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Benefits Management
John Chapman
Touchstone
Member of the Programme Management SIG
Member of the Planning , Monitoring & C...
Agenda
1. The importance of language & Benefit Classes
2. Corporate Governance and Benefits Management
3. Benefit Dependen...
The importance of language
In what book was
Newspeak introduced?
Newspeak
The purpose of Newspeak was not only to provide a
medium of expression for the world-view and mental
habits prope...
Newspeak
Oldspeak terms which no longer exist
• Tangible Benefits
• Intangible Benefits
• Hard Benefits
• Soft Benefits
ht...
• Types of benefit
• Financial benefit
• Non-financial benefit
Benefit Classification
• Financial benefits are those which
• Raise revenue
• Reduce Cost / Contain cost
• Non-Financial Benefits for example:
• ...
Non-Financial Benefits can have savings which are not easily
converted into financial values
For example:
• If the average...
The Link to Corporate
Governance
Corporate Governance
The Institute of Directors
1995 : Standards for the Board
Bob Garratt
The Fish Rots from the Head
The...
Corporate Governance
The Director Dilemmas1
1. The Board must be simultaneously entrepreneurial
and drive the business for...
Aligning technology & business
Dilemma No 1
Entrepreneurial but prudent
Can we show how the project supports the organisat...
Benefit Dependency Charts
BENEFITS DEPENDENCY NETWORK
Facilities &
Technology
Enabling
Changes
Business
Changes
Business
Benefits
Investment
Objecti...
BENEFITS DEPENDENCY NETWORK
- measures & responsibilities
Facilities &
Technology
Enabling
Changes
Business
Changes
Busine...
EXAMPLE OF (part of) BENEFITS DEPENDENCY NETWORK
- Sales and Marketing System
Facilities
&Technology
Enabling
Changes
Busi...
Stakeholders
Map Stakeholders to an Influence Attitude Grid
Benefit Realisation Management, p15
Influence
Attitude
High
Low
Negative Ne...
List benefits, levels of commitment and
changes needed
Benefit Realisation Management, P152
Senior
Mngt
Improved
Reputatio...
Time-lines for benefit
realisation
Time-lines for Benefit Realisation
• When the organisation can
expect to accrue benefits
• What the earliest / latest
feas...
Time-lines for Benefit Realisation: Business Solutions
On the day the
system is set to
live running
Three to six
months af...
Time-lines for Benefit Realisation
January July August &
September
Analyse
Data
Meet Suppliers
Identify non-
conformance
O...
Outputs : Project
Outcomes : Programme
Benefits Management
 Projects were focused on
– The technology
– The people resources
– The software solutions
– The time...
Benefits Management
 The Gower Handbook emphasised that
– Benefits come from system usage, not
installing the system
– Pr...
Benefits Management
 The Gower Handbook emphasised that
– Programmes should create capabilities that
enable benefits to b...
Benefits Management
Benefits Management
 From Project to Programme
– Organisational competencies in programme and project
delivery have grown...
Reading List
• Benefit Realisation Management. A practical guide to achieving benefits through
change. Gerald Bradley. ISB...
This presentation was delivered
at an APM event
To find out more about
upcoming events please visit our
website www.apm.or...
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Benefits management, Wednesday 21st January 2015

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A presentation given by John Chapman to the APM Planning, Monitoring and Control SIG and guests at the University of Warwick, Coventry 2015.

John Chapman, Touchstone – Benefits dependency diagrams should be simple. Use timelines to identify when benefits realisation will occur.

Published in: Business
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Benefits management, Wednesday 21st January 2015

