Mastering the Five-Case Model: Streamlining Business Case Development from SOC to FBC

When large government projects are planned, like building new schools, hospitals, roads and bridges, business case experts in the UK and around the world use the "five-case model" to make sure everything is well thought out, fully costed to make the best value recommendation.

This model helps organise and check all the important details of a project. It is divided into five parts: Strategic, Economic, Commercial, Financial, and Management cases. Each part looks at a different side of the project.

This article will explain these five parts in simple language and show how they help in making business cases better. We will also look at the business case development process from the early idea stage (called the Strategic Outline Case, or SOC) to the final detailed plan (called the Full Business Case, or FBC).

Overview of the Five-Case Model

The 5-case model is essential for government because it provides a comprehensive, structured framework that ensures all aspects of a project—from strategic alignment to financial viability—are rigorously evaluated before public funds are committed.

For the public, this model increases transparency and accountability, assuring taxpayers that investments are based on thorough analysis and realistic forecasts.

The five-case model serves as a structured framework that project planners use to guide them through every critical aspect of a project and answer critical questions at every stage of a project.

Each case addresses a key question—from strategic alignment to financial feasibility—ensuring that all factors are thoroughly examined before moving forward.:

1. Strategic Case:
   This part explains why the project is important and how it fits into a bigger plan. For example, if a school is being built, the strategic case shows how the new school will help improve education in the community. It answers, “Why do we need this project?” and “What goals will it help us achieve?”
   
   
2. Economic Case:
   The economic case looks at whether the project is a good idea for society. It asks, “Will the project create more benefits than it costs?” For our school example, this might include benefits like better learning, increased community value, and even new jobs. It shows that the project is a wise choice for everyone involved.
   
   
3. Commercial Case:
   This part focuses on how the project will be carried out. It looks at contracts, suppliers, and partnerships. It asks, “Who will do the work, and how will it be done?” For the school, the commercial case might involve choosing a builder or contractor and discussing how they will manage the construction process.
   
   
4. Financial Case:
   The financial case is all about the money. It asks, “Do we have enough funds? What will the project cost?” It looks at budgets, funding sources (like loans or government grants), and how the project will be financed. This part ensures that the project is affordable and that the money is well spent.
   
   
5. Management Case:
   Finally, the management case explains how the project will be organized and managed from start to finish. It includes plans for how to monitor progress, solve problems, and keep everything on track. For our school, it might describe the roles of different managers and how decisions will be made during construction.

Each of these five cases is important because they cover different questions. When combined, they give a full picture of the project and help decision-makers know if the project is worth doing.

Business Case Development Process

Once the idea for a project is on the table, planners create a business case. This is a detailed report that uses the five-case model to demonstrate why a project should go ahead.

There are three key stages in this process:

1. Strategic Outline Case (SOC):
   At the very beginning, planners prepare a Strategic Outline Case (SOC). This early report explains the big idea behind the project and shows that it fits with the overall goals of the organization or community. The SOC is not very detailed. Its main purpose is to convince decision-makers that the project is worth exploring further.
   
   
2. Outline Business Case (OBC):
   After the SOC, planners develop the Outline Business Case (OBC). The OBC builds on the initial idea with more detailed information. It begins to look at the five cases—strategic, economic, commercial, financial, and management—though not in full detail yet. This stage still happens under time pressure, so the information is often a draft. However, it is good enough to decide if the project should move forward to even more detailed planning.
   
   
3. Full Business Case (FBC):
   The Full Business Case (FBC) is the most detailed stage. Here, every part of the five-case model is fully developed and checked. The FBC includes all the numbers, contracts, management plans, and evidence that the project is sound. It is used to secure the final approvals and funding for the project.

Iterative and Flexible Nature of the Process

Business case development is not a one-time job. It is an iterative process, which means that planners often go back and update or refine the document as new information becomes available. This flexibility is important because many projects face unexpected challenges. By revisiting and revising the business case, planners can improve the accuracy of their estimates and make sure the project stays on track.


Project Assurance

Project assurance is like a quality check. It is the process of reviewing the business case at various stages (SOC, OBC, FBC) to ensure that all parts are realistic and that risks are properly managed. Project assurance helps catch mistakes early and makes sure that the final business case is reliable. It gives decision-makers confidence that the project has been well-planned from every angle.

My Business Case Hub®

My Business Case Hub leverages its advanced AI tools including the My Business Case Generator to help leaders and business case writers develop comprehensive business cases in the proven Five-Case Format.

By guiding project planners through each of the five components—Strategic, Economic, Commercial, Financial, and Management—the platform streamlines the process of gathering, analyzing, and organizing critical project data. This ensures that every business case is not only robust but also aligned with best practices in project appraisal, saving valuable time and reducing errors.

In addition to enhancing quality, My Business Case Hub significantly reduces the workload. With its intelligent document drafting features, users can cut down up to 40 hours in writing and refining their business case documents. The AI tools automatically generate detailed sections, suggest improvements based on historical data and industry benchmarks, and even provide real-time feedback to ensure that every aspect of the Five-Case Model is thoroughly addressed. This not only boosts productivity but also gives decision-makers greater confidence in the accuracy and reliability of the final document.

By integrating these cutting-edge AI capabilities, My Business Case Hub transforms a traditionally time-consuming task into a more efficient and effective process. With more than 20 business case categories, including the Five-Case format, My Business Case Generator transforms a traditionally time-consuming task into a highly efficient process. Leaders and business case writers can focus on strategic decision-making and value creation, rather than getting bogged down in administrative details. Ultimately, this results in stronger, data-driven business cases that support successful investments and better project outcomes.

References

• Flyvbjerg, B., Holm, M. K. S., & Buhl, S. L. (2002). Underestimating Costs in Public Works Projects: Error or Lie? Transport Reviews, 22(1), 23–57. DOI: 10.1080/01441640110040305
• HM Treasury. (2014). The Green Book – Central Government Guidance on Appraisal and Evaluation. Retrieved from https://www.gov.uk/government/publications/the-green-book
• Office of Government Commerce. (2007). Managing Successful Programmes.
• Association for Project Management (APM). (2019). APM Body of Knowledge, 7th Edition.
• Project Management Institute (PMI). (2021). A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Sixth Edition.
• Australian Government Department of Finance. (2013). Business Case Guidelines.
• Little, G. W. (2006). Strategic Business Cases: A Practitioner's Guide. Prentice Hall.