Project & Programme     Management andEnterprise Architecture           in Belgium              Are you ready?     Compani...
Table of Contents                                                                                                         ...
Foreword    The last couple of years have been a big challenge for many companies. Less focus was on the    realisation of...
The core survey team:    Executive Summary                                                                                ...
Project and Programme Management                                                                                          ...
A. Projects and programmes are not always               a success story...                                                ...
…, but delivering projects and programmes successfully is still a hard nut to crack.           There are many metrics in p...
B. Structured project and programme     management pays off     Improving projects and programmes success needs to start f...
Risk Management                                                                                                           ...
Methodology, trainings,                                                                                                   ...
... and the lessons learned concept is not wide-spread neither.     Lessons learned help to support the continuous improve...
C. Benefits management - a life cycle approach                                                                            ...
KPMG Insight     ... whereas it has a clear impact on the quality and expectations                                        ...
Project & Programme Management and
Project & Programme Management and
Project & Programme Management and
Project & Programme Management and
Project & Programme Management and
Project & Programme Management and
Project & Programme Management and
Project & Programme Management and
Project & Programme Management and
Project & Programme Management and
Project & Programme Management and
Project & Programme Management and
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Project & Programme Management and

  1. 1. Project & Programme Management andEnterprise Architecture in Belgium Are you ready? Companies in demand for professional project management and strategic alignment Survey Results 1
  2. 2. Table of Contents 4 Foreword Executive Summary 6 8 Project and Programme Management 10 A. Projects and programmes are not always a success story... 14 B. Structured project and programme management pays off 22 C. Benefits management - a life cycle approach 26 D. Survey results - Belgium vs. the Netherlands 28 E. Project Management Trends - Agile Project Management Enterprise Architecture 30 A. Importance of Enterprise Architecture 32 B. The positioning of Enterprise Architecture 34 C. The impact of Enterprise Architecture 36 38 Research Background Appendix 402 © 2012 KPMG Advisory, a Belgian civil CVBA/SCRL and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Belgium. 3
  3. 3. Foreword The last couple of years have been a big challenge for many companies. Less focus was on the realisation of strategic objectives, executing long term programmes and undertaking transfor- mational initiatives as a result of having to be reactive to the environment. However, as the time since the burst of the financial crises progresses, strategic activities are put on the CxO’s priority list once again. During the economic downtime, the daunting task of simply surviving took away all energy and thus attained the core focus of organisations. After this difficult period, many companies, although not all, managed to breathe again making a revival of strategic programmes a logical consequence. One could therefore expect to see programmes focusing again on accomplishing strategic goals instead of running projects with cost-decreasing intentions. Based on the results of our survey performed in Belgium at the beginning of 2012 we conclude that budgets for strategic projects are made available again in parallel with a renewed intention for building up professional capabilities around programme and project management. This insight goes together with Stephan Claes Anthony Van de Ven a strong message from survey responding companies indicating that they are often dissatisfied with the Partner KPMG Advisory Director KPMG Advisory results delivered by their projects. It is clear that expectations around strategic goal fulfilment often are not being met. This has a direct ‘bottom line’ effect: strategy realisation gets delayed, costs increase, de- sclaes3@kpmg.com avandeven@kpmg.com liverables are of lower quality than expected and overall stakeholders’ satisfaction is not yielding. Understanding the underlying reasons for this overall underperformance is important. In this context, the survey shows a positive correlation between project management maturity within organisations and the realised success rates of executed projects. In other words, the survey indicated that more mature organisations (in terms of how project management is done) are more successful in realising the end objectives. Another clear outcome of the survey is that many companies struggle to translate business