“benefits realisation: the essence of lean thinking”

“Benefits Realisation: The Essence of Lean Thinking”

Mike Kagioglou Professor of Process Management Dean: Art, Design and Architecture

University of Huddersfield [email protected]

Contents

Present the results of a research project •  What is the actual problem and problem area •  How can lean thinking provide a potential solution

through Benefits Realisation •  Explain the BeReal (Benefits Realisation) process, case

study material and how it relates to Lean •  Conclude

12 May 2015 [email protected] 3

Background/context

•  Programmes and projects are driven by a need to satisfy a set of benefits for different groups of stakeholders where benefits and outputs can be different e.g. delivering a building is not the same as delivering a benefit.

•  Underlying theories of project management have been subjected to criticism since the 1980’s. It has been argued that such traditional approaches are too narrowly focused on managing cost, time and quality (Thorp, 1998), and are based on simplistic models that are insufficient to deal with practical problems (Koskela and Howell, 2001).

•  Current practices lack in considering more soft issues, such as stakeholder management, communication and benefits. A more multi-disciplinary view is needed

4

The problem: Major reasons for failing programmes / projects

•  The vagueness with which the expected benefits are defined and further difficulties to maintain focus when subsequent problems occur (Reiss et al., 2006) as well as a consequent uncertainty in allocating responsibility for managing and delivering benefits (Lin and Pervan, 2001);

•  The non-consideration of some stakeholders and how they can influence projects’ results (Ward & Daniel, 2006);

•  The long periods of a project’s life cycle, leading to a disconnection between benefits planning and delivery due to changes in personnel (Reiss et al., 2006);

•  The non-consideration of necessary interconnected issues that might influence the project’s success (Thorp, 1998); and

•  Poor identification of necessary means to achieve benefits and poor ability to manage change (Truax, 1997).

5

The Challenge

•  How do we develop projects and programmes that deliver ultimate benefits, not just project outputs?

•  In particular, how do we achieve this at the large scale when dealing with large complex programmes, in many cases around the city-scale and/or multiple site implementation and over a long period of time?

Industry need, driving the research

NAO report in May 2005, Innovation in the NHS: Local Improvement Finance. recognised that there was not ‘… a consistent performance and measurement framework to evaluate the schemes’. House of Commons Committee of Public Accounts in July 2006, published a report highlighting that ‘... the Department and CHP have not yet developed a mechanism for evaluating the impact of LIFT ... the aim is to assess the cost of providing facilities, the benefits to patients and the impact on longer term health outcomes’.

7

Scale of investigations

Policy

Investment

Infrastructure portfolio

Sectors - Health, Housing, Education

Projects and Schemes

What do we want?

How will we deliver it?

Traditional approach to project/programme development

!Needs!Approach!

!Needs!Approach!

Change!Strategy!

High5level!objec:ves! Programmes)

Requirements)(&)Constrains)) Projects)

Specifica9ons) Ac:vi:es!

Resources)

Change!Strategy!

Benefits!High5level!objec:ves! Programmes)



Resources)

Tradi:onal!Approach!

Benefits!Approach!

Benefits-based approach to project/programme development

!Needs!Approach!

!Needs!Approach!

Change!Strategy!

High5level!objec:ves! Programmes)



Resources)

Change!Strategy!

Benefits!High5level!objec:ves! Programmes)



Resources)

Tradi:onal!Approach!

Benefits!Approach!

Benefit, change, and programme and project management (Reiss et al., 2006)

11

Bene$its(Management(

Programme(Management((

Change(Management((

Project(Management(

Transformation-Flow-Value (Lean Thinking) and Benefits realisation

12

Koskela

‘Lean’ at a Programme level

•  Multi-client organisations •  Separation between clients and users •  Multi client and multi-users •  Multi-stakeholder •  Multi-project •  Long duration

Benefits & learning loop

Policy

Investment

Infrastructure portfolio

Sectors - Health, Housing, Education

Projects and Schemes

Actual planned and unanticipated impacts

Planned Benefits

Strategic Intentions

Builds a series of benefit opportunities and interdependencies across emerging planning alternatives

Integrated Business

Plan

Strategic BeReal Case

Translates insight into strategic benefits Generates a holistic view of benefits performance against “5 case” Sets culture and stakeholder engagement Optimises resources [placement and allocation]

