Overview

The Strategic Case is the foundation of the New Zealand Treasury’s Five Case Model, which provides the standard framework for developing robust investment proposals across the public sector. It is used in business cases for both central and local government projects and underpins the Better Business Cases (BBC) approach promoted by Treasury and the Department of Internal Affairs.

The Strategic Case answers the question “Why change?”, establishing the compelling reasons to implement metering and why its makes sense. [JF2] It sets out the problem or opportunity, demonstrates how it aligns with organisational strategic objectives, and builds the rationale for why the commitment of the investment is required.

In the context of water metering, the Strategic Case must go beyond technical justification to define the strategic, social, and environmental drivers for change. It identifies the challenges facing the organisation and community and the prospective benefits, and explains how water metering supports wider objectives, such as sustainable water resource management, network resilience, and efficient water use.

The Infrastructure Commission report titled, “Valuing Water: Sustainable Water Services and the Role of Volumetric Charging[1]” is an excellent resource for exploring the strategic case for universal metering and volumetric charging.

Clarity and consensus through Investment Logic Mapping

To build the strategic foundation in a structured and evidence-based way, many providers use Investment Logic Mapping (ILM), a core tool within the Better Business Cases approach. ILM is not just a template; it’s a collaborative thinking process that shapes the logic of the investment before any solutions are explored. An ILM workshop brings key stakeholders together to define and agree on four essential elements:

• • Define the problems - Stakeholders identify and agree on the core problems the investment needs to address, typically two or three, expressed as clear cause-and-effect statements. Example: “Water demand exceeds supply in peak periods.” or “there is insufficient capacity in the water supply to meet future growth without significant upgrade investments”. 

  • Identify the benefits - For each problem, the group defines what outcomes or benefits would indicate success. These benefits later form the foundation for the investment objectives in the Management Case (refer to Stage 2). Example: “Reduced water losses and improved customer understanding of use.”  or “accommodate growth utilising the existing infrastructure”

  • Explore strategic responses - Participants outline the broad approaches that could deliver the desired benefits — not specific projects yet, but directions of travel. Example: “Introduce volumetric pricing,” “invest in leakage reduction,” or “enhance customer data and engagement.” This shapes the scope for the Economic Case options that follows in Stage 2.

  • Confirm key enablers and rationale - The logic is tested: Do the problems make sense? Are they supported by evidence? Do the benefits flow logically from the problems? This step ensures the case for change is coherent and credible before moving on to options analysis.

The ILM process produces a one-page “map” that captures the strategic logic of the investment, a shared understanding of why change is needed, what success looks like, and how it could be achieved.

Within the Strategic Case, the ILM provides the evidence base and consensus needed to justify the case for change. It ensures that investment in a metering programme [JF3] directly links to agreed organisational and community outcomes, for example, reducing water losses, improving customer fairness, and strengthening resilience.

This gives decision-makers clear sight of why investment is needed, what value it delivers, and how success will be measured. Following this process, it provides a disciplined framework for councils [JF4] to build political confidence, community trust, and funding certainty for universal water-metering programmes.

Integrating Existing Strategic Documents into the Strategic Case and ILM

The Strategic Case and its supporting Investment Logic Map should be firmly grounded in the organisation’s existing strategic direction. Council and water service provider strategies should already capture the long-term challenges, community outcomes, and investment priorities that define why change is needed.[GU5]  Drawing directly on these ensures the case for water metering is credible, consistent, and aligned with the provider’s agreed priorities.

Key reference documents typically include

• • Growth or spatial plan/strategy

  • Infrastructure strategy,

  • Asset management plan (AMP),

  • Water safety plan,

  • Water conservation or demand management strategy/plan,

  • Long-term plan (LTP), and

  • Climate change planning

  • Sustainability frameworks

Together, such documents provide the strategic framework, anchors and evidence base for the ILM and the broader business case and can be incorporated as shown below. 

• • Set the context - Use existing strategies to frame system pressures and objectives—scarcity, renewals, climate impacts, or other drivers that strengthen the case for metering.

  • Show the evidence - Draw on AMP data to validate the problem statements—leakage, peak-demand trends, and affordability pressures.

  • Align the benefits - Ensure ILM benefits reflect existing organisational goals such as sustainable use, efficient investment, and customer fairness.

  • Check for consistency - Test the ILM and Strategic Case against approved strategies and community outcomes to confirm everything lines up.

By directly referencing these strategies within the Strategic Case, the business case demonstrates continuity with existing policy direction and reinforces that the proposed investment is not a new initiative in isolation, but the next logical step in delivering on established commitments.

A well-crafted Strategic Case does more than justify metering, it unites stakeholders behind a shared understanding of the problem and builds the foundation for the next component of the Five Case Model, the Economic Case, which evaluates how best to deliver the change and achieve value for money as described in Stage 2 below

[1] New Zealand Infrastructure Commission (2024). Valuing water: Sustainable water services and the role of volumetric charging. Wellington: New Zealand Infrastructure Commission/Te Waihanga.