webinar: business benefits realisation

Business Benefits Realisation - Webinar

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Mit Consultants – The Knowledge Transfer Company: Copyrighted Material. Not to be reproduced without prior written consent.

Claude H. Maley

Business Benefits Realisation


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Housekeeping

• The Slides will be available on our SlideShare page; the link will be emailed to you

• The Recording of the webinar will be available to view on our YouTube channel; the link will be emailed to you

• Please complete the post-webinar survey that will pop up at the end

• You can type your questions throughout the session

• Time will be allocated in the end for the speaker to address your questions


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Your Presenter

Claude H. Maley is Managing Director of Mit Consultants, a consultancy

and education practice servicing international clients in change

management, and Chairman of a business solutions company.

His functional management and consulting experience with major

corporations such as Alcatel, BP, Cadbury Schweppes, Cartier,

Caterpillar, Cisco, Ericsson, GE, Hewlett-Packard, IMS International,

Motorola, Organon, Overseas Containers Limited, Pechiney, Renault

Automobile, Siemens to name but a few, has spanned more than 40

years in engineering, production and manufacturing, distribution,

transportation and marketing services sectors.

Author of the book "Project Management – Concepts, Methods &

Techniques"


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Business Benefits

Realisation


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Webinar Excerpt From the Programme:

"Managing Successful

Organisational Initiatives"

Next Course of the Programme:

Certificate in

Achieving Organisational Goals Effective Strategic and Operational Initiatives

20th to 23rd December 2015 in Dubai


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Do you KNOW your Project's Quantified

Business Benefits?

1 = Not at all

2 = Heard about them

3 = Seen them but don't understand

4 = Seen them and understand them

5 = Very familiar with them


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Relate The Business Case to Business Benefits

Differentiate between Business KPI's vs Project

KPI's

Establish a Benefits Management Chart

Plan & Prepare for Organisational Readiness

Plan to Perform Project Transition & Handover

Measure the Realisation of Business Benefits


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Section Contents

The Business Case & Business Benefits

Business KPI's vs Project KPI's

Benefits Management

Organisational Readiness

Project Transition & Handover

Realisation of Business Benefits

Benefits Realisation Key Topics


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Topic Contents

Comprehension of Business Benefits

Realising Benefits from Investments

The Business Case in the Overall Process

Standard Structure of a Business Case

Major Steps to Validate a Business Case

The SYSTEM/PRODUCT Life Cycle

Calculating Cost of Ownership & of Operations

Operations Alignment Requirements

The Business Case & Business Benefits


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Comprehension of Business Benefits

‘The Measurable Improvements

Resulting from Outcomes which are

Perceived as an Advantage by one

or more Stakeholders’ Business Benefits

Types of Benefits

Definite Financial

Has an accurately predictable financial value

Expected Financial

Has a financial value which can be predicted, based on trends or experience elsewhere

Logical Financial

The financial value of the benefit should improve but there is no data or experience on which to base a realistic prediction

Qualitative

Measurable, non-financial benefit

Intangible

Difficult or impossible to measure, usually non-financial


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Realising Benefits from Investments

Business Benefits arise when

Investments enable the Organisation to: Perform more Efficiently and Effectively

Introduce New Ways of Working

and/or

Operate in a New Way

The Business Unit Managers and Users have the Responsibility to

Generate the Business Benefits

by Introducing the Necessary

Changes to their Organisation

The Business Units must be Intimately

Involved in Investments Projects


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The Business Case in the Overall Process

Concept

or Idea

Feasibility

Assessment

Definition

& Business

Case

Design Develop Deliver Launch Exploit

Maintain;

Evolve;

Retire

Impact Analysis

Assumptions

Risks

Document

Options

Cost/Benefit Analysis

Justify

Executive Summary

Description of Approach

Define

Define the Case Build the Solution Use the Solution

Business Benefits

B

To Be As Is

A Investment for Change


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Standard Structure of a Business Case

