Benefit Realisation Management (BRM) Exec... · decisions Faster receipt of ... For a programme to...

© Sigma (Bookham) Ltd

Benefit Realisation Management

(BRM)

Gerald Bradley

Chairman, Sigma Consulting

3rd October 2017

Benefits Seminar 2017


Some of sigma’s clients

Cranfield University

CIMA


What is BRM?

Benefit information

Leadership of change

Improved benefit–led

decision making

More benefitsrealised

‘BRM is the process of organising and managing so that potential benefits arising from change are actually achieved.’


4© Sigma (Bookham) Ltd

Without a structured approach to benefit realisation...

Why Benefits Management is so important


Purpose of Benefits Management

Earlierbenefits

Morebenefits

Reduced costs

Initial change curve

Benefit-led change curve

Achievedreturn

Time

To improve the AROI from change

© Change Director UK Ltd

Mission

Strategy

ROI

Benefits

Programmes

Projects

Investment in change

(Capex.)

Operations

Business as

Usual (BAU)

(Revex.)

Based on a diagram by ChangeDirector UK

Strategic change leadership – Scope of BRM

The more the

circles are aligned

and coalesce the

greater the

realisation of

benefits and the

overall ROI

Performance

Mgt.Portfolio

Mgt.

Change

Mgt.

Maximising value generation


Justifying

To justify?

Justification

Emphasis shift

Measurement

Measuring

To measure?

Justification

Realising

To realise?

Realisation

Measurement

Justification

Culture and mindset – why consider benefits?

In UK

until

1990


Benefit

Realisation

Management

Stakeholders

Roles

Reviews &

Governance

Delivery

structuresBlueprint

Enablers &

Business Changes

Plans

Risks

Business

Case

Vision or

End Goal

BenefitsMeasures

Engages Establishes

Identifies &

analyses

Defines

requirements

Shapes

Informs

Determines,

tracks & reports

Identifies

Highlights

dependenciesClarifies

Qualifies

Drives

Benefit

Realisation

Management

Stakeholders

Roles

Reviews &

Governance

Delivery

structuresBlueprint

Enablers &

Business Changes

Plans

Risks

Business

Case

Vision or

End Goal

BenefitsMeasures

Engages Establishes

Identifies &

analyses

Defines

requirements

Shapes

Informs

Determines,

tracks & reports

Identifies

Highlights

dependenciesClarifies

Qualifies

Drives

Scope and centrality of BRM


BRM aids communication

• Clear definition of key terms

• Careful and precise use of language

• Use of pictures, charts, tables, diagrams and maps

• Use of colour

One CSF for effective benefit realisation is ‘Quality Communication’

To facilitate quality, non-ambiguous communication, BRM utilises:

‘There is no greater impediment to the advancement of knowledge than the ambiguity of words’

Thomas Reid (1710-1769), Scottish Philosopher


Framework for introducing main BRM entities

Success is:

Knowing where you want to get to:

Knowing how to get there:

Knowing that you have arrived:

Measures

Enablers Business Changes

Acquiring new capabilities and embedding them within the culture, practices and behaviours of the organisation

Disbenefit

Minimising the impact of disbenefits

BenefitsObjectivesVision


Definition:

Elaboration:

Quality Gate:

An outcome of change that is perceived as positive by a stakeholder

Typically these are outcomes which are valuable to the organisation and measurable

• starts with an adjective indicating the direction of expected improvement - e.g. reduced,

increased, greater, fewer, better, improved (But try to be MORE SPECIFIC than improved)

• value likely to change gradually

• it would have no direct cost associated with it

• measures are possible

• baseline measures could be found

An outcome of change which is

perceived as negative is referred to as a

Benefit

Disbenefit


Strategy

Delivery

BRM / change process, with review points

1.

Set vision

and

objectives2.

Identify

benefits and

changes

3.

Finalise

requirements

& organise

resources4.

Optimise

plans & build

/ acquire

enablers

5.

Manage

implementation

& change

6.

