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Benefits Realisation Management Framework Part 3: Guidelines

V2 | October 2015

Benefits Realisation Management Framework | PART 3 | October 2015

Table of contents

1. Introduction

1.1 Benefits RealisationManagement Framework

1.2 Document Purpose

1.3 Scope

2. Objectives of Benefits RealisationManagement

2.1 The Case for Benefits Realisation

2.2 Objectives of Benefits Realisation Management

2.3 What is a Benefit?

2.4 Challenges Typically Encountered in Benefits Realisation

2.5 Critical Success Factors

2.6 Risks to Benefits Realisation Management

2.7 Minimum Requirements

Copyright

4 3. Benefits Realisation Management4 Process

3.1 Four Phases of Benefits

5 Realisation

5 3.2 Tailoring the Framework

3.3 Supporting Governance 6 Principles

6 4. Understand Phase

4.1 Objective

6 4.2 Key Questions

4.3 Key Tasks6 4.4 Process Steps7 4.5 Benefit Identification

4.6 Techniques

7 4.7 Benefits Realisation Register

8 4.8 Considerations

4.9 Deliverables

10 5. Plan Phase

5.1 Objective

5.2 Key Questions

5.3 Key Tasks

5.4 Process Steps

5.5 Develop a detailed BenefitsRealisation Plan (BRP)

5.6 Develop Benefit Profiles

5.7 Refine and Update the Benefits Realisation Register

5.8 Considerations

5.9 Deliverables

Unless otherwise stated, material on this website is licensed under a Creative Commons Attribution 3.0 Australia License.

“Benefits Realisation Management Framework” Parts 1-5. An electronic version of this document is available at https://www.finance.nsw.gov.au/publication-and-resources/benefits-realisationmanagement-framework

Terms for use can be found at https://www.finance.nsw.gov.au/copyright and the applicable license for use is at https://creativecommons.org/licenses/by/3.0/au/legalcode

© State of New South Wales through Department of Finance, Services and Innovation 2015.

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https://www.finance.nsw.gov.au/publication-and-resources/benefits-realisation-management-framework

https://www.finance.nsw.gov.au/publication-and-resources/benefits-realisation-management-framework

https://www.finance.nsw.gov.au/copyright

https://creativecommons.org/licenses/by/3.0/au/legalcode


List of figures

6. Manage and Report Phase 26 Figure 1 7 6.1 Objective 26 Critical success factors 6.2 Key Questions 26

Figure 2 126.3 Key Tasks 26 NSW Government Benefits Framework 6.4 Process Steps 26 Source: National E-Health Transition

6.5 Example Reports 28 Authority 6.6 Considerations 29

Figure 3 146.7 Deliverables 29 Understand Phase of NSW Government

7. Evaluate Phase 30 Benefits Framework 7.1 Objective 30

Figure 4 167.2 Key Questions 30 Three Column Analysis 7.3 Key Tasks 30

7.4 Process Steps 30 Figure 5 19 7.5 Considerations 31 Plan Phase of NSW Government 7.6 Deliverables 31 Benefits Framework

8 Benefits Realisation Deliverables 32 Figure 6 21 8.1 Overview of Key Deliverables 32 Generic Benefit Classification Model – 8.2 Overview of Process flow 33 NSW Government Benefits Realisation

Management Network and Knowledge 9. Benefits Realisation Governance 34 Group 2012

9.1 Governance Principles 34

9.2 Roles and Responsibilities in 34 Figure 7 22

Benefits Realisation Example Report using Outcomes Dashboard Format 9.3 Key Roles 36

9.4 Reporting 38 Figure 8 26 9.5 Benefits Realisation 38 Manage and Report - Phase of NSW

Management Organisation Government Benefits Framework Maturity

9.6 Change Control 38 Figure 9 28

Example Report using Balanced 10. Considerations for managing risks 39 Scorecard Format to Benefits Realisation

Figure 10 28

Example Report using Benefits Realisation Register Extract

Figure 11 30

Evaluate Phase of NSW Government Benefits Framework

Figure 12 33

Benefits Realisation Products

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1. Introduction

1.1 Benefits Realisation Management Framework This document is part of the NSW Government Benefits Realisation Management framework. The structure of the framework is as follows:

Part 1: Principles

Part 2: Process

Part 3: Guidelines

Part 4: Tailoring

Part 5: Glossary

The purpose of the Benefits Realisation Management Framework is to provide:

• a framework of best practice principles and concepts drawn from latest experiences and proven practice in setting up and managing programs that is transferable across NSW agencies

• a standard approach for benefits realisation management for anyone not familiar with the subject matter, including program directors and managers, change managers project managers, business analysts and program management office (PMO) staff across NSW Government

• consistent terminology and benefits categorisation

• introduction and guidance for program sponsors and business benefit owners.

The framework:

• is aimed at those who are interested in benefits realisation within agencies, enabling them to adapt and tailor the guidance to their specific needs

• must be accessible by strategy groups, operational business areas and program/ project teams as well as by individual practitioners and business benefit owners

• should help PMO practitioners improve their decision making and become better at implementing beneficial change.

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1. Introduction (cont.)

1.2 Document Purpose The purpose of the Benefits Realisation Management Guideline is to provide an introduction to benefits realisation practice to assist program management practitioners to implement a benefits process.

This Guideline provides a structured approach for agencies to manage and demonstrate the realisation of benefits from change programs. It helps practitioners show the linkage between investment and Government policy priorities, agency business objectives and service delivery outcomes.

Supporting this Guideline are sample templates for Benefits Realisation:

• The Benefits Realisation Plan is used as a key component in the development of business cases used to support proposals for new change programs.

• The Benefits Realisation Register (BRR) is used to ensure that potential benefits are captured and realised.

For samples templates see the NSW Government Benefits Realisation Management Framework. Part 5: Appendices, Templates, Supporting Information and Glossary.

1.3 Scope This Guideline covers the steps involved in effectively understanding, planning, realising and reporting benefits of business change programs. It also provides inputs into the NSW Treasury Business Case and Total Asset Management (TAM) Guidelines. It does not cover areas such as the writing a business case, undertaking project or program management, portfolio management or governance.

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2. Objectives of Benefits Realisation Management

2.1 The Case for Benefits Realisation Effective benefits realisation is critical to the achievement of the business outcomes desired from investments. Benefits realisation is an important contributor of key information to the development of business cases, portfolio management, governance and decision making by Government.

2.2 Objectives of Benefits Realisation Management The objectives of Benefits Realisation Management (BRM), as defined by the Office of Government Commerce1, are to:

• Ensure benefits are identified and defined clearly at the outset, and linked to strategic outcomes

• Ensure business areas are committed to realising their defined benefits with assigned ownership and responsibility for adding value through the realisation process.

• Drive the process of realising benefits, including benefit measurement, tracking and recording benefits as they are realised.

• Use the defined, expected benefits as a roadmap for the program, providing a focus for delivering change.

• Provide alignment and clear links between the program (its vision and desired benefits) and the strategic objectives of the agency involved.

For more information on the principles that underpin benefits realisation management, see NSW Government Benefits Realisation Management Framework: Part 1 Principles.