Preface

Table of Contents

Executive Summary

Business Drivers

Recommendation

Summary of Results

Decision to be Taken

Introduction

Scope of Change

Financial Metrics

Financial/Non-Financial Benefits

Life Cycle Costs

Funding Flow (NPV)

Analysis

Assumptions

Risk Plans

Conclusion, Recommendation, and Next Steps

Appendix

Business Goals

Feasibility Studies

Impact Analysis


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Major Steps to Validate a Business Case

Understand the Financial Projections Develop a Financial Baseline

Quantify & Develop the Benefits Logic

Define Financial & Operational Assumptions

Validate the Benefit Logic with Key Business Owners

Define Payback Assumptions

Obtain Sign-Off from Key Stakeholders

Clear Comprehension

of Business GOALS Identify the Key Business Driver Company Image

Cost Reduction

Customer Service

Legal or Statutory Requirement (mandatory)

Productivity Increase

Process Improvement

Revenue Enhancement or Acceleration

Risk Reduction

System Rationalisation

Workforce Satisfaction


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The SYSTEM/PRODUCT Life Cycle

Need identification

Feasibility analysis

System specification

Design

Development of engineering and prototype models

Product, process and material specification

Production and/or construction of system components

Acceptance testing

System distribution and operation

System operation in the user environment

System modifications for improvement

System assessment

Conceptual

Design

System

Design Development

Utilisation &

Support

Phase-out &

Disposal


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Calculating Cost of Ownership & of Operations

Create: Make or Buy Exploit: Use

Ownership Operations $

As Is

Initiation Planning Close-Out Execution

A Hand-

Over

Revenue/Benefit Investment/Cost

BREAK EVEN

POINT

Change in the Organisation to Achieve a Goal and Reap Business Benefits

B

To Be


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Operations Alignment Requirements

Business Objectives

Securing High level Priorities

in relation to the Drivers,

Outcomes and Improvements

to be Delivered on Completion

of the Project

Business Stakeholders

Identification of all Individuals

or Groups who will Benefit

from the Project and are either

Affected by or Directly involved

in Making the Changes

needed to Realise the Benefits

Business Changes

Description of all Business

Activities and New Ways of

Working that are Required to

Ensure that the Desired

Benefits are Realised

Enabling Changes

Definition of the Prerequisites

for Achieving the Business

Changes that are Essential to

bring the New System into

Effective Operation

The Project Manager Defines in Collaboration with the Business


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Topic Contents

Clarifying Boundaries of KPI's

Identifying Organisational Business KPI's

Setting SMART Objectives for Project KPI's

Business KPI's vs Project KPI's


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What are the BOUNDARIES of the

Business KPI's vs Project KPI's?

1 = Business KPI covers the TOTAL

LIFE CYCLE

2 = Business KPI Covers ONLY the

Operations after Project Delivery

3 = Project KPI covers ONLY the

PROJECT LIFE CYCLE

4 = Project KPI covers the TOTAL

LIFE CYCLE

5 = No idea


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Clarifying Boundaries of KPI's

Concept

or Idea

Feasibility

Assessment

Definition

& Business

Case

Design Develop Deliver Launch Exploit

Maintain;

Evolve;

Retire

Define the Case Build the Solution Use the Solution

B

To Be As Is

A

Business Benefits to Fulfil

Business GOALS

PROJECT KPI Boundary

BUSINESS KPI Boundary

Investment for Change


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Identifying Organisational Business KPI's

Organisational Business KPI's can only be

Achieved and Measured

during the Operational phase

POST Project Close-out & Hand-Over

Obtain Clear Definitions of KPI's as

Business Strategic Value Drivers

Ensure KPI's are established on Validated Information

and are Coherent & Understandable

Distinguish between Financial and Non-Financial KPI's

Determine the "Depth" of the Cascade the KPIs

to other Areas of the Organisation

The Project Manager & Core Project Team

must be Intimately Knowledgeable of

the Organisation's Business KPI's


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Setting SMART Objectives for Project KPI's