Manage

performance

R6

R5

R4 R3

R2

R1

Engage

stakeholders


PMO

Typical BRM Roles & Structure

Programme

Board

Senior

Responsible

Owner

Benefit

Facilitator

Enabler

Project

Manager

Business

Programme

Manager

Business Change

Manager/Authority

Business Unit

Mgrs (& BCMs)

The role of the Benefit Facilitator is recognised by MSP but called Benefits Realisation Manager


The Benefit Facilitation Role

The role:

• Purpose is to support projects in benefit realisation, ensuring claims are realistic, benefit opportunities are not missed and success, in terms of benefit realisation, is achieved

• A Centre of Expertise for benefit realisation matters

• Role is probably about 20% challenge and 80% support

Skills required:

• Considerable expertise in benefit realisation

• Credibility with senior managers

• Excellent facilitation skills

• Good understanding of the business environment

Location of the role

• In a central position outside all specific programmes and projects

• Typically in a Portfolio Management Office or Performance Improvement Function

• Preferably not in a Finance Function

Advantages of a central role over a programme or project role

• It can process new ideas before a programme or project is formed (i.e. facilitate phase 1 and 2 of the sigma change cycle)

• It can process all new ideas, speedily and on a consistent basis

• It can ensure benefits continue to be realised after a programme / project has completed


Bridging the gap - looking from both ends

VISION

Programmes and projects should

be aligned to vision and

the organisation's mission

Starting with end point and mapping path to get there


The bridges (maps)

may consist of

processes or

changes or

intermediate

benefits

A map is required showing how the enablers will deliver the objectives

Bounding Objectives

for programme

To increase

effectiveness

To Improve

deployment

To speed up

responses

To reduce costs

Projects delivering

Capabilities

Doing projects in the right way – bridging the abyss


IT / BPM

Benefits

IT

Benefits

We need to put the horse before the cart

1 - Be very clear about who is driving and where we are going

2 – make sure that IT supports what the business needs


Real example of ‘bridge’ or ‘map’

Enabler

(IT System)

Business

Objective

Benefits

Enabler

Features

Changes

To

Increase

profit


Real example of ‘bridge’ or ‘map’

Business

Objective

Benefits

Enabler

Features

Changes

To increase

profit

More sales

Increased

sales margin

Reduced costs

Electronic

communication

Meetings

scheduler

Document

management

Search

facilities

Work interactively

with country

managers

Share

information

Co-author

documents

Encourage

electronic

discussion

Capture

learning

Share 'best

practices'

Cross-fertilise

between

countries

Increased

effectiveness

More focused

sales force

Improved

succession

planning

Improved

launch

planning

Improved

performance of

Country Managers

Maximised

launch impact

More focused

selling

Faster

resolution of

pricing issues

Improved

pricing

Increased

efficiency

New EnablerEnabler

(IT System) To

Increase

profit

time


Building a BDM from an Outline Business Case

A Local Authority needed to reduce its expenditure by £8m pa over a five year

period, while maintaining an acceptable level of service to the community it serves –

including the local voters.

To achieve this challenging saving the Council anticipated investing in a number of

programmes to change the way they operate. To help with this they engaged one of the

large consultancies, with considerable local authority experience, to help shape these

programmes.

This consultancy identified 10 areas for potential major improvement and created an Outline

Business Case for each. These cases were of variable quality and did little more than

identify and cost the required enablers and business changes and determine and value the

expected benefits.

In order to implement the proposals the Local Authority needed to put some flesh on these

skeletal suggestions (i.e. bridge the gap – see next slide).and approached Sigma for help. To

demonstrate the value of the mapping approach to bridge this gap, one of the better Outline

Cases was chosen – a programme “To Improve Procurement”.

The benefits, enablers and changes, taken from one of the better outline cases were used

by me to demonstrate to Management the value of benefit mapping and the risks they faced

without it.


Bounding Objectives

for programme

To increase

effectiveness

To Improve

deployment

To speed up

responses

To reduce costs

Projects delivering

Capabilities

Outline business case – very poor quality

?