1 Managing Successful Programmes, Office of Government Commerce, 2007, p. 61

2.3 What is a Benefit? A benefit is the measurable improvement resulting from an outcome which is perceived as an advantage by a stakeholder.2

Benefits are the specific outcomes where accountability can be assigned and measurement defined. Benefits are used for defining and declaring success of an investment. Benefits are the net positive changes resulting from outcomes. It is essential to understand the outcomes before we can define and declare them as benefits.

Benefits can be classified into the following types;

• Financial (tangible) – those benefits that can be quantified and valued in financial terms e.g. cost savings, revenue generation.

• Non-financial (tangible) – those benefits that can be quantified, but are difficult to value in financial terms e.g. improved resilience.

• Benefits (intangible) – those benefits that can be identified, but cannot be easily quantified, e.g. end user satisfaction, better access to information, improved customer service.

For a list of terms and definitions used in this document see the NSW Government Benefits Realisation Management Framework. Part 5: Appendices, Templates, Supporting Information and Glossary.

2 1, Managing Successful Programs, Office of Government Commerce, UK, 2007

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2. Objectives of Benefits Realisation Management (cont.)

2.4 Challenges Typically Encountered in Benefits Realisation This Guideline aims to increase successful benefits realisation. It addresses typical challenges encountered in benefits realisation, including;

• Ill defined program benefits.

• Unclear program objectives.

• Unclear strategic goals.

• Benefit measures data is unavailable orinaccurate.

• Unclear benefits ownership.

2.5 Critical Success Factors BRM requires the following three strategic and integrated characteristics in place for successful operation.

Characteristics Critical Success Factors

Stakeholder buy-in • Senior management leadership and commitment

• Early stakeholder engagement

• Operational ownership of benefits

Management of information • BRM profiles, plans and tracking registers up to date

• Alignment with business forecasting / budgeting and actualperformance

• Alignment with project / program management systems

Embedded BRM • Alignment of benefits to Group IT / Service deliveryobjectives and wider business strategy

• Governing bodies maintain a BRM focus

• Processes engrained in organisation

• Integration with program and change management

Figure 1: Critical success factors

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2.6 Risks to Benefits Realisation Management The following are key risks in relation to BRM and their proposed mitigations and risk owners:

Benefit realisation risks and mitigations

Risk Mitigation Owner*

Sector-wide risks

Lack of consistency in the BRM • Establish clear BRM business rules which apply Strategic Centreapproach across the sector leads across the sector.to the inability to effectively

• Establish a support network for EPMO Benefitconsolidate and track sector-wide

Realisation Coordinators to promote consistentbenefits.

working practices.

Lessons learned or knowledge • Establish a business reference group which is Strategic Centre gained is not used to inform focussed on sharing lessons learned across thethe design of other Department sector.programs.

* See Section 9.3 key roles

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Benefit realisation risks and mitigations (cont.)

Risk Mitigation Owner

Department risks

Benefits are not optimised due to • Identify the sought outcomes / benefits prior Benefits Realisation lack of benefits focus during design to the enablers / business changes required to Manager stages. realise the benefits.

Target benefit measures are • Determine the baseline measure prior to Benefits Realisation unrealistic. determining the target measure. Manager

Business change projects don’t get • Ensure messaging in relation to business Program Sponsor the same focus and attention as changes is linked to the expected benefits the enabler projects. change will deliver.

The focus on benefit realisation is not maintained throughout the full program lifecycle.

• Implement a stage gate review process which Program Sponsor includes benefit related deliverables andacceptance criteria for each stage gate.

• Produce periodic program status reports whichfocus on tracking ‘actual’ benefits against thoseidentified in the original business case.

• Should have a reference that benefitsManagement should be a standing Agendaitem at each program board meeting.

• Should state something about a clearly definedbenefits governance structure.

The benefits realised cannot • Baseline the benefits at key milestones and Program Sponsor be tracked back to the original ensure that any changes are subject to a formalbusiness case. change control process.

Benefit owners lose focus on • Define the Benefits Owners and their Program Sponsor benefit realisation. accountabilities.

• Establish a performance management systemwhich is clearly linked to realising benefits.

Staff do not have the capability or • Update the organisation structure to reflect the Program Sponsorcapacity to support new ways of new processes and systems.working.

Staff culture and behaviour hinders • Align the Communication Strategy with the Program Sponsor change. Vision, Blueprint and Benefits Realisation Plan.

• Engaging regularly and appropriately withkey stakeholders is of critical importanceparticularly in programs undergoing majorchange.. It requires a certain level of disciplineand attention to detail that is often overseenand undervalued, but

Through the implementation of clear governance, planning and the implementation of effective change and engagement processes the risk of project failure can be substantially reduced.

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2.7 Minimum Requirements The following outlines the ‘minimum requirements’ Departments should adhere to in relation to the successful implementation of Benefit Realisation Management.

Suggested Benefit Realisation Business Rules

Business Rule Purpose

Assign single points of accountability for realisation of Once the Business Case is approved, Benefit Owners each anticipated benefit. must be appointed to ensure projects are progressed

successfully and that the expected benefits are actually realised.

Baseline measures should be taken for all tangible The baseline provides an independent and credible benefits at the earliest opportunity. position with assumptions to demonstrate that

program benefits have been delivered as proposed.

Develop Benefit Profiles for each individual benefit This will ensure that the Departments undertake a identified using benefit profile template. complete assessment of the benefit properties.

Develop a consolidated Benefits Realisation Plan This will ensure that all the tasks and actions that have outlining how and when benefits will be realised. to be undertaken to achieve the claimed benefits for

the Program are considered and recorded.

Establish and update on a monthly basis a Benefit The progressive achievement of benefits must Realisation Register. be tracked throughout the Program and beyond

completion. (Note: in many cases benefits are realised after the Program is complete)

Establish a change control procedure which includes All changes should be fully assessed through the an assessment of impact on benefits. change control process to determine the impact on

the expected benefits or benefit assumptions, prior to being approved by the relevant Authority to ensure that benefits are not compromised.

Adequately resource their BRM system. Departments must apply the same standards of management and resourcing to BRM as it would to any other element of the Program methodology (such as scheduling, risk management, quality assurance, etc.). Therefore it is recommended that each Department establish a dedicated Benefits Realisation Manager position.

Establish a governing body e.g. A steering committee This is required to ensure that the tasks and activities with a clear mandate for monitoring benefit realisation. in relation to BRM are progressed and that any major

roadblocks or issues are identified and resolved.

Establish Benefit Realisation reference groups. The sharing of lessons learned and experiences will enable the BRM capability across the sector to continually develop and improve.

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3. Benefits Realisation Management Process

3.1 Four Phases of Benefits Realisation This section introduces the benefits realisation process, outlining the four key phases that can enable a business change program to realise benefits. Subsequent sections define each phase, each with its purpose and deliverables. The four key phases are displayed in as circle to reflect the iterative nature of the process.

Figure 2: NSW Government Benefits Framework Source: National E-Health Transition Authority

Understand

Before we can plan or measure benefits, we must understand which outcomes are in fact the targets of such investment. The ‘Understand’ phase is all about establishing the strategic intent and identifying the outcomes required to achieve this intent. This phase defines the vision, objectives, and potential benefits ensuring alignment with strategic drivers.