ideas and strategies into a concrete, executable portfolio of projects. In this respect, a great role is to be played by the Enterprise Architecture function, helping to clearly structure and establish the DNA of the transformation initiative and enabling portfolio management to be the GPS leading the company through it. A key point of attention is that the Enterprise Architecture function is mandated and positioned correctly by the company’s leadership. Still a lot of work is to be done in this area as the survey pinpoints that EA is still a very young immature, though upcoming, function and that companies are on a journey to position it correctly. These days, it is not enough anymore to deliver high quality products and services as such. On top of this, companies need to focus on delivering end to end value to their customers. Delivering this kind of customer value requires product and go to market flexibility, enterprise agility throughout all business functions and real-time tools to manage performance. This has a major effect on the type of projects that Prof. dr. Steven De Haes Drs. Kim Maes are on the wish list of today’s CxO’s and demands professional portfolio-, programme- and project man- Academic Director ITAG Research Institute Researcher ITAG Research Institute agement and an optimal assimilation of strategic, tactic and operational objectives through the use of a Antwerp Management School Antwerp Management School mature Enterprise Architecture function. steven.dehaes@ua.ac.be kim.maes@ams.ac.be The survey and this report are a joint effort of KPMG Advisory Belgium and the Antwerp Management School. We hope that this survey offers you valuable insights and that it helps you to benchmark your company in terms of where you stand in optimising the successes of your strategic initiatives.4 © 2012 KPMG Advisory, a Belgian civil CVBA/SCRL and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Belgium. 5
  4. 4. The core survey team: Executive Summary Jeroen Habils (KPMG), Kim Maes (Antwerp Management School), Nele Steelandt (KPMG), Bartosz Balcerowicz (KPMG), Niek de Visscher (KPMG), Kara Segers (KPMG) PROJECT AND PROGRAMME MANAGEMENT ENTERPRISE ARCHITECTURE BUDGETS OF PROJECTS Projects and programmes are mainly launched to Low importance Organisations need to cope with the ever changing achieve strategic changes in the organisation. 3 out market environment and thus need to have instru- AND PROGRAMMES of 4 survey respondents indicated that the impor- of Enterprise ments to steer in an agile way. Enterprise Architec- INCREASE BUT THEIR tance of project management increased, as compared Architecture ture (EA) can play a very important role, but currently to last year. Yet, only 45% of respondents manage to it is not yet the case. 38% of respondents indicate that SUCCESS IS NOT complete less than half of their projects on time and EA does not to play any role within the organisation. GUARANTEED within budget, while delivering the expected benefits. 70% companies do not have any certified EA practition- ers. Structured project Rate of success increases when project / pro- Typically centrally In most cases, the EA function is executed from a gramme management is applied in a structured way. single place within the organisation (central position- AND PROGRAMME This includes formalisation of the processes but most positioned ing of EA). Despite its strategic dimension, Enterprise management pays importantly achieving higher maturity of the process- Architecture is sometimes outsourced (14% of survey es related to business case, risk and benefits manage- respondents). off ment, application of lessons learned etc. Companies who manage to do so consistently reach higher success rates in their projects and programmes outcomes. Benefits Organisations undertake projects and programmes Contributing to A successfully implemented and managed Enter- in order to achieve certain benefits. Yet 52% of com- prise Architecture helps to deal with the constant management panies do not identify and follow up their benefits and enterprise agility increase in the IT landscape’s maintenance costs as essential in only a few do that on a regular basis. The survey indi- well as risks and loss of flexibility. Survey respondents cates companies successfully making use of a benefits indicated that currently, their EA function mostly con- all phases of management process achieve a higher quality of out- tributes to the enterprise agility. a project AND comes and the achievement of the expected benefits. PROGRAMME6 © 2012 KPMG Advisory, a Belgian civil CVBA/SCRL and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Belgium. 7