To improve

procurement

Reduced cost of

supplies and

services

Reduced cost of

inventory &

storage

Reduced cost of

procurement

activity

Improved service

to customers

Increased value

from existing

contracts

Better new

contracts

Benefits Map for objective

To

Improve Procurement

Maps to identify/confirm the required

changes

Case Example – Local Authority


To improve

procurement

Reduced cost of

supplies and

services

Reduced cost of

inventory &

storage

Reduced cost of

procurement

activity

Improved service

to customers

Increased value

from existing

contracts

Fewer applications

used in

procurement / CM

Improved use of

procurement

procedures

Improved

accountability

Improved

negotiation

Fewer suppliers

Increased use of

electronic

procurement

Less off-contract

maverick spend

Better new

contracts

Better use of

buying power

Faster receipt of

services

Less labour

intensive tendering

cycle


To

Improve Procurement

Maps to identify/confirm

the required changes


To improve

procurement

Reduced cost of

supplies and

services

Reduced cost of

inventory &

storage

Reduced cost of

procurement

activity

Improved service

to customers

Increased value

from existing

contracts

Fewer applications

used in

procurement / CM

Improved use of

procurement

procedures

Improved

accountability

Greater use of

specilist buyers

Improved

negotiation

Improved

development of

specialist buyers

Fewer suppliers

Increased use of

electronic

procurement

Less off-contract

maverick spend

Increased awareness

of importance of using

procedures

Better new

contracts

Better use of

buying power

Better understanding

of suppliers and

marketplace

Improved

purchasing

decisions

Faster receipt of

services

Improved (use

of) MI

Easier document

control

Less labour

intensive tendering

cycle


To

Improve Procurement


To improve

procurement

Reduced cost of

supplies and

services

Reduced cost of

inventory &

storage

Reduced cost of

procurement

activity

Improved service

to customers

Increased value

from existing

contracts

Fewer applications

used in

procurement / CM

Improved use of

procurement

procedures

Improved

accountability

Greater use of

specilist buyers

Improved

negotiation

Improved

development of

specialist buyers

Fewer suppliers

Increased use of

electronic

procurement

Less off-contract

maverick spend

Increased awareness

of importance of using

procedures

Better new

contracts

Better use of

buying power

Better understanding

of suppliers and

marketplace

Improved

purchasing

decisions

Faster receipt of

services

Improved (use

of) MI

Easier document

control

Less labour

intensive tendering

cycle

MI on Suppliers

and

Marketplace

SAP e-

Procurement

Module

Train staff in

Contract

Management

Train staff in

use of system

Benefit Dependency Map

for objective

To

Improve Procurement


Strategy

Delivery

BRM / change process, with review points

1.

Set vision

and

objectives2.

Identify

benefits and

changes

3.

Finalise

requirements

& organise

resources4.

Optimise

plans & build

/ acquire

enablers

5.

Manage

implementation

& change

6.

Manage

performance

R6

R5

R4 R3

R2

R1

Engage

stakeholders


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In a stakeholder workshop gather answers to one of the following questions:

• Why do we need to change? (it is usually helpful to make this more explicit –

e.g. why do we need to improve document handling? Avoid pre-empting the

solution in the question)

Group these answers and determine group headings expressed as objectives

Using drivers for change to determine objectives


Create a Strategy Map of linked objectives

For a programme to roll-out Benefit Realisation Management (BRM) within an organisation,

clustering and linkage resulted in the following Objectives Linkage Diagram (Strategy Map).

What would you choose as a set of key objectives for the programme?

To increase

awareness and

understanding of

benefit realisation

issues

To improve the

ROI of

programmes

To create

and maintain

an optimum

portfolio

To introduce a

standard Benefit

Management

Methodology

To

produce better

quality business

cases

To improve

stakeholder

engagement

To improve

business

strategy

To change to a

more benefit

focused culture

To improve

benefit tracking

and reporting

To increase

shareholder

value


Determine the bounding objectives for the change

For a programme to roll-out Benefit Realisation Management (BRM) within an organisation,

clustering and linkage resulted in the following Objectives Linkage Diagram (Strategy Map).

These objectives are key and bound the programme.

