Business Case Approval Record Template – Free Word Download

Introduction

In the lifecycle of a corporate project, the Business Case is the foundational document that justifies the investment of time, money, and human capital. However, the Business Case itself is merely a proposal until it receives a formal, documented sanction. The Business Case Approval Record (BCAR) is the official governance artifact that captures the moment a proposal becomes an authorized project. This document serves as the formal “handshake” between the business requestors and the executive leadership.

The importance of a rigorous approval record cannot be overstated. It provides a definitive baseline for the project, documenting exactly what was promised in terms of Return on Investment (ROI), total cost of ownership, and strategic benefits. Without this record, projects often suffer from “Benefit Decay,” where the original justifications are forgotten as the project encounters technical or logistical challenges. The BCAR ensures that the project team is held accountable for the promises made during the pitch phase.

This template is designed for use by the Portfolio Review Board, the Steering Committee, or the Finance Department. It is the final gate in the initiation phase. It summarizes the core financial and strategic pillars of the Business Case and records the conditions under which the approval was granted. By completing this document, the organization creates a clear audit trail for capital expenditure and provides the Project Manager with the formal authority to begin the detailed planning and execution phases.

Section 1: Business Case Identification and Context

1.1 Document Metadata

Instructions:

This section identifies the specific version of the Business Case being approved. Projects often go through multiple iterations of their business case before reaching a final version; it is vital to record which version is the “Authorized” one.

• Project Name: [Enter official project name]
• Business Case Version: [e.g., v2.4 Final]
• Date of Submission: [Date]
• Primary Author/Sponsor: [Name of the person who drafted the case]
• Department: [e.g., Global Operations, IT Infrastructure]

1.2 Executive Summary of the Case

Instructions:

Provide a 2-sentence summary of the project’s purpose as defined in the Business Case. This ensures the approvers and the project team are aligned on the core mission.

Example:

“The project seeks to implement an automated warehouse sorting system to replace the current manual process. The primary objective is to increase throughput by 40% while reducing labor costs by $200k per annum.”

Section 2: Financial Baseline and Authorization

Instructions:

This section records the “not-to-exceed” financial figures that the board is authorizing. Any future spend beyond these numbers will require a formal Change Request.

2.1 Total Authorized Investment

Table 2.1: Budget Authorization

Cost Category	Amount Authorized	Funding Source (Cost Center)
Capital Expenditure (CAPEX)	$750,000	Operations CapEx Fund 2026
Operating Expenditure (OPEX)	$150,000	IT Maintenance Budget
Management Contingency (10%)	$90,000	Central Project Reserve
TOTAL PROJECT BUDGET	$990,000	N/A

2.2 Phased Funding Release

Instructions:

Does the project get all the money now, or is it released in stages (gates)?

• Immediate Release (Phase 1): [e.g., $100k for Detailed Design and Vendor Selection.]
• Conditional Release (Phase 2): [e.g., $890k pending successful completion of the Design Gate.]

Guidance for 2.2:

“Tranche-based” funding is a best practice in project governance. It reduces the organization’s risk by allowing the board to stop a project after Phase 1 if the detailed design reveals the project is no longer viable.

Section 3: Strategic and Benefit Commitments

Instructions:

This section captures the “Value” the project has promised to deliver. This is what the project will be audited against during the Post-Implementation Review.

3.1 Hard Benefits (Financial)

Table 3.1: Revenue and Savings Commitments

Benefit Description	Value (Annual)	Target Realization Date
Reduction in external consultant fees.	$50,000	6 Months post-launch
Revenue increase from new market entry.	$300,000	12 Months post-launch
Energy efficiency savings.	$12,000	Immediately

3.2 Soft Benefits (Strategic)

Instructions:

List the qualitative improvements that are expected but harder to measure in dollars.

