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APM Benefits SIG masterclass: Identifying and managing benefits 19th June 2013. Nick Wensley, Peter Glynne, Hugo Minney and Neil White
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Benefits in Practice SeriesIdentifying and Managing Benefits
19th June 2013The Innovation Space, BIS
Agenda1:30 Welcome and Introductions
1:45 Setting the Context: Corporate Strategy and Benefits
2:10 Case Study Exercise 1 (groups of 3 participants)
2:30 Benefits Lifecycle
» Benefits identification and modelling
3:00 Case Study Exercise 2
» 3:30 Feedback to group (content)
» 3:50 Aligning Benefits Realisation to the wider organisation
» Ownership, Governance and Convergence
4:25 Summary and Close
Introduction to Presenters
Peter Glynne – Co-Chair of Benefits Management SIG
Nick Wensley – Co-Chair of Benefits Management SIG
Neil White
Hugo Minney PhD
What are you going to get from this afternoon?
Establish a strong base of practical experience
Consider different approaches to benefits identification and modelling
Consider new ways of thinking and how to drive innovation
Explore effective benefits leadership
Network and share experience
Setting the ContextCorporate Strategy and Benefits Realisation
“A world in which all projects succeed”
APM’s 2020 Vision
Impossibility or deliberately aspirational?
Discussion Point:
What does Benefits realisation mean to your organisation?
In three words or less…..
MeasurementActivists
Full Cycle Governance
A future in which all projects succeed…
Right Things
Right Way
Done Well
Portfolio ManagementLeadership, Alignment, Value Optimisation, Programme selection, Portfolio Adjustment
Programme Management
Business Sponsorship, Ownership, Coordinate complementary and interdependent projects to
realise …
Project ManagementManagement of budget, schedule and
resources to deliver …Capability
Benefits
Strategic Objectives
Getting BenefitsJohn Thorp
A future in which all projects succeed
Engage the right people in the business – so they want success
Effective cross-boundary working and decision-making at executive level
Incentivise organisational convergence to pull together work on business benefits
Recognise the need for agility and flexibility … instead of just working to the next milestone
A clear connection with corporate strategy. The ‘WHY’ of projects.
Case Study Exercise 1HS2 Context and Strategic objectives
20 minutes in groups of three
Consider the following Nathan Coyne article: http://www.politics.co.uk/news/2013/05/09/make-the-case-for-hs2-benefits-say-experts
Identify the top six stakeholder groups
From the point of view of DfT: Consider six points of strategic value for their investment in HS2
Benefits LifecycleBenefits Identification and Modelling
All the focus has been on the success of Project & Programme Management……
What makes Project Management successful?
Project Management Success Criteria
– Time / Budget / Quality
– Business Objectives and Business Benefits
PwC 2012 – greater maturity, higher success rate
– Use an established method for project management
– Use certified practitioners (you wouldn’t trust a pilot . . )
In a nutshell: Professionalism….
Should we not apply the same professionalism to Benefits Realisation?
The Benefits LifecycleA Strategic and Integrated Approach based on partnership
Benefits Mapping – Some Techniques
Considering specific aspects of HS2
Cassandra Benefits Management model (Cranfield)
Results Chain (DMR / Thorp)
Benefits Dependency Map (Bradley)
Benefits Value Mapping (Glynne)
The benefits map or model is ONLY as an aid to communication and decision making. It must be simples, easy to understand and easy to communicate.
Too many models are only understood by the author
Key Point
Cassandra / Cranfield
ENABLERSENABLING CHANGES
BUSINESS CHANGES
BUSINESS BENEFITS
INVESTMENT OBJECTIVES
Treasury guarantees
Planning laws
Public consultation
Investment
Routes for line
Linked investment
Stations and
community travel
High Speed line
Journey times
Link economic centres
Major infrastructure
build
Results Chain (DMR/ Thorp)
HS2HS2
Shorter Commute
TimesFaster
More reliable
Shorter Business
Meeting journey times
Work London, Live
in regions
Work in Regions,
more business
Regional Economic
Growth
constraint is journey
time
more meetings = more
business
Last MileLast Mile
PricePrice
Phase 2
Phase 2
Legislation to
compulsory purchase
land
Legislation resource release
Benefits Dependency Map (Bradley)
To Increase Regional Economic
Growth
To increase jobs in regions
To widen labour pool
To increase passenger satisfaction
Reduce commute time
Shorter meeting
journey time
Increased UK Trading
Improved GDP
Increased regional spend
More good workers attracted
to London
HSR Bill
HS2 Hybrid Bill
Link economic centres ( 2)
Link Midlands to London ( 1)
ObjectiveBenefitBusiness Changes
Enabler Disbenefit
Named New Capability
Project, Programme or Portfolio
New
Cap
abili
ties
Stra
tegi
c Va
lue
Ope
ratio
nal B
enefi
ts
Strategic Objective
Effectiveness
Strategic Objective
Effectiveness
Strategic Objective
Effectiveness
Action led word describing the
Operational Benefit
ABenefit Type (1 of 5)
How to Read the Benefits Value Map.....