To increase

awareness and

understanding of

benefit realisation

issues

To improve the

ROI of

programmes

To create

and maintain

an optimum

portfolio

To introduce a

standard Benefit

Management

Methodology

To

produce better

quality business

cases

To improve

stakeholder

engagement

To improve

business

strategy

To change to a

more benefit

focused culture

To improve

benefit tracking

and reporting

To increase

shareholder

value


Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Creating the maps - Benefits then Benefit Dependency

1. Start with a bounding objective and determine a set of End Benefits

2. Complete Benefits Map continuing to work right to left

3. Turning the Benefits Map into a Benefit Dependency Map by working left to right

identifying and adding the necessary Enablers and Business Changes (BCs)

BC

BC

BC

BC

Enabler

Enabler

BC

Hope this work

s tom morrow

BC

BC

Enabler

Enabler

BC

BC

End

Benefit

End

Benefit

End

Benefit

Enabler

Enabler

Bounding

Objective

Enabler

BC

BC

BC

BCEnabler

BCEnabler

BCEnabler

BC

BCEnabler

Enabler BC


To reduce carbon

footprint

Start with a single objective of the change


To reduce carbon

footprint

Reduced carbon

emissions from

driving

Increased energy

conservation in

the home

Less air travel

Determine an equivalent set of End Benefits

The End Benefits should be:

• Collectively sufficient

• Individually necessary

• Mutually independent


Adding in the first level of intermediate benefits

To reduce carbon

footprint

Reduced carbon

emissions from

driving

Increased energy

conservation in

the home

Less air travel

Less use of car

transport

Greater use of

more carbon

friendly cars

More carbon

friendly driving (eg

at optimum speed)In a similar way these should ideally be:

• Collectively sufficient

• Individually necessary

• Mutually independent


To reduce carbon

footprint

Reduced carbon

emissions from

driving

Increased energy

conservation in

the home

Less air travel

Less use of car

transport

Greater use of

more carbon

friendly cars

More carbon


at optimum speed)

Greater use of

energy saving

appliances

Less unnecessary

use of applicances

Improved

insulation of home

Adding in the first level of intermediate benefits


To reduce carbon

footprint

Reduced carbon

emissions from

driving

Increased energy

conservation in

the home

Less air travel

Less use of car

transport

Greater use of

more carbon

friendly cars

More carbon


at optimum speed)

Greater use of

energy saving

appliances

Less unnecessary

use of applicances

Improved

insulation of home

Less air travel

per holiday day

Fewer holiday

days

Completing the first level of intermediate benefits

Note the inclusion of a disbenefit.

These should be identified alongside

benefits, though it is not always

appropriate to include them in the map


To reduce carbon

footprint

Reduced carbon

emissions from

driving

Increased energy

conservation in

the home

Less air travel

Less use of car

transport

Greater use of

more carbon

friendly cars

More carbon


at optimum speed)

Greater use of

public transport

More walking

and cycling

Greater use of

energy saving

appliances

Less unnecessary

use of applicances

Improved

insulation of home

Fewer rushed

journeys

Less air travel

per holiday day

Fewer holiday

days

Adding in the second level of intermediate benefits


To reduce carbon

footprint

Reduced carbon

emissions from

driving

Increased energy

conservation in

the home

Less air travel

Less use of car

transport

Greater use of

more carbon

friendly cars

More carbon


at optimum speed)

Greater use of

public transport

Increased use

of energy

saving bulbs

More walking

and cycling

Greater use of

energy saving

appliances

Less unnecessary

use of applicances

Improved

insulation of home

Increased readiness to

switch off unnecessary

appliances

Fewer rushed

journeys

Less air travel

per holiday day

Fewer holiday

days

Adding in the second level of intermediate benefits


To reduce carbon

footprint

Reduced carbon

emissions from

driving

Increased energy

conservation in

the home

Less air travel

Less use of car

transport

Greater use of

more carbon

friendly cars

More carbon


at optimum speed)

Greater use of

public transport

Increased use

of energy

saving bulbs

More walking

and cycling

Greater use of

energy saving

appliances

Less unnecessary

use of applicances

Improved

insulation of home

Fewer longer

holidays requiring

air travel

More holidays that

don't require flying



appliances

Fewer rushed

journeys

Less air travel

per holiday day

Fewer holiday

days

Completing the second level of intermediate benefits


To reduce carbon

footprint

Reduced carbon

emissions from

driving

Increased energy

conservation in

the home

Less air travel

Less use of car

transport

Greater use of

more carbon

friendly cars

More carbon


at optimum speed)