Plan

A plan is then created which further develops the findings from the ‘Understand’ phase. It includes additional details such as the owner, the target to be achieved and the units with which to measure progress. It also includes the necessary arrangements needed to be in place to realise the benefits. The outputs of the Plan phase form the basis for the benefits section of the program business case. This phase will prioritise the benefits and business change required to determine a plan for achieving the objectives.

Manage and report

Realising the benefits is then achieved by monitoring progress towards the planned outcomes. Any deviations from the plan can be assessed early with the appropriate corrective action taken. Throughout this process the business case should be updated and maintained as there may be differences between what was initially proposed and what is attainable as the program progresses. The Manage and Report phase will measure, analyse and understand the program outcomes to proactively support delivery of benefits.

Evaluate

Reporting of actual versus planned is provided to the Governance body in accordance with the plan, facilitating accountability of performance of the program. The Evaluation phase will document the benefit outcome and identify learnings from program activities to inform strategic decisions and priorities.

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3. Benefits Realisation Management Process (cont.)

3.2 Tailoring the Framework This framework and supporting processes and templates should be tailored to the specific environment an organisation operates in to optimise their use and value. For guidance on tailoring an organisation’s Benefits Realisation Framework see NSW Government Benefits Realisation Management Framework Part 4: Tailoring and Alignment of The Framework.

3.3 Supporting Governance Principles Benefits Realisation Governance governs and supports the four phases of Benefit Realisation. In addition to the ownership and accountability reinforced by the Benefits Realisation Guidelines, three key principles of benefits governance should be followed:

1. Commitment and support at the seniorleadership and executive level. Active supportfor the program will support and reinforcebenefit ownership and realisation;

2. Clear and active program sponsorship withaccountability determined. Sponsorship ofthe program, together with accountability forthe benefits realised reinforces the benefitsrealisation process and framework; and

3. Program management and responsibility fordefining, measuring and reporting benefits.Clear responsibility and accountability of theroles to deliver the four phases of the benefitsrealisation guideline are critical.

For further guidance on governance considerations for benefits realisation management see section 9 of this document.

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4. Understand Phase

Define vision, objectives and potential benefits ensuring alignment with strategic drivers.

4.1 Objective The first phase in benefits realisation, the ‘Understand’ phase is to identify and define potential outcomes and benefits, as shown on Figure 3 below. The goal is to explore and assess business ideas while maintaining focus on the proposed benefits, answering ‘why we are doing this?’

The process is continued by developing the initiatives and initial outcomes that will need to be delivered to realise the anticipated benefits. This phase distinguishes outcomes from benefits. Outcomes are the capabilities created, changes made and results sought from the investment. Benefits are the specific outcomes where accountability can be assigned and measurement defined. Benefits are used for defining and declaring success of an investment. Benefits are the net positive changes resulting from outcomes. It is essential to understand the outcomes before we can define and declare them as benefits.

This process of understanding the outcomes and benefits is integral to the development of the Initial Business Case with the articulation of the benefits providing the ‘benefits side’ of the business case, including the rationale and objectives of the program.

Figure 3: Understand Phase of NSW Government Benefits Framework

4.2 Key Questions This phase tries to answer the following key questions:

• Have the vision, objectives and end state beenarticulated?

• Have the high level benefits been identifiedand estimated?

• Have the key stakeholders been identified?

• Has a benefits realisation strategy beendeveloped?

4.3 Key Tasks In order to answer the above questions, it is suggested the following tasks are undertaken during the understand phase;

• Articulate the vision/objectives/key principles

• Develop a business realisation strategy

• Identify key stakeholders

• Organise benefits discovery workshops withkey stakeholders

• Map and estimate scale of benefits

• Establish benefits register and identify benefitowners

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4. Understand Phase (cont.)

4.4 Process Steps The following steps should be undertaken in the Understand phase:

• Obtain business context of the benefits

– Determine business drivers– what is the business problem we are trying to solve?

– Define the scope and objectives of the program;

– Define business benefits anticipated to flow from the change outcomes;

– Identify which benefits are considered strategic and align these with the Agency’s strategic goals

– Identify any potential risks associated with the achievement of the benefits; and

– Analyse change and benefits impacts on key stakeholders.

• Develop a benefits realisation strategy.

• Identify key stakeholders.

• Identify and agree the outcomes/benefits with key stakeholders:

– Define the target operating model required to realise benefits, then;

– Identify the change initiatives required to successfully execute the initiative.

• Organise benefits discovery workshops with key stakeholders:

– Map and estimate scale of benefits;

– Map the outcomes and benefits to the initiatives;

– Define the intermediate and final outcomes required to realise the benefits; and

– Ensure sponsorship buy-in and ownership of benefits.

• Establish benefits realisation register and identify benefit owners.

4.5 Benefit Identification Benefit identification needs to engage a broad and appropriate cross-section of stakeholders in an interactive forum, such as a workshop. Workshops are a technique to get the key stakeholders on ‘the same page’ in terms of scope of the program, how the business change will occur, and how the benefits will be realised. Bringing the key stakeholders together to discuss and validate the answers to the following questions. The answers form the basis for understanding outcomes and benefits and in turn, the benefits planning:

• Why are we doing the program? What are the business drivers?

• What are we going to get out of it? What are the strategic outcomes of the program?

• What are the measurable benefits?

• When do we obtain the benefits?

• Who owns the outcomes? Who is the Outcome Owner and do they accept it?

• Who is accountable for delivering benefits?

• What is the mechanism that is required to achieve benefits?

4.6 Techniques

4.6.1 Three Column Analysis

The three column analysis involves brainstorming answers to each of the four sections shown on Figure 4 on the following page. To graphically facilitate the benefit process on one page, by representing how the current business problems should be changed to achieve the desired benefits. This facilitates a discussion with relevant stakeholders to understand and agree the current business problem, what has to change (and what must be stopped) and the benefits.

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4.6.1 Three Column Analysis (cont.)

Current business problems

+ What has to change + What must

be stopped = Benefits

Figure 4: Three Column Analysis

4.6.2 Benefits Map

A Benefits Map provides a network linking benefits to the primary investment objectives, and outlining the cause and effect relationships. The visual nature of a map aids communication; reduces ambiguity; and confirms chronology. A map is also useful in avoiding double counting of benefits; ensuring benefits are attributed to their source. There are many benefits mapping techniques including the following:

• MSP Benefits Map – Managing SuccessfulProgrammes (UK)

• The Results Chain TM– DMR Group, JohnThorp (2003)

• Benefits Dependency Network– CranfieldUniversity

For further reference information see Part 5 (Suggested Reading) of this document. For benefit mapping templates see NSW Government Benefits Realisation Management Framework. Part 5: Appendices, Templates, Supporting Information and Glossary.