New tangible capabilities directly attributable to the investment in the
project, programme or portfolio. New to the business area or organisation
e.g. What we are buying for our investment?
Operational, functional day to day benefits relevant to the organisation Five types of operational benefit to enable consistency
and comparability. KEY LINK TO OPERATIONAL PERFORMANCE
MANAGEMENT
A dashboard is developed for every operational benefit showing key
performance indicators, priority ranking and ownership
There must be a direct correlation/relationship from a capability to an
operational benefit
Five Types of Operational Benefit CRITICAL TO MEASUREMENT1.Time – measured in hours, day, weeks etc.2.Cost – measured in £3.Satisfaction/Assurance – measured by a before and after perception survey showing a measurable improvement4.Income – measured in £5.Disbenefit – the negative consequences of change - measured using one of the four types described above
The colour boxes highlight the contribution of the operational benefit to
strategic value in the bottom row. It must reflect the organisation’s or group’s business plan or strategy
Unique identifier for each operational
benefit
Showing the contribution of individual operational benefits to the business plan or strategy. Two categories:1. Efficiency 2. Effectiveness
Benefits Value Mapping
Ope
ratio
nal B
enefi
tsH
ow w
ill it
cha
nge
our
perf
orm
ance
?St
rate
gic
Valu
eH
ow w
ill it
con
trib
ute
to s
trat
egy?
New
Cap
abili
ties
Wha
t are
we
inve
sting
in?
Time Time
Income
Time
Income
Cost
Satisfaction
Assurance
INCREASED ECONOMIC
INVESTMENT IN REGIONS
Effectiveness
INCREASED PASSENGER
SATISFACTION WITH SERVICES
Effectiveness
?Effectiveness
?Effectiveness
A
B
C
D
E
F
G
H
I
J
Focus on change, business performance and measurement
Exercise 2 – HS2 Benefits at operational level 30 minutes in threes
Partially completed template – fill in the gaps
Share from your group – please nominate spokesperson (1 minute feedback time)
– Results of discussion on HS2
Aligning Benefits Realisation to the Wider Organisation
Ownership, Governance and Convergence
Benefits Realisation Common Behaviours across organisations
And there’s always the impact of the media.....
CONVERGENCEWhat are the Opportunities for collaboration?
Operational
Perform
ance
Management Financial
Forecasting/
Budgeting
Strategic
Planning and
Evaluation
Benefits
Realisatio
n
PMO
Change
Management
Ever increasing professionalism in the management of change within organisations
Communications
(internal a
nd
external)
Benefits Realisation: Effective Partnership WorkingLikely degree of engagement across the Change Journey within a typical organisation.
Typical Professional Group Strategy / Policy Delivery Embedding of Change
Project/Programme Management
Finance Profession
Sponsors of Change
Economists
Strategists
Business Change Managers
External Relations/Communications
Human Resources
Operational Management
Procurement
Contract Management
Organisation Executive Board
Internal Audit
Understanding Behaviours, Governance and Convergence
What to look out for across your organisation?
Process Obsessed Benefits Realisation
We MUST follow the prescribed process/manual
People looking to find a problem for a waiting benefits solution....
My favourite solution will solve any ill...........
Limiting the focus to only the Project or Programme.......
We don’t want to INVOLVE other areas of the business.. too political
Believing that lack of success is other people’s issue for not understanding how important something is..........
They won’t listen and they don’t want to understand
Groupthink on the approach to benefits realisation......
We all agree so it must be the right approach.....???
Governance of Benefits
Governance is one of the most important factors in the successful realisation of benefits. Not just at Portfolio level which is critical to success!!
Governance needs to be a ‘partnership approach’ between the project/ programme and wider business organisation (operational/business as usual)
The wider business organisation should always own the benefits. Align director level and operational ownership. Two level ownership.....portfolio level and operations
The project/ programme should facilitate the benefits on behalf of the business organisation – not own the benefits……….
