The document discusses the importance of benefits management in developing business cases for projects, defining a benefit as a positive outcome that justifies investments made. It outlines key phases in benefits management, including identification, planning, and realization, as well as best practices for ensuring effective stakeholder engagement and avoiding biases. Additionally, it emphasizes the role of a business case in supporting decision-making throughout the program's lifecycle.

1. An Introduction
to
Benefits Management
16th October 2014
Developing business cases
© Farthing Consulting LTD Page 1

2. Nick Wensley
Chair of APM Benefits Management Specific Interest Group
Chair of Chartered Management Institute, Kent Network
Business Adviser to Young Enterprise Company Programme, Kent, and
Director, Farthing Consulting Limited
Developing business cases
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3. WWhhaatt iiss aa BBeenneeffiitt??
“A benefit is a positive outcome, quantifiable or
unquantifiable, that a Programme/Project has been
undertaken to deliver and justify the investment. They
are realised as a result of activities undertaken to effect
the change, deliver the capabilities and justify the
investment of the programme or project” OGC
Developing business cases
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4. The key role of The key role of BBeenneeffiittss MMaannaaggeemmeenntt iinn PP33MM
High Level Benefits Management Stages
Detailed Benefits Management Approach
3. Benefit Planning
Reviewing and Reporting
Developing business cases
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5 . Benefit Realisation
4. Monitoring and Optimising
Project Value
Project
Close
Project
Go Live
Build &
Test
Project
Design
Project
Definition
Project
Viability
Project
Value
1 . Identi fication
& Mapping
2. Benefit Profiling 6. Benefit
Review
Value
Proposition
Outline
Business
Case
Full
Business
Case
Project
Closure
Report
Post-
Implementation
Review
Benefits
Map
Benefit
Profiles
Benefit
Realisation
Plan
Benefit
Reports and Reviews
Benefit
Handover
Report OGC
Gate 5
Feeding into Programme level plans and products
Definition and Collection of Benefits
Benefits Measurement and Tracking
Benefits Realisation

5. BBeenneeffiittss MMaannaaggeemmeenntt PPhhaasseess
There are many Benefits Management
Models, here are the phases relating to
the Model on the previous slide:
1. Benefits identification and mapping
2. Benefits profiling
3. Benefits planning, reviewing and reporting
4. Monitoring and optimising project value
5. Benefits realisation
6. Benefits review
Developing business cases
© Farthing Consulting LTD Page 5

6. SSoommee LLeessssoonnss II hhaavvee LLeeaarrnntt
• Start early
• Ensure benefits ownership
• Establish early baseline
• Regularly reaffirm business case and benefits
• Beware optimism bias
• Take a full lifecycle approach (strategy through
to retirement of assets)
• Engage all stakeholder groups all the time!
Developing business cases
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7. DDiissccuussssiioonn
Any questions?
Contact details
Nick Wensley – +44 7973 521 282, nick@farthingconsulting.co.uk
or nickwensley@yahoo.co.uk
Thank You!
Developing business cases
© Farthing Consulting LTD Page 7

8. Building Better
Business Cases
Developing business cases
© Farthing Consulting LTD Page 8

9. DDeeffiinniittiioonnss –– aa GGoovveerrnnmmeenntt DDeeppaarrttmmeenntt
• Definition
A Business Case is a working document designed to convey the
benefits and value of the programme/ project in a business sense.
It is the most important set of information for the Programme/Project
as it drives the decision-making process and is used continually to
align progress to the business objectives that are defined within it.
• Purpose
The purpose of the Business Case is to justify the undertaking of
the Programme/Project on the estimated cost of development and
implementation against the Risks and anticipated business
benefits. It provides a framework for informed decision making in
planning and management of the Programme/Project and
subsequent benefits realisation. The Programme/Project Board will
monitor the ongoing viability of the Programme/Project against the
Business Case.
Developing business cases
© Farthing Consulting LTD Page 9

10. DDeeffiinniittiioonnss –– aa GGoovveerrnnmmeenntt DDeeppaarrttmmeenntt
• Definition
A Business Case is a working document designed to convey the
benefits and value of the programme/ project in a business sense.
It is the most important set of information for the Programme/Project
as it drives the decision-making process and is used continually to
align progress to the business objectives that are defined within it.
• Purpose
The purpose of the Business Case is to justify the undertaking of
the Programme/Project on the estimated cost of development and
implementation against the Risks and anticipated business
benefits. It provides a framework for informed decision making in
planning and management of the Programme/Project and
subsequent benefits realisation. The Programme/Project Board will
monitor the ongoing viability of the Programme/Project against the
Business Case.
Developing business cases
© Farthing Consulting LTD Page 9