Guideline file · Web viewDRAFT. Guideline

Australian Catholic University Limited ABN 15 050 192 660 CRICOS registered provider: 00004G

Project Benefits Management

Organisational unit All of University

Version 0.3

Approval status Draft

GuidelineProject Benefits Management

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Table of Contents

PURPOSE OF THE DOCUMENT......................................................................................................................................................... 4

BENEFITS MANAGEMENT IN A NUTSHELL......................................................................................................................................4

A. WHAT IS BENEFITS MANAGEMENT?...................................................................................................................................51. What is a benefit?..................................................................................................................................................................... 52. What is Benefits Management?...............................................................................................................................................53. 10 principles of Benefits Management.....................................................................................................................................54. Benefits vs. value..................................................................................................................................................................... 6

B. WHY BENEFITS MANAGEMENT?..........................................................................................................................................71. Rationale at ACU...................................................................................................................................................................... 72. Hoes does it improve the University?.......................................................................................................................................7

C. HOW TO MANAGE BENEFITS?.............................................................................................................................................81. Types of Benefits...................................................................................................................................................................... 82. Benefits Management Lifecycle.............................................................................................................................................103. Process.................................................................................................................................................................................. 104. Testing your benefits.............................................................................................................................................................. 115. Reporting................................................................................................................................................................................ 116. Tools and templates............................................................................................................................................................... 12

D. WHO IS INVOLVED?............................................................................................................................................................. 141. Benefits Owner....................................................................................................................................................................... 142. Senior Responsible Owner..................................................................................................................................................... 143. Business Owner..................................................................................................................................................................... 144. Project Board / Steering Committee.......................................................................................................................................145. Program Board....................................................................................................................................................................... 146. Program and/or Project Manager...........................................................................................................................................147. SME’s and data providers...................................................................................................................................................... 158. Management Accountant....................................................................................................................................................... 159. Portfolio Analyst..................................................................................................................................................................... 15

E. INTERFACES TO SURROUNDING ENVIRONMENT...........................................................................................................151. Strategic planning................................................................................................................................................................... 152. VC Focus Areas and portfolio priorities..................................................................................................................................153. Proposal for Business Change...............................................................................................................................................154. Business Case....................................................................................................................................................................... 155. Project outputs....................................................................................................................................................................... 15

APPENDIX 1 – Quality Criteria for Benefits Management..................................................................................................................161. Benefits Management overall.................................................................................................................................................162. Business Case....................................................................................................................................................................... 163. Benefits Realisation Plan....................................................................................................................................................... 164. Project Benefits Register........................................................................................................................................................16

APPENDIX 2 – Glossary..................................................................................................................................................................... 17

APPENDIX 3 – Acknowledgements and Credits.................................................................................................................................18

Mikail Ruutu Saved 27 February 2019National Manager, Portfolio Project Office, Office of the Deputy COO (20)Australian Catholic University Limited ABN 15 050 192 660 CRICOS registered provider: 00004G


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Approvals

Role Name, position (or committee name) Date Comments

Author Mikail RuutuNational Manager, Portfolio Projects Office

ContributeReview PPO Reference GroupReview [Specialist or working group]Review [Project accountant, Finance Directorate]Endorse [Benefits Owner]Endorse [Project Sponsor]Approve [Relevant delegate]

<Roles: Author = the one who’s responsible for writing the document (typically a single person). Contribute = staff or external parties who have provided input to the Business Case. Review = specialist or similar who can confirm the validity and accuracy of the information presented. Endorse = Manager or executive who can confirm the Business Case is of good quality and well justified and ready to be presented for approval. Approve = Approving party as per the ACU Project Management Model and Delegations of Authority; a single approval is requested.>

Document Version

Version Date Name Changes made0.1 9 Jan 19 Mikail Ruutu First draft for further input.0.2 1 Feb 19 Mikail Ruutu Feedback from Stephen Zacz (P&F). Added ‘BM in a nutshell’.0.3 27 Feb 19 Mikail Ruutu General clean-up before publishing the draft for limited use.

<For any edits, increment the version number by a decimal (starting from 0.1). Approvals will change the version number to the next whole number (starting from 1.0), any subsequent edits increment from there. E.g. 0.1 > 0.2 > 0.3 > 1.0 > 1.1 > 1.2 > 2.0, etc. When a new version is approved, remove the version numbering of any edits / drafts (decimal changes) and retain only the approved versions on the list.Please note that all approved versions will need to be retained in the project file.>



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PURPOSE OF THE DOCUMENTThis document describes how project benefits are managed within the Australian Catholic University (ACU).

All projects are meant to consider the impact or improvement they deliver to the University. This document provides guidance on the pertinent aspects and defines the Project Benefits Management framework.

The document is intended to be used by those already familiar with benefits management. Guidance and assistance should be sought from the Portfolio Projects Office (PPO) in implementing benefits management in a business change.

