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.
Value destruction: why most projects fail to realize the benefits used to make the business case for change (and how to ad...
Provider of enterprise systems designed to improve 
project success rates and maximize business value 
Connexion Systems p...
SOME OF OUR CUSTOMERS
“A measurable improvement resulting from an outcome perceived as an advantage by one or more stakeholders”. 
-UK Governmen...
“The identification, definition, tracking, realisation and optimisation of benefits at initiative and portfolio level.” 
-...
WHY NOW? 
Benefits Realisation is not a new concept 
So why is there so much interest right now? 
Uncertain economic ti...
WHAT’S WRONG WITHTHE STATUS QUO?
WHAT THE ANALYSTS SAY 
“The 2014 Global PPM Survey illustrates that there is often a disconnect between the Executive Tea...
PROGRAM MANAGEMENT LIFECYCLE 
Planning 
Delivery 
Realisation 
Program Management 
Value Exaggeration 
Value Decay 
Value ...
Value exaggeration
VALUE EXAGGERATION 
Cost Matching 
Optimistic assumptions 
Valuing Non-financial benefits (egtime saved per transaction...
Value Destruction
VALUE DESTRUCTION 
•Focus on schedule and cost not value 
•Not linking delivery to value creation 
•Measuring and tracking...
Value Decay
VALUE DECAY 
•Not transferring the value to the business 
•Once program is complete, stop measuring 
•Who measures? 
•Doub...
Project 
Benefits 
PROJECT TRANSITION PROCESS
WHAT IS THE PROBLEM? 
Traditional approach is: 
Define the business case, 
Get approval and funding, 
Hand over to the ...
SO WHO IS RESPONSIBLEFOR DELIVERING VALUE? 
Either: 
a) the project/programme is made responsible for benefit realisation,...
SO HOW DO WE MAXIMISE VALUE? 
PEOPLE -Create an appropriate organisational structure 
PROCESS -Develop and apply a consi...
BRM PROCESSES 
There are many different process descriptions available 
All have one thing in common: 
It’s a feedback l...
BRM PROCESS: MANAGING BENEFITS
BRM PROCESS: CRANFIELD
BRM PROCESS: CONNEXION 
Stakeholders 
Benefits 
Sizing 
Timing 
Value (NPV) 
Deliver 
Measure 
Report 
CorrectiveAction
Benefits 
Identify 
Plan 
Monitor 
Evaluate 
Monitor 
Programme 
Definition 
Delivery 
Project 
Initiation 
Delivery 
Real...
CONCLUSION 
Planning 
Delivery 
Realisation 
Program Management 
•Engage with all stakeholders 
•Create realistic, measura...
Matt WilliamsPMP, MAIPMManaging Director 
ConnexionSystems Pty Ltd 
E:mwilliams@connexion.com.au 
M:+61 414 847 040 
www.c...
Upcoming SlideShare
Loading in …5
×

Value destruction: why most projects fail to realise the benefits used to make the business case for change (and how to address it)

2,641 views

Published on

Matt Williams' presentation will explore methods and techniques for linking the business case, project output delivery and realising business benefits and value from project investments.

A project business case would (should) ordinarily include a comprehensive, analytically derived cost/benefit analysis. The basis for approval of a business case is that the capital investment required to deliver the project will be outweighed by the financial and/or non-financial benefits that will be delivered.

There are three major factors that contribute to the expected business value from project investments not being achieved:

1. Value exaggeration - an overly optimistic cost/benefit analysis,
2. Value destruction - delays in project and programme delivery, and
3. Value decay - not transferring the value to the business.

This workshop will explore methods and techniques for linking the business case with project output delivery to realise business benefits and value from project investments.

Published in: Business
  • If we are speaking about saving time and money this site ⇒ www.WritePaper.info ⇐ is going to be the best option!! I personally used lots of times and remain highly satisfied.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Get the best essay, research papers or dissertations. from ⇒ www.WritePaper.info ⇐ A team of professional authors with huge experience will give u a result that will overcome your expectations.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • I can advise you this service - ⇒ www.HelpWriting.net ⇐ Bought essay here. No problem.
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • Hi there! I just wanted to share a list of sites that helped me a lot during my studies: .................................................................................................................................... www.EssayWrite.best - Write an essay .................................................................................................................................... www.LitReview.xyz - Summary of books .................................................................................................................................... www.Coursework.best - Online coursework .................................................................................................................................... www.Dissertations.me - proquest dissertations .................................................................................................................................... www.ReMovie.club - Movies reviews .................................................................................................................................... www.WebSlides.vip - Best powerpoint presentations .................................................................................................................................... www.WritePaper.info - Write a research paper .................................................................................................................................... www.EddyHelp.com - Homework help online .................................................................................................................................... www.MyResumeHelp.net - Professional resume writing service .................................................................................................................................. www.HelpWriting.net - Help with writing any papers ......................................................................................................................................... Save so as not to lose
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • DOWNLOAD THI5 BOOKS INTO AVAILABLE FORMAT (Unlimited) ......................................................................................................................... ......................................................................................................................... Download Full PDF EBOOK here { http://bit.ly/2m6jJ5M } ......................................................................................................................... Download Full EPUB Ebook here { http://bit.ly/2m6jJ5M } ......................................................................................................................... ACCESS WEBSITE for All Ebooks ......................................................................................................................... Download Full PDF EBOOK here { http://bit.ly/2m6jJ5M } ......................................................................................................................... Download EPUB Ebook here { http://bit.ly/2m6jJ5M } ......................................................................................................................... Download doc Ebook here { http://bit.ly/2m6jJ5M } ......................................................................................................................... ......................................................................................................................... ......................................................................................................................... .............. Browse by Genre Available eBooks ......................................................................................................................... Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult,
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

