PMI12 Benefits

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EuroProjex

Project and Programme Management

Session 1.2 – Benefits management

Professor J Rodney TurnerProfessor of Project Management

SKEMA Business School

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Benefits management

Mapping benefitsBenefits management process

Exercises

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Projects for performance improvement

Exploitation

Implementation

Resources Project Outputs

Outcomes

Goals

Benefit

Improvedperformance

OperationDo the right project

Do the projects right

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Benefits definition and delivery

GoalValue

Problem 1

Problem 2

Problem 3

NewAsset

Capability1

Capability3

Capability2

Benefits Definition - SponsorCapability DefinitionSteward

Capability DeliveryProject Manager

Benefits Delivery – Owner/or Business Change Manager

The Project Manager’s responsibility ends here

Step13

Step11

Step12

Step21

Step23

Step22

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Benefit modelling

Output Outcome Goal

Fewerqueries

Reducedphone calls

Lessadvertising

Web-basedcustomer

information

Web-basedservice

information

Web-basedtransactions

Reducedexpenditure

Bettermarketimage

Betterquality

information

One stopinformationcollection

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Mapping benefits

NewAsset

CapabilitiesEnablers

IntermediateBenefit

Problem Solved

GoalAchieved

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Benefits waterfall

NewAssets

NewCapabilities

Outcomes &Benefit

SolvedProblem Solved

GoalAchieved

ProjectOutputs

ProgramBlueprint

ProgramVision

IdentifiedProblem

Identified

Context

Deliver

Enable

Contribute

Delivers

Details

Mandate

specifies

describes

satisfies

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Benefits management

Mapping benefitsBenefits management process

Exercises

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Realizing benefits through change

Programme ChangeDesired

OutcomesBenefits

Side-effects Dis-benefits

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Objectives of benefits management

Benefits clearly identified and defined Business areas committed to benefits

encourage ownership responsibility for adding value

Manage benefit realization Keep benefits realistic Benefits realization tracked and coded

achievements recognized Alignment of programme, vision, outcomes,

company’s strategic objectives

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Benefit management process

DesiredOutcomes

Benefits managementstrategy

Identify & modelbenefits

Quantify benefits& optimize mix

Plan for benefits realization

Identify additionalbenefit opportunities

Benefits review Benefits realization

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Benefit management strategy

DesiredOutcomes

Benefits managementstrategy

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Benefit management strategy

Outline description of benefits Model of benefits showing interdependence Description of functions, roles, responsibilities

for benefit planning and realization Assessment process for measuring benefit

realization

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Checking the strategy

Benefits match desired outcomes Relevant stakeholders engaged Organization has capability and capacity to

deliver strategy Appropriate accountabilities, responsibilities

allocated Is the strategy integral with related strategies

other programmes, operations, marketing ……

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Benefit management process

DesiredOutcomes

Benefits managementstrategy

Identify & modelbenefits

Quantify benefits& optimize mix

Plan for benefits realization

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Identifying benefits

Benefits modelling measurable controllable

Identify dis-benefits not all outcomes will be desirable

Assign ownership identify senior manager to take ownership of each

outcome delegated from sponsor linked to performance targets

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Benefit profile

Document describing description of benefit interdependence with others when it will occur project that will deliver measure for realization key performance indicators changes required to business processes costs associated with achieving it dependencies and risks associated with it person responsible for realization

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Benefit management process

DesiredOutcomes

Benefits managementstrategy

Identify & modelbenefits

Quantify benefits& optimize mix

Plan for benefits realization

Identify additionalbenefit opportunities

Benefits review Benefits realization

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Objectives of benefits review

Update benefit profiles and realization plan planned benefits remain achievable

Benefits remain aligned with programme objectives repriotize and realign if necessary help identify potential future benefits

Assess levels of benefits achieved Review effectiveness of benefits management

improve methods improve organization's capability

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Benefits management

Mapping benefitsBenefits management process

Exercises

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Exercise 1

For one of the two case studies Ockham Day Care Centre TriMagi Intranet

Identify the desired performance improvement the components of the new asset that will deliver

that performance improvement

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Exercise

For your case study Ockham Day Care Centre TriMagi Intranet

Draw a benefits map

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For Friday

In your teams to read one of the strategy case studies 1,2 – Aerospace 3,4 – Finance 5,6 – Pharma 7,8 - Transport

Answer the following questions: How does the company operationalise the

components of moving from corporate strategy to project strategy.

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END of SESSION 1.2

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