www.apmg-international.com

Managing Benefits

The new Guidance and Certification

Scheme from APMG-International

Steve Jenner, Author and Chief Examiner

1. Why develop this Guide?

2. What’s the scope of the Guide?

3. What’s the format of the exams?

4. What schedule are we working to?

5. Q&A

Scope of this Briefing

“The fundamental reason for beginning a programme is

to realise benefits through change. The change may

be to do things differently, to do different things, or to do

things that will influence others to change.” OGC

“It is only possible to be sure that change has worked if

we can measure the delivery of benefits it is

supposed to bring.” Cabinet Office

Why this new Guide?

Why this new Guide?

“Deficiencies in benefits capture bedevils nearly 50% of government

projects” and “30-40% of systems to support business change deliver no

benefits whatsoever.” OGC

“Most large capital investments come in late and over budget, never living

up to expectations. More than 70% of new manufacturing plants in North

America, for example, close within their first decade of operation.

Approximately three-quarters of mergers and acquisitions never pay-

off…And efforts to enter new markets fare no better”

Lovallo & Kahneman

“The brutal fact is that about 70 per cent of all change initiatives fail.”

Beer & Nohria

But the track record isn’t good

6

And research indicates things aren’t getting

any better

So the existing guidance is necessary

but not sufficient to address

• The ‘Knowing-Doing’ gap

• ‘Box ticking’

• And the twin dangers of…

“Delusional optimism: we overemphasise projects’

potential benefits and underestimate likely costs,

spinning success scenarios while ignoring the

possibility of mistakes.” Lovallo & Kahneman

“the planned, systematic, deliberate misstatement of costs and benefits to get projects approved.”

Flyvbjerg et al

Optimism Bias & Strategic Misrepresentation

So ‘Managing Benefits’ – An Overview

The Benefits Management Cycle

A Multi-disciplinary Practice

based on good practice from:

• Project & Programme Mgt

• Management Accounting

• Economics

• Behavioural finance

• Psychology

• Neuroscience

• Change Mgt

• Systems thinking

With techniques from around the world

BENEFITSPROBLEM SOLUTION

Southbank Arts Precinct Redevelopment (Fictional)

Department of Premier and CabinetInvestment Logic Map

Generate vision for

use of arts precinct

over 20 years

Existing facilities will

not support Victoria’s

continued leadership

position in the arts

(60%)

Create a precinct

which functions as a

distinctive attraction

(40%)

Arts precinct is

dislocated and is no

longer aligned with

the way the city is

developing

(40%)

Improve the

connection of the arts

precinct with

Melbourne and its

local community

(20%)

Renew and upgrade

existing facilities so

they can meet

current and future

needs

(40%)

DRIVEREnabling

AssetsOBJECTIVE CHANGESBENEFITS

Strengthen enterprise

and precinct

marketing

Redeveloped Arts

Centre

New Sturt Street

Ramp

Develop integrated

ticketing, security and

precinct management

systems

Establish a precinct

governance and

management model

Make physical

changes to arts

precinct

New CRM - ticketing

platform and services

Strengthen the

Victorian

community

(40%)

Improve Victoria’s

industry

(20%)

Enhance Victoria’s

arts profile and

reputation

(40%)

BENEFITS DEPENDENCY NETWORK

IS/IT

Enablers

Enabling

Changes

Business

Changes

Business

BenefitsInvestment

Objectives

D

R

I

V

E

R

S

JW113

http://www.livetime.com/wp-content/uploads/2010/05/Service_profit_chain_model.jpg.

And examples from around the world

including:

• Bristol City Council

• WiBe® Framework -

Germany

• Tetra Pak

• Openreach

• NASA

• Obayashi Corporation

- Japan

• Western Australia

Police

• Tell Us Once

Thanks to the Review Group: • Rod Baker APM Group Director

• Best Management Practice

• Michael Acaster Cabinet Office, Efficiency Reform Group

• Michael Dallas MoV Lead author & Chief Examiner

• Craig Kilford MoP Co-author and P3O Lead Reviewer/Mentor

• Keith Williams P3M3 & ‘Change Management’ Chief Examiner

• Benefits Management Practitioners

• Peter Glynne Co-chair, APM Benefits Management Specific Interest Group

• Sarah Harries Head of Business Improvement, BT

• Steve Parker (Interim) Value & Benefits Lead, TfL PMO Centre of Excellence

• John Thorp International benefits management thought-leader

• Accredited Training Organizations/APMG assessors/ACOs

• Jeroen Geurtsen European ATO representative

• Mark Ives Australian ACO representative

• Paulo Keglevich South American APMG assessor

• Patrick Mayfield Part MSP author & UK ATO representative

• Additionally, the following commented on the second draft: Walter Dirix; Alan Ferguson; Melanie Franklin; Anne McGrath; and Svetlana Plotnikova.

The Next Steps

• Guide published – Early September

• Launch event – September 25th, London

• Managing Benefits Repository? – From

September

• Foundation exams – Late September

• Practitioner exams – Early 2012

Want to stay in touch/find out more?

http://www.linkedin.com/groups/Man

aging-Benefits Community-

Interest4493501?gid=4493501&trk=

hb_side_g

Stephen.jenner5@btinternet.com or

www.stephenjenner.com

Managing Benefits – Community

of Interest