The Project delivers to the Business

the Capability to Achieve the Business KPI's

Project Milestone Schedule

MAJOR DELIVERABLE

MILESTONE

Key

Milestones &

Project

Deliverables


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Topic Contents

Identifying & Structuring Benefits

Building the Benefits Map

Planning Benefits Realisation

Benefits Management


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Identifying & Structuring Benefits

Confirm Business Benefits

Secure Benefit

Ownership

Develop Benefits

Map

Perform Project

Baseline

Implement Change Initiative

Go Live Operational

Benefits Tracking

A Benefits Map is a Diagram showing a set of Benefits

and how they Relate to one Another

the left to right Flow describes a Series of

Cause (Action) and Effect (Benefit) Relationships

Shows the link from the Solution, through

Business Actions, Outcomes and Benefits to the

Organisation's overall drivers

Confirms that the Solution being introduced will

Provide the Target Benefits & Results

Allows Focus on Actions with

Multiple links to Key Benefits


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BENEFITS

Building the Benefits Map

OBJECTIVES

Increase

Profit by 5%

Decrease

OPEX by 5%

Reduction of

Customer

Returns by

70%

Reduction of

Project

Overruns by

50%

Sales

Increase

Margins

Increase

Reduced

Customer

Returns

Increased

Customer

Satisfaction

Application

of PM

Standards

Improved

Project

Delivery

Centralised

Customer

Data

Penetrate

New

Markets

Enhanced

Order

Fulfilment

Coherence

of Process

Flows

Effective

Process

Control

Increased

Efficiency

Common

PM Methods Effective PM

Standards

ENABLERS

DELIVERABLES

Integration of CRM's

Marketing Programme

Order Entry & SCM

Enhancements

Process Flow

Standardisation

Training on Project

Management

Introduction of Project

Management Office


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Planning Benefits Realisation

Relate the Schedule of the

Deliverables/Benefits Map

to the Business Organisational Preparation

Demonstrating the Value of Investments

to Deliver to the Benefits

Project Milestone Schedule

MAJOR DELIVERABLE

MILESTONE

Key

Milestones &

Project

Deliverables

Operational Schedule

Actions the Business must perform

in collaboration with the Project

so as to initiate Benefits Realisation

Identify the Measurement

Mechanism

to Institute in Operations

to Monitor & Evaluate

Benefits Realisation


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Topic Contents

Preparing for Organisational Readiness

Conducting the Readiness Assessment

Planning the Organisational Readiness

Organisational Readiness


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Preparing for Organisational Readiness

The Project Team and the Business Unit(s) work in Harmony to

Communicate, Inform & Explain to the Functional Departments

Commitment Roll-Out and Ramp-Up activities

Support Processes & Follow-up Activities

Business Benefits Measurement Mechanism

Awareness Project Goals, Purpose and Rationale

Business Benefits and Need for Change

System to be Implemented

Project Timeline and Intended Audience

Acceptance Implementation Schedule Progress

Issues and Resolutions

Training Schedule

Implementation & Transition Schedule

Understanding System and Business Process Changes

Business Process Changes Impacts

Key Project Milestones

Training Planned to be Provided


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Conducting the Readiness Assessment

PEOPLE PROCESSES INFRASTRUTURE

Organisational Readiness Assessment

determines the extent of the

Multiple and Simultaneous Changes

required to be made in the Business

Organisational

Chart

Staffing

Requirements

Training for

Re-Skilling

Reward Systems

Procedures &

Methodologies

Work Flows

Communication

Paths

Decision Making

Property Assets

Production

Assets

Technology

Platforms

Legacy Data

Conducted by the Project Team in Conjunction with the Business Units


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Planning the Organisational Readiness

Training

Training the Appropriate

Business Unit Resources

on the Changes to

Processes, Procedures,

Methodologies & Systems

Sponsorship

Ensuring Active

sponsorship at Senior

Executive Level, and

engaging this Sponsorship

Involvement

Involving the Right People in the

Design and Implementation of

Changes Securing Buy-in from

those involved and affected

Readiness

Assisting People Affected &

Impacted by the Change, to

be Ready to Adapt to the

Changes by Ensuring they

have Comprehensive

Information and Toolsets

The Project Manager

& Team Coordinate

with the

Business Unit(s)