Strategic Business

Case

Strategic level

Programme Alignment

Programme / project level


Outline BeReal Case

BeReal Case

Benefits Evaluation Review

Strategic Outline

Case

Outline

Business Cas

e

Full Business Cas

e

Post Project Review

Strategic benefits disseminated through benefits profiling and segmentation. Project plan aligned to benefits pathway to optimise outcomes / impact

Shapes benefits realisation activities within the governance documents and maintains stakeholder benefits commitment through the deliver phases

Change realisatio

n

Related programmes

Interrelated programmes

Independent programmes

Elicit Strategic Benefits

Strategic Outline

Programme

Portfolio level Planning alternatives converted in to options and opportunities to deliver Strategic Benefits

Elicited benefits form the Business Case evaluation and assessment platform for project design and procurement decisions

Strategic Direction

Knowledge Flow Down

Benefits Realisation Project

Literature review synthesis

17

Considerations+for+benefits+management+and+realisation

Trua

x+19

97

Leyton

+199

5

Ward+et+al.+1996

CCTA

+1999

Ashurst+and

+Doh

erty+2003

Ward+et+al.+2004

Man

tzan

a+an

d+Th

emistocleo

us+2004

Lin+an

d+Pe

rvan

+200

3

Farbey+et+al.+1999

Brad

ley+2006

Bartlett+2006

Ward+an

d+Dan

iel+2006

Glynn

e+20

07

OGC+2004+&+2007

Fox+2008

Ward+an

d+Griffiths+1996+

Thorp+19

98

Sakar+an

d+Widestadh

+2005

Remen

yi+and

+She

rwoo

dTSm

ith+1998

Payne+20

07

Reiss+et+al.+2006

Benn

ington

+and

+Baccarini+2004

NHS+ISIP+2005

Proactive+management+and+learningEnsure'stakeholders'will'search'for'opportunities'to'maximise'benefits X X XTrack'disbenefits'in'order'to'reduce'their'impact X X XTrack'and'proactively'manage'the'emergence'of'unplanned'benefits X X X XProactively'manage'change X X X X XContinuous'evaluation'if'process'is'adequate'to'deliver'benefits X XIdentify'opportunities'to'realise'further'benefits X X X X XReview'and'evaluate'results'and'feed@back'into'the'process X X X X XReview'and'evaluate'results'and'feed@forward'into'next'projects X XIdentify'how'internal'and'external'changes'may'affect'the'process X X XContinuously'review'the'list'of'expected'benefits'to'check'strategic'fit X XStakeholder+engagementClearly'define'benefits'at'the'outset X X X X X XEnsure'stakeholders'are'commited'in'realising'benefits X X X X XAlign'programme'benefits'with'stakeholder'strategic'objectives X X X X XEnsure'that'stakholders'are'aware'of'and'agree'to'face'disbenefits X X X X XEngage'stakeholders'throughout'the'entire'process X X X XStrategy+deploymentEnsure'outcomes'are'related'to'strategic'objectives X X X XDrive'the'process'based'on'measurements X X X X XTrack'and'report'realisation'of'benefits'and'other'achievements X XUse'expected'benefits'as'a'roadmap'for'change X X XIdentify'the'nature'of'benefits'through'classification X XInclude'assessment'of'intangible'benefits'on'investment'evaluation XTranslate'objectives'into'measurable'benefits'that'can'be'tracked X X X X XMeasure'things'that'really'count X XEnsure'expected'benefits'of'investment'are'achieved X X X X XThe'path'from'investment'to'benefit'delivery'must'be'effectively'planned X X X X X X

How benefits realisation fit with other processes

18

Gateway'intervention'

Procurement'lifecycle'

''Decision'point'

!Gateway'2'Procurement!strategy!!

!Gateway'3'Investment!decision!

!Gateway'4'Readiness!for!

service!

!Gateway'5'Bene6its!evaluation!

!Gateway'1'Business!justi6ication!

!Gateway'0'Strategic!assessment!

!De6ine!business!!need!

!Prepare!business!!case!

De6ine!procurement!!strategy!

Invite,!evaluate!and!re6ine!tenders!

Manage!implementation!of!contract!

Mange!and!operate!contract!

Strategic!context!SOC!

Outline!business!case!OBC!

Full!business!case!FBC!

Design,!Tender!contract!

Construction,!!Technical!Handover!!

Post!project!evaluation!

