Navigating Assurance Gateways: Public Sector Business Cases

A Business Case’s Journey

Building robust business cases is a crucial tool for all government departments to optimise the Value for Money (VfM) of its vehicles for implementing policy and delivering social value. This is the foundation the Green Book is built on, and why mastery of constructing business cases is an indispensable skillset.

However, constructing a business case is rarely an isolated process, no matter how well-engineered it is. In many instances, an additional navigation skillset is required to traverse the cross-Whitehall terrain and ensure a business case arrives at its destination, safely and fully approved.

These gateways can prove challenging for programme teams. The NAO has reported on the challenge of assuring business cases where, regardless of a business case’s robustness, the business case does not meet the assurers’ specific expectations. Dependent on total expenditure, other assurance gateways could also include the Treasury Approvals Process led by HM Treasury (for example, when a department’s Delegated Authority Limit (DAL) is exceeded) or Infrastructure & Projects Authority (IPA) Gateway reviews for members of the Government Major Projects Portfolio (GMPP).

If a business case is unable to navigate these gateways, a real risk exists – necessary approvals are unsecured, and essential funding is potentially withheld. 2022-23’s GMPP portfolio consisted of Whole Life Costs (WLCs) of ￡805 billion; this represents only a snapshot through the IPA’s eyes of the expenditure at stake when navigating these assurance gateways. ?Likewise, while stumbling at an assurance gateway may not be the “be-all-and-end-all", unpreparedness can hinder approval timelines, benefits realisation and overall VfM.

This blog will outline the key factors for success when navigating business case assurance gateways. In particular, the skillset to foster, what to look out for on this assurance journey, and guidance from Capgemini Invent’s experience as a cross-Whitehall business case advisor.

Obstacles On the Way

Departments may view the assurance gateways described as obstacles, in addition to constructing the business case itself. Senior Responsible Owners (SROs) often have the same first thought; navigating them will add extra time to a business case’s journey. The Treasury Approvals Process (TAP) and IPA Gate reviews are formal processes, with a clear structure and pre-defined levels of scrutiny. Moreover, IPA Gate Reviews occur throughout the development of a business case and into delivery, with 5 in total at a minimum; it is not a one-time occurrence.

Naturally, this due diligence can be lengthy and places an additional burden upon departments to develop specific artefacts, such as Risk Potential Assessments if joining the GMPP or Accounting Officer Assessments. Where a project or programme has dependencies on delivery timelines, this can prove particularly challenging.

Furthermore, these gateways are often viewed as thorny obstacles which are difficult to pass through. The Treasury Approvals Process exhibits a high level of scrutiny which will test a department’s mastery of business case construction skills. Similarly, despite occurring at the Business Justification stage (i.e., the inception of a business case) a Gate 1 IPA Review has up to a possible 81 in-depth?lines of questioning across all five pillars of a business case (Strategic, Economic, Financial, Commercial and Management).

Underpinning all of this is that, generally, the more ambitious a department’s vision the more assurance gateways a business case can expect to encounter on its journey. While this is a natural and needed feature of assurance in the Public Sector, this can result in increased pressure (and potentially stifle innovation or new approaches). Examples of where this may occur is expenditure that significantly exceeds DALs, wide-reaching policy implications beyond a department’s Strategic Objectives, or impacts to Critical National Infrastructure (CNI).

Overall, it is understandable that Civil Servants and SROs can anticipate a challenging journey for their business case where numerous assurance gateways are required. While focusing on making a genuine social impact and “doing the doing”, there exists a growing demand for a cross-Whitehall navigation skillset.?

Obstacles into Opportunities

However, these obstacles may be easier than anticipated if equipped with the appropriate skills.?As suggested, a key element for this is developing an assurance-focused navigation skillset. This serves to mitigate the risks of failure at an assurance gateway, instead leveraging them as opportunities to enhance a business case’s robustness.

Foremost, to develop this navigation capability, the full breadth of cross-Whitehall assurance must be built into a department’s central P3M practice and strategy. Institutional knowledge of possible gateways helps equip prospective SROs with the right knowledge and skills to design appropriate project and programme strategies through providing a “map”, of sorts. This includes NAO, HM Treasury, GMPP and Cabinet Office gateways, in addition to any others relevant to a department’s specific policy area.

As practitioners in business case development and assurance, Capgemini Invent has witnessed this done particularly well by departments who have developed centralised practices and platforms (for example, SharePoint sites) to inform programme and project development, explicitly including assurance. Doing so ensures any development of assets or strategy is compliant with cross-Whitehall assurance guidelines and built-in from the get-go.

In addition, a cohesive assurance strategy also fosters a knowledge-sharing culture, enabling the sharing of best practice and lessons learned on traversing gateways. This is especially valuable for business cases originating from the same organisation. Likely, there is an overlap in policy areas, lines of enquiries and assurance bodies. Developing departmental best practice therefore enables business cases to be articulated in the optimal way for its specific context and assurance gateways.

Therefore, departmental proactivity is vital to facilitate knowledge of the “where” and “when” of navigating assurance gateways. However, developing the “how” is limited in isolation.

Networking is invaluable tool in these instances. Approvals contacts are often receptive and helpful in providing guidance; guides are often provided who are more than willing to talk through the process. This includes HM Treasury spending teams, IPA assurers, and so on. This is often not realised by programme teams under the misconception that “scrutiny” is an unfriendly term, or because they are hesitant to share programme issues and be upfront about challenges.

Instead, developing consistent and open relationships with relevant assurance stakeholders is vital in demystifying the “how” of navigating any assurance gateways, ensuring specific requirements are met the first time and, again, building on departmental best practice.

Drawing on my own experience as a business case consultant and my previous career in government investment at HM Treasury, a key to relieving some of this pressure can involve HM Treasury spending teams. These are the Civil Servants who facilitate the Treasury Approvals Process for departments, but also oversee wider budgetary approvals, for example through Spending Reviews, Estimates and other forms of budgetary cover. As such, these stakeholders are critical to manage, particularly leading up to any fiscal event or Spending Review – which just so happens to be the peak season for business case submissions, where departments are setting strategy and looking to secure funding and approvals.

While this blog highlights only a handful of factors for navigating business case assurance gateways, it is undeniable that a fully formed and complementary navigation skillset is key to circumventing the associated risks. This is not to say that technical know-how is not valuable, though; it is the cornerstone for any business case’s robustness and justifying its own value.

If you would like more information regarding this topic or how to best to prepare for business case assurance or gateway reviews, please get in touch with me via LinkedIn or [email protected]