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Benefits realisation management, third sector forum, 13th May 2015

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Third sector forum
Benefits realisation management
The value of benefits management and capacity and capability required to effect delivery
Ibis House - 13th May 2015

Published in: Business

Benefits realisation management, third sector forum, 13th May 2015

  1. 1. Benefits Realisation Management (BRM) ‘the value of benefits management and capacity and capability required to effect delivery’ Neil White Managing Director – ChangeVista Ltd 07890397046 Organisational Change Solutions - Portfolio and Benefits Management Third Sector Forum – Ibis House 13th May 2015
  2. 2. Neil White Change Management Specialist  20+ yrs RAF (Systems Engineering+)  Change Management for last 20yrs  Business Improvement (SEI CMMI) - Assessment Team Management  Transformation Change Manager  Portfolio Benefits & Business Change  MSc Change Management ‘an ardent believer that the ability to change is more important than the required changes themselves’ Association for Project Management (APM)  Benefits Management SIG – Secretary https://www.apm.org.uk/event/apm-benefits-summit-2015
  3. 3. ‘the only constant in life is change itself’ The simple truth about change Herakleitos of Ephesus (c.535 BC -475 BC) Greek philosopher https://www.apm.org.uk/event/apm-benefits-summit-2015
  4. 4. the predictable alongside the totally unexpected! Our ever changing world https://www.apm.org.uk/event/apm-benefits-summit-2015
  5. 5. Goal Change Management Knowledge Effort Change Management & Knowledge https://www.apm.org.uk/event/apm-benefits-summit-2015
  6. 6. = CHANGE Reasons for poor change performance = CONFUSION X = GRADUAL CHANGE X = FALSE STARTS X = ANXIETY X = FRUSTRATION X https://www.apm.org.uk/event/apm-benefits-summit-2015
  7. 7. Individuals and Change Adams, Hayes & Hopson (1976) Relative level of engagement https://www.apm.org.uk/event/apm-benefits-summit-2015
  8. 8. Change Challenge - Organisation https://www.apm.org.uk/event/apm-benefits-summit-2015
  9. 9. Financial Management Factor £+ t £- Change Benefits https://www.apm.org.uk/event/apm-benefits-summit-2015
  10. 10. Apparent ‘equilibrium’ Refreeze Change Kurt Lewin’s change model: Unfreeze Lewin, K (1952) Field Theory in Social Science https://www.apm.org.uk/event/apm-benefits-summit-2015
  11. 11. Benefits Realisation Management https://www.apm.org.uk/event/apm-benefits-summit-2015
  12. 12. The Change Journey 1.Strategy 2. Delivery 3. Embedding of Change Identifying and Planning the Benefits Enabling the Benefits Realising the Benefits Focus is on identifying and realising benefits Key Focus Key Focus Project/programme delivery Managing Successful Projects 2011, Axelos https://www.apm.org.uk/event/apm-benefits-summit-2015
  13. 13. Project Outputs build Organisational changes Capabilities Side-effects and consequences Benefits Disbenefits Organisations objectives also cause result in realise further helps achieve one or more enable trigger enable Outcomes realise Path to organisations objectives Managing Successful Projects 2011, Axelos https://www.apm.org.uk/event/apm-benefits-summit-2015
  14. 14. Three ‘paradigm shifts’ that enable effective BRM 1. Recognition that business change should have a ‘benefits’ and not a ‘delivery’ focus. 2. Recognition and exploitation of the fact that BRM ‘naturally’ engages people in the change process. 3. Recognition that the introduction of benefits management into an organisation is a transformational undertaking in its own right. https://www.apm.org.uk/event/apm-benefits-summit-2015
  15. 15. BRM Process Overview BRM provides assurance that an organization's investment in change is wholly both beneficial & fully aligned to its business development strategy Vision Strategic Objectives Functional Objectives Manage Benefits Changes Realise Benefits https://www.apm.org.uk/event/apm-benefits-summit-2015
  16. 16. A Benefits Management Model 5 Practices 7 Principles https://www.apm.org.uk/event/apm-benefits-summit-2015
  17. 17. Benefits Management Practices Benefits Management – 5 Practices Identify & Quantify Value & Appraise Plan Realize ReviewBenefits Management Practices An iterative process – easily merged within the organisations change and programme/project methodologies https://www.apm.org.uk/event/apm-benefits-summit-2015
