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Organizations almost invariably do a poor job with Benefits Realization. The Sponsor fails to take accountability for benefits after the project delivers, there's a failure to effectively plan for and agree on measurements of success, or underinvestment in organizational change management to ensure successful transition into BAU. Learn how to use Systems Thinking to overcome these common problems.
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• Sponsor fails to take accountability for benefits after project delivers.
• Failure to effectively plan for and agree on measurements of success.
• Underestimation of organizational change management to ensure successful transition into BAU.
Organizations almost invariably do a poor job with Benefits Realization
Systems Thinking in IT
1. How do the outcomes of the project interact with each other?
2. How do the outcomes of the project change over time?
3. What can be done to sustain the benefits after the project has delivered?
As a Project Manager what questions can be asked to obviate these common problems?
?2
Systems Thinking provides a way to address these questions through
modeling and simulation
3
Website and eServices resurrection project: A Case Study
Context
• A services company must uplift its website addressing: look and feel, navigation, information architecture and aging portfolio of eServices.
• A website project is launched and objectives, scope and outcomes are defined.
4
Improve Website
Look and-Feel
Improve Information Architecture
Offer new / Improved eServices
Key program deliverables
5
The Website Project has 3 key deliverables
Reduce bounce rate / drop-offs
Improve Website
Look and-Feel
Improve Information Architecture
Offer new / Improved eServices
Measurable primary outcomes
Key program deliverables
Reducephone calls to Service
Centre
NewWebsite /Services
Reducemanual
payments
6
Which deliver 4 primary outcomes
1
2
3 4
Reduce bounce rate / drop-offs
Increase satisfaction
/ confidence levels
Increase visitors / traffic
new and existing
Increaseonline
payments
Improve Website
Look and-Feel
Improve Information Architecture
Offer new / Improved eServices
Measurable primary outcomes
Key program deliverables
Reducephone calls to Service
Centre
Measurable secondary outcomes
NewWebsite /Services
Increase uptake of eServices
SpecificBusiness
Cases (2,3,4)*
Reducemanual
payments
7
Which deliver 4 secondary outcomes
1
2
3
4
Reduce bounce rate / drop-offs
Increase satisfaction
/ confidence levels
Increaseonline
payments
Improve Website
Look and-Feel
Improve Information Architecture
Offer new / Improved eServices
Reducephone calls to Service
Centre
+
+
+
NewWebsite /Services
Increase uptake of eServices
+
+
Reducemanual
payments
++
+
8
Which produce 5 virtuous loops
+
+Increase
visitors / traffic new and existing
1
2
3
4
5
Measurable primary outcomes
Key program deliverables
Measurable secondary outcomes
+
+
Increaseonline
payments
Increase uptake of eServices
1
An increase in the uptake of eServices has a positive effect
on the increase of online payments and vice versa
9
An increase in online payments has a positive effect on the increase of visitors and traffic and vice versa
+
+
2
Increaseonline
payments
Increase visitors / traffic
new and existing
10
11
Increase satisfaction
/ confidence levels
Increaseonline
payments
+
+
3
An increase in online payments has a positive effect on the increase in satisfaction and
confidence levels and vice versa
12
Increase satisfaction
/ confidence levels
+
+
Increase visitors / traffic
new and existing4
An increase in visitors and traffic has a positive effect on
the increase in satisfaction and confidence levels and vice versa
13
Increase satisfaction
/ confidence levels
+
Increase uptake of eServices +
5
An increase in Increase satisfaction and confidence levels has a positive
effect on the Increase uptake of eServices and vice versa
1. How do the outcomes of theproject interact with each other?
2. How do the outcomes of the project change over time?
3. What can be done to sustain the benefits after the project has delivered?
Using a Systems Thinking approach the first question can be answeredin a the primary to secondary relationship (or cause and effect)
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DeathSpiral
How do the outcomes of the project change over time?
The threat is Death Spiral it happens when the limit of benefit 1 or 2 is reached or exceeded.
What starts out as a virtuous loop eventually kills the party.
It’s just a question of time and it’s not necessarily a bad thing, the project will have delivered long ago.
But getting back to our opening challenges, we need a way to sustain the benefits…
Benefit 2
Benefit 1
Limit
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1. How do the outcomes of your project interact with each other?
2. How do the outcomes of your project change over time?
3. What can be done to sustain the benefits after the project has delivered?
Using a Systems Thinking approach the second question can be answeredin a primary to secondary relationship with a limit over a period of time
?16
Managebounce rate / drop-offs
Increase satisfaction
/ confidence levels
Increaseonline
payments
MaintainWebsite
Look and-Feel
MaintainInformation Architecture
Offer New / Improved eServices
Reducephone calls to Service
Centre
+
+
+
ManageWebsite /Services
Increase uptake of eServices
+
+
Reducemanual
payments
++
+
17
Sustaining Benefits
+
+Increase
visitors / traffic new and existing
This model employs a strategy of maintaining and managing in overcoming death spirals and waning benefits over time
What are the implications of sustaining benefits?
• The Project Manager must hand-over a long-term strategy or roadmap for business development of the asset.
• The Sponsor of the project must accept the strategy and the accountability for overseeing its fulfilment.
• Key Performance Indicators and measurements of future success must be applied in accordance with the strategy.
• Continual improvement such Deming’s Plan, Do, Check, Act must be used to keep on top of the roadmap.
• A thorough understanding of the website and eServices history should be acquired.
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1. How do the outcomes of your project interact with each other?
2. How do the outcomes of your project change over time?
3. What can be done to sustain the benefits after the project has delivered?
Using a Systems Thinking approach we can answer the third question with a strategy to maintain and manage the outcomes into BAU and beyond
?19
20
What changed? Instead of taking the myopic view of not seeing past the
project closing report, a Systems Thinking approach was used to model
and simulate the benefits well past service transition and into BAU.
21
• The Sponsor is more likely to take accountability for benefits after the project delivers.
• More effective planning of measurements of success well into the future.
• Facilitation of a smooth and successful transition into BAU.
• No Ajax was required
Conclusions
Systems Thinking in IT Visit http://vanwood.net/blog
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