Projchallenge   benefits management - making it work - trevor howes
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  • Thank you for taking the time to attend today. During this session I will be covering benefits realisation management and showing and explaining you some At the end of 2012 benefits management became a “hot topic” with the latest guidance published and globally more organisations using than ever. Trevor Howes, co-founder of BRM Fusion, shares surprising insights into what works for organisations and how beneficial and simple it can be for managers to be successful. Take away useful tips that can raise your profile and help your organisation gain greater benefits, sooner and with lower cost. Trevor has been a practitioner for over 12 years and led the Fujitsu area for benefits management.
  • Over 20 years “ Benefits realisation everywhere” Book published in 2002
  • People with skills and enthusiasm Process and approach to give order Organisation to help organise and learn quickly Tools and methods There were general benefits expected by the scheme but everyone had their own Quality standards couldn’t vary by much Scope had to be cut to meet budget, time and other constraints and requirements Good question! Because, from the first day to the last it’s a real adventure.  Every section gives you something different - that's the fun of it! You’ll enjoy loads of new experiences, discover talents you never thought you had, challenge yourself and meet loads of people just like you.  Plus you’ll do things you love and get a kick out of.  It’s a real buzz! Then there’s all the other stuff… … achieving an Award will give you skills, confidence and a view on life that everyone is looking for, from employers to colleges and universities.  ...you're getting recognised for doing things you want to do (and may even be doing already). ...you’ll make a difference to other people’s lives and your community, be fitter and healthier, make new friends and have memories to last you a lifetime. And above all, it's a great laugh - the question should really be why wouldn't you bother!
  • People with skills and enthusiasm Process and approach to give order Organisation to help organise and learn quickly Tools and methods There are general benefits expected by the scheme but everyone had their own Quality standards couldn’t vary by much Scope had to be cut to meet budget, time and other constraints and requirements Good question! Because, from the first day to the last it’s a real adventure.  Every section gives you something different - that's the fun of it! You’ll enjoy loads of new experiences, discover talents you never thought you had, challenge yourself and meet loads of people just like you.  Plus you’ll do things you love and get a kick out of.  It’s a real buzz! Then there’s all the other stuff… … achieving an Award will give you skills, confidence and a view on life that everyone is looking for, from employers to colleges and universities.  ...you're getting recognised for doing things you want to do (and may even be doing already). ...you’ll make a difference to other people’s lives and your community, be fitter and healthier, make new friends and have memories to last you a lifetime. And above all, it's a great laugh - the question should really be why wouldn't you bother!
  • This is a challenge without some structured approach
  • Instead of harmony programmes can often be more like a bumper car race. You always get one driver who is more out of control than others :o)
  • To underpin this… It’s interesting that…. 70% of change initiatives fail to achieve the benefits they seek – John Kotter 40% of SRO’s don’t adequately understand their own programmes - Moorhouse 38% people overstate benefits to get approval - Cranfield University survey 75% of Mergers & Acquisitions never pay off, these are large transformation programmes - Daniel Kahneman (nobel prize winner) 2002 Nobel Memorial Prize in Economic Sciences. He is notable for his work on the psychology of judgment and decision-making, behavioral economics and hedonic psychology Research consistently finds that organizations struggle to demonstrate a return on their investments in change - for example, the OGC report that, “Deficiencies in benefits capture bedevils nearly 50% of government projects” i.    The issue is not peculiar to the public sector – Nobel prize winner Daniel Kahneman notes that, “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” ii. Similarly, change management ‘guru’ John Kotter says, “Up to 70% of change initiatives fail to deliver on the benefits that they set out to achieve.” iii   Research by Moorhousevii found, “Only 10% of SROs feel business cases and benefits realisation are adequately understood on programmes across Government and industry, however over 60% feel the understanding on their own programmes is adequate.”   