CIM'/PFI'Investment'appraisal'

LIFT'stages'0!

STRATEGY!1!

SCOPE!2!!

FEASIBILITY!4!

DESIGN!3!!

£!CLOSE!5!!

BUILD!6!!

COMMISSION!7!

OPERATION!8!!

BENEFITS!

Bene6its!characterisation!!

Bene6its!mapping!!

Bene6its!realisation!plan!!

Bene6its!management!strategy!!

Evaluation!&!Review!

BeReal'

From concept to final

19

25#

Bene$its(characterisation((

Bene$its(mapping((

Bene$its(realisation(plan((

Bene$its(management(strategy(( Evaluation(&(

Review(

((Case%Study%2%

((((

Case%Study%3%((

((Case%Study%1%

((

((Case%Study%1%

((

Bene0its%Strategy%

Bene0its%Performance%

Strategy%Alignment% Elicitation% Optioneering% Pathway%% Assessment%

Need(Characterisation(

Elicitation(Segmentation(

Options(Characterisation(

Bene$its(and(Change(Pathway(

Implementation(&(Controlling(

Bene$its(and(Change(Evaluation(Review(

Implementation(Plan(

Option(Selection(

Direction(of(Change(

Need(Justi$ication(

BeReal Process

Strategy Alignment Elicitation Optioneering Pathway Assessment


Benefits Profile and Segmentation

Outline BeReal Case

BeReal Case Benefits Evaluation Review

Plan stakeholder involvement

Undertake benefits profiling

Stakeholders to assess level of

realisation

Post Occupancy Evaluation Plan &

lessons learnt

Benefits &

Options Ranking

Align project plan to Pathway

Dynamic Knowledge Database

Sub and End Benefits Elicitation

Optioneering Workshop

Stakeholders to agree BeReal

Pathway Strategic Benefits

Elicitation

Pro

cess

Life

cycl

e V

iew

Strategy Alignment P

roce

ss L

ifecy

cle

Vie

w

Pro

cess

eva

luat

ion

& A

ssur

ance


Plan stakeholder involvement

Strategic Benefits Elicitation

Characterisation of the need

Strategy Alignment

Ø  Set up BeReal Project Working Group

Ø  Build Stakeholder Management Plan

Ø Initiate Strategic Benefits Profile with Stakeholders

Ø  Review programme / project need

Ø  Identify project Strategic Benefits

Ø  Align Strategic Benefits with need

Ø  Identify Dis-benefits

Ø Align with Strategic Outline Case

Elicitation - Benefits Profile and Mapping

(illustrative, not exhaustive)

repo

rtin

g

BeReal database The dependencies are inputted into the profile in the tool, automatically creating a map

BeReal database (illustrative, not exhaustive)

tran

sfor

min

g

Direction and Scope - BeReal Toolkit Elicitation Support

Benefits Evaluation Review

Stakeholders to assess level of

realisation

Post Occupancy Evaluation Plan &

lessons learnt

Assessment of outcomes and evidence of realisation

Assessment

Ø Execute BeReal Pathway

Ø Track outcomes and variations to BeReal Pathway

Ø Review outcomes impact

Ø Build remedial action plan

Ø Update BeReal Pathway

Ø Document lessons learnt

Pro

cess

Life

cycl

e V

iew

P

roce

ss e

valu

atio

n &

Ass

uran

ce

Assessment

Benefits (or Efficacy) View

Resources (or Efficiency) View

Performance

Cross (or Business Case) View

BeReal efficacy oriented approach, related with cross analysis of “as-is”, “to-be” and “emergent” organizational and

build environment related results.

BeReal efficiency oriented approach, related with cross analysis of “as-is”,

“to-be” and “emergent” use of a resources mix to perform results.

BeReal efficiency and efficacy mixed approach, under a cross analysis of “as-is”, “to-be” and “emergent” valuation states.

BeReal Performance Measurement & Controlling Structure

1 23

4

Links & Devia<ons

Benefits linked resources, and supported thought Gant and Earned Value

Management techniques.

Weigh<ng & Quan<fica<on

Considers both an upstream and downstream approach to benefits

valorization (validated through feedback loop and consequent complementing

techniques).

Cash Flow & KPIs

Covers inflow and outflow analysis, considering timings and discount rate

(and risk premium) over time.

