Benefits Realisation – putting

strategy into action

Gareth Byatt

Programme Manager and Head of Global PMO

MBA, PgMP, PRINCE2 Practitioner

APAC Region Director, PMOSIG Local Interest Group

Contents of this Slidedeck + the Key Message

1.1. Benefits Realisation realitiesBenefits Realisation realities

� What makes a Business Cases worth the “paper” it is written on…

2.2. How do Business Benefits Cases get formulated?How do Business Benefits Cases get formulated?

� Examples of controls and measures to put in place…

3.3. How should we set up benefits to be tracked?How should we set up benefits to be tracked?

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3.3. How should we set up benefits to be tracked?How should we set up benefits to be tracked?

� Quantifying benefits without creating unrealistic or worthless amounts of detail…

4.4. Benefits Realisation “active planning”Benefits Realisation “active planning”

� Employing a simple technique for pro-active benefits tracking…

5.5. Benefits Realisation SummaryBenefits Realisation Summary

� Take-home Messages

Information in this pack is based on the Author’s personal experience, discussions with fellow Portfolio and Programme Managers working for other organisations, and information from the Analysts Gartner and Forrester

Are benefits over-stated? Do we promise more than is practical?

1 Benefits Realisation harsh realities

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There are only 4 reasons…

� To generate revenue

� To save costs

1 Why bother carrying out a project?

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� To contribute to a strategic objective and/or defined business priority

� Because you have to

Courtesy of Stephen Jenner: “Realising Benefits from Government ICT investment – a fool’s errand?”

Effective governance and appropriate behaviours are key

2 How do Business Benefits Cases get formulated?

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It’s not enough to have the Governance process in place

The Governance group needs to have “teeth”

Example of a simple method to assist with accountability

2 Do Business Benefits Cases include the right things?

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Use your Business Case as a tool to agree key benefits,

measurements to track them, and people accountable for

their realisation

Understand the benefits of what you are buying, not just what you are buying

3 How should we set up benefits to be tracked?

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This example is courtesy of Stephen Jenner, CJIT Director for the UK Government Civil Justice IT investment programme

Ensure Governance Approval Gates have Teeth

� Funding should be linked to traceable and tracked performance

� Presumption – if you exceed your funding tolerance, funding ceases

3 How should we set up benefits to be tracked?

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� Conclude all projects with a formal re-commitment to benefits realisation

� Then track those benefits in a controlled, measured way

Build benefits management into selection, delivery and operation

3 How should we set up benefits to be tracked?

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So how should we work with our Clients to realise benefits?

� Ensure Total Cost and Value of Ownership is factored into project budgets

� Don’t over-complicate the scope! Get to the crux of what your Client needs:

� Focus hard, and spend quality time, defining and testing the concept and detailed

design against carefully considered real-life scenarios and modelling

3 How should we set up benefits to be tracked?

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design against carefully considered real-life scenarios and modelling

� Ask enough people about what they need – don’t go with one or two opinions

� Take the time to really understand how your Client will build the solution into their

operations (and achieve the stated benefits)

� Ensure your Client agrees for the need to benefits tracking post Go Live

� Benefits realisation “from start to finish” can be an activity of a “process

competency centre” (if you have one)

So what should we do to challenge benefits assumptions?

3 How should we set up benefits to be tracked?

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Example – a template used successfully by Lend Lease ICT

� Embed the thinking of benefits realisation into the project Business Case

� Take the stated benefits and put them into a template for tracking during the

initiative lifecycle

4 Benefits Realisation active planning

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A Lend Lease IT project example

4 Benefits Realisation “active planning”

1 Application

Mock-up/model

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2 Use Cases

3 Build the tool

4 Embed it into operational

reviews and processes

Summary

1. Ensure your Client is very clear about the benefits they are buying, not just

the solution they are buying

2. Agree how to track performance against the agreed benefits, then do it

3. Ensure a clear “line of sight” from strategic intent to benefits realisation

4. Spend “thinking time” to define usage scenarios, and model them properly

5 Benefits Realisation

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4. Spend “thinking time” to define usage scenarios, and model them properly

– it helps get the design focus right, and to validate practical real-life use

5. Ensure Project Approval Gates have Teeth

6. Continually ask “Is this the best we can do?”

7. Single out people for accountability to realise stated benefits from the

Business Case onwards