Collins and Bicknell argue that , “Not all computing projects fail – only most of them. Now and again serendipity sees a company or government department buying and implementing a system that does as much as half of what was originally intended.” 10% contingency is therefore unlikely to be sufficient.   example, in Australia, Lin et al (2005)x report that 26.2% respondents to their survey admitted to regularly overstating benefits in order to get their business cases approved. Ward reports an even more depressing situation in Europe, with 38% of respondents in one survey undertaken by Cranfield University, openly admitting to overstating benefits to get fundingxi with the traditional investment appraisal process being, “seen as a ritual that must be overcome before any project can begin”.xii   Also from  https://docs.google.com/file/d/0Bww0WdZOnfnpNjQ0YzI1N2EtNmUzNy00OGVlLThlNGMtZWUwNjVkMmY3ZTM1/edit “ 30-40% of systems to support business change deliver no benefits whatsoever .”   Office of Government Commerce   “ 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 and Kahneman
  • Gates also was fortunate to attend Lakeside, a private school in Seattle with its own computer. The Lakeside machine was one of a new generation of computers that shared processing power with a much larger computer downtown. That meant he could learn programming without being slowed by the laborious punch-card process used for computers just a year or two earlier. Gates had thousands of hours of programming under his belt when the Altair became available, making him perfectly prepared to take maximum advantage of the PC revolution. The Beatles’ success was due to the fact that in their early years in Hamburg, Germany, they had to play very long sets at clubs, in a wide variety of styles, which both helped them to get in their 10,000 hours ( see below on its importance ) and forced them to be creative and excel at experimenting.  
  •   accuracy  and  reliability  of people’s responses
  • 20% improvement from weighting line reviews
  • … and try not to get blisters like my son Tom on his trip!
  • Thank you for taking the time to attend today. During this session I will be covering benefits realisation management and showing and explaining you some At the end of 2012 benefits management became a “hot topic” with the latest guidance published and globally more organisations using than ever. Trevor Howes, co-founder of BRM Fusion, shares surprising insights into what works for organisations and how beneficial and simple it can be for managers to be successful. Take away useful tips that can raise your profile and help your organisation gain greater benefits, sooner and with lower cost. Trevor has been a practitioner for over 12 years and led the Fujitsu area for benefits management.

Projchallenge benefits management - making it work - trevor howes Presentation Transcript

  • 1. Benefits Management - Making it Work TREVOR HOWES
  • 2. © BRM Fusion Limited 2012 Trevor Howes Page 2
  • 3. © BRM Fusion Limited 2012 Page 3 Detail  Books, Help and Tools Share what matters most + Takeaways
  • 4. © BRM Fusion Limited 2012 Page 4 Benefit expected Quality standards to meet Scope of what they needed to do Budget available Time available Process Organisation Systems & Tools People
  • 5. © BRM Fusion Limited 2012 Page 5 on what benefit you want – what you value plans and resources will be enough to get them to remain on course • Be clear • Be certain • Be in control
  • 6. © BRM Fusion Limited 2012 Page 6 Process Organisation Systems & Tools People Benefit expected Quality standards to meet Scope of what they needed to do Budget available Time available
  • 7. © BRM Fusion Limited 2012 Page 7 on what benefit you want – what you value plans and resources will be enough to get them to remain on course • Be clear • Be certain • Be in control
  • 8. © BRM Fusion Limited 2012 Page 8
  • 9. © BRM Fusion Limited 2012 Moorhouse Consulting Daniel Kahneman John Kotter Cranfield University Page 9
