Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Benefits realisation management is one of the most important things than an organisation needs to do... but not at any cost, by Steve Parker, 28th June 2016

1,429 views

Published on

Benefits realisation management is one of the most important things than an organisation needs to do... but not at any cost
presented by Steve Parker
Tuesday 28th June 2016
APM Value Management SIG
Critical linkages between value and benefits

Published in: Business
  • I have always found it hard to meet the requirements of being a student. Ever since my years of high school, I really have no idea what professors are looking for to give good grades. After some google searching, I found this service ⇒ www.WritePaper.info ⇐ who helped me write my research paper. The final result was amazing, and I highly recommend ⇒ www.WritePaper.info ⇐ to anyone in the same mindset as me.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • You can try to use this service ⇒ www.HelpWriting.net ⇐ I have used it several times in college and was absolutely satisfied with the result.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Writing a good research paper isn't easy and it's the fruit of hard work. You can get help from writing. Check out, please HelpWriting.net
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Ryan Shed Plans 12,000 Shed Plans and Designs For Easy Shed Building! ☺☺☺ https://url.cn/sIEM11KJ
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • What if you had a printing press that could spit out hundred dollar bills on demand? Do you think that would change your life? ▲▲▲ http://t.cn/AisJWCv6
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

Benefits realisation management is one of the most important things than an organisation needs to do... but not at any cost, by Steve Parker, 28th June 2016

