Benefits management process issue 1.0

Benefits Management The Process

Overview

• The following slide pack details the Benefits Management Process from start to finish

• It is broken down into four work streams:

1. Identifying and Structuring

2. Planning for Benefits

3. General Management

4. Evaluation

• Current thinking from the OGC is incorporated to assist with implementing best practice

Identifying and Structuring

Early Stage Benefits

Identification

Owner Identification

Benefit Dependency Modelling

Benefit Profiling

Planning for Benefits

Benefits Realisation

Plan

Benefits Management

Strategy

General Management

Portfolio Management

Tracking and

Updating

Evaluation

Detailed Benefits Identification

Generic Benefits Management Process

Objectives:• Identify and understand the full range of

benefits • Identify and involve business area

representatives • Establish detailed benefit profiles for each key

benefit

Objectives:• Detail how and when benefits will be monitored,

managed and realised throughout the benefits management lifecycle

Objectives:• Ensure benefits are managed in line with the

benefits realisation plan.

Objectives:• Evaluate the effectiveness of the project in realising the

proposed benefits as outlined in the Business Case • Capture and document any lessons learned • Reveal opportunities for increasing the project’s yield of

benefits and make recommendations on actions required for these to be achieved.

Baseline Comparison to Business Case

Assessment of benefits actually

achieved

Post Project Review

The “Identifying and Structuring” work stream is split into five sub sections:

1. Early stage benefits identification

2. Benefits owner identification

3. Detailed benefits identification

4. Benefits dependency modelling

5. Benefit profiling

Each will be described in turn.

Planning for Benefits General Management EvaluationIdentifying and Structuring

Identifying and Structuring

• Two benefit owners should be identified, one who receives the benefit and one who makes it happen

• It is possible for these owners to fall within different areas. This means the SRO may have little or no control over the OBO so adequate support structure must be put in place.

2. Owner Identification

Senior Benefit Owner

(SBO)

A senior member of staff responsible for ensuring that the benefit is achieved once handover from the project is complete.

Operational Benefit Owner

(OBO)

A business representative who is responsible for benefit measurement and the management of any activities required to ensure benefits are realised.


• Gather all stakeholders to agree on the high level benefits of a project.

• Must consider “dis-benefits” as well.

• Discussion should be kept at a reasonably high level as benefit identification will take place at a later stage.

• Clarifies the underlying reason for the investment.

1. Early Stage Benefits Identification


• Aim is to produce a detailed list of the main benefits and dis-benefits within each high level benefit.

• This information should be documented and expanded in a benefits statement as shown below.

3. Detailed Benefit Identification


Benefit Expected benefit outcome

Benefit Type Where will the benefit occur?

Who will be affected?

EXAMPLE EXAMPLE EXAMPLE EXAMPLE EXAMPLE


Dis-Benefit Expected benefit outcome

Benefit Type Where will the benefit occur?

Who will be affected?


Benefits Statement

• The aim of this section is to document the

relationships between different benefits

• Additional benefits and/or dis-benefits my occur

and should also be formally captured

• Project outputs (enablers) should be linked to the

benefits they generate

• This information can be represented in a benefits

model as shown on the next slide

4. Benefit Dependency Modelling


4. Benefit Dependency Modelling


• Each intermediate benefit is looked at in details to understand exactly what needs to be done to realise them

• The following information should be captured:

• Each profile should be a living document and could potentially be expanded to include existing information such as

– Outstanding actions

– Risk owners and countermeasures

5. Benefit Profiling


Senior Benefit Owner

Operational Benefit Owner

Method of Measurement

Baseline Target ValueMeasurement

Dates

Benefit RankingBenefit

DependenciesBenefit Priority

Benefit Likelihood of

failureBenefit Risk

5. Benefit Profiling



The “Planning for Benefits” work stream is split into two sub sections:

1. Benefits Realisation Plan

2. Benefits Management Strategy

Planning for Benefits

• A simple document which details the

benefits time plan across all projects.

• Key dates will be shown including activity

milestones, benefit measurements and

other key dates which are relevant to

specific benefits.

• It may be of use to arrange formal Benefit

Working Groups which meet at regular

intervals

1. Benefit Realisation Plan


1. Benefit Realisation Plan


• A document designed to encompass all the information and rationalle leading up to this point

• It should include

– Summary of benefits

– Description of roles, functions and responsibilities for benefits planning and realisation

– All the benefits statement

– Benefit dependency nmodel

– Benefit profile for each benefit

– Benefit realisation plan

– Details of how and when a Post Project Review (PPR) will be completed.

2. Benefit Management Strategy


This work stream focusses on the day to management of the benefits plan. The following slides give a general overview of what should be done but the reality will be heavily dependent on the individual organisation. The two management areas are as follows:

1. Portfolio Management

2. Tracking and Updating


General Management

This work stream looks at benefit management from a programme level.

Tracking and prompting

– Ensuring all measurement activities occur

Strategic intervention

– Intervening when projects are not performing or disrupting the wider portfolio

Review

– Ensuring the benefits management plan is fit for purpose and adjusting as needs be

Communications and reporting

– Disseminating the information across the organisation to highlight management priorities to all


1. Portfolio Management

This work stream is focussed at the individual project level.

Measuring

– The act of actually measuring the benefit performance criteria

Assessing

– Comparing these measurements to the baseline and expected results

– Understanding the reasons behind certain results and its wider implications

Reporting

– Disseminate both benefit measurements and other key information about individual projects which impact on the wider programme

Updating

– Updating the existing benefits plans for individual projects in light of previous analysis


2. Tracking and Updating

This final section is one of the most important and one that is often overlooked. It is important to set out upfront the evaluation procedure to ensure it is carried out correctly. Its purpose is:

– Evaluate the effectiveness of the project in realising the proposed benefits as outlined in the Business Case

– Compare planned costs and benefits with actual costs and benefits to allow an assessment of the project’s overall value for money to be made

– Capture and document any lessons learned - identify particular aspects of the project which have affected benefits either positively or negatively and make recommendations for future projects

– Reveal opportunities for increasing the project’s yield of benefits and make recommendations on actions required for these to be achieved.


Evaluation

Summary

• The Benefits Management Process is broken down into four work streams:

1. Identifying and Structuring

2. Planning for Benefits

3. General Management

4. Evaluation

• Work streams 3 and 4 will be heavily dependent on the individual organisation

• All information shown within this slide pack is merely guidelines and suggestions of best practice

• A clear and logical approach to Benefits Management will increase its likelihood of successful implementation