Gant

Earned Value Management

Benefits Linked up to Resources

Cash Flow & Risk Analysis

Lifecycle Controlling

Benefits Elicitation & Relative Weighting

Upstream and Downstream

Quantification

Benefits quantification

01.Summary (Proposed)

Benefits Segmentation Matrix (1 of 2)

>> Summary of work developed (up-to-date). >> Preliminary proposal. >> Previous work: X-reference to strategic benefits.>> Please see details on sheet "02.Working Sheet". >> Please see details on sheet "02.Working Sheet".

Legend: Reorganised strategic benefits (see column "C" and "D")

Emerging sub-benefits (see column "D")

Strategic Benefits & Sub-Benefits 2nd Version Benefits Weighting Project Options: A B C D …/…100% Global score: 0 0 0 0 0 1 2 3 4 5 6

1. Strategic fit (and contextual) 4 10% 16,7% Score/calculus >> 0 0 0 0 0 X Legend of "Initial Strategic Benefits":9 Calculus >> 0 0 0 0 0 1 Accessibility

1. a) Stakeholder alignment 2 22% 4,2% add#1%5#valuation#>> 2 Capacity1. b) Co-location / distribution 3 33% 4,2% add#1%5#valuation#>> Please see 3 Functionality1. c) Context development & regenaration 3 33% 4,2% add#1%5#valuation#>> additional segmentation 4 Efficiency1. d) Synergy of services (e.g. secondary care) 1 11% 4,2% add#1%5#valuation#>> details on sheet "02. 5 Ease of implementation1. e) … 0% 0,0% add#1%5#valuation#>> Working Sheet". 6 Whole system optimisation1. f) … 0% 0,0% add#1%5#valuation#>>

Notes:2. Operations management & clinical outcomes 3 11% 16,7% Score/calculus >> 0 0 0 0 0 X - This x-reference exercice has not been developed under an exaustive approach.

10 Score: Calculus >> 0 0 0 0 0 - Objective of this x-reference exercice is only to hilith major links/patterns between previous work versus emerging work.2. a) Decrease internals (admissions) 1 10% 5,6% add#1%5#valuation#>> - For additional/detailed information please consider contents of sheet "02. Working Sheet" (at both strategic benefits and sub-benefits levels).2. b) Improved service coordination 1 10% 5,6% add#1%5#valuation#>> Please see2. c) Improved quality of care 8 80% 5,6% add#1%5#valuation#>> additional segmentation2. d) … 0% 0,0% add#1%5#valuation#>> details on sheet "02.2. e) … 0% 0,0% add#1%5#valuation#>> Working Sheet".2. f) … 0% 0,0% add#1%5#valuation#>>

3. Appropriated built environment 4 34% 16,7% Score/calculus >> 0 0 0 0 0 X X32 Score: Calculus >> 0 0 0 0 0

3. a) Use / capacity fit (for purpose building & infrastructure)9 28% 4,2% add#1%5#valuation#>>

3. b) Facilities flexibility and future proofing 13 41% 4,2% add#1%5#valuation#>> Please see3. c) Increased patient/user security and safety 4 13% 4,2% add#1%5#valuation#>> additional segmentation3. d) Greater privacy & comfort 6 19% 4,2% add#1%5#valuation#>> details on sheet "02.3. e) … 0% 0,0% add#1%5#valuation#>> Working Sheet".3. f) … 0% 0,0% add#1%5#valuation#>>

4. Accessibility 4 23% 16,7% Score/calculus >> 0 0 0 0 0 X21 Score: Calculus >> 0 0 0 0 0

4. a) Increased avaliability of services 5 24% 4,2% add#1%5#valuation#>>

4. b) Increased physical access (within site) 7 33% 4,2% add#1%5#valuation#>> Please see4. c) Service diversity / range 1 5% 4,2% add#1%5#valuation#>> additional segmentation4. d) Appropriate location (and access to the site) 8 38% 4,2% add#1%5#valuation#>> details on sheet "02.4. e) … 0% 0,0% add#1%5#valuation#>> Working Sheet".4. f) … 0% 0,0% add#1%5#valuation#>>