Typically a Benefits Map is developed by working from right to left to identify the full set of benefits which achieve each objective. When reviewing benefits mapping techniques a key consideration is the benefit management maturity level of an organisation. As low benefit management maturity may result in stakeholders resisting the introduction of a complex benefits mapping techniques. It may be necessary to use a simpler benefits mapping technique initially to the gain the essential information required. While the NSW Government Benefits Framework provides best practice processes and templates, an organisation is encouraged to tailor the framework to maximise its application. For information on

maturity levels and tailoring the framework see the NSW Government Benefits Realisation Management Framework. Part 4: Tailoring and alignment of the framework.

4.6.3 Benefits Dependency Maps

The Benefits Dependency Map (BDM) can be used to refine the Benefits Map to include the benefit ‘enablers’ and ‘business changes’. The BDM is developed working from left to right, identifying and adding to the diagram the enablers and business changes needed in order to realise each benefit. There will not necessarily be enablers and changes on every path. For Benefits Dependency Map templates see NSW Government Benefits Realisation Management Framework. Part 5: Appendices, Templates, Supporting Information and Glossary.

4.6.4 Benefits Distribution Matrix

The Benefits Distribution Matrix is also a useful tool to identify how the benefits are distributed between the stakeholders. This should also include dis-benefits to ensure the distribution of negative outcomes is also mapped. This exercise may highlight stakeholders who are not gaining any benefits or, alternatively, gaining a number of dis-benefits. There may be the opportunity to adjust the scope of the program to ensure the benefits are more evenly distributed. The matrix should also be used to identify the appropriate Benefit Owners. For Benefits Distribution Matrix templates see NSW Government Benefits Realisation Management Framework. Part 5: Appendices, Templates, Supporting Information and Glossary.

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4.7 Benefits Realisation Register The Benefits Realisation Register should contain the following key information:

• Benefit name

• Benefit description

• Measurement metric – how progress will betracked

• Measurement source – where themeasurement information will come from

• Current baseline measurement – includingdate taken

• Targeted measure – expected result

• Improvement – percentage improvement frombaseline to target measure

• Target measure date – day the expected resultis to be realised

• Benefit owner

• First tracking date – day tracking of thebenefit began

• Last review date – day the status was lastreviewed

• Next review date

• Status commentary – comments regarding thelatest review including any actions taken

• Action to be taken

A Benefit Realisation Register template is included in Part 5 of this framework.

4.8 Considerations In the ‘Understand’ phase the following should be considered:

• Be careful of interdependencies with otherprograms and claiming the same benefits.Clear understanding and definition of benefitswill mitigate this risk.

• Disbenefits should be considered. There maybe outcomes that are a negative consequenceof the program. These need to be managed.

• Measures should be evidence based.

• Assign level of confidence in achieving benefittarget.

• Ensure resources with appropriate changemanagement skills are available as businesscases often lack adequate provision for theseroles.

When the benefits are mapped the following ‘checking’ mechanism can be used to ensure that the Benefits Map is complete:

• If all the benefits are realised would theobjective be fulfilled – if no, there are somebenefits which have not been considered; and

• If a benefit is removed would the objective stillbe fulfilled – if yes, the removed benefit is nota benefit but is likely to be an intermediatebenefit and which will sit further to the left inthe Benefits Map.

4.9 Deliverables

Deliverable Required Suggested

Benefits Realisation Strategy ✓

3 Column Analysis ✓

First draft Benefits Map ✓

Initial Benefits Realisation ✓Register

Benefits Distribution Matrix ✓

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5. Plan Phase

Prioritise the benefits and business change required to determine a plan for achieving the objectives.

5.1 Objective The next step is to plan benefits realisation for the program. The Benefits Realisation Plan (BRP) documents, in detail, the intermediate and final outcomes/benefits identified during the Understand phase. This is performed in parallel with the development of the business case. The BRPis a major contributor to the business case compilation.

The BRP is an important document as it specifies the size, timeframe, metrics, ownership and responsibility for each identified benefit. These details are crucial in reaching the first milestones towards successful benefits realisation.

Figure 5: Plan Phase of NSW Government Benefits Framework

5.2 Key Questions This phase tries to answer the following key questions:

• Has the baseline been agreed with keystakeholders?

• Have benefit owners been consulted andconfirmed?

• Have benefit profiles and targets beendeveloped and agreed?

• Has the benefits realisation register beenreviewed and updated?

5.3 Key Tasks In order to answer the above questions, it is suggested the following tasks are undertaken during the plan phase:

• Develop a detailed Benefits Realisation Plan

• Confirm benefit ownership

• Confirm benefit sources measures andbaseline targets

• Develop Benefit Profiles

• Refine and update the Benefits RealisationRegister

• Prioritise benefits

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5. Plan Phase (cont.)

5.4 Process Steps • Refine and update the Benefits Realisation Register

The following steps are recommended to be – Define risk mitigation strategies. undertaken in the Plan phase:

• Establish Benefits Realisation Governance

– Establish the Benefits Realisation Governance Framework that will apply to the program. This establishes who will be responsible for benefits realisation, the governance structures, processes, resources, information needs, etc. More detail can be found in Chapter 9.

• Develop a detailed Benefits Realisation Plan (BRP)

– Determine which benefits will be measured and specify these in the Preliminary Business Case. This will define success for the program.

– Confirm the strategic link between the benefits identified and (for instance) the NSW 2021 ten year strategic plan³ and/or your own agencies strategic plan.

– Classify and identify benefit measures.

• Confirm benefit ownership

– Benefit Ownership is a critical tool in ensuring benefits will be realised

– Effective buy-in requires an effective stakeholder engagement approach

– A communication strategy might be required to ensure identified benefit owners feel engaged and consulted. The project/ program sponsor will need to play a key role in the engagement.

• Develop Benefit Profiles

– Identify the baseline (value) and target Key Performance Indicator (KPI) (measure) for each benefit.

– Identify and confirm timeframes and milestones for achievement of each benefit in consultation with the benefit owners.

– Define benefit realisation activities to be executed by the business.

– Consolidate and document the above into the BRP and obtain program sponsor/ owner approval.

– Communicate to and engage stakeholders on the expected benefits of the program.

• Prioritise Benefits to enable focus on the delivery of high end benefits

• Inform the Business Case

– Develop a business case on the benefits identified in the BRP.

– Develop a detailed Benefits Realisation Plan (BRP).

³ NSW 2021 – A Plan to Make NSW Number One, NSW Department of Premier and Cabinet, September 2011 and NSW 2021 Quality Framework, NSW Department of Premier and Cabinet, September 2012.

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5.5 Develop a detailed Benefits Realisation Plan (BRP) This section outlines steps in the process for developing a Benefits Realisation Plan.

5.5.1 Purpose

The Benefits Realisation Plan (BRP) is more than a project plan that outlines in which timeframe benefits will be realised. It also has the program/project approach for realising benefits including governance arrangements and details of a structured continuing process that will be followed to ensure that benefits are sustained and that returns on investment are maximised. The Benefits Realisation Manager produces the BRP using the complete set of Benefit Profiles as the primary source of information (which are generally appended to the BRP). An example of a Benefits Realisation Plan is in Benefits Realisation Management Framework Part 5: Appendices, Templates, Supporting Information and Glossary.