BENEFITS MANAGEMENT IN A NUTSHELLBenefits management shows the long-term sustained effect and success of a business change. This is done by measuring the impact resulting from a change. To support this, the Project Benefits Management framework provides guidance, roles and templates for ACU to define, measure and confirm that the desired impact is created and sustained.

Benefit is typically defined as follows:

A benefit is the measurable improvement resulting from an outcomeperceived as an advantage by one or more stakeholders, and

which contributes towards one or more organisational objectives.i

All business changes should initially identify the desired impact and how to measure or observe it (e.g. increased student enrolment to a degree as in equivalent full-time student load), then define what business changes are required to achieve the impact. These are expressed in a Business Case. On approval of the Business Case, projects commence and implement outputs (deliverables) which enable the intended outcomes (changes). These outcomes will result in benefits (impact) to ACU. All benefits should be aligned to ACU strategic goals or other priorities.

IMPACT

BUSINESS CHANGE

PROJECT

Identify Plan Measure, track & review

Define Plan

Plan Implement

EmbedImplement

Hand over

Business Case

Report

PID

Report

Proposal

PIR

CloseMilestone reports

Benefits Owner

Project Manager

Business Owner

Change Plan

Benefits Plan

Bus. Case approved

Project delivered

Pre-Initiate Operational useInitiate Plan Embed change,close projectImplement change

Figure 1 Overview of benefits, change and projects

Key roles are Benefits Owner who is accountable for achieving the benefits to ACU and Business Owner who is responsible for the success of the associated changes and accountable for the constituent projects. These roles can be combined but where they are separate, the Benefits Owner should be more senior.Project Manager is responsible for the project planning and delivery.

Key artefacts used are Proposal for Business Change which outlines the goal (later developed into benefits), Benefits Realisation Plan describing the benefits, associated measures, targets and timelines, and Project Benefits Register which is used to track the data related to benefits and for reporting on benefits realisation.



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Success of the outcomes and therefore the resulting benefits is heavily reliant on business change management. For complex process and system changes, it is recommended that a business change manager or specialist is engaged to plan and guide the impacted stakeholders through the change.



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A. WHAT IS BENEFITS MANAGEMENT?1. What is a benefit?

Benefits are the core reason a project is set up. A project produces outputs which enable an outcome – a business change – to take place. When the change is implemented, the resulting improvements are expressed as benefits. Without benefits to be achieved, there would be little reason to spend effort and expense in a project.

Three key requirements for a benefit are:

1) Results from an outcome – Benefits are typically received only after a project has completed. Some benefits can occur already during a project while others may take years to be fully realised. However, they all are based on outcomes which have been enabled by a project.

2) Advantage – Each benefit brings an advantage which moves the University forward. It is often expressed in financial terms, as student of staff satisfaction, or other similar ways.

3) Organisational objectives – All business change in the University should be attributed to an organisational objective, whether it’s expressed in the ACU Strategic Plan or other goals. Only the compliance-driven, mandatory changes are exempt from this.

Project success is traditionally measured by the delivery on time and in budget. The success of the intended business change, however, is measured on the benefits realised as the result.

Benefits are at the heart of a good Business Case: what will the University gain from carrying out a change, how is this change proposed to be completed, what resources are likely to be required, and how much risk is involved before the benefits have been fully realised? This is articulated by the Benefits Owner or Business Owner.

2. What is Benefits Management?Benefits realisation means ensuring that benefits are derived from outputs. Benefits management incorporates the activities of managing benefits throughout their lifecycle, from initially identifying the intended benefits to fully realising themii. Benefits management focuses on securing and sustaining the benefits, and then further improving the benefits achieved. It enables a project to be defined and implemented so that it leads to the delivery of outputs which best enable the desired outcomes.

Benefits management will become mandatory for all medium and large projects by year 2020. Small projects are also encouraged identify and work to sustain benefits, as applicable.

3. 10 principles of Benefits ManagementWhen benefits are defined and managed well, they follow the 10 principles listed below iii. At ACU, these will be developed further during 2019.

Principle Implications

1. Measurable improvement

A benefit is a measurable improvement – resulting from an outcome – which is perceived as an advantage by a stakeholder. By measuring it, we can show the actual improvement delivered through the change.

2. Aligned to goals

The outcomes and benefits delivered by a change help achieve ACU’s goals which describe how an organisation wishes to evolve (refer to the Strategic Plan, VC Focus Areas and portfolio priorities). If benefits are not aligned with ACU’s goals, their overall value should be questioned. To provide best value to the University, all funding decisions must be considered in light of benefits that support the delivery of the goals (except for compliance-related changes).

3. Reason for change

Ultimately, it is the realisation of benefits which helps achieve one or more program or project outcomes. Conversely, if benefits are not identified in the Business Case then this could result in incorrect prioritisation of the project or program, and funding allocation may not serve the University well.