5. Whole system optimisation and efficiency 5 13% 16,7% Score/calculus >> 0 0 0 0 0 X X12 Score: Calculus >> 0 0 0 0 0

5. a) Resource synergies (improved efficiency) 1 8% 3,3% add#1%5#valuation#>>

5. b) Better equipment / resourses 1 8% 3,3% add#1%5#valuation#>> Please see5. c) Better working environment 6 50% 3,3% add#1%5#valuation#>> additional segmentation5. d) Service synergies 1 8% 3,3% add#1%5#valuation#>> details on sheet "02.5. e) System overall integration 3 25% 3,3% add#1%5#valuation#>> Working Sheet".5. f) … 0% 0,0% add#1%5#valuation#>>

6. Ease of implementation 3 10% 16,7% Score/calculus >> 0 0 0 0 0 X9 Score: Calculus >> 0 0 0 0 0

6. a) Project negative impact 3 33% 5,6% add#1%5#valuation#>>

6. b) Stakeholders involvement 2 22% 5,6% add#1%5#valuation#>> Please see6. c) Invest. / change management effort 4 44% 5,6% add#1%5#valuation#>> additional segmentation6. d) … 0% 0,0% add#1%5#valuation#>> details on sheet "02.6. e) … 0% 0,0% add#1%5#valuation#>> Working Sheet".6. f) … 0% 0,0% add#1%5#valuation#>>

Strategic benefits (number) 6. 100,0%Sub-benefits (Number) 23 100,0%

Initial Strategic Benefits Notes and Legend

Graphic Representation

© Copyright by HaCIRIC - Health and Care Infrastructure Research and Innovations Centre / University of Salford

Emerging Strategic Benefits (new structure)

Benefits Weighting Exercise

0%

10%

20%

30%

40%

50%Strategic#fit#(and#contextual)

Operations#management#&#clinical#outcomes

Appropriated#built#environment

Accessibility

Whole#system#optimisation#and#efficiency

Ease#of#implementation

0%10%20%30%40%50%

Strategic#fit#(and#contextual)

Operations#management#&#clinical#outcomes

Appropriated#built#environment

Accessibility

Whole#system#optimisation#and#efficiency

Ease#of#implementation

KPIs – Key Performance

Indicators

Direct quantification and costs redistribution, based on relative importance (and

survey validated).

Efficiency and efficacy mixed approach, under a cross analysis of “as-is”, “to-be” and “emergent”

valuation states.

NPV EVM RISK VFM CSF

Project Management Investment Analysis Benefits Management

MCDM

§  Economic (cash flow analysis) Directly Assign Value

Indirectly Assign Value

(Dis

-)Ben

efits

Assign (Indirect)

Resources Cost

Cos

ts

Inflows

Outflows

Risk Free Rate

Premium Risk Rate

Cash Flow Analysis

Risk Modelling

§  Optioneering might mixes cash flow analysis (above) and weighted score Method (below). §  Note: this might be used for large scale and small scale optioneering.

Benefits measurement should be done “as-is” (actual), “should-be” (planned) and “to-be” (emerged).

2

Dimension Weight Project Options A B C

Economic (cash flow analysis) 5 1 3 5 .... 3 4 3 2 … … … … … Classification 41 29 37

Ranking 1 2 3

3

1

Assign (Direct)

Resources Cost

Appraisal

benefits change

management

benefits change

management

benefits change

management

benefits change

management

Elic

itatio

n St

rate

gy a

lignm

ent

Opt

ione

erin

g Pa

thw

ay

Ass

essm

ent

Strategic benefits

Communication and

stakeholder management

plan

Strategic business

case

Progress Reports

Need justification

Risk register

Benefits profiles

Segmentation

matrix

Progress Reports

Elicited benefits

list

Change brief document

Change directions

Selected & ranking of options

Benefits profiles

Segmented benefits and assessment

structure

Outline business

case

Progress Reports

Option selection


Progress Reports

Benefits-change

action plan

Implementation Plan

Controlling process:

as-is (baseline),

to-be (target), as-is (actual)

Full business

case evaluation

Progress Reports

Benefits and change evaluation

review

Need characterisa

tion

Elicitation segmentatio

n

Options characterisa

tion

Benefits and

change pathway

Implementation &

Controlling

2nd

3rd

Full business

case

Remedial action plan


as-is (baseline),

to-be (target)

