Benefits realisation management, third sector forum, 13th May 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

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

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‘the only constant in life is change itself’

The simple truth about change

Herakleitos of Ephesus

(c.535 BC -475 BC)

Greek philosopher

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the predictable alongside the totally unexpected!

Our ever changing world h

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Goal

Change

Management

Knowledge Effort

Change Management & Knowledge h

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= CHANGE

Reasons for poor change performance

= CONFUSION X

= GRADUAL CHANGE X

= FALSE

STARTS X

= ANXIETY X

= FRUSTRATION X

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Individuals and Change

Adams, Hayes & Hopson (1976)

Relative level of engagement

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Change Challenge - Organisation h

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Financial Management Factor

£+

t

£-

Change Benefits

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Apparent ‘equilibrium’

Refreeze

Change

Kurt Lewin’s change model:

Unfreeze

Lewin, K (1952) Field Theory in Social Science

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Benefits Realisation

Management

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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

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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

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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.

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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 h

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A Benefits Management Model

5 Practices

7 Principles

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Benefits Management

Practices

Benefits Management – 5 Practices

Identify & Quantify

Value & Appraise

Plan

Realize

Review Benefits Management

Practices

An iterative process – easily merged within the organisations change and programme/project methodologies

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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 h

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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

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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

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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?

Me

asu

res

Go

als

Initia

tives

Vision &

Strategy

Me

asu

res

Go

als

Initia

tive

s

Me

asu

res

Goals

Initia

tive

s

Me

asu

res

Goals

Initia

tives

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

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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

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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

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Benefit

Business Change

Enabling Change

Disbenefit

Objective Intermediate

Benefit

Primary

Secondary

Typical Benefits Mapping Objects

Risk Dependency

Outcome Capability End Benefit Strategic Objective

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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)

Objective Benefit Business Changes

Enabler

Disbenefit

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Cassandra / Cranfield University h

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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

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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

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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

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Significant Organisational Disciplines

The implied order of precedence describes the need for organisational change activity to be focused on business needs.

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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

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Business Change Management

3P [initiatives]

Benefits Realisation Management

Organisational Change

Management

Significant Organisational Disciplines

Organisation

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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

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And there’s always the impact of the media.....

Benefits Realisation & Behaviour

Common Behaviours across organisations – likely to impact the BRM performance........

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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

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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

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