The Five Case Model for Public Investment
I recently had the priviledge to develop a business case for an organisation seeking local authority investment for a business support programme targeting SMEs. The business case was enshrined in a funding application and formed an integral part of the bid to secure the required forward investment.The project was an excellent opportunity to apply the UK government’s Five Case Model, and I would like to share what I learned in the process.
The Five Case Model is an incredibly effective framework for developing structured, evidence-based business cases, particularly when seeking public funding or taxpayer investment. By addressing all critical aspects of a proposal—from its strategic alignment to its financial feasibility—the model ensures that the justification for investment is both compelling and defensible.
In this article, I will explain the benefits of the Five Case Model, walk you through the approach I used to develop this particular business case, and highlight how it can be applied to other public funding scenarios.
Why Use the Five Case Model?
Public sector organisations face the challenge of meeting strategic objectives while ensuring taxpayer money is spent responsibly and effectively. The Five Case Model addresses this by providing a comprehensive framework that considers the following:
Strategic Case: Why the project is needed and how it aligns with broader priorities.
Economic Case: Whether the proposal delivers value for money by comparing options.
Commercial Case: How the project will be delivered and procured.
Financial Case: Whether the proposal is affordable and financially viable.
Management Case: How the project will be delivered, governed, and monitored.
This structured approach ensures that business cases are thorough, transparent, and ready to withstand scrutiny from key stakeholders.
Case Study: Business Support Programme for Local SMEs
The Challenge
The chamber of commerce wanted to secure local authority investment for a programme aimed at addressing gaps in SME support services. The objective was to provide local businesses with tailored training, mentoring, and growth opportunities, contributing to job creation and economic development.
My Approach
Using the Five Case Model, I developed a robust, data-driven business case designed to resonate with decision-makers and demonstrate the value of the proposed programme.
Strategic Case
Alignment with Local Priorities: I reviewed the local authority’s economic development strategy and highlighted how the programme supported goals such as job creation, SME growth, and economic resilience.
Evidence of Need: Conducted a gap analysis, using local business data and surveys to demonstrate unmet demand for SME support, especially among diverse and underrepresented businesses.
Economic Case
Options Appraisal: Identified and evaluated alternative delivery models, such as direct grants, partnerships with private sector providers, and hybrid approaches.
Cost-Benefit Analysis: Quantified the programme’s potential impact, including increased tax revenue, job creation, and SME growth.
Commercial Case
Delivery Model: Proposed a partnership model, leveraging local training providers and business networks to minimise costs and maximise reach.
Procurement Strategy: Outlined a fair and transparent process for selecting service delivery partners.
Financial Case
Funding Requirements: Detailed phased funding needs and identified potential co-funding sources, such as regional growth funds.
Affordability Analysis: Demonstrated financial feasibility by spreading costs over multiple budget cycles.
Management Case
Implementation Plan: Developed a timeline with milestones, clear responsibilities, and risk management strategies.
Monitoring and Evaluation: Defined success metrics, including SME engagement rates, job creation figures, and diversity in supply chain participation.
Outcome
The business case, now under review by the local authority, clearly outlines metrics to measure success, including:
Number of SMEs Engaged: Tracking businesses accessing the programme, with a focus on diverse and underrepresented SMEs.
SME Growth Rates: Measuring turnover, profitability, and market expansion among participating businesses.
Job Creation: Monitoring the number of new jobs created or safeguarded.
Economic Impact: Estimating increased tax revenue and local economic activity generated by supported SMEs.
Diversity in Supply Chain: Assessing the proportion of diverse suppliers (e.g., minority-owned or women-led businesses) participating in the programme and securing local authority contracts.
Inclusive Procurement Opportunities: Measuring the number of new bidding opportunities created for diverse SMEs.
Programme ROI: Evaluating the return on investment through a cost-benefit analysis.
Social Value Impact: Reporting on how the programme advances the authority’s social value goals, including fostering an inclusive local economy.
These metrics demonstrate a strong commitment to accountability and transparency, ensuring that the programme delivers tangible benefits and aligns with the local authority’s strategic objectives.
Key Takeaways
Developing a business case using the Five Case Model offers a structured and comprehensive way to justify public sector investment. For projects involving taxpayer money, this approach ensures that all aspects of a proposal are rigorously considered, from strategic alignment to measurable outcomes.
This process not only strengthens the case for approval but also establishes a clear framework for monitoring success, fostering stakeholder confidence and long-term impact.
If you are working on a public sector funding proposal or seeking support to develop a compelling business case, I’d be delighted to help you navigate this process. Let’s work together to turn your vision into a well-justified and actionable plan.
About the Author
Omar Hadjel MCIM is a seasoned bid support specialist and GRI-certified sustainability consultant. With extensive experience in developing compelling, data-driven business cases, Omar helps organisations secure funding, align with strategic priorities, and achieve their sustainability goals. He specialises in public sector procurement, social value strategies, and economic development initiatives, using structured methodologies such as the Five Case Model to deliver measurable impact.