  5. 5. Project and Programme Management Definitions(1)(2) Project A project is a temporary endeavor with a defined be- Projects and programmes are a mean to realise the corporate vision. They help an organisation ...but are the achievements also in ginning and end (usually time-constrained, and often to stand out from the crowd, pursue the latest trends, approach the market with new products line with the expectations? constrained by funding or deliverables), undertaken to or simply comply with regulatory requirements or help them to survive. meet unique and agreed upon goals and objectives, One thing is to build a portfolio of pro- that may bring beneficial change or added value. If the outcome of projects and programmes is so important, the way they are executed should jects and programmes, another thing, is get the utmost attention of the organisation. This can be achieved through a well-designed to ensure they are delivered effectively Programme and implemented enterprise portfolio management or, in the case of a given project or pro- and efficiently. What does an effec- tive and efficient delivery mean? Each A programme is a collection of interrelated projects gramme, a well-established Project/Programme Management Office. company needs to answer this ques- which enable change and increase distinct and meas- tion through a perspective of its own urable potential benefits to an organisation which Drivers for undertaking projects and programmes are OK... could not be realised when projects are managed vision – do we deliver products, qual- The enterprise portfolio composition should reflect the strategic priorities of an organisation and the level ity or value to our clients? How do we independently. of its ambitions. It should also be a place for focusing on continuity and complying with external require- measure success in delivering these ments. Proper balancing of priorities and ensuring that enough capacity is available to realise the strategic items? Similar metrics should be used Portfolio initiatives are some of the main challenges of enterprise portfolio management. in measuring the success of a project A portfolio is a set of programmes, projects and other or programme. assets that is grouped to facilitate the effective man- This survey shows that in general the achievement of strategic objectives is the most important driver to launch a project or programme. Compliance with laws and regulations and assurance of continuity have In our survey we have investigated the agement and monitoring, in order to meet the stra- an equal share in the portfolios of survey respondents. This demonstrates that Belgian companies are pri- most typical metrics of project / pro- tegic business objectives and to create sustainable marily focusing on achieving their strategy through projects and programmes, which is as it should be. Of gramme success in order to find out value to the organisation. course the portfolio composition will fluctuate over time and sector depending on e.g. future regulations if the stakeholders’ expectations have (such as Solvency, Risk Management, Corporate Governance etc.). been met with the results. PROJECT / PROGRAMME MANAGEMENT OFFICE A business secretariat that provides a combination of managerial, administrative, consulting, and techni- cal services to support the initiation, execution, and 6% delivery of programmes or projects. Therefore, the of- Other fice provides effective methodologies, standards and tools, helps with the set up of programme structures Drivers for undertaking projects and programmes 23% and processes, documents and assures meeting min- Comply with law utes and lessons learned, and facilitates training and and regulations development. 45% Achievement of “Strategy without tactics is the slowest route strategic objectives 26% Ensuring continuity of your to victory. Tactics without strategy is the noise organisation before defeat. ” Sun Tzu8 © 2012 KPMG Advisory, a Belgian civil CVBA/SCRL and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Belgium. 9
  6. 6. A. Projects and programmes are not always a success story... Projects / programmes 50% How many projects and programmes are undertaken by your organisation compared to the Projects and programmes are essential in achieving the strategic goals. However, even though 40% last year? the awareness of project management is usually well incorporated in the business rationale, the successful execution of projects and programmes is not always self-evident. Budget 30% How much has your budget for Significance of project and programme management has risen over the last year... projects and programmes grown 72% of survey respondents indicated that the importance of project and programme management has compared to the the last year? increased compared to the last year. No one reported that it was lower. The portfolio budgets and the number of projects have also grown (only a minority of companies spend less than the year before). 20% Additional spending on projects and programmes leads to an increased awareness of the importance of proper project and programme management. This appreciation is a good indicator of the care and atten- tion the companies are likely to pay towards the quality of the delivery process, not only the outcomes. 10% It may also indicate a willingness to improve the existing processes which is correct because still many projects and programmes fail to deliver the expected results, as presented later on in this report. 