• Benefit 1: [e.g., Improved employee morale due to reduced manual data entry.]
• Benefit 2: [e.g., Enhanced brand reputation as a leader in sustainable technology.]
• Benefit 3: [e.g., Compliance with upcoming 2027 industry safety standards.]

Section 4: Risk Tolerance and Sensitivity

Instructions:

The board must document the level of risk they are willing to accept in exchange for the benefits listed above.

4.1 Critical Risks Acknowledged

Instructions:

List the top three risks from the Business Case that the board has explicitly “Accepted” by signing this approval.

1. Market Risk: The assumption that customer demand will grow by 5% annually.
2. Tech Risk: The assumption that the new software will integrate with the legacy ERP.
3. Resource Risk: The assumption that the internal engineering team will be available for 20 hours per week.

4.2 Sensitivity Triggers

Instructions:

Define the “Tipping Points.” At what point does the Business Case become invalid?

• Cost Overrun Trigger: If the project exceeds the authorized budget by more than 15%.
• Schedule Delay Trigger: If the Go-Live date slips past the end of the fiscal year.
• Benefit Erosion Trigger: If the projected ROI drops below 10%.

Tips for Success:

Setting these triggers now prevents “Sunk Cost Fallacy” later. If the project hits a trigger, it must return to the board for a “Re-Justification” hearing.

Section 5: Approval Conditions and Caveats

Instructions:

Rarely is a Business Case approved without some strings attached. Document those specific conditions here.

5.1 Pre-Execution Conditions

The project is approved subject to the following actions being completed:

1. [e.g., “The project team must conduct a final vendor security audit before signing the contract.”]
2. [e.g., “The Project Manager must provide a detailed Resource Plan for the Finance team’s involvement.”]
3. [e.g., “Legal must confirm that the software license does not violate any data residency laws.”]

5.2 Reporting Requirements

• Frequency: [e.g., Monthly status reports to the Steering Committee.]
• Method: [e.g., Submission via the central PMO dashboard.]

Section 6: Governance and Oversight Assignment

Instructions:

Who is responsible for the money and the outcome?

• Executive Sponsor: [Name] – Accountable for benefit realization.
• Project Manager: [Name] – Responsible for delivery within scope/budget/time.
• Financial Controller: [Name] – Responsible for monitoring spend against the record.

Section 7: Final Decision and Sign-Off

Instructions:

This is the formal authorization. The signatures below convert the proposal into an active project.

7.1 Decision Outcome

• [ ] APPROVED: The Business Case is sound. Proceed to Execution.
• [ ] APPROVED WITH CONDITIONS: Proceed to next phase once Section 5 conditions are met.
• [ ] REJECTED: The Business Case does not meet the organization’s investment criteria.
• [ ] DEFERRED: Hold until [Date/Event] for further review.

7.2 Signatures of Authority

__________________________________ Date: ______________

Chairperson, Portfolio Review Board

__________________________________ Date: ______________

Chief Financial Officer (CFO)

__________________________________ Date: ______________

Project Sponsor (Acceptance of Accountability)

Conclusion – Business Case Approval Record Template – Free Word Download

The Business Case Approval Record is the “Birth Certificate” of a project. It transitions a concept from the world of ideas into the world of authorized corporate activity. By meticulously documenting the financial baselines, the promised benefits, and the accepted risks, the organization ensures that every dollar spent is aligned with strategic intent.

This document should be treated as a permanent record. It will be the primary reference point during the project’s mid-point reviews and its final close-out. For the Project Manager, this record is their “License to Operate.” It provides the clarity and authority needed to lead the team and manage the stakeholders. For the executives, it is their assurance that the investment has been vetted, the risks have been weighed, and the path to success has been defined.

Use this record to maintain the integrity of your project portfolio. When everyone knows exactly what was approved and why, the chances of delivering a successful, value-add project are significantly increased.

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Meta Description:

A formal Business Case Approval Record template to document project authorization, financial baselines, benefit commitments, and conditions for investment.

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