  1. 1. Benefits Management John Chapman Touchstone Member of the Programme Management SIG Member of the Planning , Monitoring & Control SIG Author, speaker and subject matter expert
  2. 2. Agenda 1. The importance of language & Benefit Classes 2. Corporate Governance and Benefits Management 3. Benefit Dependency Charts 4. Stakeholders 5. Time-lines to consider 6. Projects (outputs) v Programmes (Outcomes) 7. Questions and close
  3. 3. The importance of language In what book was Newspeak introduced?
  4. 4. Newspeak The purpose of Newspeak was not only to provide a medium of expression for the world-view and mental habits proper to the devotees of IngSoc, but to make all other modes of thought impossible. It was intended that when Newspeak had been adopted once and for all and Oldspeak forgotten, a heretical thought, that is, a thought diverging from the principles of IngSoc – should be literally unthinkable, at least so far as thought is dependent on words http://www.newspeakdictionary.com
  5. 5. Newspeak Oldspeak terms which no longer exist • Tangible Benefits • Intangible Benefits • Hard Benefits • Soft Benefits http://www.newspeakdictionary.com
  6. 6. • Types of benefit • Financial benefit • Non-financial benefit Benefit Classification
  7. 7. • Financial benefits are those which • Raise revenue • Reduce Cost / Contain cost • Non-Financial Benefits for example: • Improve the quality of service • Provide a better working environment Benefit Classification
  8. 8. Non-Financial Benefits can have savings which are not easily converted into financial values For example: • If the average time spent raising purchase orders is reduced from 30 minutes to 5 minutes (through the use of eProcurement) then this is a 25 minute saving – can it be found through to the financial accounts? • If employee motivation is improved, such as removing some mundane administration, then could this be converted to a financial value? • If a manager saves 1 hour a month through process improvement could this be classified as financial? Be careful if you want to turn these into a financial value! Non-financial benefits
  9. 9. The Link to Corporate Governance
  10. 10. Corporate Governance The Institute of Directors 1995 : Standards for the Board Bob Garratt The Fish Rots from the Head The crisis in our boardrooms: developing the crucial skills of the competent director ISBN: 9781 861 976 161
  11. 11. Corporate Governance The Director Dilemmas1 1. The Board must be simultaneously entrepreneurial and drive the business forward whilst keeping it under prudent control. 2. The Board is required to be sufficiently knowledgeable about the workings of the company to be answerable for its actions, and yet to stand back from the day-to-day management and retain an objective longer term view 1. Bob Garratt, The Fish Rots from the Head: The crisis in our boardrooms: developing the crucial skills of the competent director, ISBN: 9781 861 976 161
  12. 12. Aligning technology & business Dilemma No 1 Entrepreneurial but prudent Can we show how the project supports the organisation goals
  13. 13. Benefit Dependency Charts
  14. 14. BENEFITS DEPENDENCY NETWORK Facilities & Technology Enabling Changes Business Changes Business Benefits Investment Objectives D R I V E R S JW113
  15. 15. BENEFITS DEPENDENCY NETWORK - measures & responsibilities Facilities & Technology Enabling Changes Business Changes Business Benefits Investment Objectives Evidence of Achieve: Respons: Evidence of Achieve: Respons: Evidence of Achieve: Respons: Evidence of Achieve: Respons: Evidence of Achieve: Respons: Evidence of Achieve: Respons: Evidence of Achieve: Respons: Evidence of Achievement: Change Responsibility Evidence of Achievement: Change Responsibility Evidence of Achievement: Change Responsibility Evidence of Achievement: Change Responsibility Evidence of Achievement: Change Responsibility Evidence of Achievement: Change Responsibility Measure: Benefit owner(s): Measure: Benefit owner(s): Measure: Benefit owner(s): Measure: Benefit owner(s): Measure: Benefit owner(s): JW117
  16. 16. EXAMPLE OF (part of) BENEFITS DEPENDENCY NETWORK - Sales and Marketing System Facilities &Technology Enabling Changes Business Changes Business Benefits Investment Objectives Campaign Planning & Management System Customer Prospect Database Contact Management System Enquiry Quotation & Response Tracking System Portable PCs for Sales Staff Release sales time from post sales activity to pre sales Introduce new account management processes Redefine customer segments Reduce marketing staff time on admin activities Introduce project management for all A&P campaigns Measure outcome of campaigns re objectives Use database to improve targeting in segments Realign sales activity with new customer segments New sales staff incentives Use system to target sales activity/contact time Increase sales time with customers Allocate sales time to potential high value leads Co-ordinate sales and marketing activity in follow-up Identify most appropriate communication medium for target customers Reduced cost by avoiding waste on irrelevant customers Increased response rate from A&P campaigns Increased rate of follow-up of leads Increased conversion rate of leads to orders effectiveness of promotion (A&P) To improve the advertising & spend To increase sales value and volume from new customers JW116
  17. 17. Stakeholders
  18. 18. Map Stakeholders to an Influence Attitude Grid Benefit Realisation Management, p15 Influence Attitude High Low Negative Neutral Positive Operational Management Board CEO End Users Regulators
  19. 19. List benefits, levels of commitment and changes needed Benefit Realisation Management, P152 Senior Mngt Improved Reputation Provide Incentives Reluctant to change reward structures C R To deliver benefits may require changes & meet resistance
  20. 20. Time-lines for benefit realisation
  21. 21. Time-lines for Benefit Realisation • When the organisation can expect to accrue benefits • What the earliest / latest feasible start date is • What the earliest / latest feasible completion date is
  22. 22. Time-lines for Benefit Realisation: Business Solutions On the day the system is set to live running Three to six months after go live After 1 year
  23. 23. Time-lines for Benefit Realisation January July August & September Analyse Data Meet Suppliers Identify non- conformance October to December 6 months 9 months Improve Processes & reduce costs Celebrate system live
  24. 24. Outputs : Project Outcomes : Programme
  25. 25. Benefits Management  Projects were focused on – The technology – The people resources – The software solutions – The time-line for delivery – There was little focus was on the benefits to be delivered
  26. 26. Benefits Management  The Gower Handbook emphasised that – Benefits come from system usage, not installing the system – Projects create deliverables aka outputs. (We bake the cake, not eat it!)
  27. 27. Benefits Management  The Gower Handbook emphasised that – Programmes should create capabilities that enable benefits to be delivered. e.g. educate managers on what to do with information, not just give them data on the desktop – Benefit management processes ensure that capabilities are then realised into benefits (don’t just build helicopters, use them)
  28. 28. Benefits Management
  29. 29. Benefits Management  From Project to Programme – Organisational competencies in programme and project delivery have grown – The focus is more than just ‘getting the system live’ – As individuals have worked on projects they are able to find ‘brain space’ to think about what the change means to them – There is recognition that IT systems are enablers to help solve business problems, not the answer to the problem
  30. 30. Reading List • Benefit Realisation Management. A practical guide to achieving benefits through change. Gerald Bradley. ISBN 0566-08687-5 • The Gower Handbook of Programme Management: Geoff Reiss, Gower Publishing, ISBN 0566086034 • Benefits Management. Releasing Project Value into the Business. Michael Payne. Project Manager Today, ISBN 978-1-900391-16-0 • Managing Successful Projects with PRINCE2. Office of Government Commerce • Achieving Business Value from Technology: A practical guide for today’s executive: Tony Murphy, Gartner, ISBN 0471-232300 • Return on Investment in training and performance improvement programs. Jack J Philips. Butterworth Heinmann. ISBN 0884154920 • Managing Successful Programmes: the Stationery Office, ISBN 0113313276
  31. 31. This presentation was delivered at an APM event To find out more about upcoming events please visit our website www.apm.org.uk/events

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