This presentation was conducted by Peter Glynne to the Yorkshire & North Linconshire APM membership providing a practical insight into the realisation of benefits

1. Benefits Realisation
Getting Beyond the Smoke and Mirrors
Yorkshire & North Lincolnshire branch
Peter Glynne
Founder/ Co-Chair APM Benefits SIG
5th February 2013

2. Agenda
18:30 Welcome and introduction
18:35 Benefits realisation – getting beyond the smoke and mirrors
19:05 Case study exercise – benefits modelling
19:35 Summary, questions and answers

3. Our SIG Thought Leadership......
October 2009 July 2010 October 2010 March 2011 June 2011

4. Our SIG Thought Leadership......
All May 2012
All reports are available FREE at www.apm.org.uk
Community –> Specific Interest Groups –> APM Benefits Management SIG

5. What is a Benefit?
“The positive and measurable impact of change on
the performance of an organisation, contributing to
one of more strategic objectives”

6. The Perception?

7. The Meaning
“Smoke and mirrors is a metaphor for a deceptive,
fraudulent or insubstantial explanation or description”

8. Benefits Management
Actual comments from senior managers across organisations
“We struggle to agree ownership “We had benefits listed in the
and responsibilities for realising business case but they weren’t
benefits” relevant when we got to the end of
the project”
“Our benefits are too “I don’t have confidence
vague and difficult to that we have identified the
quantify” right benefits”
“As soon as the project closes,
the organisation loses focus on
“We have tried realising the benefits”
implementing benefits
management before, but it
didn’t work. Too many false “Our approach to benefits is too
starts” complex and spreadsheet driven.
My team don’t understand it”

9. Benefits Realisation
Common Behaviours across organisations
And there’s always the impact of the media.....

10. Benefits Realisation: Effective Partnership Working
Likely degree of engagement across the Change Journey within a typical organisation.
Typical Professional Group Strategy / Policy Delivery Embedding
of Change
Project/Programme Management
Finance Profession
Sponsors of Change
Economists
Strategists
Business Change Managers
External Relations/Communications
Human Resources
Operational Management
Procurement
Contract Management
Organisation Executive Board
Internal Audit

11. Understanding Behaviours and
Developing Professionalism
What to look out for across your organisation?

12. Process Obsessed Benefits Realisation
We MUST follow the prescribed process/manual

13. People looking to find a problem for a
waiting benefits solution....
My favourite solution will solve any ill...........

14. Limiting the focus to only the PPM community
We don’t want to engage other areas of the business.. too political

15. Believing that lack of success is other
people’s issue for not understanding how
important something is..........
They won’t listen and they don’t want to understand

16. Groupthink on the approach to benefits
realisation......
We all agree so it must be the right approach.....???

17. CONVERGENCE
What are the Opportunities?
Ever increasing professionalism in the management of change within organisations

18. A Strategic and Integrated Approach
Financial
Performance Business Lean Six
Communications Forecasting HR Planning
Management Planning Sigma
and Budgeting
Benefits Identification and
Business Planning Benefits
S Change Profiling
T
R Benefits
A Review Benefits
Realisation Benefits
T Plan
E
G Benefit
Project Targets
Y
Delivery Baselining
Frontline Operations

19. Benefits Identification and Planning
Case Study Exercise

20. There are many different approaches to benefits
modelling/mapping. This is one specific approach:
“The Benefits Value Model”

21. How to Read the Benefits Value Model
Project, Programme or
Operational Benefits New Capabilities
Portfolio New tangible capabilities directly
There must be a direct attributable to the investment in the
correlation/relationship project, programme or portfolio. New to
from a capability to an the business area or organisation e.g.
operational benefit Named New What we are buying for our investment?
Capability
The colour boxes highlight the contribution
Unique identifier for Action led word of the operational benefit to strategic value
each operational benefit describing the in the bottom row. It must reflect the
A Operational
organisation’s or group’s business plan or
Benefit
Benefit Type (1 of 5) strategy
Operational, functional day to day benefits Five Types of Operational Benefit
relevant to the organisation Five types of 1. Time – measured in hours, day, weeks etc.
operational benefit to enable consistency and 2. Cost – measured in £
comparability. KEY LINK TO OPERATIONAL 3. Satisfaction/Assurance – measured by a before and after perception
PERFORMANCE MANAGEMENT survey showing a measurable improvement
4. Income – measured in £
A dashboard is developed for every 5. Disbenefit – the negative consequences of change - measured using
operational benefit showing key performance one of the four types described above
indicators, priority ranking and ownership
Showing the contribution of
Strategic
individual operational
Value
Strategic Strategic Strategic benefits to the business plan
Objective Objective Objective or strategy. Two categories:
Effectiveness Effectiveness Effectiveness 1. Efficiency
2. Effectiveness