The primary purpose of the plan is to facilitate the realisation of the planned benefits (in line with the original business case). It should enable the Program Team to keep track of what action is required to enable benefit realisation and to facilitate the tracking of benefits by Benefit Owners. The plan should also highlight interdependencies with other change initiatives within the organisation.

A secondary purpose, if relevant, is to support the Business Case through justification of the change initiative and to ensure benefits are realised on time as documented in the business case.

The BRP evolves throughout the life-cycle and feeds or influences most of the other change management documents. It forms part of the Prince2 Stage Plan (together with the program schedule, expenditure profile etc.) and provides transparency around what benefits have been achieved to date, and those that are to be accrued in the following stage.

The BRP provides the opportunity for early intervention, by the BRM, if benefits are not being realised in accordance with its original timeframe.

5.5.2 Benefit Identification

Benefit identification is the first major milestone in the process of developing a benefits realisation plan. It should engage a broad spectrum of stakeholders, preferably by means of a workshop.

There are two starting points for all benefit identification:

• The purpose – vision and objectives of theproposed change initiative.

• The stakeholders who are seeking the benefitsor who are likely to be affected by the change.

The following are techniques we use to identify a comprehensive set of benefits. A single approach is usually adequate. Besides tools for benefit identification, these frameworks also support the management and analysis of benefits, aid communication and lay foundations for valuing and tracking benefits.

5.5.3 Benefits Classification

Benefit classification increases understanding of the nature of benefits, assists analysis and improves communication. It helps stakeholders understand expectations and it raises awareness of the impacts on other stakeholders. It will also assist those responsible for change to identify potential problem areas and to plan mitigating action. There are various ways of categorising benefits and dis-benefits. The NSW Benefits Realisation Management (BRM) Network and Knowledge Group adopted the classification diagram developed by Roads and Maritime Services with input from the Department of Finance, Services and Innovation.

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5.5.3 Benefits Classification (cont.)

This framework categorises benefits types and classifications to increase the understanding of the nature of benefits.

This framework is based on Gerald Bradley and recommended by MSP.

Notes (and classification examples)

Benefits

Financial

Non-financial

Financial intangible

Increased revenue

Cost avoidance (not in budget)

Cost avoidance (in budget)

Reduced cost

Improved performance

Non-financial intangible

Not quantifiable e.g. increased staff engagement

Realisable as cash e.g. increased uptime for online purchases of services

Not realisable as cash e.g. avoided cost for upgrading IT system

Realisable as cash e.g. elimination IT system hosting costs

Realisable as cash e.g. reduction FTE

Not realisable as cash e.g. fewer steps in the process

Not quantifiable e.g. value of improved reporting on decision making

Figure 6: Generic Benefit Classification Model – NSW Government Benefits Realisation Management Network and Knowledge Group 2012

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5.5.3 Benefits Classification (cont.)

Driver trees – moons showing base trends

FTEs and costs saved

in back office

Increased staff time and

effort freed up for re

investment

Increased citizen service

levels

Agency and citizen benefits

Elimination of manual paper

work

Decreased data entry and tracking effort

Increased intelligence for

the agency

Quality of citizen service increased time

to respond

Organisational benefits

Increased staff use of systems as designed

Increased adoption of

best practices by staff

Increased citizen

awareness and adoption

User adoption

Created trained users

Users familiar with system

All significant

data quality issues

eliminated

User confidence with system

created

User confidence

Created and made

information available to all

users

Created system access

and capabilities for all users

New system and processes delivering new capabilities

Key

Outcome achieved

Outcome partially achieved to date

Outcome not achieved – action underway

Outcome not yet measured

Figure 7: Example Report using Outcomes Dashboard Format

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5.5.4 Benefit Valuation

5.5.4.1 Types of benefit measure

As Figure 6 above illustrates, benefits can be classified as financial (i.e. quantifiable) or non-financial (not-quantifiable).

There are three main purposes to valuing benefits:

• To use in an investment justification (forexample, a Business Case)

• To compare and prioritise benefits, in order tofocus on the higher value benefits

• To set performance targets at which toconfirm subsequent success.

Non-financial benefits cannot be quantified and therefore may not be identified in the initial business case. Surveys may be required to measure these KPI’s.

Example Corporate Shared Services measures

5.5.4.2 Identifying benefit measures

Measures should be identified within the workshop environment by working from right to left through each Benefit Map. Ideally a single measure should be derived for each benefit to ensure transparency of which improvement is derived from which benefit. To achieve this, it may be necessary to revise the Benefits Maps to improve the wording; split a single benefit into two benefits; or revise the linkages.

The table below lists possible measures for a sample of Corporate and Shared Services.

Category Finance HR IT Payroll Procurement

Economy (cost) Total cost as Total cost as Total cost as $/transaction $/transaction % operating % operating % operating budget budget budget

Efficiency Transactional Cycle time Call centre Transactional Cycle time (timeliness) processing time to hire a new productivity processing time

employee

Effectiveness Technology Staff satisfaction Number legacy Number Staff satisfaction (quality) leverage systems industrial

relation awards

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5.5.4.3 Determining the baseline measure

Before a target can be determined, the Benefits Realisation Manager will need to measure the baseline value and determine the timescale over which the improvement is expected to be realised.

In order to demonstrate that a program has delivered the expected benefits, it is essential to know what the situation was before the change commenced. Baseline measures provide the means to capture current situational (or base level) data that can then be used to compare various business processes before, and after, program tasks have been progressively implemented. If baseline measures are not taken and validated at the beginning of a program, it is very difficult to objectively demonstrate the achievement of program benefits throughout the program lifecycle.

It is essential to take the baseline measures at the earliest opportunity to ensure that any early achievement of benefits i.e. quick wins, are recognised and reported.

5.5.4.4 Determining the target measure

For each ‘tangible’ measure, the Benefits Realisation Manager will need to determine a target improvement in consultation with the Benefit Owner. The target measure should be realistic and achievable. For instance, the target value can be defined as a percentage that increases over time in order to implement a gradual performance improvement.

Consider incorporating a confidence level for each identified benefit which can be monitored and updated over time.

5.5.4.5 Documenting the measure attributes

It is important that the level of detail for each benefit measure is appropriate for the type of outcomes that are expected to be delivered. The analysis of the outcome and achievement of benefits becomes much more meaningful if the targeted outcome and actual outcome indicators are as detailed as possible.

Examples are:

• Unit of measure

• Method of measurement

• Baseline value (if available)

• Improvement timescale

• Beneficiary of the expected improvement.

It is advised to document the measure attributes to ensure a consistent measurement at various times.

5.6 Develop Benefit Profiles The Benefit Profile provides a one page, comprehensive set of information relating to each single benefit. A Benefit Profile is developed by the Benefits Realisation Manager and is approved by the Benefit Owner.

Typically, each individual Benefit Profile documents a detailed understanding of what will be involved and how the (dis) benefit will be realised. An example of a Benefits Profile is in Benefits Realisation Management Framework Part 5: Appendices, Templates, Supporting Information and Glossary.

The Benefit Profile should be validated by the Benefit Owner to ensure:

• The (dis)benefit is realistic and achievable as aresult of the planned changes.

