Version 10 Prepared by David Walton David Walton Who are we Come and See us at Stand 26 Benefits Realisation Times are a Changing Whats the Point Majority of Organisations put benefits in a business case and then never refer back to It ID: 652349
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Why Realising Benefits from projects is a rarity and how to ensure you actually realise benefits
Version 1.0Prepared by: David Walton
David WaltonSlide2
Who are we?
Come and See us at Stand 26!Slide3
Benefits Realisation - “Times are a Changing’ What’s the Point?Majority of Organisations put benefits in a business case and then never refer back to ItThere is a trend in the Private Sector to now focus on benefits planning and benefits realisationIn Public Sectors, e.g. Health – benefits must be reported to NHS EnglandSavings and other benefits are now included in budgets, i.e. assumed, whether these are achieved or notSlide4
Definition of a BenefitBenefit is “An outcome of a change which is perceived as positive by a stakeholder”Gerald Bradley, Author of Benefits Realisation ManagementA Disbenefit is “An outcome of a change that is perceived as negative by a stakeholder”
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When is a Project Successful?
Time
Cost
Quality
Scope
Not only…
Benefits
But also…Slide6
Benefits Planning and Realisation Process
Define Benefits
Plan Benefits
Realisation
Realise Benefits
What information do you need and how will you measure it
How do you plan to realise the benefits
How do you track and monitor the benefitsSlide7
Defining Benefits –Typical problemsBenefits are typically not credibly defined in a PID or a business caseSponsor is responsible for delivering those benefits but often has no idea that this is his or her roleBenefit plans tend to be the proverbial finger in the air, i.e.:Save 5% cost of a departmentSave 10% time of each person’s time which equates to a saving of 10 peopleBenefits equate to a system being implemented
CRM System is installed
Sales up thanks
to the CRM systemSlide8
Link between Objectives and Benefits
Improve Process Efficiency
Reduction in Level of Effort
Reduction in Headcount
Reduction in Costs
Intermediate Benefits
End Benefit
Objective
Source: Practical Benefit Realisation Management
Jagivan
& Mike GreenSlide9
Link between Objectives and Benefits – (2)
Improved Customer Interaction
Improved understanding of Customers
Increase in Customers
Increase Sales
Intermediate Benefits
End Benefit
Objective
An enabling project could be the implementation of a new CRM systemSlide10
Make Sure the Benefits are Understood and not AssumedSlide11
M&S Transformation Programme
Ensure benefits of the Programme are Understood!“Its not just an office move”Slide12
Benefits Definition - Profiles
Description
Probability
Owner
Recurring / Non- Recurring
Dis-benefit / Benefit
MeasureSlide13
Benefits PlanningNeed to develop 2 plansDelivery PlanBenefits Realisation PlanTypically these plans are not linked but should beSlide14
Benefits Planning – Develop an holistic Delivery Plan including ChangeSlide15
Avoid the Mastermind Approach to Project ManagementI’ve started so I’ll finish
Update the Benefits Plan and Check that the new Benefits still justify the Project / ProgrammeSlide16
Gateways – Ensure Checks in Gateways to Focus on Benefits Slide17
Project Lifecycle“Projects have a beginning, a muddle and no end”
Keep a focus on delivering the benefits.When a Project is underway, benefits are often forgottenSlide18
Benefits PlanSlide19
Link Milestones to Benefits Delivery PlanSlide20
Benefits Planning – Ensure Benefits are not double countedSlide21
Benefits Realisation – How to do it?Maximise Benefits detailed in the planMinimise Dis-benefits detailed in the planBenefits realisation starts when all the enablers have been completed for each benefitEngage with key stakeholders for each benefitProgramme activities don’t typically end with the delivery date. Some need to be continued to enable benefits to be realised.Slide22
M&S Case Study – Head Office Transformation Programme
After everyone was moved into the new M&S Headquarters, Programme activities continued for a number of months to ensure expected benefits were going to be realised. Slide23
SummaryBenefits Planning and Realisation are becoming Increasingly importantEnsure both benefits and disbenefits are clearly identifiedLink Delivery Plan with Benefits PlanCategorise benefits properlyEnsure Sponsor or SRO understand their roleUse PM3 to manage your benefits at project, programme and portfolio levelsSlide24
References
Source: Practical Benefit Realisation ManagementJagivan & Mike Green
Screenshots are from PM3Slide25