Beyond the Checkbox: Rethinking Business Cases in Government
Unearthing 2009 guidance from TBS
Happy Tuesday, Transformation Friends. Another week, another opportunity to go Beyond the Status Quo.
Today, we’re looking at the Treasury Board of Canada Secretariat's (TBS) Business Case Guide. Originally published in 2009, I recently came across it while researching for my post on maximizing public sector value. The guide is a well-structured and comprehensive framework designed to help ensure that the Government of Canada's investments are strategic, financially responsible, and outcome-driven.
A strong business case is the foundation of any new initiative or transformation effort. But too often, business cases are treated as a one-and-done exercise rather than a living document that evolves with an initiative.
Even when we start strong, we don’t always follow through. We rarely update our business cases as things evolve, leaving us unsure if our original investment hypotheses still hold. When initiatives wrap up, we often fail to close the loop by assessing performance against expectations, which needs to be done long after delivery, given time for change to sink in and for its effects to be seen and measured.
A business case is more than a request for funding or a checkbox on a process list. It should be valued as a critical tool for making sound decisions about how we allocate time and money. It must also serve as a reference point, helping us revisit assumptions, assess how changes impact our original rationale, and capture key lessons.
When done right, it’s a beautiful thing.
Grab your morning coffee, and let’s get started.
The Business Case Guide
The guide is structured into three key phases:
Phase 1: Strategic Context – Establishing the rationale for investment, defining objectives, and ensuring alignment with broader government priorities.
Phase 2: Analysis and Recommendation – Identifying and evaluating potential solutions to determine the best course of action.
Phase 3: Management and Capacity – Ensuring effective implementation, governance, and ongoing performance measurement.
The five key steps within the business case's three phases are:
Step 1: Business Needs and Desired Outcomes
Step 2: Preliminary Options Analysis
Step 3: Viable Options
Step 4: Justification and Recommendation
Step 5: Managing the Investment
Let’s break them down.
Phase 1: Strategic Context
A solid business case starts with a clear understanding of the business needs and defines the desired outcomes. This phase answers fundamental questions:
Where are we now? Describes the current business environment.
Where do we want to be? Outlines the business objectives.
What is the business need? Explains the problem or opportunity the organization faces and the proposed investment.
What has triggered the need for change? Identifies the drivers for change.
What are we trying to achieve? Defines the desired outcomes of the business.
What is the strategic fit? Shows how the proposed investment aligns with departmental and government priorities, goals, and policies.
How to Build the Strategic Context
Assess the Strategic Environment
Describe the current state: Outline the organization’s mission, strategic goals, key services, stakeholders, and capacity.
Define the business need: Clearly state the problem or opportunity in a concise, structured statement.
Identify drivers for change: Pinpoint internal and external factors prompting the investment (e.g., efficiency, policy shifts, tech advancements).
Clarify business outcomes: List expected benefits and measurable results that the investment will achieve.
Ensure Strategic Alignment
Map to organizational goals: Show how the investment supports departmental and government priorities, frameworks, and policies.
Validate legal fit: Confirm if the investment aligns with legislative mandates and flag any required changes.
Ensure policy compliance: Identify and address any impacts on departmental or government policies.
Integrate with governance: Define how the investment fits into existing oversight, decision-making, and project management structures.
Define the Business Need in Detail
State the problem/opportunity: Clearly articulate the issue and the proposed investment in one or two sentences.
Prioritize key requirements: Identify core, desirable, and optional elements needed to meet the business need.
List critical assumptions: Outline key assumptions and their potential impact on success.
Address constraints: Highlight budget, resource, legal, or timing limitations that could impact the investment.
Identify dependencies: Define what the investment relies on to succeed (e.g., other initiatives, approvals, resources).
Set Clear Scope and Boundaries
Define what’s in and out: Clearly state what the investment will and won’t cover.
Engage stakeholders effectively: Identify key players, their roles, and their expected contributions.
Clarify roles and responsibilities: Ensure transparency in stakeholder involvement and accountability structures.
Phase 2: Analysis and Recommendation
With a solid foundation, we shift to conducting a preliminary options analysis, evaluating viable options, and finally, providing justification and recommendations for evaluating options. This phase answers fundamental questions:
How will we get there? Exploring viable options and evaluation criteria
What is the best option? Balancing costs, benefits, and risks
How to Conduct a Strong Analysis
Identify and Analyze Options
List all possible solutions: Generate a broad set of potential solutions to address the business need, including internal and external options.
