Breakthrough Consultancy Limited Copyright 2011martin.moore@breakthroughconsultancy.co.uk

The Value of Benefit Realisation – and a benefit management strategy

30 September 2010 Page 2

Culture led by changeDriven by value for money Open mind to new ideasGetting it done properlySeeing it through

In the complete pictureFollowing business and technology roadmapsInvolving all the right peopleAnticipated and managed outcomesRealising benefits and minimising disbenefits

Practised in processProcesses aligned to organisational maturityAppropriately skilled resources for actionsEvidence-based baselines, targets and resultsAccepting review and inspection

MutualityBuilding unchallengeable business casesMaking dependencies visibleSupporting other initiativesSharing knowledge and resources

Cradle to graveActivities for whole lifecycle Planned and monitored programmesStart: Define objectives and benefitsIn-between: Develop solutionsBringing to life: Deploy and change End: Observe and measure outcomes

Being a Benefits-driven Organisation

Sustainable changeFocus on importance to the businessEliminating wasted effortReview and reactCapacity and capability to adapt

30 September 2010 Page 3

Achieving Benefits: Long and Winding road

Not automatic – must work at making benefits happen

Visionfor improvement

shapes …

determine …

requireactions by …

resultin …

createadvantage in …

direct attention

to …

Objectivesas targets

Capabilitiesto enable

new processes

Changesin business

Outcomesfor business

Benefitsfor

stakeholders

Mea

sure

sfo

r pro

gres

sing

achi

evem

ent

Successforall

collectevidence

proving …

30 September 2010 Page 4

Is Your Organisation Benefits-driven?

Lot of yeses? You’re at the bottom of the benefit maturity ladder!

9. Benefit realisation processes patchy, inconsistent and unmonitored?

Question

6. No centrally managed framework for defining and tracking benefits?

7. No accessible information such as a single, maintained benefit register?

3. Outcomes defined in terms of features and results rather than measurable benefits

4. Benefits seen only as justification for investment, often just in financial terms?

8. Benefit planning showing rough timescales with no ownership and limited formal review?

10. Measurement of realised benefits rudimentary with no integration with business-as-usual?

5. Roles and responsibilities for benefit management not defined?

1. Key individuals lacking experience in benefit management?

2. Training provision in benefit management non-existent or uncoordinated?

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Response

30 September 2010 Page 5

Have No Benefit Management Strategy?

Vulnerable to wild assumptions, gaffes, gaps and pitfalls

• Vision not embedded in benefits – hard to obtain resources

• No cause and effect links to business objectives – risk of cancellation

• Benefits in isolation – savings could be double-counted

• Benefits not documented – weak business case

• Inadequate benefit description – difficult to plan and prioritise change

• No relevant picture of outcomes – business sceptical about change

• Focussed solely on new capabilities – business change ignored

• Benefit measurement not in place – cannot assess success

• Benefit realisation is a one-day wonder – changes do not stick

30 September 2010 Page 6

Typical Benefit Management Strategy

Essential reading is the benefit dependency map

Governanceduring and after change

New capabilities expressed in the

Blueprint

Communicating outcomes

Proving value for money

Roles including benefit and measurement

owners

Key benefit register with profiles

Principles for managing benefits

Measurement and review regime

Summary of stakeholder analysis

Outline of benefit realisation plan with business change

Statement of vision, mission and objectives

Link to programme activities and deliverables

Initial Benefit schedule

Benefit dependency map - showing

relationships of benefits to problems, enablers, change and objectives

Risk analysis

30 September 2010 Page 7

Benefit Management: the Starting Point

Full-circle, defined process to manage benefits

Design andplan

Identify

DeliverMonitor

Review

Stage 2Detail what, when, how and who to monitor benefits

Stage 1Analyse and

validate benefits from expected

outcomes

Stage 4Analyse

measurement of benefits from

outcomes

Stage 5Re-validate benefit and

measurement approaches

Stage 3Implement

change and track expected outcomes

30 September 2010 Page 8

Realising Benefits: Getting to the Finish Line

Work with business to deliver sustainable benefits

Pre-transition

ManageTransition Post-transition

Input

Vision statementIdentified requirementsProject PlanBenefits CaseBenefit profilesCommunications PlanBenefit Realisation PlanProject changesProject progress

• Define outcomes• Establish measures

• Plan transition• Communicate change

• Assess change readiness

• Establish support• Initiate transition• Make business changes

• Review transition• Respond to situations

• Monitor outcomes

• Measure benefits• Close project• Monitor realisation• Report achievements

• Decommission measurement regime

Principal controlsProject initiation documentBenefit managementProgramme/Project monitoringAssurancePost implementation review

Output

Updated benefit documentsInstalled capabilitiesCompleted transitionBusiness changes madeAchieved outcomesStabilised operationsRealised benefits

Key roles

Senior Responsible OwnerProgramme/Project BoardProgramme/Project ManagerBusiness Change ManagerBenefits resourceProgramme management office

30 September 2010 Page 9

Choosing the Benefit Realisation Approach

The challenge is to select and apply the best change lever

30 September 2010 Page 10