Greater use of

public transport

Improved

availability of

public transport

Better journey

planning

Increased use

of energy

saving bulbs

More walking

and cycling

Greater use of

energy saving

appliances

Less unnecessary

use of applicances

Improved time

management

Improved

insulation of home

Fewer longer

holidays requiring

air travel

More holidays that




appliances

Fewer rushed

journeys

Less air travel

per holiday day

Fewer holiday

days

Completing the Benefits Map

At this stage it

is nothing

more than a

structured

wish list


To reduce carbon

footprint

Reduced carbon

emissions from

driving

Increased energy

conservation in the

home

Less air travel

Less use of car

transport

Greater use of more

carbon friendly cars

More carbon friendly

driving (eg at

optimum speed)

Greater use of

public transport

Improved

availability of

public transport

Better journey

planning

Increased use of

energy saving

bulbs

More walking and

cycling

Greater use of

energy saving

appliances

Less unnecessary

use of applicances

Improved time

management

Improved insulation

of home

Fewer longer

holidays requiring air

travel

More holidays that




appliances

Fewer rushed

journeys

Lobby national

and local

government

New Bicycle

Delegate more

More efficient

boiler

Check & remedy

where insulation

could be improved

Investigate UK &

Eurpoean

options

Take holidays in

longer blocks

Less air travel

per holiday day

Fewer holiday

days

Enabler

Business

Change

Intemediate

Benefit

End Benefit

Primary /

Bounding

Objective

Disbenefit

KEY

The Benefit Dependency Map is then constructed by

adding the required enablers & changes


Generic Benefits Map to illustrate weighting

Bounding

Objective

End Benefit

End Benefit

End Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit


Bounding

Objective

End Benefit

End Benefit

End Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

60%

30%

10%

30%

30%

40%

40%

40%

20%

70%

30%

40%

100%

25%

60%

35%

50%

50%

30%

60%

40%

40%

60%

100%

75%

25%

80%

20%

100%

40%

70%

Generic Benefits Map with weighted paths


Using weightings to compute relative scores

Bounding

Objective

1,000

End Benefit

600

End Benefit

300

End Benefit

100

Intermediate

Benefit

180

Intermediate

Benefit

180

Intermediate

Benefit

360

Intermediate

Benefit

120

Intermediate

Benefit

130

Intermediate

Benefit

30

Intermediate

Benefit

342

Intermediate

Benefit

234

Intermediate

Benefit

243

Intermediate

Benefit

169

Intermediate

Benefit

12

Intermediate

Benefit

137

Intermediate

Benefit

621

Intermediate

Benefit

196

Intermediate

Benefit

46

60%

30%

10%

30%

30%

40%

40%

40%

20%

70%

30%

40%

100%

25%

60%

35%

50%

50%

30%

60%

40%

40%

60%

100%

75%

25%

80%

20%

100%

40%

70%


1,000

To reduce carbon

footprint

500

Reduced carbon

emissions from

driving

150

Increased energy

conservation in the

home

350

Less air travel

150

Less use of car

transport

150

Greater use of more

carbon friendly cars

200

More carbon friendly

driving (eg at

optimum speed)

112

Greater use of

public transport

45

Improved

availability of

public transport

80

Better journey

planning

24

Increased use of

energy saving

bulbs

38

More walking and

cycling

60

Greater use of

energy saving

appliances

60

Less unnecessary

use of applicances

120

Improved time

management

30

Improved insulation

of home

60



appliances

200

Fewer rushed

journeys

50%

15%

35%

30%

30%

40%

40%

20%

40%

25%

75%40%

100%60%

40%

40%

Lobby national

and local

government

New Bicycle

Delegate more

More efficient

boiler

Check & remedy

where insulation

could be improved

Investigate UK &

Eurpoean options

Take holidays in

longer blocks 70%

30%

100%

245

Less air travel per

holiday day

105

Fewer holiday

days

122

Fewer but longer

holidays requiring

air travel

122

More holidays that


50%

50%

Enabler

Business

Change

Intemediate

Benefit

End Benefit

Primary /

Bounding

Objective

Disbenefit

KEY

Paths are weighted and scores computed to facilitate

the prioritisation of options


Case Example: Challenge to transform organisation

Improve processes Change behaviours and culture

OGC Gateway – “weak on

benefits, get help from BRM

specialist”, such as sigma

Set up Programme &

applied LEAN

New generic processes

Many hundreds of

improvement

opportunities

identified

No mechanism for

prioritisation or alignment with

Business Strategy

sigma’s BRM applied,

especially sigma’s

mapping

SRO attended BRM

Masterclass facilitated by

sigma

sigmacommissioned

sigma’s maps used to

prioritise the process

improvements and identify

the required business and

cultural changes


How the maps feed other important documents

No: Benefit in Short:

Detailed Description:

Benefit Category:

Business Impact:

No: Business Objective Supported: No: Other benefits contributed to:

sigma Value

type: Scorecard:

MA

NA

GE

ME

NT

CO

MM

ITM

EN

T

Target Value: Change Type:

Enablers – Features:

EN

AB

LE

RS

Required Business Changes:

Culture Organisational Policy Process

BU

SIN

ES

S A

CT

ION

Name / Job Title: Function / Dept:

Who receives the benefit:

Who is accountable:

Measures: Current Value: Target Value: Start Time

End Time

Frequency:

AC

CO

UN

TA

BIL

ITY

To whom are measures reported:

AL

L

Issues / Risks

Benefit Profile

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

Benefit

Intermediate

BenefitBC

BC

BC

BC

Enabler

Enabler

BC

Hope this work

s tom morrow

BC

BC

Enabler

Enabler

BC

BC

End

Benefit

End

Benefit

End

Benefit

End

Benefit

End

Benefit

End

Benefit

Enabler

Enabler

Bounding

Objective

Enabler

BC

BC

BC

BCEnabler BCEnabler

BCEnabler BCEnabler

BCEnabler

BC

BCEnabler

BC

BCEnabler BCEnabler

Enabler BCEnabler BC

Sigma’s Benefit Dependency Map

Risk Register

Benefit Realisation Plan Business Case

Current Final

Front Office

Back Office

Support

Blueprint

Change Action PlanNo. Enabler / Business Change Map Score Cost PPP Id. Owner Start Date End Date Benefits which it directly enables



Benefit Category:

Business Impact:


sigma Value

type: Scorecard:

MA

NA

GE

ME

NT

CO

MM

ITM

EN

T



EN

AB

LE

RS



BU

SIN

ES

S A

CT

ION



Who is accountable:


End Time

Frequency:

AC

CO

UN

TA

BIL

ITY


AL

L

Issues / Risks

Benefit Profile

Stakeholder role / name

Benefits to be receivedRef. No. Description Due date

Disbenefits expectedRef. No. Description Due date

Benefits which stakeholder is responsible for achievingRef. No. Description Measures Target Timescale

Benefits which stakeholder is responsible for tracking and reportingRef. No. Description Measures Target Timescale

Changes which stakeholder is responsible for deliveringRef. No. Description Actions Start date End date

Changes which stakeholder is likely to experienceRef. No. Description Actions Start date End date

Stakeholder Profile

Stakeholder role / name







Stakeholder Profile

BDMs feed key portfolio, programme & project docs




Benefit Category:

Business Impact:


sigma Value

type: Scorecard:

MA

NA

GE

ME

NT

CO

MM

ITM

EN

T



EN

AB

LE

RS



BU

SIN

ES

S A

CT

ION



Who is accountable:


End Time

Frequency:

AC

CO

UN

TA

BIL

ITY


AL

L

Issues / Risks

Benefit Profile


Name of stakeholder:







Stakeholder Profile

MSP 2011 supports

this concept but

limits its scope to

programme rather

than portfolio level


Key benefits and

disbenefits by

stakeholder Exe

cu

tive

Ma

na

gem

en

t

Bu

sin

es

s

Ma

na

gem

en

t

Bu

sin

es

s U

se

rs

IS F

un

cti

on

Pro

gra

mm

e T

ea

m

Fin

an

ce

Fu

ncti

on

Key Benefits

More effective project portfolio

Earlier recognition of ineffective projects

More financial benefits realised

More non-financial benefits realised

Improved management of risk

Reduced IS/IT costs

Improved image of IS/IT

Key disbenefits

Extra effort by business

Slower start to programme

IS Project Targets threatened

BRM considers and engages stakeholders

MSP 2007 has an example – Fig. 7.10


Classifying benefits - sigma value types

These benefit types are now recognised and recommended in MSP2007 (Table 7.2)