Value destruction: why most projects fail to realise the benefits used to make the business case for change (and how to address it)

  1. 1. Value destruction: why most projects fail to realize the benefits used to make the business case for change (and how to address it) Matt Williams Managing Director Connexion Systems
  2. 2. Provider of enterprise systems designed to improve project success rates and maximize business value Connexion Systems practice areas: •Benefits Realisation Management •Project Portfolio Management •Project Investment Management •Best Practices (PRINCE2, MSP, P3O) •Project Controls (Schedule, Earned Value) Enterprise Systems = People + Process + Tools ABOUT CONNEXION SYSTEMS
  3. 3. SOME OF OUR CUSTOMERS
  4. 4. “A measurable improvement resulting from an outcome perceived as an advantage by one or more stakeholders”. -UK Government Cabinet Office “A business outcome that delivers value to the organisation.” -NSW Department of Finance & Services BENEFITS DEFINED
  5. 5. “The identification, definition, tracking, realisation and optimisation of benefits at initiative and portfolio level.” -Steve Jenner, Managing Benefits (APMG) “The benefits realisation approach is used to determine whether a program has produced the value claimed in the business case. It is an approach that enables key stakeholdersto clearly measure the effectiveness of the program by focussing on business metrics, rather than just program/project metrics.” -Deloitte BENEFITS MANAGEMENT DEFINED
  6. 6. WHY NOW? Benefits Realisation is not a new concept So why is there so much interest right now? Uncertain economic times Shrinking Budgets Demanding Customers Globalisation Mean we need to get projects right the first time
  7. 7. WHAT’S WRONG WITHTHE STATUS QUO?
  8. 8. WHAT THE ANALYSTS SAY “The 2014 Global PPM Survey illustrates that there is often a disconnect between the Executive Team and PMs” –PwC
  9. 9. PROGRAM MANAGEMENT LIFECYCLE Planning Delivery Realisation Program Management Value Exaggeration Value Decay Value Destruction
  10. 10. Value exaggeration
  11. 11. VALUE EXAGGERATION Cost Matching Optimistic assumptions Valuing Non-financial benefits (egtime saved per transaction) Double Counting Cost of Money Risk weighting Difficult to measure whether outcomes have been achieved
  12. 12. Value Destruction
  13. 13. VALUE DESTRUCTION •Focus on schedule and cost not value •Not linking delivery to value creation •Measuring and tracking assumptions •Not confirming hypothesis made •Decision makers need to know ALL impacts of decisions
  14. 14. Value Decay
  15. 15. VALUE DECAY •Not transferring the value to the business •Once program is complete, stop measuring •Who measures? •Double-double counting (future programs steal value) •Corrective actions may be required
  16. 16. Project Benefits PROJECT TRANSITION PROCESS
  17. 17. WHAT IS THE PROBLEM? Traditional approach is: Define the business case, Get approval and funding, Hand over to the project delivery team Monitor progress Receive the finished product
  18. 18. SO WHO IS RESPONSIBLEFOR DELIVERING VALUE? Either: a) the project/programme is made responsible for benefit realisation, or b) No-one is! Project and Programme managers are focussed on delivery, not business benefits Time/Cost/Quality are their measures of success
  19. 19. SO HOW DO WE MAXIMISE VALUE? PEOPLE -Create an appropriate organisational structure PROCESS -Develop and apply a consistent approach across all projects/programmes in the organisation TOOLS -Implement supporting tools appropriate for the size and maturity of the organisation
  20. 20. BRM PROCESSES There are many different process descriptions available All have one thing in common: It’s a feedback loop; not a ‘one-off’ step (after project delivery)
  21. 21. BRM PROCESS: MANAGING BENEFITS
  22. 22. BRM PROCESS: CRANFIELD
  23. 23. BRM PROCESS: CONNEXION Stakeholders Benefits Sizing Timing Value (NPV) Deliver Measure Report CorrectiveAction
  24. 24. Benefits Identify Plan Monitor Evaluate Monitor Programme Definition Delivery Project Initiation Delivery Realisation CONNEXION PROCESS IN CONTEXT
  25. 25. CONCLUSION Planning Delivery Realisation Program Management •Engage with all stakeholders •Create realistic, measurable business case •Plan ALL work, not just project work •Transfer responsibility (VMO?) •Have mechanism to take corrective actions when required •Continue measuring until stabilised •Start measuring as soon as possible •Report benefit progress and forecasts in status reports •Change requests must include the benefit impact
  26. 26. Matt WilliamsPMP, MAIPMManaging Director ConnexionSystems Pty Ltd E:mwilliams@connexion.com.au M:+61 414 847 040 www.connexion.com.au QUESTIONS?

×