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
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

the predictable alongside the totally unexpected!
Our ever changing world

Goal
Change
Management
Knowledge
Effort
Change Management & Knowledge

= CHANGE
Reasons for poor change performance
= CONFUSION
X
=
GRADUAL
CHANGE
X
=
FALSE
STARTS
X
= ANXIETY
X
= FRUSTRATION
X

Individuals and Change
Adams, Hayes & Hopson (1976)
Relative level of engagement

Change Challenge - Organisation

Financial Management Factor
£+
t
£-
Change Benefits

Apparent
‘equilibrium’
Refreeze
Change
Kurt Lewin’s change model:
Unfreeze
Lewin, K (1952) Field Theory in Social Science

Benefits
Realisation
Management

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

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

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.

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

A Benefits Management Model
5
Practices
7
Principles

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

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

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

Strategic Direction
Vision
“Describes an end state. Short, inspirational, aspirational and memorable.
The cornerstone for delivery of a strategy”
Strategic
Objectives

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

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

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

Benefit
Business
Change
Enabling
Change
Disbenefit
Objective
Intermediate
Benefit
Primary
Secondary
Typical Benefits Mapping Objects
Risk Dependency
Outcome Capability End Benefit
Strategic
Objective

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

Cassandra / Cranfield University

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
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

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

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

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

Business Change
Management
3P [initiatives]
Benefits Realisation
Management
Organisational
Change
Management
Significant Organisational Disciplines
Organisation

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

And there’s always the impact of the media.....
Benefits Realisation & Behaviour
Common Behaviours across organisations – likely to impact the
BRM performance........

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

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

Benefits realisation management, third sector forum, 13th May 2015

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Benefits realisation management, third sector forum, 13th May 2015