  1. 1. Steve Parker MSc, MRICS, MAPM, PVM, Chair of the IVM Committee Member APM Benefits SIG and Value SIG
  2. 2.  Alignment between VM and BM processes and method of application  Critical linkages between value and benefits  Difference between improving value and improving value for money  Role of the Value and Benefits Manager  Benefits Realisation Management is one of the most important things that an organisation needs to do ……. but not at any cost!  Questions and Answers Content © Institute of Value Management Ltd 2016
  3. 3. Alignment between VM and BM processes and method of application “You mean they both do that?” © Institute of Value Management Ltd 2016
  4. 4.  Value Management (and MoV) • A systematic method to define what value means for organisations and to communicate it clearly to across portfolios, programmes, projects and operations … (MoV)  Benefits Management (and BRM) • The identification, definition, tracking, realisation and , usually within a programme which can incorporate benefits identified via and MoV study … (Managing Benefits and MoV)  Business Case • The justification for an organisational activity (strategic, programme, project, operational) which typically contains , risks and timescales and against which … (Managing Benefits and MoV) Definitions © Institute of Value Management Ltd 2016
  5. 5.  Both Value and Benefits Management: • rely on application of underlying rigour for success; • are best applied iteratively, through stages of a lifecycle; • are used to provide assurance that outputs and benefits are appropriate; • lend themselves to use of workshops; • need trained facilitators to harness creativity and manage dynamics; • need qualified practitioners to apply rigour, use the right tools, properly and at the appropriate time; • need stakeholder consensus to have the proper effect; • use mapping to show useful ‘lines of sight’; • start with vision and objectives – i.e. from the ‘get-go’; • identify and justify outputs; and • improve value and used together, improve VfM. What do they have in common? © Institute of Value Management Ltd 2016
  6. 6. Value Management Benefits Management Vision and objectives •Value Tree and VM Strategy Clarify needs and wants •Value Profile / Function Map Alignment to objectives •Value Index Assess value for money •VfM Ratio Iteratively improve vfm •Value Engineering Vision and Objectives •BM Strategy and HL Benefits Identify and map benefits •Benefits Map and Profiles Plan benefits realisation •Benefits Realisation Plan Review and evaluate •Track output changes Optimise benefits •Search and test © Institute of Value Management Ltd 2016
  7. 7. Strategic Case Outline Business Case Full Business Case Business Case Review Scope /Value Definition MCA for VfM Value Engineering Value Incentives Lessons Learned BM Strategy Mapping and Profiling Baselines and Measures Plan Benefits Realisation Benefits Review Benefits Realisation Inception Option Design Procure Deliver Close Staged and iterative interventions Typical project life cycle Value Management Benefits Management Business Case Development = Workshop opportunity © Institute of Value Management Ltd 2016
  8. 8.  Why are workshops so necessary? • Group dynamics need to be managed; • Individual and group creativity needs to be nurtured and harnessed; • A consensus needs to be reached among passionate and diverse stakeholders, their buy-in is essential; and • Isolation from the day job is key and the objectives of the study need to be met and deliverables produced.  How can we ensure they are successful in achieving what they need to? • Follow your strategy and intervention study plan. • Appoint trained and experienced facilitators to manage dynamics and harness creativity; and • Make sure they are qualified practitioners that can plan the workshops, apply rigour, and use the right tools, properly and at the appropriate time. Workshops run by practitioners © Institute of Value Management Ltd 2016
  9. 9.  Qualification of competence gained • MAPM • MIVM (PVM and TVM) • MRICS • MCIOB • MICE, etc  Certification of knowledge gained • MoV • MB • MoR • MSP • PRINCE2, etc Qualification vs Certification © Institute of Value Management Ltd 2016
  10. 10. Value Management Benefits Management Vision/Mission Objectives Primary Function Secondary Funct. Enabler/Output Whole life cost Vision/Mission Objectives Benefits Business Change Enablers/Outputs Outcomes Why? Why? © Institute of Value Management Ltd 2016
  11. 11. Mapping - Value © Institute of Value Management Ltd 2016
  12. 12. Mapping - Benefits © Institute of Value Management Ltd 2016
  13. 13. Critical linkages between value and benefits Why we should work together © Institute of Value Management Ltd 2016
  14. 14.  The evidence of alignment is clear: • The processes and methodologies are similar • The times for action coincide • The skills required are similar • Both transcend PPM – initiation, investment management, business case, asset management and operations  Both VM and BM identify outputs (enablers) • BM articulates the importance of the benefits through mapping and profiling and transference into the business case • But how do we know what the shape and size of the outputs (enablers) and change initiatives need to be, to generate those benefits when put into operation? • How do we know how much it is worth spending on those outputs? • We have to use VM to optimize the value of attaining benefits. What are the critical links? © Institute of Value Management Ltd 2016
  15. 15.  Both VM & BM provide assurance that outputs and benefits are appropriate: • Used iteratively and at stages they ‘sharpen the saw’ • The ‘line of sight’ they provide gives confidence in this  ‘Appropriate’ or optimised means they: • Satisfy the needs and wants of the organisation • Align with strategy • Contribute to building robust business cases • Represent value for money! More critical links © Institute of Value Management Ltd 2016
  16. 16. Difference between improving value and improving value for money “Aren’t they the same?” © Institute of Value Management Ltd 2016
  17. 17.  The overwhelming case for BM is that it gives assurance that the originally planned benefits are going to be attained and have been attained. This is considerably “better value” than not attaining them fully or properly, but it is not necessarily best “value for money” at all.  The overwhelming case for VM is that you only achieve “value for money” if you first consider how important something is, before you decide how much it is worth spending on it, relative to its importance. This means that you need optimum benefits for least cost where affordability is an issue – which it always is these days it seems. The difference © Institute of Value Management Ltd 2016
  18. 18.  If minimum expenditure is a driving influence, and of course it should be, then you need to create outputs that perform the best way to get the benefits you are seeking. So you need optimum performance at least cost, which amounts to the value for money (VfM) equation we are all familiar with.  When we consider optimum performance, it represents how the output performs functionally to all stakeholder criteria, quantifiable and unquantifiable, tangible and intangible. Value for Money © Institute of Value Management Ltd 2016
  19. 19.  How outputs perform functionally is a key driver and determines how well they enable the attainment of benefits and to what quality level.  So you can’t really get to the nub of VfM with BM alone and you need to apply VM theory and methodology as an add-on to BM to achieve this.  The VfM Ratio in MoV is better described: The VfM Ratio © Institute of Value Management Ltd 2016
  20. 20. Role of the Value and Benefits Manager “Is it a bird? Is it a plane?” © Institute of Value Management Ltd 2016
  21. 21. What is your intervention strategy? What disciplines does your organisation rely on to improve value? Are disciplines teamed e.g. Risk and Value; Benefits and Value? What is your agenda for a stage gate health check? Here is a potential menu for such a health check. What would a Value & Benefits intervention call for? © Institute of Value Management Ltd 2016
  22. 22. Cycle of V&B Management © Institute of Value Management Ltd 2016
  23. 23. Benefits Realisation Management is one of the most important things that an organisation needs to do ……. but not at any cost! Better value and better VfM © Institute of Value Management Ltd 2016
  24. 24.  There is a convincing argument to integrate the VM & BM disciplines over the project or business change life cycle, over the asset life cycle, or wider for organisation development and business as usual, whichever is the breadth of focus.  The objectives and principles of each approach need to be carefully maintained, but they should fully interact so that benefits can be realised that truly represent value for money, not just improved value. The case for V&B © Institute of Value Management Ltd 2016
  25. 25.  Where V is VfM  Where B is Benefits  Where C is Whole-Life Cost Five ways to improve VfM © Institute of Value Management Ltd 2016
  26. 26. The future of Value Management Might this include more BM? © Institute of Value Management Ltd 2016
  27. 27. © Institute of Value Management Ltd 2016
  28. 28. © Institute of Value Management Ltd 2016
  29. 29. Questions and Answers Are VM & BM closely linked? steve@ivm.org,uk www.ivm.org.uk © Institute of Value Management Ltd 2016

×