0% Decrease Decrease Decrease Decrease Equal Increase Increase of Increase of Increase of of more of more of more between number of between more than more than more than than 100% than 50% than 25% 5 and 25% projects 5 and 25% 25% 50% 100% 20% 28% (+-5%) Much Equal Higher “Trying to manage a KPMG Insight Projects and programmes are important for the realisation of the organisation’s project without project strategy. In many cases, however, the potential benefits of solid portfolio man- agement are not fully utilised. There is still room for improvement when it comes management is like trying to directing and steering the enterprise portfolio. 52% to play a football game Tips: • Set up a portfolio management framework to select, monitor and steer projects Higher without a game plan. ” and programmes effectively and improve the quality of the overall portfolio. • Link projects and programmes to the corporate strategic goals (create clear Importance of project and programme K. Tate (Past Board Member, PMI) “line-of-sight”) and prioritise based on their contribution to the value they cre- management as compared to last year ate for the organisation. This will help to maximise the realisation of the ex- pected benefits. • Setup clear project / programme review triggers that will enable to identify those off track and take timely decisions to re-scope, re-plan, restructure or abandon.10 © 2012 KPMG Advisory, a Belgian civil CVBA/SCRL and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Belgium. 11
  7. 7. …, but delivering projects and programmes successfully is still a hard nut to crack. There are many metrics in place for measuring project / programme success, starting from the traditional ones – cost, time and quality – up to the modern value-creation measurement. Cost and time are the easi- “Plans are nothing; est metrics to measure, as they are quantitative, and they usually constitute a natural basis for decision making. The concept of Earned Value Management is well known to most project managers but rarely planning is everything” used in the organisations KPMG works with. On the other hand, the awareness of quality and benefits management has increased steadily over the last years. More and more organisations realise that deal- Dwight D. Eisenhower ing with and resolving errors in the early stage of a project pays off and following-up the achievement of expected benefits helps improve forecasting in the future. The survey results show that only around 50% of the expected benefits are gained through projects and programmes. Moreover, this comes at a higher cost than foreseen, and the results come later than planned. Executing projects and programmes according to schedule seems to be the biggest challenge - only 9% Quality of the survey respondents deliver 75-100% of their portfolio on time. In case of budget and benefits it is respectively 18% and 14% - a bit better than timing. More than 30% of companies indicate that their projects and programmes are at least 76% compliant with the quality criteria that have been set up. These numbers are not startling nor new. For years, organisations have been (and still are) struggling to Portfolio fit Be deliver on time and within budget. To improve this, lessons learned sessions should be embedded in the ne ne Be existing project and programme management processes with the purpose of evaluating mistakes in the fit Programme planning and execution in order to prevent them in the future. The responsible managers have seldom time to make such observations before rushing to another endeavour. Project Cost Time Benefit 50% 50% 40% 40% 30% 30% 20% 20% 10% 10% 0% 0% 0% - 25% 26% - 50% 51% - 75% 76% - 100% 0% - 25% 26% - 50% 51% - 75% 76% - 100% 0% - 25% 26% - 50% 51% - 75% 76% - 100% 0% - 25% 26% - 50% 51% - 75% 76% - 100% % of projects / programmes % of projects / programmes % of projects / programmes % of projects / programmes delivered on time delivered within budget delivered in accordance that achieved with established quality criteria > 90% of benefits12 © 2012 KPMG Advisory, a Belgian civil CVBA/SCRL and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Belgium. 13
  8. 8. B. Structured project and programme management pays off Improving projects and programmes success needs to start from the top. “You cannot manage 100% what cannot be measured” Project and programme sponsors and key stakeholders should . 0% - 25% demand and obtain in a timely fashion reliable and significant information in order to direct 26% - 50% 90% projects instead of following them. This can be achieved through a strong, empowered and structured PMO, as a structured approach pays off. 51% - 75% 80% A structured programme and project management approach benefits any investment. Research shows 76% - 100% that the use of tools such as risk assessments, business cases, project methodology, lessons learned, 70% and project management training contribute in a positive way to project success (3)(4)(5). 60% Structured project and programme management leads to higher success rates One of the indicators of the maturity of processes is the extent to which they are formalised and analysed 50% periodically for improvement. 