APM Benefits SIG masterclass: Identifying and managing benefits 19th June 2013. Nick Wensley, Peter Glynne, Hugo Minney and Neil White

1. Benefits in Practice Series
Identifying and Managing Benefits
19th June 2013
The Innovation Space, BIS

2. Agenda
1:30 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

3. Introduction to Presenters
 Peter Glynne – Co-Chair of Benefits Management SIG
 Nick Wensley – Co-Chair of Benefits Management SIG
 Neil White
 Hugo Minney PhD

4. 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

5. Setting the Context
Corporate Strategy and Benefits Realisation
“A world in which all
projects succeed”
APM’s 2020 Vision
Impossibility or deliberately
aspirational?

6. Discussion Point:
What does Benefits realisation
mean to your organisation?
In three words or less…..

7. MeasurementActivists
Full Cycle Governance
A future in which all projects succeed…
 Right
Things
 Right
Way
 Done
Well
Portfolio Management
Leadership, Alignment, Value Optimisation,
Programme selection, Portfolio Adjustment
Programme
Management
Business Sponsorship, Ownership, Coordinate
complementary and interdependent projects to
realise …
Project Management
Management of budget, schedule and
resources to deliver …
Capability
Benefits
Strategic
Objectives
Getting Benefits
John Thorp

8. 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.

9. Case Study Exercise 1
HS2 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
 Identify the top six stakeholder groups
 From the point of view of DfT: Consider six points of strategic value
for their investment in HS2

10. Benefits Lifecycle
Benefits Identification and Modelling

11. All the focus has been on the success of
Project & Programme Management……

12. 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….

13. Should we not apply the same
professionalism to Benefits Realisation?

14. The Benefits Lifecycle
A Strategic and Integrated Approach based on partnership

15. 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

16. Cassandra / Cranfield
ENABLERS
ENABLING
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

17. 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
Mile
Last
Mile
PricePrice
Phase
2
Phase
2
Legislation
to
compulsory
purchase
land
Legislation
resource
release

18. 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)
ObjectiveBenefit
Business
Changes
Enabler Disbenefit

19. Named New
Capability
Project, Programme or
Portfolio
NewCapabilitiesStrategicValueOperationalBenefits
Strategic
Objective
Effectiveness
Strategic
Objective
Effectiveness
Strategic
Objective
Effectiveness
Action led word
describing the
Operational
Benefit
A
Benefit 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 MEASUREMENT
1.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 improvement
4.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

20. Benefits Value Mapping
OperationalBenefits
Howwillitchangeourperformance?
StrategicValue
Howwillitcontributetostrategy?
NewCapabilities
Whatareweinvestingin?
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

21. 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

22. Aligning Benefits Realisation to
the Wider Organisation
Ownership, Governance and Convergence

23. Benefits Realisation
Common Behaviours across organisations
And there’s always the impact of the media.....

24. CONVERGENCE
What are the Opportunities for
collaboration?
Operational
Performance
Management Financial
Forecasting/
Budgeting
Strategic
Planning and
Evaluation
Benefits
Realisation
PMO
Change
Management
Ever increasing professionalism in the management of change within organisations
Communications
(internal and
external)

25. Benefits Realisation: Effective Partnership Working
Likely 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

26. Understanding Behaviours, Governance and
Convergence
What to look out for across your organisation?

27. Process Obsessed Benefits Realisation
We MUST follow the prescribed process/manual

28. People looking to find a problem for a
waiting benefits solution....
My favourite solution will solve any ill...........

29. Limiting the focus to only the Project or
Programme.......
We don’t want to INVOLVE other areas of the business.. too political

30. 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

31. Groupthink on the approach to benefits
realisation......
We all agree so it must be the right approach.....???

32. 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

33. 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.

34. An example Governance Model for a Single Organisation
An actual model used within a UK public sector organisation

35. An Example Governance Model for Multiple Organisations
During Implementation
An actual model used within a UK public sector organisation

36. An Example Governance Model for Multiple Organisations
Post-implementation
An actual model used within a UK public sector organisation

37. Pushing the Boundaries of Change
Benefits 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

38. Summary and Close

39. 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?

40. Some Examples of Approaches

41. Org 5
Customer
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

42. Sample Operational Benefit Dashboard
Ref: BenefitA Description Impact Summary
Measurement
Question
Method and Unit of
Measurement
Baseline
Value
Target Value Actual Values
Measurement to
be done by
Priority
Likelihood of
Failure
Dependency on other
Benefits
Benefit
Category
Actions Required to Realise the Benefit Ownership
Start
Date
End
Date
Risks Impacting Realisation of the Benefit Impact Probability Mitigation
Director Owner
Operational Owner
Current RAG Status
Exposure Rating 16
AN 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