Governance is closely linked to leadership and organisation culture – arguably the most important aspect of successful benefits realisation. GET IT WRONG AT YOUR PERIL as governance can be difficult to change once implemented
Key Point
Challenges in Implementing a Robust Governance Model
• Getting senior executives to take responsibility for individual or collective benefits, especially if there is a history of project/programme failure within the organisation
• Jargon/technical language trap
• Ensuring that there is a clear understanding of roles and responsibilities for benefits realisation. Communication, Communication, Communication
• Maintaining momentum – if the governance model becomes ineffective, senior managers will very quickly lose confidence in it.
An example Governance Model for a Single Organisation
Senior Benefit Owners are also likely to be members of the Executive Committee / Steering Group
Organisation Board
Executive Committee/ Steering Group
Senior Benefit Owner(s)
Benefit Owners
Programme Management Office (PMO)
Benefit Owners will be drawn from across the organisation based on the most appropriate fit
Support for benefits management across all levels of the governance model including:
- Management Information
- Specialist advice and support
- Appropriate Challenge
- Oversight of double counting
Project/ Programme Delivery
Facilitate the identification and planning of benefits on behalf of the wider business
An actual model used within a UK public sector organisation
An Example Governance Model for Multiple OrganisationsDuring Implementation
Regional Organisation Board x 11
Chief Information Officer (CIO)
RegionalBenefit Leads
Local Organisation Board x 150
ICT Director
National Change and Benefits Management
team
Programme Benefits Manager
Programme Manager
Project Manager
NationalImplementation
Managers
SUPPORT SUPPORT
LocalBenefit Leads
National Programme Board
Parent Organisation Board
Project Board
Programme Implementation
Core Benefit Owner(s)
Programme Delivery Business As Usual
Senior Benefit Owner(s)
Action Owner(s)
Project Delivery Business As Usual
CIO Forum
An actual model used within a UK public sector organisation
An Example Governance Model for Multiple OrganisationsPost-implementation
Regional Organisation Board X 11
Chief Information Officer (CIO) Regional
Benefit Leads
Local Organisation Board x 150
ICT DirectorNational Change and
Benefits Management team
Programme Benefits Manager
SUPPORT SUPPORT
LocalBenefit Leads
Parent Organisation Board
Benefits Realisation
Core Benefit Owner(s)
Business As Usual
Senior Benefit Owner(s)
Action Owner(s)
Business As Usual
An actual model used within a UK public sector organisation
Pushing the Boundaries of ChangeBenefits Realisation across Local Government
Thought Leadership: Six Action Points:
1.Incentivise organisation wide convergence in benefits realisation
1.Move beyond an over reliance on isolated process, low-value templates and certification driven technical knowledge
2.Establish appropriate benefits leadership at the portfolio level
3.Greater external partnership working to deliver change and benefits
4.Greater integration of the cost reduction agenda and benefits realisation
5.Invest in professionalism; innovation and collaboration
Summary and Close
Conclusions – where to go from here
Recap
– Benefits Mapping in context
– Benefits Lifecycle
– Ownership and Governance
– Conclusions from exercises
What would people like to see next?
Some Examples of Approaches
Org 5Customer Group 1
Customer Group 2
Customer Group 3
Org 6
A
B
C
D
E
F
G
Example Stakeholder and Benefits Impact Matrix
High Low
H
The above table illustrates the impact of each benefit on the each stakeholder group. Benefits are in order of sequence only
Org 4Org 3Org 2Org 1
Greater assurance in the quality and integrity of returns
Main Organisation Other Stakeholders
Reduced staff costs on administration of customer's hard copy financial accounts
Increased assurance in the accuracy of returns and statements being filed
Increased customer satisfaction with the filing of financial accounts
Increased assurance in debt management in Collector Generals
Increased satisfaction with the quality and access to information on financial accounts
Increased confidence in the targeting of interventions based on risk profile
Increased confidence in the targeting of interventions based on risk profile
Operational Benefit
Source: Glynne
Sample Operational Benefit Dashboard
Ref: BenefitA Description Impact Summary
Measurement Question
Method and Unit of Measurement
Baseline Value
Target Value Actual ValuesMeasurement to
be done by
PriorityLikelihood of
Failure
Dependency on other Benefits
Benefit Category
Actions Required to Realise the Benefit Ownership Start Date
EndDate
Risks Impacting Realisation of the Benefit Impact Probability Mitigation
Director Owner
Operational Owner
Current RAG Status
Exposure Rating 16AN Other
AN Other
Question to be asked to measure the benefit
How will the benefits be measured and what is the unit of measurement. Alignment with organisational performance management including relevant KPIs
Measurement Dates
? ?Baseline
Actual(s)
Time ?Cost?Satisfaction ?Income ?Profitability ?
4 4
Owner
End date to be realised TBC
Source: Glynne