Benefits mnagement

1. 009
BENEFITS
MANAGEMENT
/CHANGE
MANAGEMENT
Dr f Dejahang (BSc CEng, BSc (Hons) Construction Mgmt, MSc, MCIOB, PhD)
http://www.cpi-team.com

3. BENEFITS MANAGEMENT/CHANGE MANAGEMENT

4. 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”.

5. BENEFITS MANAGEMENT
BENEFITS
MANAGEMENT
• All organisations
invest in change in
order to deliver their
business strategy and
this is necessary to
remain competitive.

6. BENEFITS MANAGEMENT
BENEFITS
MANAGEMENT
•Benefits are the
single reason
why we
undertake
change.

7. 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.

8. 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.

9. BENEFITS MANAGEMENT
BENEFITS
MANAGEMENT
• Change such as
organisational design,
employee engagement
and customer
communications are all
part of benefits change.

10. 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:

11. BENEFITS MANAGEMENT
BENEFITS
MANAGEMENT
• senior executives
becoming dissatisfied
with process-led project
and programme
management not
delivering the expected
business outcomes;

12. BENEFITS MANAGEMENT
BENEFITS
MANAGEMENT
•benefits
management is often
wrongly seen as a
specialist discipline
requiring deep
expertise

13. 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.

14. 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.

15. 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;

16. BENEFITS MANAGEMENT
BENEFITS
MANAGEMENT
• Most business
organisations in the
UK are experiencing a
tightening of financial
spending, particularly
those in the public
sector.

17. 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.

18. 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.
BENEFITS
MANAGEMENT
• Approval for investment in
change now requires tangible
evidence of sustainable benefits,
both financial and non-financial.

19. BENEFITS MANAGEMENT
Organisations are working
hard to reduce their overall
cost.
They are using cost reduction
to improve their approach to
benefits management.

20. BENEFITS MANAGEMENT
Successful benefits
management provides a
rational argument to gain
approval for :
investment in change and
benefits management

21. BENEFITS MANAGEMENT
The contribution of
benefits
management to
successful strategic
planning

22. BENEFITS MANAGEMENT
Business strategy is
delivered through projects
and programmes
Many successful organisations
are using benefits identification
and planning to inform strategic
decision-making

23. 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

24. 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.

25. 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

26. BENEFITS MANAGEMENT
BENEFITS
MANAGEM
ENT
• Change is almost continual
for business organisations
and many people are
impacted.
BENEFITS
MANAGEM
ENT
• Portfolio management is
now recognised as a standard
board-level competency

27. 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’.

28. BENEFITS MANAGEMENT
BENEFITS
MANAGEMEN
T
• Traditionally, project and
programme management has
had limited exposure in the
board room.
BENEFITS
MANAGEMEN
T
• Portfolio management is now
the accepted standard for
managing the overall se of
projects and programmes across
an organisation.

29. BENEFITS MANAGEMENT
BENEFITS
MANAGEMEN
T
• Portfolio management ensures
alignment of change with corporate
business strategy whilst prioritising
the use of resources.
BENEFITS
MANAGEMEN
T
• Ultimately, senior executives are
interested in the strategic benefits
from change and the associated risks
to them.

30. 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

31. BENEFITS MANAGEMENT
•All organisations undertake
performance management at a
corporate level whether
through monthly management
accounts, performance reports
or other measures.

32. BENEFITS MANAGEMENT
BENEFITS
MANAGEMENT
• Public Service
Agreements detail
the aims and
objectives of UK
government
departments over a
three-year period.

33. BENEFITS MANAGEMENT
BENEFITS
MANAGEMENT
• Such agreements
also describe how
targets will be
achieved and how
performance against
these targets will be
measured.

34. 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.

35. 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.

36. This strategy will consist
of above elements:
Benefits
Identification
Benefits
Profiling
Benefits
Planning
Benefits
Monitoring
and Review

37. BENEFITS MANAGEMENT
Benefits/Dis-
benefits
Quantifiable
improvement
Measurable
improvement

38. Benefits Management
Initialization
of project
production
of pictures
Agreement
to continue
System
development

39. Benefits Management
Evidence
collection
Review and
learning
Development
of updated
pictures

42. Benefits Management process (OGC, 2008)