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4. Evidence-basedWhen benefits are measured, sufficient data and evidence exists to justify the effort and funding allocated to a change. Only through measuring a baseline (starting point) and progress, the positive impact can be shown.

5. Sustain change

Benefits can only be realised through business change. Likewise, change can only be sustained by realising benefits.Collaborating with stakeholders impacted by a change will support the implementation of lasting improvements and benefits realisation.

6. Owned by executive

Benefits are owned by appropriate sponsors and executive, not by the program or project manager. Accountability and responsibility at the right level is key for successful benefits realisation. It is important that responsibility for benefit realisation remains with those professional or academic units affected and it helps them to tie the impact to the “big picture”.

7. Intermediate benefits

Monitoring intermediate benefits will give management confidence that benefits realisation is on track. This also allows corrective actions to be taken, if needed, and adjusting the plans when an opportunity emerges to exceed the targeted benefits.

8. DynamicBenefits identified for the Business Case may change over the life of the project or program as the environment or needs evolve or new opportunities emerge.The benefits and the plans to realise them should be regularly reviewed.

9. FocusedPriority should be given to those benefits with the greatest likelihood of being realised. This helps to focus on those benefits which realistically can be achieved and, of those, where the impact is the greatest.

10. Integrated

Benefits management is intertwined with the strategic development of the University, increase in organisational maturity and project delivery capabilities.Benefits should be a standing agenda item at each Project or Program Board meeting to ensure projects work to enable a long-lasting change to commence at the right time. Thus, the projects and benefits realisation are interlinked.

Table 1 10 principles of benefits management

4. Benefits vs. valueBenefits are the focus of an individual business change. Projects focus on delivering outputs which enable the desired outcomes which, in turn, result in benefits. Value management concerns the totality of the project portfolio (collection of all projects or a large selection of them) and focuses on the project portfolio resulting in the desired effect (e.g. implementation of the ACU Strategic Plan, or fulfilment of the Directorate priorities for the year).

Benefits focus on improvements through outcomes, while value management focuses on alignment of all projects to support the organisational objectives and balancing the composite risk within the portfolio.

Benefit Value

Individual business change Total project portfolio

Desired outcomes from a project or change Desired effect from the portfolioTable 2 Benefit vs value



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B. WHY BENEFITS MANAGEMENT?The key purpose of benefits management is to enable funding and resources to be targeted to work which results in the most valuable impacts to the University. It also provides a mechanism to ensure that impact is achieved. This applies specifically to business changes done through projects. The practice is based on starting with “the end in mind” and then working to maximise the impact created.

1. Rationale at ACUIn June 2018 ACU Corporate Services portfolio undertook a P3M3 maturity assessment. The organisation’s capabilities in project benefits management was part of this assessment. Responses to the assessment were provided by 27 staff consisting of the COO, Deputy COO, Directors, Associate Directors and National Managers.

For project benefits management, the formal score was 0 on a scale 0 (weak) – 5 (strong) across all three domains assessed: project, program and portfolio management. The individual responses provided variance and their average across the three domains were 2.4, 1.4 and 1.6, respectively. However, the formal score indicates the level where the organisation operates consistently, thus any occurrence of benefits management relies on individual skills rather than organisational capability.

This Project Benefits Management Guideline is part of the response to improve ACU capabilities in the area.

2. Hoes does it improve the University?At ACU, applying benefits management consistently results in directing funding and resources to project work with the most valuable impacts to the University. Therefore, benefits should be outlined upfront before any funding or other approvals are sought. The benefits will be used as part of the decision-making and competing proposals are weighed against each other based on their merits, including targeted benefits, versus the effort and costs required and risk level.

In any business change delivered, project management carries the responsibility of producing the outputs required so that the intended change can occur, often complemented by a structured business change management approach. Benefits management commences already during the project and carries the responsibility of achieving the intended impact after project has completed.

This supports the focused development and prudent financial management of the University, thus maximising the value delivered to the students and staff from the resources available. Additionally, it allows the management to ensure the University’s goals are met.



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C. HOW TO MANAGE BENEFITS?1. Types of Benefits

Benefits in projects can be categorised into two layers: project benefits and outcome benefits. Both of them are results of an earlier layer in a business change being taken into use. A change is beneficial and has the desired impact only when the outputs and capabilities developed in the projects are used as intended. Those are available when projects deliver to the scope and quality planned. This is illustrated in the figure and further described in the sections below.