40% In this survey, none of the respondents making use of informal project / programme management pro- Success rate as indicated cesses managed more than 75% of their portfolio on time, whereas 13% of those using formal processes by survey respondents managed to do that. The differences are even more striking when looking at the percentage of companies 30% using formal or informal that deliver less than 25% of projects / programmes on time – 40% of companies with informal project / project management programme management and less than 15% in the case of formal process. 20% processes Similar results, although with less profound differences, can be observed in relation to the realisation of the projects and programmes in terms of the budget foreseen. 10% 0% Formal Informal Formal Informal % of projects / programmes % of projects / programmes delivered on time delivered within budget KPMG Insight To develop strong project and programme management capabilities, it is key to invest in efficient • Do not focus solely on risks regarding time and cost, but also those concerning the achievement of governance, training (even up to the steering committee level), as well as lessons learned and risk the expected benefits. Perform regular risk assessments in order to identify risks as soon as pos- management. sible and mitigate them. • It is not because you do not see any risks in the risk register the risk will not materialise. Make sure Tips: that people know how to identify and measure risks on your projects. • Designating an effective PMO is a project on its own – it requires planning, budget and implementa- • Improve processes by regularly drawing conclusions from lessons learned. Don’t log the lessons just tion of an appropriate governance model in addition to support of the project stakeholders. for the sake of having a log – embed the process in the culture of the organisation. • Ensure that the PMO is correctly empowered to get the information needed and to implement PMO processes. Support the PMO in implementing these processes in your own organisation unit.14 © 2012 KPMG Advisory, a Belgian civil CVBA/SCRL and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Belgium. 15
  9. 9. Risk Management Business Case Risk management is used to monitor, control or minimise the occurrence and/or impact of uncontrollable Business cases increase the understanding of the impact of an investment before, during and after its events. These events can have different source: environment, budget, time, people, etc. (6). implementation. It is an objective instrument to approve an initial idea, to communicate the investment objectives and to analyse the expected project outcomes (7)(8). Risks are usually identified and controlled... Developing detailed business cases increases the investment success rate. Some organisations also de- Around 93% of survey respondents indicate that they carry out some kind of risk assessments - out of velop a high-level business case prior to a detailed one, to reduce the initial investment of resources and which 48% identifies and controls risks regularly and 47% only at the start of a project / programme con- to enable early innovative ideas of which the value is not clear yet (9)(10). duct a one-off review. Business cases are used regularly by 64% of respondents ... 16% of survey respondents have a formal policy describing the usage of a business case and claim to 37% 29% consistently adhere to it. 48% have a comparable policy, but only make use of the business case for Identified and controlled at a Identified at the start special projects or programmes. The remaining part (36%) do not consistently make use of any form of fixed frequency business case. ... but their content could be further improved ...- Frequency by which organisations identity and control project and Most respondents include in their business cases general information on projects or programmes along with costs and quantitative benefits which enables to perform a financial analysis of the feasibility of the programme risks - 18% initiative. Qualitative benefits, harder to measure, are less frequently included in the business cases, the 11% Identified and controlled at the start same goes for risks that have been taken into consideration. Finally, the assumptions taken, being another Identified and controlled at each important element of the business case review, are documented in less than 40% of organisations. transition to the next phase 5% Identified at each transition to the next phase General information on the project (rationale, design and transition) Costs (structural and one-off) over a period of at least 5 years ... typically by the project team itself but not only. Quantitative Benefits (structural and one-off) Almost 30% of the risks assessments are performed regularly by the project management teams and over a period of at least 5 years around the same magnitude is performed ad hoc. Sometimes, however, external reviewers are also en- Financial ratios (NPV, ROI, Payback, etc.) gaged who do not participate in the daily project management operations and therefore may have a differ- Explanation of the considered scenarios (current situation and various future situations) ent, often more independant way, angle of seeing things – this includes internal audit (14%) and external Risk analysis assessments (5%). Qualitative benefits Robust risk management stongly enhances the quality of outcomes but also the ability to Advice to management deliver within time and budget. Insights into the underlying facts and assumptions 45% of survey respondents carrying out risk assessments claim to complete their projects and pro- Stakeholder Analysis grammes within established quality criteria as opposed to 19% of those not doing such assessments. With respect to time and budget, those organisations performing regular assessments are better off (10% Insights into the methods for income management vs. 7% deliver more than 75% projects and programmes on time and 21% vs. 15% deliver more than 75% within budget). 0% 20% 40% 60% 80% 100% Elements of importance for a business case according to the respondents16 © 2012 KPMG Advisory, a Belgian civil CVBA/SCRL and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Belgium. 17
