Oxford Major Programmes Ltd.

“Benefits for Whom?”

Benedict Pinches

Hard and Soft

Quantitative Qualitative

Financial Non-Financial

Cash flow

User fees

Customer

Satisfaction

Safety

Dignity

Well-being

Tax revenue

Competitiveness

Sellable data

Brand equity

Pride

Legacy

Direct

Indirect

P Chapman et al, Authoritative Literature Review into the Benefits of Health ICT Investments

‘Literature Review into the

Benefits of Health ICT

Investments’ (DoH)

1,242 articles for Health ICT 1,810 articles for Government ICT investments

5,576 articles for Major Programmes

196 articles for Health ICT 167 articles for Government ICT investments

1,064 articles for Major Programmes

128 articles for Health ICT 126 articles for Government ICT investments

147 articles for Major Programmes

82 articles for Health ICT 57 articles for Government ICT investments

65 articles for Major Programmes

P Chapman et al, Authoritative Literature Review into the Benefits of Health ICT Investments

‘Determining and Delivering the

Benefits of Major Projects’ (MPA,

29 April 2015)

How is benefits realisation currently

being performed?

What knowledge for projects from

one sector can be valuable to

projects from other sectors?

Is there something ‘special’ about

major projects?

Where does UK stand?

What is the relationship between

good sponsorship and benefits?

How can stakeholders be aligned

around benefits?

MPA, The Value of Major Projects

‘Benefits’ Definition from the

Office of Government

Commerce:

The measurement of an outcome,

or part of an outcome

An end benefit is a direct

contribution to a strategic

objective

Describes an advantage accruing

from the outcome

Answers the question of what a

project delivers: why is this

required?

outcome

output

output

output

outcome

output

Benefit

Axelos, Managing Successful Programmes

What Do We Measure?

Benefit Categories

economic social environmental learning

How Can We Measure? Evaluation Method Description Use

Transaction costs Uses segmentation methods to calculate use

and benefits to different user groups

Quick and easy way to estimate potential

cost savings from the introduction of

eGovernment

Net present value A straightforward method that examines

monetary values and measures tangible

benefits

Relatively straightforward; use when cash

flows are private and benefits tangible

Cost benefit analysis A flexible method that measures tangible and

intangible benefits and assesses these against

net total cost

Good consideration of all benefits, but can

be expensive and time consuming

Cost effectiveness analysis Focuses on achieving specific goals in relation

to marginal costs

Good for considering incremental benefits

against specific goals

Portfolio analysis A complex method that quantifies aggregate

risks relative to expected returns for a

portfolio of initiatives

Good for consideration of risk, just use a

consistent approach across a portfolio

Value assessment A complex method that captures and measures

benefits unaccounted for in traditional ‘Return

on Investment’ (RoI) calculations

Used by several governments to consider

performance against all policy goals

P Foley & X Alfonso, eGovernment and the Transformation Agenda

When Do We Measure?

Project

Output

Business

Change

Intermediate

Benefit

End Benefit

Strategic

Objective

Chain of benefits from output to objective

Axelos, Managing Successful Programmes

Buyers

Builders

Users

PM Team

lawyers

special

interest

groups

Government

Regulators

audit

financial

beneficiaries

negative

stakeholders

PR

designers architects

consultants

technicians

general public

operators

support

Builder/Buyer/User Groups

A project is required to build a railway bridge

connecting the finance area of a capital city

with a large housing development recently

constructed on the other side of a river. The

finance area also contains a world leading

university.

What project benefits might you consider

defining and how would you measure them?

D Gray et al, Gamestorming

The Affect Heuristic

“The psychologist Paul Slovic has

proposed an affect heuristic in

which people let their likes and

dislikes determine their beliefs

about the world. Your political

preference determines the

arguments that you find

compelling. If you like the current

health policy, you believe its

benefits are substantial and its

costs more manageable than the

costs of alternatives.”

D Kahneman, Thinking Fast and Slow G Morgan, Imaginization

Experts rule?

“Risk does not exist ‘out there’,

independent of our minds and

culture, waiting to be measured.

Human beings have invented the

concept of ‘risk’ to help them

understand and cope with the

dangers and uncertainties of life.

Although these dangers are real,

there is no such things as ‘real

risk’ or ‘objective risk’.”

Activity or

Technology

League of

Women

Voters

College

Students

Experts

Nuclear power 1 1 20

Motor vehicles 2 5 1

Handguns 3 2 4

Smoking 4 3 2

Motorcycles 5 6 6

Alcohol 6 7 3

Police work 8 8 17

Surgery 10 11 5

Mountaineering 15 22 29

Swimming 19 30 10

Preservatives 25 12 14

P Slovic, Perception of Risk

Major Projects

Unanticipated

Benefits

Disbenefits

How Can We

Compare?

Function

Cost

Quality

Form

Safety

Whole-life

Environmental

Societal

1980 1990 2000 2010

Academic Findings

Lack of construct

clarity

Insufficient empirical

depth Normative models

Case studies

Lower rated journals

No reference class

P Chapman et al, Authoritative Literature Review into the Benefits of Health ICT Investments

Future Trends fault line

P Chapman et al, Authoritative Literature Review into the Benefits of Health ICT Investments

The Importance of

Vision

“Leaders are Dealers in Hope”

Benedict Pinches

Founder and Director

Oxford Major Programmes

Phone: +44 (0) 7956 677 483

Email: ben.pinches@oxmp.co

Twitter: @oxmp

Web: www.oxmp.co

Facebook: http://on.fb.me/PzavIu

Bibliography

P Chapman et al, Authoritative Literature Review into the Benefits of Health ICT Investments

Major Projects Association, The Value of Major Projects

OGC, Managing Successful Programmes

P Foley & X Alfonso, eGovernment and the Transformation Agenda

D Gray et al, Gamestorming

D Kahnehman, Thinking Fast and Slow

G Morgan, Imaginization

P Slovic, Perception of Risk

P Tetlock, Expert Political Judgement: How Good is it? How Can We Know?

CBI, Building Trust, Making the Case for Infrastructure

B Flyvbjerg, What You Should Know About Megaprojects and Why

A King & I Crewe, The Blunders of our Governments