  18. 18. Align benefits with strategy Start with the end in mind Utilize successful delivery methods Integrate benefits with performance management Manage benefits from a portfolio perspective Apply effective governance Develop a value culture Benefits Management - 7 Principles https://www.apm.org.uk/event/apm-benefits-summit-2015
  19. 19. Vision & Objectives Identify Benefits & Changes Define Initiatives Optimise the initiatives Manage Initiatives Manage Performance Engage Stakeholders Steve Robinson – June 2014 Project Magazine Stakeholders and BRM Understanding this can make BRM work for your organisation https://www.apm.org.uk/event/apm-benefits-summit-2015
  20. 20. Strategic Direction Vision “Describes an end state. Short, inspirational, aspirational and memorable. The cornerstone for delivery of a strategy” Strategic Objectives https://www.apm.org.uk/event/apm-benefits-summit-2015 https://www.apm.org.uk/event/apm-benefits-summit-2015
  21. 21. Balanced Scorecard Finance Customers People Internal To satisfy our shareholders and customers what business processes must we excel at? To achieve our vision, how should we appear to our customers? To succeed financially, how should we appear to our shareholders? To achieve our vision, what must we do to ensure our ability to change and improve? Measures Goals Initiatives Vision & Strategy Measures Goals Initiatives Measures Goals Initiatives Measures Goals Initiatives Objective: what the organisation wants to achieve Measure: the quantitative representation of a strategic objective Target: the value for each strategic measure that the organisation is striving to achieve Initiative: a program designed to help the organisation achieve the targeted value • Broaden Revenue Mix • Improve Operating Efficiency • Improve Enterprise Financial Management Capability • Customer Focus • Service Excellence • Trusted Business Partner • Develop new products • Understanding Customer Segments • Reduce cycle time • Provide Rapid Response • Cross sell the product line • Shift to more appropriate channels • Hire Key Technical Talent • Implement cross training • Provide access to transaction information • Align Personal Goals • Increase employee productivity Kaplan, Robert S.; Norton D. P. (1996). "Linking the Balanced Scorecard to Strategy". California Management Review 39 (1): 53–79 https://www.apm.org.uk/event/apm-benefits-summit-2015
  22. 22. To provide tools to analyse clinical trial data To facilitate parallel writing of Technical reports To support Technical writers To improve the compilation of the dossier To improve the quality of dossier content To achieve faster submission of the dossier To improve the navigability of the dossier To achieve faster approval of new drugs Key : = Objective = Bounding objective Strategy map for a pharmaceutical document management programme Example from Gerald Bradley; Benefits Realisation Management https://www.apm.org.uk/event/apm-benefits-summit-2015
  23. 23. Benefits Mapping New Sales System Improve sales process Increase sales Improve product knowledge of sales staff Retrain existing staff Improve local footfall Recruit experienced sales staff To increase shareholder value Upgrade access to public transport Benefit Enabling Change Objective Intermediate Benefit https://www.apm.org.uk/event/apm-benefits-summit-2015
  24. 24. Benefit Business Change Enabling Change Disbenefit Objective Intermediate Benefit Primary Secondary Typical Benefits Mapping Objects Risk Dependency Outcome Capability End Benefit Strategic Objective https://www.apm.org.uk/event/apm-benefits-summit-2015
  25. 25. Benefits Dependency Map (Bradley) To Increase Regional Economic Growth To increase jobs in regions To widen labour pool To increase passenger satisfaction Reduce commute time Shorter meeting journey time Increased UK Trading Improved GDP Increased regional spend More good workers attracted to London HSR Bill HS2 Hybrid Bill Link economic centres ( 2) Link Midlands to London ( 1) ObjectiveBenefit Business Changes Enabler Disbenefit https://www.apm.org.uk/event/apm-benefits-summit-2015
  26. 26. Cassandra / Cranfield University https://www.apm.org.uk/event/apm-benefits-summit-2015
