Organisations are increasingly focusing on benefits management to ensure projects and programmes deliver intended strategic benefits. Benefits management involves identifying, planning, tracking and optimizing the benefits of change initiatives. It helps gain approval for investments and informs strategic decision making. While the practice is still developing, many successful organisations now use benefits management to better link change delivery to strategic goals and realize projected benefits.
2. ASSOCIATION FOR PROJECT
MANAGEMENT
• APM’s mission statement is: “To
develop and promote the
professional disciplines of project
and programme management for
the public benefit”.
3. BENEFITS MANAGEMENT
BENEFITS
MANAGEMENT
• All organisations invest in change in
order to deliver their business strategy
and this is necessary to remain
competitive.
BENEFITS
MANAGEMENT
• Benefits are the single reason why we
undertake change.
4. BENEFITS MANAGEMENT
BENEFITS
MANAGEMENT
• Often the race for delivery of the project
detract managers from the reason why
change was undertaken in the first place.
BENEFITS
MANAGEMENT
• Most organisations undertake formal
projects and programmes to deliver
change.
5. BENEFITS MANAGEMENT
BENEFITS
MANAGEMENT
• Portfolio management has become the accepted
standard for managing the overall set of projects
and programmes across an organisation or
business area.
BENEFITS
MANAGEMENT
• Change such as organisational design, employee
engagement and customer communications are
all part of benefits change.
6. BENEFITS MANAGEMENT
BENEFITS
MANAGEMENT
• Formal benefits management is less than twenty
years old and has developed out of the limitations
of more traditional investment appraisal
techniques, such as Return on Investment.
BENEFITS
MANAGEMENT
• Benefit management is still developing and the
reasons are:
7. BENEFITS MANAGEMENT
BENEFITS
MANAGEMENT
• senior executives becoming dissatisfied with
process-led project and programme management
not delivering the expected business outcomes;
BENEFITS
MANAGEMENT
• benefits management is often wrongly seen as a
specialist discipline requiring deep expertise;
8. BENEFITS MANAGEMENT
BENEFITS
MANAGEMENT
• benefits management is often misperceived
as only a financial skill-set;
BENEFITS
MANAGEMENT
• a misperception that benefits management is
benefits tracking which provides monitoring
of metrics only after the change has occurred.
9. BENEFITS MANAGEMENT
BENEFITS
MANAGEMENT
• The increased emphasis on
benefits management in the
APM Body of Knowledge,
PRINCE2 and Managing
Successful Programmes is
starting to make a difference.
10. BENEFITS MANAGEMENT
BENEFITS
MANAGEMENT
• The economic climate is driving the requirement
for greater value for money, including cost
reduction, across both public and private sectors;
BENEFITS
MANAGEMENT
• Most business organisations in the UK are
experiencing a tightening of financial spending,
particularly those in the public sector.
11. BENEFITS MANAGEMENT
BENEFITS
MANAGEMENT
• Government is facing massive cuts-
choices over resource allocation,
head-count, capital programmes etc.
BENEFITS
MANAGEMENT
• The private sector is facing difficult
choices in order to minimise costs in
challenging market conditions.
12. BENEFITS MANAGEMENT
BENEFITS
MANAGEMENT
• In the recent APM national survey, 54%
of respondents indicated that cost
reduction is a primary driver of projects
and programmes in their organisation.
• Approval for investment in change now
requires tangible evidence of sustainable
benefits, both financial and non-financial.
13. BENEFITS MANAGEMENT
Organisations are working hard
to reduce their overall cost.
They are using cost reduction
to improve their approach to
benefits management.
15. BENEFITS MANAGEMENT
Business strategy is delivered through projects and programmes.
Many successful organisations are using benefits identification
and planning to inform strategic decision-making.
The contribution of benefits management
to successful strategic planning
16. BENEFITS MANAGEMENT
This ensures that desired strategic outcomes
are linked to project/programme delivery
and change management from their
inception.
UK public sector organisation is
using benefits identification and
planning
17. BENEFITS MANAGEMENT
This will help them to decide whether or
not to enter new markets and make a major
investment in new service delivery models.
The potential benefits are identified at a
high level, modelled and communicated to
the executive team to inform its strategic
decision-making.
18. BENEFITS MANAGEMENT
The need to align strategy, portfolio delivery
and embedding change into a single approach
to managing benefits.
Benefits management is emerging as a core
business skill for all managers engaged in
leading and implementing change
19. BENEFITS MANAGEMENT
BENEFITS
MANAGEMENT
• Change is almost continual for
business organisations and many
people are impacted.
BENEFITS
MANAGEMENT
• Portfolio management is now
recognised as a standard board-
level competency
20. BENEFITS MANAGEMENT
• According to John Kotter in his
Harvard Business Review article
on leading change, ‘Up to 70% of
change initiatives fail to deliver on
the benefits that they set out to
achieve’.
21. BENEFITS MANAGEMENT
BENEFITS
MANAGEMENT
• Traditionally, project and programme
management has had limited exposure in the
board room.
BENEFITS
MANAGEMENT
• Portfolio management is now the accepted
standard for managing the overall se of projects
and programmes across an organisation.
22. BENEFITS MANAGEMENT
BENEFITS
MANAGEMENT
• Portfolio management ensures alignment of
change with corporate business strategy
whilst prioritising the use of resources.
BENEFITS
MANAGEMENT
• Ultimately, senior executives are interested
in the strategic benefits from change and
the associated risks to them.
23. BENEFITS MANAGEMENT
BENEFITS
MANAGEMENT
• Successful benefits management provides
the framework to ensure that portfolio
management is benefits focussed.
BENEFITS
MANAGEMENT
• The need to align the management of
change with corporate performance
management across the organisation
24. BENEFITS MANAGEMENT
• All organisations undertake performance
management at a corporate level whether
through monthly management accounts,
performance reports or other measures.
25. BENEFITS MANAGEMENT
BENEFITS
MANAGEMENT
• Public Service Agreements detail the aims
and objectives of UK government
departments over a three-year period.
BENEFITS
MANAGEMENT
• Such agreements also describe how targets
will be achieved and how performance
against these targets will be measured.
26. BENEFITS MANAGEMENT
• In the recent APM national survey,
60% of respondents indicated that
their organisation had a standard set of
key performance indicators to
measure corporate business
performance.
27. BENEFITS MANAGEMENT
• However the same survey revealed
that only 12% of respondents used a
software application to support
management information on benefits.
• This implies a lack of maturity in the
software market for benefits
management.
28. This strategy will consist
of above elements:
Benefits
Identification
Benefits
Profiling
Benefits
Planning
Benefits
Monitoring
and Review