• Both the stakeholders, who are scheduled toreceive the benefit and those accountablefor its realisation, are appropriate and have‘bought in’.

• Target values for the benefits are achievableand owned.

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5.7 Refine and Update the Benefits Realisation Register Once the Benefit Profiles have been signed off by the Benefit Owner and the Benefits Realisation Manager, a consolidated data set should form the input into the Benefits Realisation Register. In turn, the Benefits Realisation Register is generally attached to the Benefits Realisation Plan.

A template is available in Benefits Realisation Management Framework Part 5: Appendices, Templates, Supporting Information and Glossary for the creation of a Benefits Realisation Register using MS Excel. The advantage of consolidating Benefit Profile data into a single spreadsheet is that it allows the prioritisation of benefits to enable a focus on the delivery of high end benefits.

5.8 Considerations Please note the following suggestions:

• Meet with front line staff to ascertain baseline metrics and level of buy in;

• Delineate between the risks to the program benefits and project delivery;

• All outcomes should be measurable. Measures for benefits can be either financial or non-financial;

• Focus on identifying the key outcomes that will clearly define success for the program in terms of benefits. Measure only selected outcomes.

• Be careful not to have too many measures. Select the key ‘markers’ of success;

• Select measures that will indicate success of this program specifically. For example, overall user satisfaction will be influenced by many initiatives and can be too broad a measure. Selecting specific questions from user satisfaction survey results will be more relevant;

• Always look for existing measures for benefits. An agency may have an existing scorecard and performance reporting that identifies existing measures;

• Include anecdotal informal indicators for success, they usually make great headlines; and consider ‘proxy’ measures which will be closely linked to the outcome or benefit being measured, especially if it simplifies the measurement task. An example might be per capita GDP is used as a proxy measure for the standard of living.

5.9 Deliverables


Agreed baseline with key ✓stakeholders

Benefits Profiles developed/ ✓Benefits Realisation Plan

Updated draft Benefits ✓Realisation Register

Tailored benefit tools and ✓templates

Benefits reporting format ✓

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6. Manage and Report Phase

Measure, analyse and understand the program outcomes to proactively support the delivery of benefits.

6.1 Objective The Report and Manage phase ‘takes the temperature’ of how successfully the program outcomes are being achieved. A Benefits Realisation Register (BRR) is the “tool” used to record and keep track of realising benefits set out in the plan.

The Report and Manage phase continues over the entire life cycle of the program, and beyond program closure. Strategic benefits are usually realised well beyond the program delivery life cycle. Benefits realisation process and governance continues beyond completion of program delivery. The program does not really end until the benefits have been realised.

Figure 8: Manage and Report Phase of NSW Government Benefits Framework

6.2 Key Questions This phase answers the following key questions:

• Has a benefits monitoring and reportingprocess been established?

• Have quick wins been realised?

• Has progress been reviewed against thebusiness case?

• Has the Benefits Realisation Register beenreviewed and updated?

6.3 Key Tasks In order to answer the above questions, it is suggested the following tasks are undertaken during the report and manage phase:

• Update baseline data.

• Agree final targets with benefits owners.

• Deliver program/project

• Implement change management plan/managechange and business enablers.

• Monitor go-live and transition for change andquick wins.

• Review progress against Business Case

• Review benefits register.

6.4 Process Steps To complete these key tasks the following process steps should be undertaken:

• Update the Benefits Realisation Register

– Register all benefits selected formeasurement during the Plan phase intothe Benefits Realisation Register populatingthe agreed key information, see section4.6 Techniques for more information onBenefits Realisation Register;

– Ensure all business benefits owners havesigned of their allocated benefits;

– Identify from the Benefits Realisation Register the frequency and dates for measurement of benefits;

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6. Manage and Report Phase (cont.)

– Facilitate the benefits realisation review sessions with outcome/benefits owners and other stakeholders;

– Identify and address issues that may be inhibiting the realisation of benefits; and

– Collect, collate and record the actual measurements for the benefits in the Benefits Realisation Register.

• Agree final targets with benefits owners.

• Update the Benefits deliverables:

– Validate that the outcomes/benefits are still valid and achievable;

– Consider program progress and external factors that may impact the program and its outcomes with the appropriate stakeholders;

– Assess if there are benefits that need to be deleted; and

– Capture emerging benefits of the program. Identify, describe and justify why they might be included as part of benefits realisation for the program.

• Review progress against business case/ benefits realisation register

– Update the Benefits Realisation Plan and Benefits Realisation Register with all changes identified and agreed with the stakeholders.

• Establish a benefits tracking regime and mechanisms outlined in the BRP.

The Benefit Realisation Manager will use a Benefit Realisation Register to report on all the benefits identified and provide values of the actual measures against the planned values for the reporting period. Each of the Benefit Owners will be required to update the Benefit Realisation Register at an agreed frequency. The Benefit Realisation Register will be summarised within “dashboard” style reports for executive reporting or issued in its entirety to program leadership who may require more detailed reports. The Benefits Realisation Register can be used to outline the expected impacts of proposed change requests which will inform decision making by the program leadership.

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6.5 Example Reports The figure below provides an example of benefits reporting in a Balanced Scorecard format. This is one way of reporting the benefits, however the specific format of the report will depend on the specific program, agency requirements and alignment to Whole-of-Government guidelines

Financial

Is the cost value of the CS function managed appropriately?

Customer service

Are we meeting our customer’s needs?

CS spend as % of company’s revenue % satisfied customers

CS operating budget as % of revenue Avg no. of inbound calls per service desk analyst

CS capital budget as % of revenue per month

Adherence to Fiscal Plan/Budget Avg % first service desk call contact resolution

% Strategic project begun without predefined, compelling business cases

Internal processes

Are our processes effective, efficient and well controlled?

Development, Employee

Are we increasing our capabilities, focusing on key value-added areas and supporting growth?

% Projects complete on time/budget CS employee turnover

Defect rate % of internal CS employees

Tickets/change requests handled/period % of CS budget devoted to internal employees

% of enterprise process defects due to CS Training days per CS employee per year

CS spend on new IT investments VS ongoing ops and maintenance

Figure 9: Example Report using Balanced Scorecard Format

An extract from the Benefits Realisation Register is shown in the figure below. Commentary on benefits including observations, variations, corrective actions and lessons learnt support reporting.

Figure 10: Example Report using Benefits Realisation Register Extract

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6.6 Considerations Please note the following suggestions:

• Ensure all measurement and review activitiesare undertaken on a formalised basis, withregular formal meetings established.

• Face to face conversations are important toeffectively understand the benefit realisationprogress and to gain a shared understandingof the current situation and actions required,

• Capture any anecdotal ‘benefits’ that arisefrom stakeholder discussions. Anecdotal itemstend to be personal experiences of users, andtherefore add considerable credibility to thesuccess of a program. Consider formalisinganecdotal benefits in the benefits processes(where practicable).

• Recognise that benefits are dynamic and canchange during the lifecycle of a program.Be alert for benefits that need to be deletedif they are no longer relevant or achievable,consider the impact on the Business Case andupdate if required.