  27. 27. Benefits map to ‘reduce carbon footprint’ Approved Availability of Public transport Improved time management Better journey planning More walking and cycling Greater use of public transport Fewer rushed journeys Increased use of energy saving bulbs Increased readiness to switch off unnecessary appliances Greater use of more carbon friendly cars Less use of car transport More carbon friendly driving (e.g. at optimum speed) Greater use of energy saving appliances Improved insulation of home Less unnecessary use of appliances Fewer longer holidays requiring Air travel More holidays that don’t require flying Reduced carbon Emissions from driving Increased energy conservation in the home Less air travel per holiday day To reduce Carbon footprint https://www.apm.org.uk/event/apm-benefits-summit-2015 Benefits Realisation Management, Gerald Bradley, Gower
  28. 28. Benefits Map for objective: ‘To increase sales contribution’ Improved quality of delivery Improved reputation More ITTs More leads Improved prospect Follow up More & better Quality proposals More & better Quality sales meetings More fixed Fee assignments Increased Fee rates More Repeat business More referrals More new assignments Increased sales margin Longer assignments More assignments To increase sales contribution Benefits Realisation Management, Gerald Bradley, Gower https://www.apm.org.uk/event/apm-benefits-summit-2015
  29. 29. Without ‘Enabling Changes’ we have no Benefits Realisation How effective BRM can be is wholly dependent on the capability maturity of the other key disciplines: Benefits Management - Dependencies Business first to last – if the Business is not prepared to take and incorporate changes Benefits Realisation will not happen Benefits Realisation performance impaired if not supported by organisation-wide change management https://www.apm.org.uk/event/apm-benefits-summit-2015
  30. 30. Significant Organisational Disciplines The implied order of precedence describes the need for organisational change activity to be focused on business needs. https://www.apm.org.uk/event/apm-benefits-summit-2015
  31. 31. Capability Maturity Levels 1 2 5 4 3 Process unpredictable, poorly controlled and reactive Process characterized for projects and is often reactive Process characterized for the organization and is proactive Process measured and statistically controlled Emphasis on continuous improvement Quantitatively Managed Initial Managed Optimizing Defined Maturity Levels Characteristics https://www.apm.org.uk/event/apm-benefits-summit-2015
  32. 32. Business Change Management 3P [initiatives] Benefits Realisation Management Organisational Change Management Significant Organisational Disciplines Organisation https://www.apm.org.uk/event/apm-benefits-summit-2015
  33. 33. The centrality of BRM Benefit Realisation Management Benefits Identifies & analysis Plans Highlights dependencies Stakeholders Engages Reviews & Governance Vision or End Goal Establishes Enablers & Business Change Defines requirements Blueprint Shapes Roles Clarifies Business Case Informs Delivery Structures Qualifies Risks Identifies Measures Determines, tracks & reports Drives Benefits Realisation Management, Gerald Bradley, Gower https://www.apm.org.uk/event/apm-benefits-summit-2015
  34. 34. And there’s always the impact of the media..... Benefits Realisation & Behaviour Common Behaviours across organisations – likely to impact the BRM performance........ https://www.apm.org.uk/event/apm-benefits-summit-2015
  35. 35. Benefits Realisation Management (BRM) ‘the value of benefits management and capacity and capability required to effect delivery’ Neil White Managing Director – ChangeVista Ltd 07890397046 Organisational Change Solutions - Portfolio and Benefits Management Third Sector Forum – Ibis House 13th May 2015 https://www.apm.org.uk/event/apm-benefits-summit-2015
  36. 36. The event is great value. It will provide a well- deserved opportunity for delegates to learn and network with others who are passionate about creating business value and realising benefits from their projects and programmes. Our conference comprises 6 speaker-led sessions and 6 workshops in our, easy-to-reach, central London location. Benefits SIG, Benefits Summit 25th June 2015 https://www.apm.org.uk/event/apm-benefits-summit-2015

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