Organisation chart

1st

Risk register

1st

2nd


1st

2nd

Change budgeting

Change projects

plans

Strategic benefits elicitation workshops & surveys

Set-up BeReal™ project working group

Review needs

Elicitation

Del

iver

able

s

Strategic benefits

Communication and

stakeholder management

plan

Need justification

BeR

eal M

anag

emen

t C

hang

e Fu

nctio

ns

Org

anis

atio

n Fu

nctio

ns

Need Identification

BeReal feasibility study

Develop stakeholder management and

communication plan

Organisation chart

Strategic business case development

Need justification development

Context information

Progress reports

Progress review and lessons learned

Risk register

Strategic business

case

1st

Change consultation


1st

Finalise benefits segmentation

Del

iver

able

s B

eRea

l Man

agem

ent

Cha

nge

Func

tions

O

rgan

isat

ion

Func

tions

Risk register

Benefits profiles

Segmentation

matrix

Elicited benefits

list

Change directions

1st 2nd


Progress Reports

Optioneering

Strategy alignment

Elicitation of benefits workshops & survey

Initiate benefits segmentation

Develop benefits profiling


2nd

Change consultation

Need justification development

Dimension: Benefits Dimension: Economic Dimension: Mixed


Del

iver

able

s B

eRea

l Man

agem

ent

Cha

nge

Func

tions

O

rgan

isat

ion

Func

tions

Selected & ranking of options

Benefits profiles

Segmented benefits and assessment

structure

Outline business

case

Progress Reports

Option selection

2nd

Pathway

Elicitation

Workshop for relative weighting

benefits

Workshop for weighting and rank

of options

Sta

keho

lder

s br

iefin

g se

ssio

ns

Weighting calculation and rank

of options

Benefits Differentiated

Options

1st Rank of options (full list)

Marginal Cost-Benefit

Analysis (MCBA)

Decision-making and ranking meeting

Selection of weighting

dimensions Workshop for

weighting dimensions

& rank options Weighting

calculation and rank of options

Meeting for the selection of

the final option

Opt

imis

e be

nefit

s el

icita

tion,

pro

filin

g an

d se

gmen

tatio

n

Context information

Change consultation

Cost Differentiated

Options

2nd Rank of options (short list)

Outline business case development

Change budgeting

Business Case Detailing Benefits-Change Alignment

Del

iver

able

s B

eRea

l Man

agem

ent

Cha

nge

Func

tions

O

rgan

isat

ion

Func

tions

Assessment

Implementation Plan

Full business

case

Benefits breakdown structure

Breakdown structure dependencies

Change breakdown structure

Full business case composition

Implementation plan development

Context information

Optioneering

Benefits characterisation

workshop

to-be (target)

as-is (baseline

)

Controlling Structure

Change Brief document

Progress Reports

Benefits-change

action plan

3rd


as-is (baseline),

to-be (target)

Three-tier benefits segmentation detailed

Change project Identification and

plans

Change Projects

plans

Benefits-change action plan

validation workshop


Change consultation

Surveying methods

Controlling

Fine-tuning

Del

iver

able

s B

eRea

l Man

agem

ent

Cha

nge

Func

tions

O

rgan

isat

ion

Func

tions


as-is (baseline),

to-be (target), as-is (actual)

Full business

case evaluation

Progress Reports

Benefits and change evaluation

review

Remedial action plan

Pathway

Controlling Structure

to-be (target)

as-is (baseline

)

as-is (actual)

Benefits breakdown structure

Breakdown structure dependencies

Change breakdown structure

Field benefits measurement

(and elicitation)

Field change measurement


Control of deviations

Remedial Action plan

Change consultation

Context information

Business case evaluation

Communicate, agree and implement corrective actions

Facility

Equipment

Technology

Location Culture

Competency

Built Environment Organisation People

Process

Change Strategy

Change Performance

Resource View

Project Strategy

Project Performance

BeReal Management Change

Functions Organisation

Functions

Engineering Architecture

… …

Procurement Controlling

… ...

Cross View Benefits Resources

Benefits Management

Change Management

Cash Flow & KPIs

Targeting Efficacy

Targeting Efficiency Performance

Controlling & Investment Analysis

Weighting & Quantification

Links & Deviations

Planned Actual Achieved

Benefits Management

Change Management

“To-Be” (target) Resources &

Benefits

Status-Quo Characterization

Benefits-Change Optimisation

Benefits-Change Justification

Controlling Analysis

“As-Is” (baseline) Resources &

Benefits

“Actual” (actual) Resources &

Benefits

Investment Analysis

Benefits Breakdown

Benefits Management

End Benefits

Sub- Benefits

Strategic benefits

Charatherisation

Cla

ssifi

catio

n

Sub SU.001 Strategic SB.001 End EB.001

Sub SU.002 End EB.002

Sub SU.003 End EB.003

Sub SU.004 Strategic SB.002 End EB.004

Sub SU.??? End EB.???