  10. 10. Methodology, trainings, lessons learned ... and fewer ad hoc reviews. Making use of a project management methodology positively contributes to the structured project man- agement. Not only it is important to make use of a commonly agreed upon methodology, getting trained Just like the majority of project / programme management tools – business cases as a document present and learning how it is best applied within the organisation is also very crucial. only limited value to the organisation. The most important is the process in which they are created and reviewed as this helps people to reflect and judge if the outcomes followed until now are still there and feasible to reach. This is also a chance to align the stakeholders on the direction and the vision of the Almost 25% of companies do not use any project management methodology while executing programme undertaken. projects ... Among the organisations surveyed 16% do not perform any reviews of their business cases and 44% Most of the companies are using a sort of project management methodology either internally developed perform them only in the event of significant deviations, but not regularly. (37%) or international standards such as Prince2 (30%) or PMBOK (9%). When asked whether it is planned to execute any change with regard to the current project management More elaborated business case increases chances of completing project / programme on approach, many survey respondents indicate the intention to introduce Agile Project Management. time and achieving expected benefits. Based on the survey results we can see a positive correlation between the maturity of a business case We make use of a company developed project management methodology and the realisation of the benefits, as well as timely delivery of projects / programmes. 25% of the organi- sations having high maturity of the business cases achieved the expected benefits in more than 75% of Prince2 their projects and programmes. The same result was achieved by only 5% of the organisations with low maturity of business case. We do not make use of any formal project management methodology 100% 0% - 25% PMBOK 26% - 50% 90% 51% - 75% 80% Project management methodology used by survey respondents 0% 10% 20% 30% 40% 76% - 100% 70% ...there is also no strict project management training foreseen in a majority of 60% Success rate, measured in the organisations... achievement of anticipated Almost half (46%) of the respondents do not conduct any project management training for the people 50% benefits, as indicated by survey involved in projects – even project managers are not always trained (only 30% of the organisations do respondents with high and low that). Regular project management training for the whole project management community is foreseen in 40% business case maturity only 2% of the companies surveyed. 30% 9% 2% Project managers, projects staff and Project managers, projects staff, decision makers and 20% decision makers all are periodically trained 10% Project management methodology 0% 13% training requirements High Low High Low Project managers and Maturity Maturity Maturity Maturity projects staff 46% No formal training requirement % of projects / % of projects / programmes programmes achieving 30% delivered on time anticipated benefits Project managers18 © 2012 KPMG Advisory, a Belgian civil CVBA/SCRL and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Belgium. 19
  11. 11. ... and the lessons learned concept is not wide-spread neither. Lessons learned help to support the continuous improvement of the project management organisation but their use is rather limited – with 14% of the companies always logging and structurally following them up. Embedding lessons learned in the organisational culture is one of the indicators of the project management high maturity. Most of the organisations, however, struggle in finding enough time or motivation to do that. 14% 16% always logged and structurally followed-up not logged How does your organisation make 14% use of lessons learned? always logged but not followed-up 56% sometimes logged, depending on the project20 © 2012 KPMG Advisory, a Belgian civil CVBA/SCRL and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Belgium. 21
