The document discusses the importance of benefits realization in business transformation. Benefits realization is the process of identifying, organizing, and managing the defined benefits arising from change programs to ensure they are achieved. It is important because benefits may take months or years to fully materialize after a transformation project is complete. Benefits realization guides an organization's strategic vision and allows for tracking and reporting on the benefits realization process.
2. Business Success
• Guided by strategic transformation programmes based on
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executive goal and visions.
• Business transformation is a constant necessity to stay with or
ahead of the completion or provide new customer based
revenue streams.
• Business transformations are not complete at the end of the
project yet most businesses stop reviewing them once the
project is complete. Yet the benefits can take from a couple of
months to several years to be fully realised.
3. Benefits Realisation
• It is the process of identifying, organising and managing the
defined benefits arising from change programmes.
• Ensuring they are realistic against the implementation costs.
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• Ensuring they are achievable.
• Measuring whether they were actually realised and if not, why
not
4. Benefits Realisation
• It is designed to guide an organisations strategic vision from
the executive level through to individual projects that enables
the business transformation.
• It provides a method of reporting and tracking back to the
executive level at all stages of the change process.
• It becomes possible for early intervention to bring a
programme back on track and save valuable resources.
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5. Benefits Realisation
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Mgt Team
Vision
Corporate
Strategy
Programmes
Projects
•Corporate projects (Top Down)
•Service Team initiated projects (
Bottom Up)
Defines the Corporate
strategy
Defines the Change
Produces the
Change
Vision Realised
Delivers the
BENEFITS
Delivers Outputs
ITIL Change/Service Delivery
6. Benefits Realisation
The successful management of change requires an approach
to deliver the change and associated benefits. A change
programme may deliver the necessary outputs within time,
quality and cost expectations but normally fails to identify, track
and realise the benefits of the change.
Your organisation should be striving to take a benefits
approach to delivering programmes of work.
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7. Benefits Realisation
Benefits don’t just happen and they rarely happen according to
plan, so it’s imperative that a continuous process is in place to
understand, monitor and dynamically adjust the business
transformation processes to maximise business/project
investment thus maximising the expected business returns.
Thus unexpected Benefits can be identified and taken advantage
of.
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8. Benefits Tracking Flow
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Project
Manager
Project
Management
Office
Project
Sponsor
Status Reports, Interim
Benefit Reports and
Project Closure Report
Benefits
Owner
Governanc
e
Benefit Reports
PMO Status Reports,
Interim Benefit Reports
and Final Benefit
Reports
PMO Status Reports
and Project Benefit
Reports
Executive
PMO Status Reports, Interim
Benefit Reports, Project
Closure and Final Benefits
Report
Post Project/Business
Benefit Reports
9. Benefits Realisation
Without benefits management you risk:
• Failure to commit or fully understand the benefits
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programmes are trying to deliver.
• There is no clear linkage between business cases, outcomes
and measurement processes thus unrealistic benefit values
can be claimed.
• Achievements are not tracked or recorded.
• Change programmes can go off track from what they were
trying to delivery.
• Unexpected benefits are not capitalised on or managed.
• Off track benefits are not identified and their impact on
change programmes/strategies are not evaluated.
10. Benefits Realisation
• Things worth doing are never easy and this is no exception.
• This is not a quick fix and certainly no silver bullet. It involves
a long term commitment to a sustained change process for
the organisation, its executive and managers and how they
enact and execute change.
• By underpinning it with industry standards like ITIL the
change processes becomes ingrained and repeatable thus
the focus is the deliverable and its benefits. Leading to better
quality projects.
• Any discussion about BR can not happen without discussing
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change and business impacts.
11. Benefits Realisation
• Supports a results chain of outcomes, possible paths and
encourages the answering of four basic questions.
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– Are we doing the right thing
– Are we doing it the right way
– Are we getting them done.
– Are we getting the Benefits
12. RJ Associates
We can help
RJ Associates can help with the development of business transformation
programmes which help support and focus an organisation on the
Benefit Realisation process.
We Listen. We Guide. We Deliver.
Editor's Notes
So how do you know you achieved the transformation/strategic goal to the level you said you would?
How do you know you have not missed something?
These need to be understood and articulated from a whole-of-organisation perspective.
Off track benefits can be identified and potentially corrected or at least the factors behind the discrepancy is understood and the impact on future programmes judged
Are we doing the right thing – Addresses the direction of the business and the alignment with the over all vision.
Are we doing it the right way – Addresses the organisation structure and process and the integration of the benefits within the current structure and future capabilities.
Are we getting them done – Addresses organisational capacity and resources availability to allow the work to be done efficiently and effectively with appropriate funding.
Are we getting the Benefits – Addresses the proactive management of the benefits throughout the change process. What is the value in terms of financial worth, vision alignment and risk