Benefits Management: the essential ingredient for change, 10 Jan 2017. Southampton Transformational change is here to stay. We are living in an era of continuous transformation where standing still is simply not an option in today’s ultra-competitive and constantly changing business environments. This presentation describes the key drivers and management imperatives for successful transformational change in organisations. It shows how placing Benefits Management at the heart of change management directly addresses and enables success. In the main there are two key attributes of the Benefits Management methodology that help deliver successful business change. The first is a flexible framework which can be easily embedded across the entire organisational change structure. This provides powerful change management capabilities that focus on delivering the desired end results and outcomes for the business. Secondly and arguably most importantly, is the need to focus on the decision makers and data owners within the organisation. They are responsible for driving the change and associated benefits forward. This applies equally to; the senior responsible owner, the business change manager and benefit owners. Benefits Management done well will naturally draw people into the change process and can achieve game-changing results. It does this by fostering in people; joined-up thinking, good communications, readiness for change and a culture of shared goals and objectives. Today’s market drivers for constant business change don’t offer the luxury of choice. If there is new technology or a threat to our current or aspired market objectives, then organisations must rise to the change challenge or accept the inevitable consequences such as reduced market share or business failure. If directed to cut costs or do more for less, it should be done intelligently. Benefits management is essentially about making sure that the organisation has an unrelenting focus on delivering business value and not just traditional time, cost and quality outputs. In the real world, it’s about people and winning the hearts and minds of the people, that will deliver true success. On the theme of benefits management, the presentation impressed the need for measurable improvement but not at all costs. One of the challenges of benefits management is to identify which benefits are the ones to address, and not just because they happen to be measurable! Several useful frameworks and tools are recommended and referenced in the presentation. The presenters were Neil White, Chair of APM Benefits Management SIG and Merv Wyeth, Secretary. See also: http://bit.ly/2iykbXX

1. Neil White
Merv Wyeth
Benefits Management:
the essential ingredient for
successful [transformational] change

2. Our Agenda
▪ Context for transformational change
▪ Transformational change examples
▪ Why transformation change is difficult
▪ Strategy and leadership
▪ Stakeholder involvement
▪ New ways of working
▪ New capabilities
▪ Behaviour change & learning

3. Benefits Management SIG
To develop and promote
benefits management
as a core driver of successful
project, programme, portfolio [P3M]
and change management

4. To improve the change capability
of organisations, teams and
individuals
Enabling Change SIG

5. the predictable alongside the totally unexpected!
Nothing stays the same

6. Transformational Change
A shift in the business culture of an organization
resulting in a change to the underlying strategy
and processes that the organization has used in
the past.
Source: Business Dictionary
Definition:
‘doing new things or the same things in a
different way’

7. Transformational Change Examples

9. Government Digital Service
Transformational Change Examples
“we’re a centre of excellence in digital, technology and data,
collaborating with departments to help them with their own
transformation. We work with them to build platforms, standards,
and digital services”
Source: Government Digital Service
‘formed in April
2011 to implement
the 'Digital by
Default' strategy’

10. Transformational changes

11. Financial
 Reduced system running costs
 Reduced capital costs
 Reduction in training costs
 Reduced cost of spares
Organisation
 More efficient processes
 Reduction in manpower
 Improved operational effectiveness
 more capable trained force elements
Capability
 Improved operational agility
 Reduced fratricide
 Increased operational tempo
 Reduced physical and cognitive burden
 Improved logistics
Compliance
 Improved safety
 Improved security
 Improved sustainability
 Improved environmental
Benefits of Transformational change
The very nature of
transformational change
suggests that if we are to
realise these benefits we
must ‘take our
stakeholders with us’.

12. Delivering Major Projects in Government
• Portfolio [GMPP] contains > £400bn worth of major
high risk projects
• > 1/3 of projects red or red/amber status
• High proportion are transformational / service
delivery
• Data on benefits realisation very poor. Therefore, it
is difficult to assess VfM!
• Delivering transformation & benefits realisation
cited as key challenges for HM Govt this Parliament
Source: Delivering major projects in government: a briefing for the Committee Public
Accounts: NAO, January 2016

13. Transformational Project Status

14. Government Major Project
Portfolio by numbers

15. Transformation & Service Delivery examples
New State Pension Project
To introduce the new single state pension, and end both Savings Credit
and the contracting-out from defined benefit pension schemes [DWP]
Census Transformation Programme
To deliver 2021 Census and build the evidence to enable a decision about
the future provision of population statistics after 2021 [ONS]
CJS Common Platform
To deliver a technology platform which supports business transformation
across the Crown Prosecution Service and HMCTS [MOJ]
“Transformation projects are often unique and therefore
do not benefit from lessons learnt”

16. What’s wrong with the status quo?
Up to 38% of
initiatives are
not helping to
deliver strategy
Source: Portfolio and Programme Management 2014 Global Survey, PWC

