Successful Management Of Change Programmes Measuring Benefits (April 2007)

Successful Management of Programmes
Proactive Benefits Realisation

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Realisingbenefits
This presentation is designed to provide a set of principles and guidelines for realising benefits in large, complex programmes
Topics covered:
Why measure benefits?
Reviewing the business case
Identifying potential benefits & measures
Developing a performance baseline
Measuring benefits

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Why do we need to measure benefits?
If benefits are not measured, the success of the project cannot be quantified.
Without measurement of benefits, it is difficult to establish whether the benefits outweighed the costs and whether the business case was met.
Without measurement of benefits, future investments of a similar type will be harder to justify, especially if the programme was complex.
Benefits can only be quantified if they are robustly measured - guesswork won’t prove a business case.
A robust approach to benefits measurement is the key to proving the business case and justifying the success of the project

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Principles for Realising benefits
The business case drives the benefits measurement process.
Identify solution options and related benefits during design.
Develop KPI’s to positively prove the benefits identified.
Measure performance before implementation – develop a credible baseline of performance against which post-implementation performance can be measured and benefits identified.
Be realistic about what can be measured and keep it simple.
Timing is everything. Don’t try to measure benefits before they can be realistically realised.
Don’t make measuring an industry in its own right. Don’t distort performance through the process of measurement.
Reviewing the business case
Identifying potential measures and benefits
Developing a performance baseline
Post implementation measurement

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Proactive benefits realisation: overall approach
Business Objectives
Context & focus
Context & focus
Context & focus
Identified performance gap
AS IS analysis
Business Case
Required benefits
Performance gap
TO BE development
Solution development
Solution Implementation
Solution items delivering business benefit
Problems
identified
Opportunities
identified
Issues
Opportunities
Solution options based on required benefits & objectives
KPI’s
KPI’s
Root cause & consequence analysis
Impact Analysis
Performance post implementation
Performance baseline
Baseline performance data – validate business case
Compare post implementation performance with baseline – validate business case

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Reviewing the business case: Guidelines
To be able to measure benefits the project should have a business case agreed and signed off with the business. This will underpin the whole benefits measurement process.
The business case should include:
The business drivers behind the change
Clear business objectives that are measureable
A well defined scope
Investment analysis
A statement of benefits – Tier 1 and Tier 2
A statement of how these benefits can be achieved
Use the business objectives and scope throughout the benefits measurement exercise. Everything should relate back to this and be used for validation.
Re-visit the business case throughout the project. During solution design you may beed to revise some of the benefits sought or revise scope. Build this into the process and set expectations accordingly.

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Identifying potential benefits & measures: Guidelines
Capture issues and opportunities during analysis.
Explore solution opportunities and package into solution options.
Use Root cause and consequence analysis. Analyse issues to identify root causes of problems and examine the consequences of issues to identify the business impact of the issues.
Match solution options against root causes. The business impact identified previously as a consequence of that root cause is a potential benefit.
Ruthlessly eliminate any solution options that do not support the business objectives or provide specific business benefit.
For ach potential benefit identified, consider how it could be proved – the measure.
Try todevelop a measure that is practical, relatively simple to collect and has relevance pre and post implementation.
Review the solution options and the corresponding set of KPI’s – will they prove the business case?
Consider when the benefit associated with a measure may be realised – put this into the post implementation measurement plan. Set expectations accordingly.

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Developing a performance baseline: Guidelines
Agree the set of KPI’s that will be used for the baseline.
Use KPI’s that will either be the same or have an equivalent post implementation.
Don’t over measure – use enough KPI’s to prove the business case but no more unless they can be justified.
For each KPI consider:
How will the information be captured? (don’t make it an industry in its own right)
The frequency of the measure? (every day, week, month?)
How long do we need to measure it for? ( how much data will prove the measure)
Develop a plan – who will measure the KPI’s, when will the measurements start and finish.
Consider the overall timing of the baseline – performance should be stable. Don’t start measuring during a seasonal peak or immediately following a re-organisation.
Don’t measure too close to implementation – work in progress for the implementation (e.g. Data migration) may distort the figures. Don’t measure too far ahead either – the baseline might be be indicative.

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Post implementation measurement: Guidelines
Review the performance baseline – can the same KPI’s (or equivalent) be used.
Don’t start measuring for benefits too soon after implementation – allow time for the new system to bed in. Unfamiliarity with new systems and processes may distort performance.
Develop a measurement plan. As with the baseline plan consider what is measured and how.
Review timing of the measurements. Not all benefits will be realised at the same time. Build this into the plan.
Post measurement, review the results against the baseline and the business case.
Identify which benefits have been realised.

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Contact
TIPS Consulting Ltd
Hamilton House
Mabledon Place
Bloomsbury
London
WC1H 9BB
Tel - +44 (0) 207 554 8637
Fax - +44 (0) 207 554 8501
Web – www.tipsconsulting.co.uk

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Successful Management Of Change Programmes Measuring Benefits (April 2007)

by Tony Lockwood on Mar 18, 2008

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Successful Management Of Change Programmes Measuring Benefits (April 2007) — Presentation Transcript