Benefits Review - getting to the Value

1. YOUR PROJECT IS LIVE -
NOW WHAT?
Gate 5: Benefits review
Brian Phillips, Yellowhouse
Gateway Mentor, QGCIO CAAWG 2018-19
www.yellowhouse.net

2. GETTING THE
BENEFITS
• Brian Phillips is a contributor to
the MSP textbook, and the P3O
textbook
• Brian is working with AXELOS as a
review member for upcoming
changes to MSP, P3O and MoP.
• He is an APMG Benefits
Management trainer/consultant
• He is a contributor to the new
Agile SHIFT textbook to be
released by AXELOS in Q4 2018
• Brian is the QGCIO Mentor for the
Cross Agency Assurance Working
Group, based on Gateway Review
• https://www.linkedin.com/in/bri
anphillipsyellowhouse/

3. © Yellowhouse 2018 Gateway 5: benefit review 3
YOUR PROJECT IS LIVE - NOW WHAT?
• Focus: getting value from your investment
• How important is the gate 5 review in this?
• How do we implement business improvement to continually
improve our assets?
• Link to benefits management
• Start with the end in mind

4. © Yellowhouse 2018 Gateway 5: benefit review 4
GATE 5: BENEFITS REALISATION
• This review confirms that the benefits set out in the business
case are being achieved and that the operational service is
running smoothly
• Can be repeated throughout the life of the service
• First review typically 6-12 months after handover
• Final review shortly before the end of a service contract
• Gate 5 can be used on a one-off basis, to check that a project
has delivered its intended outputs
• Pre-requisite?

5. © Yellowhouse 2018 Gateway 5: benefit review 5
HOW DOES GATEWAY WORK?
Gate 0: Strategic assessment (program level)
• Review of an entire program together with its constituent projects
Gate 1: Preliminary evaluation
• Focus on the preliminary business case
Gate 2: Readiness for market
• Investigates the final business case and procurement strategy
Gate 3: Investment decision
• Focuses on the updated final business case
Gate 4: Readiness for service
• Focuses on the readiness to transition to the live environment.
Gate 5: Benefits realisation
• Confirms benefits achieved and business changes are going smoothly

6. © Yellowhouse 2018 Gateway 5: benefit review 6
BENEFITS REALISATION
• Gate 5: Benefits realisation is for the operational phase, after
the project has delivered its agreed outputs which contribute
to the outcomes of a program
• Unlike earlier phases of the project lifecycle, the operational
phase is
• likely to be long-term and
• consume a significant proportion of the whole-of-life costs of the
investment from the business case

7. © Yellowhouse 2018 Gateway 5: benefit review 7
BENEFIT REVIEW FOCUS AREAS
This is what the reviewer/s will ask you about your project
1. Review of operating phase
2. Business case and benefits management
3. Plans for ongoing improvements in value for money
4. Plans for ongoing improvements in performance and
innovation
5. Review of organisational learning and maturity targets

8. © Yellowhouse 2018 Gateway 5: benefit review 8
PURPOSE OF GATE 5: BENEFITS REALISATION
• Assess whether the business case justification for the project
is still realistic
• Confirm there is still a business need for the investment
• Assess whether the anticipated benefits are being delivered
• Assess effectiveness of ongoing contract management
processes
• Confirm client-side continues to have necessary resources to
manage the contract successfully
• Where changes have been agreed, check that they do not
compromise the original delivery strategy

9. © Yellowhouse 2018 Gateway 5: benefit review 9
THE BENEFITS MANAGEMENT MODEL
Managing Benefits™ is a trade
mark of the APM Group Ltd
Yellowhouse is an APMG
Accredited Training Organization
for Managing Benefits™
Principles
Practices

10. © Yellowhouse 2018 Gateway 5: benefit review 10
BENEFITS NEED TO BE PLANNED
• Seriously
• Start with the end in mind
• Business case must include expected
benefits
• Review and update them as you go
• Measure benefits at the end against original expectations
• And the most recent updates
• Strategy – Mapping – Plan – Profile - Realize

11. © Yellowhouse 2018 Gateway 5: benefit review 11
Benefit profiles
Description of Benefit
Program Objectives
Current/Baseline performance
Related Benefits
Cost of achieving benefit
Features required
Business changes required
Related issues/risks
Benefit Owner
Who will receive the benefit
Measurements
Benefit
map
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Intermediate Benefits (Outcomes)Ena
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Benefit management
strategy
Measurement methods
Functions, Roles and
Responsibilities for benefit
planning and realization
Scope
Priorities
Measurement tools
Critical Success Factors
Terminology used
Review and Assessment
process
Benefit realization
plan
Plan Narrative
Schedule of Benefits
Benefit Review
Milestones
Outcomes – dates
Dependencies
Approver: SRO
Producer: PgM
Approver: SRO
Producer: BCM
MSP® BENEFIT MANAGEMENT DOCUMENTS
Approver: SRO
Producer: BCM
Approver: SRO
Producer: PgM
Developed by Yellowhouse based on the MSP® Benefit realization Process

12. Value type Definition
Example
Cashable Non-cashable
T
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Definite
Expected
Anticipated
Intangible
Value may be predicted
with certainty
Value predicted on the
basis of historic trends
& high levels of
confidence
Benefit is anticipated but
its value is not reliably
predictable
May be anticipated, but
difficult to substantiate
Increased sales
Quicker
performance of
tasks
Lower Insurance
premiums
Greater
customer
satisfaction
Reduced costs
Fewer steps in a
process
Improved image
DUAL DIMENSION BENEFITS CATEGORIES
This extract from Managing Benefits™ by APMG is used with permission

13. © Yellowhouse 2018 Gateway 5: benefit review 13
BENEFITS MAPPING - TO STRATEGIC OBJECTIVES
Project
Output or
Enabler
Business
Change
Intermediate
Benefit
End
Benefit
Strategic
Objective
To Improve
the City’s
Image
Recruit and
train guest
rooms staff
Further Sports
investment
More
attractions/
facilities
Increased capital
for further
development
More
residential
tourists
Increased
accommodation
in area
Increased
Attraction to
tourism
Regenerated
Urban Park
New Sports
Park
Athletes’
Village
Fast shuttle
service to
City Centre
Improved
Rail Links
Upgraded
Rail Station
Marketing
Campaign
More
frequent
trains
Residents
Consultations
Faster
access to
Park
New
Housing
More industry
Attracted
to Park
More
day
visitors
Increased
Revenues
from tourism
More
jobs
To Regenerate
the local
economy
Work “backwards” up the chain
This extract from MSP®2007 by OCG/AXELOS is used with permission

14. © Yellowhouse 2018 Gateway 5: benefit review 14
BENEFITS REALIZATION
• Benefits Realization Strategy
• Arrangements for identification of potential benefits, their planning,
modeling and tracking
• Framework that assigns responsibilities for actual realization of benefits
• Benefits Realization Plan
• Responsibility for benefits realization lies with senior management
• Delivery arrangements outlined in the Business Case or Project OBC
• Benefits Profile
• Specify each anticipated benefits and indicate how it will be realized
• Continuously reviewed and updated throughout the programme or project

15. © Yellowhouse 2018 Gateway 5: benefit review 15
YELLOWHOUSE AND THE AXELOS PORTFOLIO
Yellowhouse offers training and consulting in the AXELOS range,
plus Gateway Review www.yellowhouse.net

16. © Yellowhouse 2018 Gateway 5: benefit review 16
YELLOWHOUSE AND THE APMG PORTFOLIO
• Yellowhouse offers training and consulting in the APMG range