  • 10. © BRM Fusion Limited 2012 Page 10 1. Reassure quality of proposal recommendations – a visual model showing cause-and-effect assumptions and logic 2. Manage the realisation of business benefits over time – a model that supports delivering required level of benefit to timings needed 3. Decrease risk to delivery deadlines – understand dependencies, risks and assumptions etc. 4. Manage scope and save budget – represent the scope of the programme to enable informed change decisions to be made and stay aligned to strategic objectives 5. Increase the quality of solutions and activities – see what capability, change and investment is needed to realise benefit with minimum waste Justifying Benefits Realisation
  • 11. © BRM Fusion Limited 2012 Page 11 1. Reassure quality of proposal recommendations – a visual model showing cause-and-effect assumptions and logic 1. Manage the realisation of business benefits over time – a model that supports delivering required level of benefit to timings needed 1. Decrease risk to delivery deadlines – understand dependencies, risks and assumptions etc. 1. Manage scope and save budget – represent the scope of the programme to enable informed change decisions to be made and stay aligned to strategic objectives • Increase the quality of solutions and activities 1. see what capability, change and investment is needed to realise benefit with minimum waste Justifying Benefits Realisation
  • 12. © BRM Fusion Limited 2012 Plan Review Realise Value & Appraise Identify & Quantify Use a standard cycle With reference to: the Managing Benefits guide from APMG-International™ by Steve Jenner Page 12
  • 13. © BRM Fusion Limited 2012 Identify & Quantify Page 13
  • 14. © BRM Fusion Limited 2012 Identify & Quantify Page 14
  • 15. © BRM Fusion Limited 2012 10,000 hours  Expert  Wonderful things Cause  Effect
  • 16. © BRM Fusion Limited 2012 Create a Map Page 16
  • 17. © BRM Fusion Limited 2012 Page 17 Wording Outcomes/ Benefits Maintained Created Eliminated Reduced Decreased Increased Increased Maintained Created Eliminated
  • 18. © BRM Fusion Limited 2012 Page 18 Focus on things important and knowable Think like Warren Buffett
  • 19. © BRM Fusion Limited 2012 Create a Map Page 19
  • 20. © BRM Fusion Limited 2012 Using general information from a PwC report: Insights and Trends: Current Portfolio, Programme, and Project Management Practices The third global survey on the current state of project management 2012 Page 20
  • 21. Page 21
  • 22. © BRM Fusion Limited 2012 Plan Review Realise Identify & Quantify Value & Appraise Page 22
  • 23. © BRM Fusion Limited 2012 Value & Appraise Value & Appraise Page 23
  • 24. © BRM Fusion Limited 2012 BenefitsCost & Resources Page 24
  • 25. © BRM Fusion Limited 2012 Use contribution line weightings Page 25
  • 26. © BRM Fusion Limited 2012 Calculate contribution scores Page 26
  • 27. © BRM Fusion Limited 2012 Review Realise Identify & Quantify Value & Appraise Plan Page 27
  • 28. © BRM Fusion Limited 2012 Plan Validate Forecast Prioritize Benefits Select Measures Risk/ Opportunities Plan to Engage Documentation Pre-Transition
  • 29. © BRM Fusion Limited 2012 Plan Validate Forecast Prioritize Benefits Select Measures Risk/ Opportunities Plan to Engage Documentation Pre-Transition
  • 30. © BRM Fusion Limited 2012 Plan Review Realise Identify & Quantify Value & Appraise Page 30
  • 31. © BRM Fusion Limited 2012 Page 31
  • 32. © BRM Fusion Limited 2012 Plan Review Realise Identify & Quantify Value & Appraise Page 32
  • 33. © BRM Fusion Limited 2012 Tools Page 33
  • 34. © BRM Fusion Limited 2012 You don’t need a car to survive …but it does make a difference to: Scope of what you can do and handle Quality of results and experience Time taken Benefits delivered Risk of failure Benefits Realisation software can also help with Cost savings and Cost management Tools
  • 35. © BRM Fusion Limited 2012 Process Organisation Systems & Tools People Benefit expected? Quality standards to meet? Scope of what they needed to do? Budget available? Time available? Page 35
  • 36. © BRM Fusion Limited 2012 1. Reassure quality of proposal recommendations 1. Manage the realisation of business benefits over time 1. Decrease risk to delivery deadlines 1. Manage scope and save budget 1. Increase the quality of solutions and activities Use for more than Portfolio, Programme, Projects, PMO, including: Sales, Bids, Strategy, IT and Change Roadmaps, Requirements analysis, Stakeholder management, Delivery Assurance, Business change, Commercial and Procurement, Product and Service Design Justifying Benefits Realisation
  • 37. © BRM Fusion Limited 2012 Page 37 Additional takeaways 1. OutcomeJogger™  Identify wonderful things 2. Map on Stand  PwC Survey 2012 3. Slides  Register on stand 4. Software  Realisor.com Start down your own path – 10,000 hour people to help you Good luck on your journey to wonderful things
  • 38. Benefits Management - Making it Work® TREVOR HOWES