefit realisation.

Further information available at the benefit realisation page. 

Quality assurance and approvals

Records of quality assurance and approvals should be undertaken in accordance with the System Design and Delivery project assurance and approvals process.

Technical requirements

For each phase of the business case process there are technical requirements that may be relevant to your project that will need to be considered and included in addition to general guidance and templates. Aligned to the business case philosophy, suppliers are required to meet more technical requirements as an activity progresses through the business case phases.

Outlined below are the technical requirements for completing the indicative business case, by subject matter.

Suppliers are required to comply with these requirements except where varied within the scope of a contract.

For further information or advice, contact the relevant team.

Tools

Forms and templates

Guidelines

For further information contact designpracticesolutions@nzta.govt.nz.