Increased sales

Quicker

performance of

tasks

Improved

management of

insurance risk

Greater customer

satisfaction

Reduced costsFewer steps in a

process

Improved image

Sigma

Value typeDefinition

Example

Financial/

CashableNon-financial/

Non-cashable

T

a

n

g

i

b

l

e

Definite

Expected

Logical

Intangible

Value may be predicted

on the basis of someone

else’s experience or

based on historic trends

Logically may be

anticipated and whose

value may be measured

but not predicted

May be anticipated but

difficult to substantiate

Value may be predicted

with confidence or

certainty – not affected

by external factors

Measu

rab

le


Non-financial benefits are non-financial but are still key

If the benefit is “fewer steps in a process”, the measure, which is also the value of the benefit is the

number of steps in the process – the baseline may be 72 and the target 55 and the value at any point

is the current number of steps in the process.

It is important not to try to give this a financial value, as of itself it is not a financial benefit. It may lead

to a financial benefit, which would be shown on the Benefit Map, but this depends on the intention.

Value benefits in the way they are described

1 Fewer

steps in a process

2 Faster response to

customers

3 Improved productivity

4 More time

spent with customers

5 More coffee breaks

6 Shorter working day

7 Fewer staff

8 Increased sales

revenue

9 Improved networking

10 Improved staff morale

11 Reduced salary costs


Non-financial benefits are non-financial but are still key

If the benefit is “fewer steps in a process”, the measure, which is also the value of the benefit is the

number of steps in the process – the baseline may be 72 and the target 55 and the value at any point

is the current number of steps in the process.

It is important not to try to give this a financial value, as of itself it is not a financial benefit. It may lead

to a financial benefit, which would be shown on the Benefit Map, but this depends on the intention.

Value benefits in the way they are described

1 Fewer steps in a process

2 Faster response to customers

3 Improved productivity

4 More time spent with customers

5 More coffee breaks

6 Shorter working day

7 Fewer staff

8 Increased sales

revenue

9 Improved networking

10 Improved staff morale

11 Reduced salary costs


Use maps with RAG to monitor portfolio’s components

Less

frustration for

customers

Improved

image

Improved

customer

service

Fewer errors

Increased

sales

revenue

Improved

customer

retention

More quality

time with

customers

More focused

selling

Improved

staff morale

Less unpaid

overtime

Increased

productivity

Easier sales

processing

Better information

on customer and

sales profitability

Customer

Database and

Sales System

More new

customers

To increase

sales revenue

Customer

database and

Sales

processing

system

Benefits Map for a High Street Bank Programme:

*

* Overtime was not paid and staff typically worked over 9 hours per day but were only paid for 7.5 hours.


Measures with baselines, targets and timescales.

