Step 3: Options generation and assessment

At a glance

  • Step 3 of the Framework provides guidance on generating and assessing options to address the problems identified and prioritised in Step 2.
  • The purpose of this step is to:
    • Generate a full range of reform and investment options that consider supply and demand factors
    • Narrow down a long list of possible options to a preferred option, using a threeā€“tiered assessment process: Strategic Merit Test (SMT), rapid appraisal and detailed appraisal.
  • Recommended tools are provided for each tier of the options assessment process.
  • This step should result in the selection of a preferred option (or package of options) that is supported by a rich set of information about its impacts, benefits and costs.
  • Information about relationships between individual initiatives (independence, complementarity, substitutability) can assist decision-makers to appropriately classify initiatives and submit them for appraisal.