Benefit management implementation at STM

1,982 views
1,731 views

Published on

Francine Belzile & Sophie Rebello: experienced practitioners at the cutting edge of Benefits and Portfolio Management with the Société de Transport de Montreal (STM) presented to Benefits Management SIG on 24th March.
STM is an organisation of more than 9000 employees, an annual operating budget of $1.2BN and in 2011 accounted for over 400M passenger trips. STM aims to increase this to 540M trips as part of their own 2020 strategy.
In 2005 STM were faced with a familiar problem of having an increasing number of projects, limited financial and human resources and significant pressure on operations. They needed to make better project choices without jeopardising existing ones. The solution was to implement project portfolio management as an evolutionary approach, incorporating best practice and engaging employees so far as possible.
STM had learned that you cannot achieve benefits management without change management. Both required teams of people. STM defines benefits as “An advantage / earning realized when the project is delivered and perceived as so by the stakeholders.”
When they revisited activities specific to benefits management, such as identifying targets, approving projects and tracking benefits, they had realised that these should be integrated with existing information management. It didn’t make sense to create something different to what they already had.
STM objectives for the next three years include sustainable operationalization of benefits management and improved integration between project management and operations.
People need to be challenged and refocused, and as a result STM has now added the requirement to develop an action plan for all projects, which tend to arrive piece by piece - every project in itself, is a worthy project!
When it comes to tracking planned benefits it was sometimes like a ‘game of ball’ with the ball being tossed between projects and operations. Both teams need to have accountability at the appropriate levels and the linkages between the need testing and it helps where a person responsible for the KPIs in a particular sector is made responsible for results and benefits.
People feel that it is a challenge to find things that you can measure, or formulating benefits in a manner that it meaningful to the organisation. Another problem is people accepting accountability, which can be easily resolved by management – “it is part of your job!”
A recommendation for clearer parameters and mechanisms has now been addressed as STM has now organised benefits categories by impact – e.g. growth, satisfaction, commitment, optimisation and sustainability, with clear targets and enhanced reporting for each.

Clearer roles and responsibilities are being addressed by strengthening the role of the sponsor. The sponsor defines success factors and establishes benefits targets linked to project objectives for the project manager and, in turn, is accountable to the portfolio manager. http://bit.ly/apmstm

Published in: Business, Technology
0 Comments
3 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total views
1,982
On SlideShare
0
From Embeds
0
Number of Embeds
480
Actions
Shares
0
Downloads
62
Comments
0
Likes
3
Embeds 0
No embeds