MeasureBaseline

value

Start

Period

End

Period

Target

ValuePeriod 1 Period 2 Period 3 Period 4

No. of errors per 100 sales 7.5 1 3 2.5

No. of written complaints per week 9 2 4 2

No. of phone complaints per week 2 4 5

Customer service rating (%) 55 3 8 80

No. of sales processed pp per day 8.5 2 4 12

Value of sales processes pp per day £480 2 4 £750

Total overtime worked per week (hr) 55 2 4 15

Staff morale rating (%) 68 3 6 80

Time spent with customers (hr/wk) 450 3 6 1000

No. of new customers per period 3 4 7 10

No. of lost customers per period 5 4 7 2

Lead conversion rate (%) 28 4 8 40

Sales revenue £300,000 4 9 £1m

Period = 3 months

7

10

25

55

8.5

£500

90

72

40

3

5

25

£286,000

4

8

21

60

9.0

£600

80

72

45

4

4

33

£275,000

3

6

15

70

10

£680

50

75

60

3

4

33

£290,000

2.5

4

9

82

12

£770

25

82

90

7

3

33

£350,000

Tracking the benefits


Measure reporting – planned and actual – by owner

MeasureBaseline

value

Start

Period

End

Period

Target

ValuePeriod 1 Period 2 Period 3 Period 4

No. of errors per 100 sales 7.5 1 3 2.5 7 4 3 2.5

No. of written complaints per week 9 2 4 2 10 8 6 4

No. of phone complaints per week 2 4 5 25 21 15 9

Customer service rating (%) 55 3 8 80 55 60 70 82

No. of sales processed pp per day 8.5 2 4 12 8.5 9 10 12

Value of sales processes pp per day £480 2 4 £750 £500 £600 £680 £770

Total overtime worked per week (hr) 55 2 4 15 56 50 35 20

Staff morale rating (%) 68 3 6 80 70 72 74 75

Time spent with customers (hr/wk) 450 3 6 1000 440 450 520 660

No. of new customers per period 3 4 7 10 3 4 3 7

No. of lost customers per period 5 4 7 2 5 4 4 3

Lead conversion rate (%) 28 4 8 40 25 33 33 33

Sales revenue £300,000 4 9 £1m £286,000 £275,000 £290,000 £350,000

Period = 3 months

Sales Manager

Sales Processing Manager

Customer Relationship Manager

HR Manager


Less

frustration for

customers

Improved

image

Improved

customer

service

Fewer errors

Increased

sales revenue

Improved

customer

retention

More quality

time with

customers

More focused

selling

Improved staff

morale

Less unpaid

overtime

Increased

productivity

Easier sales

processing

Better information on

customer and sales

profitability

Customer

Database and

Sales System

More new

customers

RAG Report - Immediately after implementation

Not due to reach target

On or above target

Within 20% of target

Outside 20% of target


On or above target




On or above target




On or above target



Customer

database and

Sales

processing

system


RAG Report – 6 months after implementation


On or above target




On or above target




On or above target




On or above target



Less

frustration for

customers

Improved

image

Improved

customer

service

Fewer errors

Increased

sales revenue

Improved

customer

retention

More quality

time with

customers

More focused

selling

Improved staff

morale

Less unpaid

overtime

Increased

productivity

Easier sales

processing


customer and sales

profitability

Customer

Database and

Sales System

More new

customers

Customer

database and

Sales

processing

system


RAG Report – 1 year after implementation


On or above target




On or above target




On or above target




On or above target



Less

frustration for

customers

Improved

image

Improved

customer

service

Fewer errors

Increased

sales revenue

Improved

customer

retention

More quality

time with

customers

More focused

selling

Improved staff

morale

Less unpaid

overtime

Increased

productivity

Easier sales

processing


customer and sales

profitability

Customer

Database and

Sales System

More new

customers

Customer

database and

Sales

processing

system


RAG Report – 2 years after implementation


On or above target




On or above target




On or above target




On or above target



Less

frustration for

customers

Improved

image

Improved

customer

service

Fewer errors

Increased

sales revenue

Improved

customer

retention

More quality

time with

customers

More focused

selling

Improved staff

morale

Less unpaid

overtime

Increased

productivity

Easier sales

processing


customer and sales

profitability

Customer

Database and

Sales System

More new

customers

Customer

database and

Sales

processing

system


Some good news

Benefit Realisation Management (BRM)

can and does make a difference

Instead of 20% of potential benefits you

could be enjoying at least 80% of

potential benefits

And reduce project costs


For further information and help

Reading – both books available to view today:

Benefit Realisation Management – A Practical Guide to Achieving Benefits through Change

by Gerald Bradley (Gower – 2nd edition 2010)*

Fundamentals of Benefit Realization – MSP Companion Guide by Gerald Bradley (TSO 2010)

Practical BRM Training – from Peak Consulting

*At specially discounted price if bought today (Danish 350 Krona which is

about half normal price)

Available to buy today – Benefit Realisation Management


Thank you for

listening


Presenter

• Gerald Bradley

• Chairman of Sigma Consulting

• Pioneer of Benefit Realisation Management

• Mentor and reviewer of OGC’s Managing

Successful Programmes (MSP) 2007

• Author of Benefit Realisation Management

(Gower) 2nd edition – May 2010

• Author of Fundamentals of Benefit Realization

(TSO) – Companion Volume to MSP – Sep 2010

• Facilitator of the BRM Master-classes for SROs in

the MOD – 2004-2015

• [email protected]

• +44 1202 480 257

• + 44 7786 061 662

mailto:[email protected]

Benefit Realisation Management (BRM) Exec... · decisions Faster receipt of ... For a programme to...

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