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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
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
‘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
the predictable alongside the totally unexpected!
Our ever changing world
https://www.apm.org.uk/event/apm-benefits-summit-2015
Goal
Change
Management
Knowledge
Effort
Change Management & Knowledge
https://www.apm.org.uk/event/apm-benefits-summit-2015
= 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
Individuals and Change
Adams, Hayes & Hopson (1976)
Relative level of engagement
https://www.apm.org.uk/event/apm-benefits-summit-2015
Change Challenge - Organisation
https://www.apm.org.uk/event/apm-benefits-summit-2015
Financial Management Factor
£+
t
£-
Change Benefits
https://www.apm.org.uk/event/apm-benefits-summit-2015
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
Benefits
Realisation
Management
https://www.apm.org.uk/event/apm-benefits-summit-2015
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
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
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
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
A Benefits Management Model
5
Practices
7
Principles
https://www.apm.org.uk/event/apm-benefits-summit-2015
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
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
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
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
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
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
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
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
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
Cassandra / Cranfield University
https://www.apm.org.uk/event/apm-benefits-summit-2015
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
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
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
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
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
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
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
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
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
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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Benefits realisation management, third sector forum, 13th May 2015

  • 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. 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. ‘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. the predictable alongside the totally unexpected! Our ever changing world https://www.apm.org.uk/event/apm-benefits-summit-2015
  • 5. Goal Change Management Knowledge Effort Change Management & Knowledge https://www.apm.org.uk/event/apm-benefits-summit-2015
  • 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. Individuals and Change Adams, Hayes & Hopson (1976) Relative level of engagement https://www.apm.org.uk/event/apm-benefits-summit-2015
  • 8. Change Challenge - Organisation https://www.apm.org.uk/event/apm-benefits-summit-2015
  • 9. Financial Management Factor £+ t £- Change Benefits https://www.apm.org.uk/event/apm-benefits-summit-2015
  • 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
  • 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. 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. 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. 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. A Benefits Management Model 5 Practices 7 Principles https://www.apm.org.uk/event/apm-benefits-summit-2015
  • 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. 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. 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. 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. 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. 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. 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. 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. 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. Cassandra / Cranfield University https://www.apm.org.uk/event/apm-benefits-summit-2015
  • 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. 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. 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. 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. 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. 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. 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. 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. 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. 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