17. Evolutionary change
Transformational change

18. Apparent
‘equilibrium’
Refreeze
Change
Unfreeze
Kurt Lewin’s change model

19. Transformational Change Models
BIG BANG Back DOOR Collaborative

20. Individuals and Change – a Curve
Adams, Hayes & Hopson (1976)

21. The need to manage change
The wider the gap between
what stakeholders want to
do [their preferred agenda]
and what they are obliged
to do, the more ‘difficult’
change becomes
Resistance/difficulty factor
What people
‘must’ do
What people are
willing to do

22. Change Challenge - Organisations
Out of 15 researched change models
13 had the following two impacts Satir et al. [1991]

23. Confidence
Method &
process
Accurate
InformationInvolvement
Just Cause
Respect
?
What people ‘need’ to know
but often don’t…
Why
What
How
Where
When
Who
? Resources

24. Strategic Direction
Vision
“Describes an end state. Short, inspirational, aspirational and
memorable. The cornerstone for delivery of a strategy”
Strategic Objectives

25. Delivering the Vision
Outputs
what needs to be
produced
Changes/Capabilities
Service, function,
operation
Outcomes
the results of
change
Benefits
measurable
improvements
Strategic Objectives
business goals
Reduce Operational
Support Costs
Reduced Waiting Lists
Greater Productivity
Reduced no. of FTE
Patients seen &
receive treatment
more quickly
New End to End
Patient Management
Processes
New Corporate
IT Solution
Create MOD/Industry
Commercial
Partnering
Arrangement [PPP]
Increased System
Reliability
Reduced Cost of
Asset Ownership
Communications
Service Provision
using Global Assets
Controlled from UK
Radio Comms
Network Control
Centre
New Global Strategic
Terrestrial Radio
Comms Solution
Develop & Leverage
Smart Technologies
and Innovation
Improved Efficiencies
Reduction in Cost of
Peak Demand
Two-Way Power &
Information Flows
between Supplier &
Customers
Real-time
Consumer
Information
Digital
Smart
Meters
Health
Defence
Utilities
Transformational flow: ‘left to right’
Strategic Planning: ‘right to left’

26. Project
Outputs
Organisational
changes
Side-effects and
consequences
Benefits
Disbenefits Organisational
Objectives
also cause
result
in
realise further
helps achieve
one or more
enable
trigger
enable Outcomes
realise
Path to Organisational Objectives
Managing Successful Programmes: 2011
build
Capabilities

27. Ownership: Roles & Responsibilities
 Organisations use many different job titles
 Individuals may have more than one role[double-
hatting]
 But someone must own the key responsibilities
1. Responsibility & accountability for delivering each
of the enabling products / services and business
changes [on which benefits depend]
2. Ownership of each significant benefit
3. Overall accountability for benefits realisation from
each initiative

28. Benefits-related roles for
change initiatives
Source: Managing Benefits by Steve Jenner Appendix C [APMG]

29. Positioning of related disciplines
Note:
The order of precedence helps ensure organisational changes meet
the required business needs
Organisational Change Management
Benefits Management
Business Change Management
P3M [initiatives]

30. Leading Transformational Change
Source: IPA - Annual Report on Major Projects 2015-16
 Appointment letters for each SRO detailing individual accountabilities
 Major Projects Leadership Academy
 List of SROs published on Gov.uk site

31. Benefits Management Life-Cycle
1. Identify
& Quantify
2. Value
and
Appraise
3. Plan4. Realise
5. Review
1. What are the
benefits?
2. What are they
worth?
3. How do we
realise them?
4. How are we
doing?
5. What should
we change?

32. Integrating Benefits &
Change Management Products
Vision Business
Goals
Context
Governance
Framework
Controls
Assurance
Measurement
approach
Roles and
responsibilities
Benefits
Dis-benefits
Outputs
Capabilities
Outcomes
Changes
Strategic
Objectives
Benefit
descriptions
Categories
Ownership
Baseline
performance
Changes
required for
realisation
success
Benefits
schedule
Reviews
Effort and
costs
Reporting
Change
activities
Sustainability

33. The Change Life-Cycle
1.Strategy
2. Delivery
3. Embedding Change
Identifying & Planning Benefits Enabling the Benefits Realising the Benefits
Benefit Focus
Typically project/programme delivery
Note:
BRM processes enable stakeholders to participate in the change process and
the resulting change solutions throughout the change life-cycle

34. Spectrum of Public Participation
Increasing Level of Public Impact
Inform
Consult
Involve
Collaborate
Empower

35. Example: Stakeholder Interest Matrix
Areas of Interest
StakeholderGroup
Strategic
Alignment
Competition Customer
Relations
Operational
Changes
Financial Safety Legal
Customers
Partners
Suppliers
Shareholders
Senior
Managers
Staff
Unions
Regulatory
bodies

