Unit of competency details

Unit descriptor 

This unit covers market analysis, development and costing of options, and justification for a recommended business solution. It includes researching a business case, examining business solutions, and constructing and finalising a business case.

In practice, developing a business case may overlap with other generalist or specialist public sector workplace activities such as applying government systems, complying with legislation, acting ethically, formulating business strategies, managing risk etc.

This unit is one of 3 related to quoting/tendering for business. Related units are:

PSPGOV407B Provide a quotation

PSPGOV603B Develop a tender submission response

This unit replaces and is equivalent to PSPMNGT607A Develop a business case .

Employability skills 

This unit contains employability skills.

Elements are the essential outcomes of the unit of competency.

Together, performance criteria specify the requirements for competent performance. Text in bold italics  is explained in the Range Statement following.

ELEMENT 

PERFORMANCE CRITERIA 

1 . Research a business case 

1.1 Business problem is identified and confirmed in accordance with organisational policy and procedures

1.2 Analysis of key stakeholder  requirements is used to clarify objectives

1.3 A range of factors  is considered through research to identify opportunities and constraints

1.4 Market analysis  is conducted in accordance with legislation , policy and procedures 

2 . Examine business solutions 

2.1 Business and technical impacts and risks  are analysed through research and consultation and documented in accordance with organisational requirements

2.2 Community, environmental and human resource impacts are analysed

2.3 Alternative solutions and their financial implications are canvassed and discussed with senior management and business case originator

3 . Construct a business case 

3.1 Options are developed and impacts, risks, costs and stakeholders are determined and documented

3.2 Recommendation is made and justified

3.3 Business case is prepared in accordance with organisational requirements

4 . Finalise a business case 

4.1 Business case is presented and recommendations are explained in a manner suited to the audience

4.2 Approvals and management endorsement are obtained in accordance with organisational policy and procedures

REQUIRED SKILLS AND KNOWLEDGE 

This section describes the essential skills and knowledge and their level, required for this unit.

Skill requirements 

Look for evidence that confirms skills in:

consulting with others

managing financial/other resources

using language and style suited to written submissions

using technical and other vocabulary

using a variety of words and language structures to explain complex ideas to different audiences

interpreting and explaining complex, formal documents

preparing written advice and reports requiring reasoning and precision of expression

engaging in discussion using exchange of complex oral information

responding to diversity, including gender and disability

Knowledge requirements 

Look for evidence that confirms knowledge and understanding of:

government and organisational goals, policies and practices

legal requirements related to the business activity

financial and accounting issues relating to developing a business case

whole-of-life considerations

approval processes

aspects of trade practices law, commercial law and law of contract relating to the development of business cases

equal employment opportunity, equity and diversity principles

jurisdictional legislation that applies to business case development including occupational health and safety and environmental requirements

EVIDENCE GUIDE 

The Evidence Guide specifies the evidence required to demonstrate achievement in the unit of competency as a whole. It must be read in conjunction with the Unit descriptor, Performance Criteria, the Range Statement and the Assessment Guidelines for the Public Sector Training Package.

Units to be assessed together 

• Pre -requisite  unitsthat must be achieved prior to this unit:Nil 
• Co -requisite  unitsthat must be assessed with this unit:Nil 

• Co -assessed units  that may be assessed with this unit to increase the efficiency and realism of the assessment process include, but are not limited to:

PSPETHC601B Maintain and enhance confidence in public service

PSPGOV601B Apply government systems

PSPGOV602B Establish and maintain strategic networks

PSPLEGN601B Manage compliance with legislation in the public sector

PSPPOL603A Manage policy implementation

Overview of evidence requirements 

In addition to integrated demonstration of the elements and their related performance criteria, look for evidence that confirms:

the knowledge requirements of this unit

the skill requirements of this unit

application of the Employability Skills as they relate to this unit (see Employability Summaries in Qualifications Framework)

• business case development in a range of (2 or more) contexts (or occasions, over time)

Resources required to carry out assessment 

These resources include:

legislation, procedures and protocols related to developing a business case

workplace scenarios and case studies to capture the range of situations likely to be encountered when developing a business case

guidelines for constructing business cases in the public sector

Where and how to assess evidence 

Valid assessment of this unit requires:

• a workplace environment or one that closely resembles normal work practice and replicates the range of conditions likely to be encountered when developing a business case, including coping with difficulties, irregularities and breakdowns in routine
• business case development in a range of (2 or more) contexts (or occasions, over time)

Assessment methods should reflect workplace demands, such as literacy, and the needs of particular groups, such as:

people with disabilities

people from culturally and linguistically diverse backgrounds

Aboriginal and Torres Strait Islander people

women

young people

older people

people in rural and remote locations

Assessment methods suitable for valid and reliable assessment of this competency may include, but are not limited to, a combination of 2 or more of:

case studies

demonstration

portfolios

projects

questioning

scenarios

simulation or role plays

authenticated evidence from the workplace and/or training courses

For consistency of assessment 

Evidence must be gathered over time in a range of contexts to ensure the person can achieve the unit outcome and apply the competency in different situations or environments

RANGE STATEMENT 

The Range Statement provides information about the context in which the unit of competency is carried out. The variables cater for differences between States and Territories and the Commonwealth, and between organisations and workplaces. They allow for different work requirements, work practices and knowledge. The Range Statement also provides a focus for assessment. It relates to the unit as a whole. Text in italics  in the Performance Criteria is explained here.

Stakeholders may include 

• all those individuals and groups both inside and outside the organisation that have some direct interest in the organisation's behaviour, actions, products and services such as:
• employees at all levels of the organisation
• other public sector organisations
• union and association representatives
• boards of management
• government
• Ministers
• clients

Factors to be considered in research phase may include 

• required outcomes
• government policy and direction
• links to organisational goals and objectives
• market capabilities
• needs analysis
• background and current situation
• funding availability
• timing
• interdependency with other activities
• constraints
• cost-benefit ratio
• consultative processes
• ownership/sponsorship

Market analysis may include 

• structure of and 'players' in the market
• market capability
• market maturity
• market strength
• factors/conditions which may affect supply
• potential impact of intended activity
• environmental issues

Legislation , policy and procedures may include 

• Commonwealth and State/Territory legislation including equal employment opportunity and anti-discrimination law
• national and international codes of practice and standards
• the organisation's policies and practices
• government policy
• codes of conduct
• national competition policy

Risk analysis may include 

• financial matters
• people
• assets and physical environment
• reputation and image
• legal issues
• business continuity
• political impact
• community interest

Information sources used in risk assessment may include 

• computer modelling
• sensitivity analysis
• structured interviews
• statistical data
• questionnaires
• fault trees
• analysis of consequences - loss of money, time, labour, intangibles

Competency field 

Management