• Incorporate any new emerging benefits,consider the impact on the Business Case andupdate if required.

6.7 Deliverables


Updated Benefits ✓Realisation Plan

First Benefits Realisation ✓Report

Updated Benefits ✓Realisation Register

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7. Evaluate Phase

Identify learnings from program activities to inform strategic decisions and priorities.

7.1 Objective The final phase in Benefits Realisation is reporting of achievement against the set target. The monitoring, reporting and escalation of actual vs. targeted performance is undertaken by the benefits reporting function. It informs progress and corrective actions required.

Benefits Reporting is conducted when benefits start to be realised and measured. It is a continuous process that commences as soon as business change starts to be delivered. The focus early in the program life will be on reporting progress in achieving intermediary outcomes of the program e.g. new capabilities successfully delivered, change outcomes achieved, etc. In the post implementation phase, (reporting should continue beyond program closure) the focus is on the achievement of the desired business and strategic benefits.

Figure 11: Evaluate Phase of NSW Government Benefits Framework

7.2 Key Questions This phase answers the following key questions:

• Has the transition to BAU been managed?

• Have benefits been optimised with all keystakeholders?

• Has progress towards the vision/ end statebeen reported against?

• Have lessons learnt been captured andcommunicated?

7.3 Key Tasks In order to answer the above questions, it is suggested the following tasks undertaken during the evaluation phase:

• Handover benefits reporting andmeasurements to BAU team.

• Hold benefits evaluation meetings with all keystakeholders.

• Conduct post-implementation review toinform corrective action.

• Capture lessons learnt to inform continuousimprovement.

7.4 Process Steps To complete these key tasks the following process steps should be undertaken:

• Analyse the benefits

– Support and conduct measurement activities,

– Record results in the Benefits RealisationRegister against baseline and targets,

– Analyse the Benefits Realisation Registerand extract exception data, and

– Make observations as to progress in realising benefits.

• Hold benefits evaluation meetings with all keystakeholders.

• Conduct post-implementation review toinform corrective action.

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7. Evaluate Phase (cont.)

• Capture lessons learnt to inform continuous improvement

– Assess benefits realisation effectiveness;

– Seek explanation for deviation from targets. Discuss and collect suggested corrective actions with program manager and outcome/benefits owners. Corrective actions may involve further investment in the program and will need to be formally approved; and

– Compile and document lessons and actions to be taken by BAU team.

• Report the results

– Promptly escalate significant variations and suggested corrective actions with stakeholders,

– Obtain approval of corrective action; and

– Submit regular reports to stakeholders as per agreed schedule.

• Ensure corrective actions are implemented

– Throughout the process, review the Benefits Realisation Plan, Benefits Realisation Register and Business Case and update if required.

• Handover benefits reporting and measurements to BAU team

– Agree required changes to the Benefits Realisation Plan, Benefits Realisation Register and Business Case with BAU team; and

– Obtain agreement on ongoing BAU responsibilities.

7.5 Considerations

7.5.1 Program consideration

Significant corrective actions may involve significant changes in the program scope and budget. Formal approval is required for any changes to program scope and budget.

7.5.2 Reporting Implications for Whole-of-Government Programs

These Guidelines are intended to apply equally to agency, cluster and/or Whole-of-Government programs. Whole-of-government programs include:

• Large ICT enabled business change programs; and

• Reform programs.

Whole-of-Government programs need to understand, plan, realise and report benefits at agency and aggregated whole-of-government levels. Having a consistent approach to the benefits realisation will enable government to have:

• A common understanding of the benefits to be delivered; and

• Reporting in a standard format.

Central agencies will have the opportunity to inform agencies of their reporting requirements based on the consistent approach in these Guidelines.

7.6 Deliverables


Updated Benefits Realisation ✓Register

Updated Benefits Realisation ✓Report

Lessons Learnt Report ✓

Business case variation ✓Report

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8. Benefits Realisation Deliverables

8.1 Overview of Key Deliverables The following table shows how the phases and associated deliverables for the benefits realisation process align with program lifecycle deliverables.

Key Deliverables (P = Produced, U = Updated)

Document Understand Plan Manage and Report Evaluate

Benefits Realisation

Benefit Realisation Strategy P

3 Column analysis P

Benefits Maps P U U U

Benefits Realisation Register P U U U

Benefits Distribution Matrix P

Benefits Profiles P U U

Benefits Realisation Plan P U U

Benefits Reports P U

Stakeholder Management

Stakeholder Management Strategy P

Stakeholder Management Plan P U U

Change Plan P U U

Solution Management

Blueprint P

ITT / RFQ P

Governance

Program Mandate P

Outline Business Case P

Full Business Case P

Program Management

Program Brief P

Program Initiation Document P U

Program Management Strategy P

Issues Log and Risk Register P U U U

Milestone Reports P U

Post Implementation Review P

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8. Benefits Realisation Deliverables (cont.)

8.2 Overview of Process flow The following diagram provides an overview of the process flow and deliverables to understand, plan, manage and report and evaluate the realisation of benefits.

ManageUnderstand Plan Evaluate and Report

BR Strategy

3 Column Analysis

Benefits Map

Initial Benefits Register

Benefits Distribution

Matrix

Benefits Profiles


Plan


Plan


Plan

Lessons Learnt Report

Periodic Benefits

Realisation Reports

First Benefits

Realisation Report


Register


Register


Register


Register

Business Case

Variation Report

Content evolves through phases

Produced periodically

Figure 12: Benefits Realisation Products

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9. Benefits Realisation Governance

9.1 Governance Principles Benefits Realisation Governance supports the four phases of Benefit Realisation Management. The three key principles of benefits governance should be followed:

• Commitment and support at the seniorleadership and executive level. Active supportfor the program will support and reinforcebenefit ownership and realisation;

• Clear and active program sponsorship andaccountability. Sponsorship of the program,together with accountability for the benefitsrealised reinforces the benefits realisationprocess and framework; and

• Program management and responsibility fordefining, measuring and reporting benefits.

Clear responsibility and accountability of the roles to deliver the four phases of the benefits realisation guideline are critical.

RACI for Key Benefit Realisation Activities

9.2 Roles and Responsibilities in Benefits Realisation A “RACI” (Responsible, Accountable, Consulted, Informed) table is used to define the roles involved and their level of accountability or participation in an activity. The table below is a guide to defining the activities across the understanding, plan, manage and report and evaluate phases, the relevant roles and whether they are:

• Responsible: this role is responsible forachieving the result of the activity;

• Accountable: this role will be held accountablefor the result of the activity;

• Consulted: this role will be consulted in orderto agree the result for that activity; or

• Informed: this role will be informed ofprogress and/or the outcome of the activity.

Benefits Realisation Phase

High level Activity / Step Program Sponsor

Program Manager

Benefits Owner

Benefits Realisation Manager

Program Mgt Office

Obtain business context Understand A R R C I

of the benefits

Develop a benefits A C C R I

realisation strategy

Identify key stakeholders A R R C I

Identify and agree the outcomes/benefits with A R C I I key stakeholders

Organise benefits discovery workshops with A C C R C key stakeholders

Establish benefits realisation register and A C C R C identify benefit owners

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9. Benefits Realisation Governance (cont.)