36. Stakeholders:
“It’s all about behaviours & relationships”
1. Convince
stakeholders
that change is
valid through
strong
leadership and
vision
2. Ensure
readiness for
change and that
key stakeholders
‘understand’
benefits
management
3. Change and
benefits
activities are
agreed and
planned in
detail
4. Change
performance is
managed,
communicated
and reported
5. Business
change
decisions are
made with
benefits in
mind
The ‘hard’ stuff The ‘soft’ stuff
Maintain
relationships
through good
and bad
Engage people at an
emotional level
Joint thinking and
problem-solving
Show empathy
and compassion
Focus on
mind-set
Shared goals
and objectives – and
organisational
learning
Inspire
individuals
and teams
[leadership]
Win hearts
and minds
Critical Change
Success Factor!
supporters, opposers, saboteurs, abstainers,
‘on the fencers’, blockers, friendly allies, dangerous adversaries

37. Organisational waste due to low
levels of benefits maturity
 Nearly three
quarters of
organizations
frequently identify
benefits before
the start of the
project
.
 Yet 83% still report
a lack of maturity
with their benefits
realization
Source: The Strategic Impact of Projects: Identify benefits to drive
business results. PMI Pulse of the Profession [2016]

38. Maturity Assessment & Good Practice Guide
Source: Benefits Realizaton Management Framework, PMI [2016]

39. Benefits Management &
Capability Maturity
Source: P3M3 Maturity Model [Axelos]

40. Level Type Identifying &
Planning
Enabling the
Benefits
Realising the
Benefits
Business Results
5 Adaptability Granular
accountability for all
tasks, changes,
benefits,
assumptions
Benefits dependency
network maintained
with value challenge
Industrialised
learning
capturing
unplanned
benefits
Robust Value
focus
4 Accountability Benefits baked into
budgets,
headcounts
Sponsor recommits
to benefits at key
gates
Scheduled
harvesting
reviews
Fragile Value focus
3 Holistic visibility Business cases are
based on value
model
Integrated review
across functions and
programmes
Analysis of benefits
realised / platform
for future benefits
Visibility
2 Basic Visibility Business cases are
based on accounting
metrics
Clear understanding
of work done
against plan
Post-
implementation
project review
Biased
awareness
1 Chaos Charisma-based
decision making
Inconsistent project
management
“Throw it over the
wall”
A Value Lottery
What a Benefits Management Model might look like?

41. Review stage Benefits slogan Description
Project Validation
Review
“Define Success”
At this early stage in a project’s life the key thing is to articulate the strategic
objective of the project and its link to wider organisational objectives.
Gate 1
[Business Justification]
“Identify benefits”
By the time of the Strategic Outline Case, a “long list” of benefits should
have been identified, linked to the strategic objective of the project. These
should be categorised according to the recipient stakeholder, & prioritised.
Gate 2
[Delivery Strategy]
“Value and
appraise”
For an Outline Business Case a selection of the most important benefits
identified will need to be valued, to ensure the project is justified on
economic grounds [in accordance with Green Book guidance]
Gate 3
[Investment Decision]
“Plan to realise”
By the time of a Full Business Case, a plan for realisation needs to be in
place. This should include selecting which benefits the project team will
concentrate on realising; allocating responsibility for delivering each
benefit; and determining metrics for tracking progress
Gate 4
[Readiness for Delivery]
“Work to realise”
As the project transitions into “business-as-usual” (BAU), concrete plans
need to be in place to ensure the benefits from the project are delivered,
including any changes in in operations that need to be undertaken.
Gate 5
[Operation Review &
Benefits Realisation]
“Review
performance”
By this stage the project needs to know how they have performed relative to
the original and updated business cases. Having followed the guidance for
gates 1 – 4 this should be straightforward.
Assurance of Benefits realisation in Major Projects
Source: Assurance of benefits realisation in Major Projects[Supplementary Guidance]

42. Gateway 1: Identify Benefits
Key Question
“Have the expected benefits from the project been identified for each
preferred option?”
Areas to Probe:

43. Gateway 1: Identify Benefits
Evidence Expected
Documents for inspection
 Strategic Outline Case including:
Clear definition of strategic objectives of the project [e.g. in Strategic Case]
 Comprehensive list of project benefits including categorisation and prioritisation
 Benefits Map
Potentially a separate benefits map might be required for each option considered
 Departmental benefits management frameworks

45. Benefits Management Skills & Competencies Log
Source: Managing Benefits. Appendix E. Steve Jenner [APMG]

46. Benefits, Change & related discipline Certifications
Guess the APMG Chief Examiner Quiz?
Source: APMG International Products and Certifcations

47.  Engage stakeholders throughout the change
process
 Appoint good leaders & make them accountable
 Define clear roles & responsibilities with clear
boundaries
 Recognise that doing new things will require
new learning and new capabilities
 Respect the scale and complex nature of
delivering transformational change
Key learning points

48. Neil White, MSc
Managing Director
Change Vista Ltd
Chair,
Benefits Management SIG
neil@changevista.com
+44 7890 397046
Merv Wyeth, FAPM
Benefits Management
Business Partner, Amplify-UK
Secretary,
Benefits Management SIG
merv.wyeth@chanctonbry.org
+44 7824 776480
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