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Topic Contents

Overcoming Resistance

Transition & Go-Live Challenges

Conducting Transition & Go-Live Assessment

Project Go-Live & Operations

Project Transition & Handover


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Resistance takes many forms

Projects

create

CHANGE

Organisational Resistance

Threat to Competences

& Skills

Threat to Established

Power Relationships

Structural lethargy

Threat to Established Resource

Distribution

Scope & Extent

of Change

Individual Resistance

Fear of the Unknown

Loss

Economic Factors

Comfort Zone

Security

Plan to Address

Resistance as from

the Earliest stages

in the Project


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Overcoming Resistance

Plan & Schedule Workshops

with all Organisational Entities

that will Use, Exploit &/or Operate

in the New/Changed Environment

Workshop Schedule


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Transition & Go-Live Challenges

Go Live

Usually refers to

the First Day the System

will actually be Used

in a Production mode

by at least One User

Transition

Generally refers to

Progressive Migration &

Switch from Old to New

Operational Environment

Major Challenge Interfacing between

Project Delivery,

Business Change Management

and Business Operations Users Working Practices

Stakeholder Support

Structural Migration

Maintaining Business Operations

during Transition

Realistic Transition Schedule

Business Units Readiness

Resistance from Operational Units


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Conducting Transition & Go-Live Assessment

Confirm with Key Stakeholders Policy

for Use and Achievement of Goals

Evaluate Results & Evidence of Testing

Review all User Documentation

Assess Training Delivery Review Staff Schedules

Review Workflow and Process Improvements

Collate all Vendor Support Contracts


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Project Go-Live & Operations

Perform Go-Live Strategy:

Big-Bang; Phased; Parallel Organise

Appropriate Support

Team Staffing

Verify Schedule & Readiness

for Go-Live Day with

Business & Functional Departments

Ensure Provision of Help Desk

Staff, Super Users, etc.

Coordinate Schedule with

Vendors, Contractors, & other Providers

Apply Escalation &

Approval Procedures

Provide

Disaster Recovery

Business Resumption Plan


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Topic Contents

Measuring & Tracking Benefits

Evaluation of Operational Effectiveness

Project Post-Implementation Assessment

Realisation of Business Benefits


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Measuring & Tracking Benefits

Business Benefits Benefit tracking

The Business Unit(s)

Accountable for

the Benefit

The Business Unit(s) that

will receive the Benefit

Benefits are Tracked

from Day 1 of Go-Live Day with

Business & Functional Departments

Institute

Objective Measurement Methods

and Validated Data

across all Investments

to Demonstrate that they can Enable

the Delivery of Business Value


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Evaluation of Operational Effectiveness

Evaluation

Focus

Target Values & Measurement Mechanism

Timeframe in Operations

when Improvements are expected to Start

Timeframe when Break-Even Value

is expected to be Reached

Frequency of Measurement Reporting

The Business will Progressively Ramp-Up

its Operation to Deliver the Business Benefits

The Project Delivers a Functional Solution and Supports it

The Business Operation Exploits it to Deliver the Business benefits


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Project

Evaluation

Review (PER)

Project Post-Implementation Assessment

Assess the Project’s Performance against the Business and Project Objectives

Evaluate Project Performance throughout Project Phases

Benefit from Lessons Learned of Project Development and Execution

Develop a final Perspective on Performance of the Project Team

Post

Implementation

Review (PIR)

Single

Post-Project Appraisal on

Project Management Effectiveness

Evaluation of

Operational Effectiveness

as Provided by Project Results


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REFLECT UPON What are the key take aways from

this session?

How will you use them at work?

What impact do you think that will

have?

Is anything preventing you from

using them?

What will you do to overcome those

challenges?

End of Webinar

YOUR Key Take-Aways


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Reminder, Join us for the:

Certificate in

Achieving Organisational Goals Effective Strategic and Operational Initiatives

20th to 23rd December 2015 in Dubai

webinar: business benefits realisation

Education