RACI for Key Benefit Realisation Activities (cont.)

Benefits Realisation Phase

High level Activity / Step Program Sponsor

Program Manager

Benefits Owner

Benefits Realisation Manager

Program Mgt Office

Establish Benefits Plan A C C R C

Realisation Governance

Develop a detailed Benefits Realisation Plan I C C R A (BRP)

Confirm benefit A R C R I

ownership

Develop Benefit Profiles A I I R C

Refine and update the Benefits Realisation A I I R C Register

Prioritise Benefits to enable focus on the

C C I R Adelivery of high end benefits

Inform the Business Case C C I R A

Manage Update the Benefits A C C R C

and Report Realisation Register

Agree final targets with A R C R I

benefit owners

Update the Benefits I I I R A

deliverables

Review progress against business case/benefits A I I R C realisation register

Establish a benefits tracking regime and

A I I R Cmechanisms outlined in the BRP

Evaluate Analyse the benefits A C R R I

Hold benefits evaluation meetings with all key A C C R C stakeholders

Conduct post-implementation review to A I I R C inform corrective action

Capture lessons learnt to inform continuous A R C C I improvement

Report the results I I I R A

Ensure corrective actions A C R C I

are implemented

Handover benefits reporting and measurements to A C R C I BAU team

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9.3 Key Roles The following table outlines the key roles in relation to BRM:

Key roles and responsibilities

Position Responsibilities

Benefits Realisation Manager • Owns the Benefits Realisation Guidelines and toolkit

• Supports key stakeholders with the adaptation and implementation of thebenefits realisation toolkit to align with their operating environment

• Provides objective challenge of benefits, dependencies, measures, targetsand the program’s approach to benefits realisation

• Ensures Department Benefits Realisation Plans align with the BusinessCase(s)

• Produces a sector-wide Benefits Realisation Register

• Periodically reports on benefits realisation status

• Escalates any issues relating to BRM to the relevant governing body

Program Sponsor – Departmental DG or DDG

• Owns the departments business case(s)

• Owns the Benefits Realisation Plan and is responsible for its adjustment,improvement and enforcement

• Leads benefit reviews involving relevant stakeholders, business managers,and possibly internal audit

• Approves, along with the Sponsoring Group, all benefits claimed by theprogram and described in the benefit profiles

• Assigns responsibility for achieving the planned program benefits

• Ensures links are maintained with other programs to maximise benefitsopportunities

Benefit Owners • Accept responsibility for realising assigned benefits

• Identify and map benefits with the Benefits Realisation Manager

• Identifies how the benefits are distributed between the stakeholders

• Identify suitable benefit measures and targets with the Benefits RealisationManager

• Approve the Benefit Profile (s)

• Measure and monitor the progress of realising the benefit ensuring theDepartment Benefit Tracking Register is kept up to date

• Encourage workplace behaviour to support benefit realisation and theidentification of additional benefits

• Ensure the financial budget planning includes the expected outcomes ofthe realisation of each benefit

Program Manager • Deliver the initiatives which enable the realisation of the Benefit RealisationPlan on behalf of the Program Sponsor with the relevant stakeholders

• Ensure any follow-up or corrective actions are taken to maximise benefitsopportunities

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9.3 Key Roles (cont.)

The following provides an overview of the BRM roles for key governing bodies:

Levels of governance

Body Scope BRM Role

Expenditure Review All sector-wide reform Committee (ERC) / Fiscal Effectiveness Office (FEO)

• Oversee the distribution of reform investment across the Departments, in order to create and maintain a strategically balanced high-value portfolio

• Conduct regular strategic reviews of the sector-wide reforms to ensure that the investment is focused on delivering desired business benefits

• Receive periodic reports to monitor the status of sector-wide benefit realisation across all NSW Government reforms

Departmental Program Department Program Board (Sponsoring level Group)

• Oversee the distribution of investment across the Department, in order to create and maintain a strategically balanced high-value portfolio

• Show visible commitment to the Blueprint and to the realisation of the end Benefits

• Approve the Benefit Realisation Plan (BRP)

• Link the Program Sponsor’s performance agreement to the successful delivery of the program’s benefits

• Receive periodic reports to monitor the status of benefit realisation across the Department

Program / Project Single program or project • Approve Stage Gate submissions Control Groups • Receive periodic reports to monitor the status of

benefit realisation within the program

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9.4 Reporting Benefit tracking and reporting has the dual purpose of monitoring and improving performance through the implementation of continuous improvement initiatives.

The Fiscal Effectiveness Office requires regular reporting on the future return on investment for major projects and programs.

For Departmental Program Boards, it is recommended that visual reporting is provided in the form of one page dashboards to focus attention to the areas which require direction or intervention.

For Program / Project Control Groups, it is recommended that reporting by exception is used which presents detailed information on the areas where there is a deviation from expectation, e.g. measures which have fallen outside a specified tolerance of the relevant target, requiring further action.

Both types of reporting will benefit from the use of BRAG status colour coding outlined below:

• Blue - target has been achieved and monitoring of this measure is now complete.

• Green - measure is within a narrow tolerance of target.

• Amber – measure is within a wider deviation from target.

• Red - measure is outside acceptable deviation levels.

9.5 Benefits Realisation Management Organisation Maturity The Executive Program Management Office (EPMO) should undertake a regular assessment of their Department’s benefits Realisation Management maturity level and implement actions to improve.

As a reference for best practice in maturity assessment see the Benefits Realisation Framework Part 4: Benefits Realisation Management Tailoring and alignment of the framework and the P3M3 Portfolio, Program and Program Management Maturity Model v2.

9.6 Change Control An assessment of benefits impact (positive or negative) will form part of each change request assessment. A Change Request will be raised whenever there is a change that has the potential to materially affect benefits realisation.

If there is a material change, the Benefits Realisation Profile, Plan and Register will be amended and they should subsequently be approved by the appropriate authority.

Effectively implementing this type of change control process is proof that benefits realisation management has become part of BAU in an organisation.

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10. Considerations for managing risks to Benefits Realisation

The purpose of this section is to reference considerations that should be taken into account when identifying and managing risks to realisation of program benefits. The following considerations should be taken into account:

• Start to think about any potential risks or barriers to the achievement of the benefits in the initial Understand phase.

• When documenting risks consider whether it is practical to use a project log with a delineation between the risks to the benefits and project delivery. Or whether to capture risks in the benefits realisation register with a cross reference to the program or projects risk log.

• When documenting risk parameters be consistent with the organisation’s risk management process as it will be easier for the program team and business to understand the likelihood and possible impact

• When developing a risk mitigation or response plan define the responsibility for risk treatment, mitigation or counter measure for both the program and business team members.

• Interdependencies with other programs should be captured so that any risk mitigation can be managed holistically and remove the possibility of programs double counting of benefits.

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www.nsw.gov.au

More information

Department of Finance, Services and Innovation McKell Building, 2-24 Rawson Place Sydney NSW 2000

[email protected]

www.nsw.gov.au

mailto:[email protected]?subject=BRM%20Framework%20Part%203

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