Evaluate against screening criteria: Use predefined "deal breaker" criteria to rule out unviable options immediately.
Shortlist viable options: Narrow down to a reasonable number of feasible solutions for further analysis.
Assess Costs and Benefits
Calculate the total cost of ownership: Include upfront, operational, and long-term costs for each viable option.
Conduct cost-benefit analysis: Compare financial and non-financial benefits against costs to determine return on investment.
Apply industry benchmarks: Use case studies and market comparisons to validate financial estimates.
Evaluate Risks and Feasibility
Identify key risks: Assess risks related to initiative delivery and the realization of expected outcomes.
Measure probability and impact: Classify risks based on likelihood and potential consequences.
Develop mitigation strategies: Define actions to reduce or manage risks and assign accountability.
Assess organizational capacity: Ensure the organization has the resources, expertise, and governance to support implementation.
Compare and Recommend the Best Option
Align with strategic goals: Confirm how each option supports business and government priorities.
Weigh financial and non-financial factors: Consider costs, benefits, policy implications, and alignment with standards.
Justify the preferred option: Present evidence supporting why the selected option is the most effective choice.
Outline next steps: Define a high-level implementation plan, including procurement, resource needs, and major milestones.
Phase 3: Management and Capacity
Once a decision is made, managing the investment becomes critical to ensure successful implementation and oversight. This phase answers fundamental questions:
How does this investment fit within the organization’s governance and oversight structure? Clarifies roles, responsibilities, and decision-making authorities for managing the investment.
How will the project be managed and monitored throughout its lifecycle? Defines initiative management approaches, key milestones, and mechanisms for oversight.
How will the intended business outcomes be achieved and tracked? Ensures clear objectives, measurable success criteria, and ongoing performance evaluation.
What risks could impact the investment, and how will they be mitigated? Identifies potential risks, assesses their impact, and establishes mitigation strategies.
How will organizational change be managed and implemented? Outlines the transition strategy, stakeholder engagement, and support mechanisms for adoption.
How will performance be measured, and what accountability mechanisms will be in place? Defines key performance indicators, tracking methods, and reporting structures to ensure transparency and accountability.
How to Ensure Effective Management
Ensure Strong Governance and Oversight
Define where the investment fits: Show how the initiative aligns with existing governance structures.
Establish accountability: Identify oversight bodies responsible for monitoring progress.
Outline decision-making processes: Explain how major decisions, approvals, and reviews will be handled.
Implement an Effective Project Management Strategy
Follow best practices: Demonstrate adherence to recognized project management methodologies.
Plan for reviews and reporting: Specify how initiative status will be communicated and assessed.
Use gate reviews: Define key milestones where decisions will be made to continue, adjust, or stop.
Maximize Business Outcomes Through Outcome Management
Track key results: Identify the business outcomes to be monitored.
Engage outcome owners: Assign responsibility for tracking and delivering outcomes.
Align with senior leadership: Ensure regular updates and reporting to decision-makers.
Manage Risks Proactively
Integrate risk management: Describe how risks will be identified, assessed, and mitigated.
Assign clear responsibilities: Define who is accountable for managing initiative risks.
Adapt to evolving risks: Plan for continuous monitoring and response to new challenges.
Plan for Change and Transition
Assess organizational impact: Identify how the change will affect people, systems, and processes.
Develop a transition plan: Outline steps to move from the current state to the future state.
Ensure stakeholder buy-in: Implement strategies to engage and support those affected.
Measure and Report on Performance
Track project progress: Monitor implementation against time, budget, and scope.
Measure benefits realization: Assess whether the expected outcomes are achieved.
Use data for decision-making: Establish reporting mechanisms to inform leadership.
Wrap up
The TBS Business Case Guide is a great tool for establishing your business case framework and processes. Sticking to its steps, figuring out what you need and checking how well things are working, ensures that we align our initiatives with broader policy goals, maximize cost savings, and deliver real benefits to the public.
Some questions to reflect on:
How does your organization currently approach business cases, and where could it improve?
What challenges have you faced in making evidence-based investment decisions?
How can performance measurement be better integrated into decision-making from the outset?
Until next time, stay curious and I’ll see you Beyond the Status Quo.