  12. 12. C. Benefits management - a life cycle approach KPMG Insight The challenge of achieving predefined benefits lies in a continuous focus on benefits management and in a clear link between the anticipated changes and their respective benefits. Most of the com- Achieving the full potential of a project / programme through Change Management. panies understand the advantages but have rarely managed to implement relevant processes suc- While executing projects or programmes it is frequently forgotten how important proper manage- cessfully. Approaching benefits management as a life cycle activity will not only help the project ment of the change is. Change Management often consists of providing training and communicat- or programme management team to realise the benefits, but also to redirect them if necessary (11). ing about a project or programme. However, these two aspects are not enough to achieve effective change management. By deploying a full change management approach, the change becomes tangible for all actors and stakeholders. Together with their enthusiasm and collaboration, the effective change management is no longer just a part of a project or programme, but evolves together with the organisation. Quality Benefits Tip • It is important to adapt the change activities to the pace of the project / programme and the Project / Business case context of the actors and stakeholders. There is no use, for example, to provide training if people Programme are still convinced that they will not have to change. Providing them with insights in the need for change would be more effective. Time Cost • Business leaders need to be engaged in change management – it is more effective when the enthusiasm for change comes from the top or a well-respected person. Change management How does the benefits management process look like? A majority of the companies do not identify and monitor benefits ... 5% 4% An initial view of expected benefits should be identified at the beginning of a project (or programme) as Process transferred to permanent Benefits are first updated and then the process is its main drivers. They need to be analysed periodically to confirm their validity and after delivering the PMO function transferred to the permanent PMO function outcomes they should be measured to determine if they have met the expectations. Feedback on that should be collected and used as a lesson learned in the newly launched projects. Business users are the owners of the benefits and it is their responsibility to safeguard the above process. 12% Majority of the organisations (52%), however, do not identify and monitor the expected benefits. Benefits are updated and then process is transferred to the busi- ness line 52% No process for identifying and monitoring benefits 27% Process transferred to the business line22 © 2012 KPMG Advisory, a Belgian civil CVBA/SCRL and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Belgium. 23
  13. 13. KPMG Insight ... whereas it has a clear impact on the quality and expectations • Setting up easy-to-use and transparent termination Organisations without a benefit management process in place tend to be more often surprised with the criteria may ease the decision-making process. end results in terms of the quality and achievement of the expected benefits. No wonder – an established benefit management process enables stakeholders to remain more realistic about their expectations. • Never think all projects are meant to be success- ful. It’s not a shame to rethink previous decisions – a critical review of the benefits will allow you to remain up-to-date about the reality of your expec- tations. 100% • Organise a multi-disciplinary approach. Don’t only involve the controller, but also the line, project and 90% change management team in the definition of the benefits. 80% 70% The difficult decision to stop a project or programme is not always made. 60% Regular reviews of benefits and related business cases help organisations to identify projects / programmes 50% underperforming with regard to the expected outcomes. In less than half of the companies surveyed the projects or programmes are stopped if there is no more 40% business case to continue. In the remaining part of the organisations – either they are not stopped or there is not enough information to make such decisions, as the business cases are simply not reviewed. 30% 0% - 25% 20% 26% - 50% 3% When after a review, the business case appears to 10% 51% - 75% be no longer attractive, projects are stopped 76% - 100% 0% No Benefits Mgmt Benefits Mgmt No Benefits Mgmt Benefits Mgmt 27% The business case is not being % of projects / % of projects / reviewed programmes delivered in programmes achieving accordance with anticipated benefits established quality criteria 45% Projects / programmes are being 25% stopped, but we should more criti- Disappointing projects / programmes are Success rate, measured in achievement of anticipated benefits and quality, as indicated cally approach this in our organisa- not stopped due to investments already by survey respondents with or without a benefits management process tion made Measures taken in case of an updated, possibly disappointing business case.24 © 2012 KPMG Advisory, a Belgian civil CVBA/SCRL and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in Belgium. 25

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