Activity Breakdown

Benefits Breakdown

Resource Breackdown

Benefits Management

Change Management

Activity A.001 Benefit B.001 Resource R.001




Cost View

Time View

Quality View

Activity A.??? Benefit B.??? Resource R.???

Time

Acc

umul

ated

Benefits Management & Change Management

Controlling Analysis

Budget Planned

Budget Scheduled Actual Planned

Resources & Benefits: “To-Be” Versus “Emerged”

“Quantities” (SV) Versus “Costs” and “Values“ (CV)

= 0 < 0 > 0

As planned SV = BCP-BCS Behind Ahead

As planned CV = BCP - ACP Ahead Behind

As planned Performance Poor Good

Directly Assign Value

Indirectly Assign Value

(Dis

-)Ben

efits

Cos

ts

Inflows

Outflows

Risk Free Rate

Premium Risk Rate

Cash Flow Analysis

Risk Modelling

Assign (Direct)

Resources Cost

Assign (Indirect)

Resources Cost

Non-Assigned

Costs Benefits Management

Change Management

Investment Analysis Dimension: Economic

Weight Options Assigned

1-5 Yes/No

Economic 2 Yes

... 1 No

… 5 No

Dimension Weight No

Ranking

Dimension B A C …

3 1 4 ...

5 1 3 …

... … ... ...

29 41 37 …

1 3 2 ...

Investment Analysis Dimensions: Mixed

Process key aspects (common in BR and Lean)

•  Decision making support based on a benefits driven approach;

•  Performance optimisation; •  Control and accountability; •  Assurance; •  Stakeholder management and communication; and •  Knowledge management enabler.

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Performance optimisation

•  For benefits to be achieved they have to linked directly with the activities and resources on the project plan that drives the infrastructure development.

•  The research has strongly indicated that achievement of sustainable good performance should emerge from proper identification and allocation of resources to elicited benefits.

•  A benefits driven approach (such as BeReal) on project management has positive influence in –  reducing friction, –  breaking down silos and, –  focusing the team on optimising project outcomes, and as a consequence

have a positive effect on the organisation’s performance

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BeReal and Lean knowledge mgt

•  The process offers a means of turning fragmented data into useful information, as introduced when described the benefits segmentation and profiling techniques. BeReal in project knowledge management terms is about getting the right information related to benefits, in the right form, to the right people at the right time

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Lean/BR knowledge management 1/2 (Koskela 2000, Rooke & Sapountzis 2010)

•  Ensure that relevant customer requirements are available in all phases of design solutions, production plans and products’; BeReal progresses the use of stakeholder elicited and structured benefits through all phases of the process and in particular when selecting options and generating the final project plans. BeReal’s dataset allows those involved understanding the ambitions and the achievements of a project to date. It ensures that relevant stakeholder requirements (translated into benefits) are available in all phases of production (the BeReal phases);

•  ‘Ensure by measurement that value is generated for the customer’; BeReal controlling structure of benefits and their measurement on the Assessment phase aims to determine their level of realisation in terms of capturing the stakeholders perception of it.

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Lean/BR knowledge management 2/2 (Koskela 2000, Rooke & Sapountzis 2010)

•  Ensure all customer requirements, both explicit and latent have been captured’; in BeReal terms that can be seen as the identification and elicitation of all desired benefits;

•  ‘Ensure that customer requirements have bearing on all deliverables for all customers’; in BeReal terms this is the link of benefits identified, by the stakeholders involved, with planned project outcomes during the optioneering and pathway

•  Ensure the capability of the production system to produce products required’; BeReal adopts this in the pathway phase were the dependency between benefits, resources and project plan activities is achieved;

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“Benefits Realisation: The Essence of Lean Thinking”

Mike Kagioglou Professor of Process Management Dean: Art, Design and Architecture

University of Huddersfield [email protected]

Research Team: Dr. Stelios Sapountzis Dr. Jose Lima Dr. John Rooke Dr. Ricardo Codinhoto Dr. Patricia Tzortzopoulos - Fazenda Kathryn Yates www.bereal.salford.ac.uk

Thank you

“benefits realisation: the essence of lean thinking”

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