No notes for slide

Benefit management implementation at STM

  1. 1. Benefit Management Implementation at STM Francine Belzile & Sophie Rebello Société de Transport de Montréal Montréal, Canada Presentation to APM Benefit Management SIG March 24, 2014
  2. 2. Agenda STM is… Implementation of Project Portfolio Management Implementation of Benefits Management 2014 and beyond Discussion
  3. 3. 3 STM is…
  4. 4. History
  5. 5. STM FACTS 9,042 employees In 2012, operating budget of $1 227 million and expenditures of $586 million Asset replacement values: $14.5 billion 404.8 million trips in 2011 with an objective to reach 540 million trips in 2020
  6. 6. Corporate mission The STM is a key driver of economic development in the Montréal area and contributes to sustainable development and overall quality of life. The STM is tasked with developing and operating an integrated bus and métro system, as well as paratransit service, in order to enable people to get around reliably, quickly, safely and comfortably. The STM’s customers and employees, as well as its institutional and business partners, are all proud to be associated with the company, which is well known as a provider of high quality service at a fair price.
  7. 7. 7 Implementation of Project Portfolio Management
  8. 8. Implementation of Project Portfolio Management Organizational context in 2005 Issues at STM: Number of projects was growing Limited financial and human resources Pressure on operations Risk not delivering service according to expectations
  9. 9. Implementation of Project Portfolio Management Vision mission Operations Management of On-Going Operations - ProjectsWithin normal course of activities FINANCIAL AND HUMAN RESOURCES Project Portfolio Management •Metro •Autobus •Paratransit •Infrastructures Management of Authorized Programs and Projects Organizational Strategy and Objectives Vision mission Operations Management of On-Going Operations - ProjectsWithin normal course of activities FINANCIAL AND HUMAN RESOURCES Project Portfolio Management •Metro •Autobus •Paratransit •Infrastructures Management of Authorized Programs and Projects Organizational Strategy and Objectives
  10. 10. Implementation of Project Portfolio Management The implementation approach: An evolutionary multi-phased approach Inspired by industry best practices Tailored to STM’s needs Developed by a group of directors from different sectors
  11. 11. Implementation of Project Portfolio Management Audit 2010 5 changeboxing 3 changeboxing 2010 2011 20122005 2006 Audit 2006 2009 First PPM initiative PPM Status Report
  12. 12. 12 Implementation of Project Portfolio Management 2010 Audit: The approach Interviews with 12 executives (chief executives and executive directors) 20 self-audits from pre-selected employees Evaluation of processes and procedures in place by Qualiscope Prerequesites according to Qualiscope Two top expectations: Project portfolio monitoring and accountability Benefit management and impact on the organisation Results from the 2010 audit
  13. 13. 13 Implementation of Project Portfolio Management Balanced choicess Portfolio status reportAlignment Identification Preparation Implementation ClosingDefinition 1 2 3 4 5 Project management lifecycle Portfolio management Transfer to operations Balanced choicess Portfolio status reportAlignment Identification Preparation Implementation ClosingDefinition 1 2 3 4 5 Project management lifecycle Portfolio management Transfer to operations Benefit realization management Project management lifecycle Project portfolio process
  14. 14. Implementation of Project Portfolio Management Portfolio Committee: 5 members of the STM Executive 10 to 12, 2 hour meetings a year Responsibilities: Approve project business case Analyse and autorize best projects Optimize the project portfolio Ensure coordination with CEP Autorize project modification Confirm project closing
  15. 15. ComplexityStrategicalignment ComplexityStrategicalignment Implementation of Project Portfolio Management Maintain assets Expand services Improve customer experience Attract, develop, mobilize talents Further improve performance Sustainability 72% 123 projects 26% 39 projects 2% 33 projects 10 G$ Portfolio categories
  16. 16. Implementation of Project Portfolio Management Value of PPM: Clear indications that projects are in line with strategic directions; Optimized resource allocation; Better coordination and improved synergy between projects; Standardization of project presentations.
  17. 17. 17 Implementation of Benefits Management
  18. 18. 18 Implementation of Benefits Management Identification Pre paration Implementation ClosingDefinition 2 3 4 5 Project Charter Projet Modificaton Status Report Project Report 1 Benefits Analysis Benefits Realisation Plan Dashboard Transfert to operation Benefits Status Report Strategy of change management Transfer Certificate Certificate of Conformity Business Opportunity Stakeholders + Impact Analysis
  19. 19. 19 Implementation of Benefits Management Objectives of benefit management: Optimize project contribution to strategic objectives Facilitate benefit identification and measurement Control benefit tracking after the project What is a benefit: An advantage/earning realized when the project is delivered and perceived as so by the stakeholders
  20. 20. Implementation of Benefits Management Government • Reduce GGE •- Measure before and after City • Reduction of traffic congestion • Modal share of public transport STM • Bus clientele growth • Growth of commercial revenues • Reduction of operating costs • Number of trips • $ • $ Client • Reduction of travel time • Punctuality improvement • Cleanliness of metro station • Measure before and after • Satisfaction before and after % Employee • Safe environment • Work accidents (frequency) • Satisfaction before and after % 20 Stakeholders Benefits Indicators
  21. 21. Implementation of Benefits Management
  22. 22. Implementation of Benefits Management
  23. 23. 23 Integrated processes
  24. 24. The BRM essentials Source: Jean-Marc Proulx (2014) Result Chain System driver
  25. 25. 25 2014 and beyond
  26. 26. 26 2010-2013 AUDIT RESULTS Successes Prioritization of projects and strategic alignment of portfolio Project and portfolio tracking Recognition of benefits management as a significant measure of project performance Objectives 2014 – 2015 Sustainable operationalisation of benefits management Improved integration between project management and operations
  27. 27. 27 Benefits Identification Tracking of planned benefits Strategic KPI’s Project close (Gate 5) Action Plan 2020 INTEGRATION OF BENEFITS MANAGEMENT TO STM ORGANISATIONAL PROCESSES Change management Project authorization (Gates 1 & 2) Tracking of benefits realisation Operational transfer
  28. 28. IMPLEMENTATION DRAWBACKS Perceived challenge to identify measurable and targeted benefits Hesitation in formulating benefits in a manner that is meaningful to the organisation Hesitation in accepting accountability Perceived effort that is required to identify and track benefits
  29. 29. 29 SUSTAINABLE OPERATIONALISATION Recommendation # 1: Clearer parameters and mechanisms Improved benefits realisation plan Enhanced reporting To include analysis of existing operation processes and change requirements to fully realise benefits Realistic and measurable indicators Targets for the business unit rather than at the strategic plan level Categorisation of benefits based on impact (Growth, satisfaction, commitment, optimisation and sustainability) Targets linked to performance evaluation of the project More precise qualitative data that could affect benefits realisation Use of available information and data to guide optimal project decisions that will support full realisation of benefits Implementation of reporting mechanism to track benefits realization (post-project)
  30. 30. 30 SUSTAINABLE OPERATIONALISATION Recommendation # 2: Clearer roles and responsibilities Strengthening of the sponsor role Continuum between project and operation For the project manager: sponsor = client Defines success factors Establishes benefits targets linked to project objectives For the portfolio manager: sponsor = accountable spokesperson Accountable for quality reporting and benefits tracking Consideration of decisions of benefits realisation Implementation strategy for benefits realisation done concurrently with implementation for project deliverables Benefits management as a business process rather than a project or portfolio activity Benefits management at the business unit level rather than by project or portfolio level
  31. 31. 31 OUR CHALLENGES Large organisation with different acceptance levels and varying capacity for change between business units High number of non measurable benefits and benefits without financial value YOUR WORD OF ADVICE? OUR PLANNED INITIATIVES Revised benefits realisation plan template & support tools Repertoire of usual / available measures Project re-evaluation at each gate of the project Change requests driven by benefits realization – not only by project needs Design of a dashboard Communication plan Review of the project strategic evaluation criteria to increase weight of project related benefits To address soft issues pertaining to accountability, integration and business process
  32. 32. 32

×