What Happened to the Promise of Benefits Realization?

Presented by: Dave PetersDate: November 12, 2013

Purpose

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To explore why it is difficult to realize benefits from projects and what we can do about it!

Agenda

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What Are The Benefits Realization Fundamentals?

What Have We Experienced With Benefits Realization?

How Can We Do Better With Benefits Realization?

WHAT ARE THE BENEFITS REALIZATION FUNDAMENTALS?

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Achieving desired business outcomes from the intentional and effective interplay of strategy and actions

Proven technique for leveraging greatest value Selecting, structuring and delivering projects with the

best potential to advance the enterprise’s strategy Focusing resources and energy on the most valuable

projects for highest impact

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Benefits Realization Fundamentals

What is Benefits Realization?

Benefits Realization Fundamentals

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Client

RightThings

RightWay

GettingDone

GettingResults

Are we doing the Right Things?

Are we Getting the Benefits?

Are we Getting Work Done as

expected?

Are we organized to work the Right Way?

Benefits Realization Fundamentals

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Client

RightThings

RightWay

GettingDone

GettingResults

Are we doing the Right Things?

Are we Getting the Benefits?

Are we Getting Work Done as

expected?

Are we organized to work the Right Way?

Strategic

Tactical

Value Focus

Traditional Focus

Portfolio

Program

Project

Benefits Realization Fundamentals

Transformational or strategic change is complex There are multiple ways to achieve the objectives Each path requires a well thought out set of

deliberate actions taken to get the desired result

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Why is Benefits Realization Important?

Unless we think through all the possibilities and act on explicit choices, our stakeholders will make their own choices … which may not be what we expect or want!

Benefits Realization Fundamentals

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PeopleSkills, Qualifications, Experience, Attitude

OrganizationStrategy, Structure,

Controls

TechnologyApplications,

Infrastructure,etc.

Business ProcessesPolicy, Process,

Procedures

What Must Be Considered?

Optimal benefits achieved through the interaction of four business domains

Benefits Realization Fundamentals

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What Types of Projects are Suitable for Benefits Realization?

Projects suitable for benefits realization Innovation Sustainment Obligation

If a project has no benefit, why are you doing it?

Increasing Value

Benefits Realization Fundamentals

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• Must do to survive; greatest risk• Compliance, legislated, regulated, contractual• Mandated, mitigate risk

Obligation

• Remain at same level; moderate value & risk • Investigative, maintenance, info request• Stream line, modify, new capabilities

Sustainment

• Go to the next level; highest value• Brand new services, markets, technology• Proof of concept, research & development

Innovation

How Do Different Projects Contribute Benefits?

Leverage potential with other initiativesUnderstand risk and actively manage

Benefits Realization Fundamentals

Business Cases versus Benefits Cases Adds and emphasizes business benefits to standard business

cases

Measurement is paramount Must measure before, during and after to determine how you

are doing Tracking and monitoring benefits may go beyond the project

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How to Measure Success?

Identify and prioritize benefits Establish benefits metrics Sequence benefits actions Manage and deliver benefits results

Benefits Realization Fundamentals

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Outcomes Mapping

Initiative Final Outcome

Critical Assumption

Intermediate Outcome

Results Chain

Identify, prioritize, sequence actions

Understand and communicate contributing and ultimate benefits

Benefits Realization Fundamentals

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Forge a Clear Path

Scalable to represent actions within a project or multiple projects within a program within a portfolio of investments

Powerful Roadmap

Useful to plan and execute deliberate actions and link to the realization of strategic benefits

Benefits Realization Fundamentals

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What About Managing Risk?

Value Risk ManagementIs this strategically aligned?

Will we succeed at this?

Traditional Risk MgmtWhat are the risks?

Are we closing the gaps , overcoming obstacles?

Benefits Realization Fundamentals

Most benefits are orchestrated Conscious choices, planned actions

Requires program and integrative thinking People, process, technology,

organization

Look beyond Return on Investment Align with strategic objectives

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Practical Tips

Benefits Realization Fundamentals

A business outcome owner is imperative Cannot be delegated to support or

external resources

One size does not fit all Scalability, not all benefits are equal Adjust your approach based on the

potential risks and rewards Patience and Persistence

Benefits may not appear at project close out

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Practical Tips

Benefits Realization Fundamentals

Benefits-driven portfolio Evolves to deliver the greatest strategic

value

Business risk to value assessment Used to determine the likelihood of realizing

the benefits

Benefits identification, prioritization, sequencing Many things have to happen before

achieving the “ultimate” outcome Know interdependencies, prerequisites

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Practical Tips

WHAT HAVE WE EXPERIENCED WITH BENEFITS REALIZATION?

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Benefits Realization Experiences

Fundamental thinking has been too tactical

Focus on narrow project level benefits not broad enterprise level strategic benefits

Not seeing possibilities beyond the immediate narrowly focused need

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Tactical Thinking

Business not committing the “right” people or time to identify and produce meaningful enterprise level strategic benefits

Responsibility is delegated to support groups or external parties who do not have the line of sight to the bigger picture

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Business Commitment

Benefits Realization Experiences

People will say whatever is needed to get the project approved

Requirement to identify the benefits not taken seriously so little or no possibility of achieving meaningful benefits

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Bureaucratic Hurdles

Benefits Realization Experiences

All projects identify business benefits the same way, even when not appropriate

Rigid enforcement in the identification of or realization of benefits leading to projects delivered under crisis

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One Approach For All Projects

Benefits Realization Experiences

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Applying Inappropriate Timeframe

Benefits Realization Experiences

Timeframe for the realization of benefits is typically too short

HOW CAN WE DO BETTER WITH BENEFITS REALIZATION?

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What Can We Do Better

Benefits identification is not a step in a project plan

Benefits are identified, prioritized and sequenced long before any projects or programs are identified

Benefits identification should spawn projects, not the other way around

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Improve Our Understanding

Multiple initiatives each producing their own sub benefits together produce the ultimate benefits

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What Can We Do Better

Apply Critical Thinking To Our Initiatives

Only after all components are complete and adopted by the business will benefits appear

What Can We Do Better

Choose projects with greatest potential

Facilitate clear direction from upper management

Ensure visible and fully engaged sponsorship

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Select Projects Thoughtfully

Keep in mind that mandated projects are primarily about survival, establishing a base or reducing risk

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What Can We Do Better

Keep Our Eye On The Ball

Be disciplined and persistent about staying focused on business benefits

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Discussion

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