22. New Capabilities
What are we investing in? Example Customer Relationship
Management (CRM) Solution
AAA Wide CRM Integration with Single Holistic View Automated CRM
CRM Analytics Suite
Application Knowledgebase (Management Information) on Customer Contact workflow
(Oracle Integration) (with history)
Improved Satisfaction Improved Satisfaction Improved satisfaction Reduced Average
Improved Assurance
with Information on with Information to with quality of Time to Resolve
A E G L Q
How will it contribute to strategy? How will it change our performance?
in the Management
Customer Service Staff Drive Continuous information on Customer Contact
Operational Benefits
Performance Improvement
of Customer Contact
customer contact issues
Satisfaction/Assurance Satisfaction/Assurance Satisfaction/Assurance Time Satisfaction/Assurance
Improved Assurance Improved Assurance Improved client Contribution to Improved Satisfaction
in the in the satisfaction with AAA Reduced Average
B Interoperability of B Interoperability of H Account M Cost of Customer A with Information on
Customer Service Staff
AAA Applications AAA Applications Management Contact Performance
Satisfaction/Assurance Satisfaction/Assurance Satisfaction/Assurance Cost Satisfaction/Assurance
Increased Assurance in Increased assurance
Increased Time to Input Improved Assurance Improved Satisfaction
the use of appropriate in information on
C Summary Details for
Each Customer Contact
F Customer Contact I in AAA Customer
Governance
N AAA Business R with AAA Customer
Services/Operations
Channels Development Teams
Time Satisfaction/Assurance Satisfaction/Assurance Satisfaction/Assurance Satisfaction/Assurance
Greater Assurance in
Improved Assurance
New CRM Application the Operation of
D Support Costs J in Customer Services
Training
O Multi-Site Customer
Contact Centres
Cost Satisfaction/Assurance Satisfaction/Assurance
Improved Satisfaction Improved
Strategic Value
with Targeted Product Satisfaction with
K Marketing within the P Access to Customer
AAA Contact Information
Satisfaction/Assurance Satisfaction/Assurance
Indicates a disbenefit
Contributes to
Improved Improved
Increased Key Contribution Achieving
Customer Management
Assurance in XXX to AAA Business Reduced Cost Business
Segmentation/ Information to Drive
Customer Service Plan and Strategy Development
Differentiation Decision Making
Objectives
Effectiveness Effectiveness Effectiveness Effectiveness Efficiency Effectiveness

24. High Speed Two
New Capabilities
What are we investing in? Example
High Speed train Direct Rail link from New train facilities
Leeds New Lane
link to London and Leeds to the and improved .......
Train station
other cities Continent passenger comfort
IMPROVED RESIDENT
A
REDUCED AVERAGE
B SATISFACTION WITH
D
REDUCED AVERAGE
E F ?
How will it change our performance?
JOURNEY TIME FROM JOURNEY TIME FROM INCREASED RAIL FARES
THE SOUTH BANK
Operational Benefits
LEEDS TO LONDON LEEDS TO PARIS
AREA
Time Satisfaction Satisfaction/Assurance Cost Satisfaction/Assurance
INCREASED HOME
C PRICE VALIES
Income
?
Indicates a disbenefit
How will it contribute to strategy?
What are the other benefits/dis-benefits?
Strategic Value
INCREASED INCREASED
ECONOMIC
INVESTMENT IN
LEEDS
Effectiveness
PASSENGER
SATISFACTION
WITH SERVICES
Effectiveness
?
Effectiveness
?
Effectiveness
?
Efficiency
?
Effectiveness

25. High Speed Two
Case Study Exercise

26. Some Other Useful Examples

27. Example Stakeholder and Benefits Impact Matrix
Main Organisation Other Stakeholders
Customer Customer Customer
Org 1 Org 2 Org 3 Org 4 Org 5 Org 6
Group 1 Group 2 Group 3
Operational Benefit
A Greater assurance in the quality and
integrity of returns
B Reduced staff costs on administration of
customer's hard copy financial accounts
C Increased assurance in the accuracy of
returns and statements being filed
D Increased customer satisfaction with the
filing of financial accounts
E Increased assurance in debt
management in Collector Generals
Increased satisfaction with the quality
F and access to information on financial
accounts
G Increased confidence in the targeting of
interventions based on risk profile
H Increased confidence in the targeting of
interventions based on risk profile
The above table illustrates the impact of each benefit on the each stakeholder group. Benefits are in order of sequence only
High Low

28. Sample Operational Benefit Dashboard
Ref: A Benefit Description Impact Summary
Current RAG Status
Measurement
Question
Question to be asked to measure the benefit Exposure Rating 16
Director Owner AN Other
How will the benefits be measured and what is the unit of Operational Owner AN Other
Method and Unit of
measurement. Alignment with organisational
Measurement
performance management including relevant KPIs End date to be realised TBC
Baseline Actual Measurement to Measurement Benefit Dependency on other
Target Value
Value Values be done by Dates Category Benefits
Time ?
Baseline Cost?
? ? Actual(s)
Satisfaction ?
Income ?
Profitability ?
Likelihood Start End
Priority Actions Required to Realise the Benefit Ownership
of Failure Date Date
4 4
Risks Impacting Realisation of the Benefit Impact Probability Owner Mitigation

29. Questions and Answers