Figure 2 - Flow from a project to benefitsiv

i. Project benefitsOutcomes identify the expected results at the end of a project. They are business changes occurring as a direct result of taking the projects outputs into use. They are often expressed as capabilities, e.g. “Ability to produce comprehensive enrolment reports”, and are enabled by the outputs (deliverables) by the project, e.g. “data migrated onto a new system” and “a reporting module configured”.

ii. Outcome benefitsThe outcome benefits refer to the impact of a successful business change. They are the results that flow through after the business change has been completed, e.g. “Increased revenue due to increased enrolments”. In the example, there are two measurable aspects, a change in enrolment numbers (EFTSL) and a change in revenue ($), which form the impact of the business change.

Outcome benefits can generally be classified as listed in the table below.

Type Category Typical measures Potential data sources

Financial Increased revenue $ Finance system

Reduced cost $ Finance system

Tangible Student experience %, survey score points Standard or custom surveys

Staff experience %, survey score points Standard or custom surveys

Increased efficiency Time, units Process time,system records, etc

Compliance Avoid risk or cost Risk position, saved $ Assessments, contracts, regulation

Legal compliance “Yes / no” Regulation, authorities

Maintenance of service Availability (time, %) Monitoring systems



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Type Category Typical measures Potential data sources

Intangible As applicable in each case Observe relevant aspects

Disbenefit Can be of any category As applicableTable 3 Benefit types and categories

Financial – Whenever the benefit (impact) of a business change can be quantified in financial terms, it can be compared against the investment made (project cost), and the respective cashflow and other impacts to University’s financial position considered.

Some benefits management frameworks, especially in commercial organisations, consider this as the sole benefits category or it is seen as the most important of all categories.

Whenever possible, a Business Case should attempt to quantify the financial impact of a change. If a change results in staff time being freed up for other activities, this can be estimated in FTE load and then converted into the equivalent annual salary cost. E.g. time saved in monthly reporting 12 hours /month across the teams involved = 144 hours /year (20.6 workdays) = $9,200 annually (at HEW7.3 level with on-costs).

Tangible – Tangible benefits are those which can be measured objectively but not in financial terms. In the University, this can often be related to student or staff satisfaction which are measured through recurring standardised surveys. Tangible benefits can typically be measured in time, units or quantities, % rates, etc.

Please note that many tangible benefits can also be developed into a financial measure and this should be done where possible (e.g. increased efficiency can mean reduction in repeated work when assessing applications, leading into savings in time spent (effort), resulting in a saving in the cost of processing an application).

Compliance – These relate to the University’s ability to operate and typically relate to regulatory compliance. They can also include replacement of end-of-life equipment or facilities so that a service can continue to be provided (e.g. replacement of core technology to maintain warranties or support).

Compliance is generally not considered as a benefit as such, but is seen at ACU as a key factor in prioritising business change and funding allocations. When a Business Case refers to compliance-related benefits, their prioritisation is separated from others and the risk of not proceeding assessed more thoroughly.

Intangible – Intangible benefits are difficult or impossible to quantify in an objective manner. This also means they cannot be measured and the respective improvement in the University shown (through evidence). These benefits can be seen as qualitative information rather than targeted results from a change.

Some benefits management frameworks discard intangible benefits but in a University environment we consider also intangible benefits as part of a change since measuring some improvements would be too costly or require several years. Examples would be reputational impacts or employee well-being after changes made at ACU.

Dis-benefits – Notice also potential adverse outcomes from a project. They may be e.g. added workload in one team to service a revised process elsewhere, or increased costs in another part of ACU. Present the total value of the financial dis-benefits for the life of the product / service. This total value will form part of the financial considerations of the Project Business Case.

Please note that dis-benefits differ from risks (threats). Dis-benefits are expected to happen because of the project itself while threats are potential (uncertain) future negative events we typically would attempt to mitigate beforehand.



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2. Benefits Management LifecycleBenefits management in projects is closely aligned with the project delivery lifecycle but commences before the project. The key activities or outputs are listed in the table below.

Pre-Initiate Initiate Plan Implement, Close Operational use

Focus Define the need or opportunity

Approve funding and approach

Plan & prepare to implement

Business change enabled

Business impact, resulting benefits

Identify benefits Plan realisation Track benefits

Benefits Owner Outline goals Identify and baseline benefits

Plan how to realise benefits

Measure and realise benefits

Measure and review benefits

Business Owner Proposal for Business Change Business Case Ensure business change is managed,

governance, project oversight

Embed change, continuous

improvement

Project Manager Project Initiation Document (PID)

Milestone reports, Post-implement-

ation review (PIR)Table 4 Benefits management lifecycle and key outputs

3. Processi. Identify benefits

Benefits identification defines the benefits expected from a business change. The key outcome is a list of key benefits (impacts) resulting from the outcome (business change). At first, they are expressed at an outline level and details are developed later in an iterative manner.

Ideally, the desired impact (benefits) is outlined first – this is the “case for change”, starting with the “end in mind”. This is followed by defining which business changes are required to achieve the impact and which project outputs enable the changes. In practice, the benefits are often identified in conjunction of a Business Case but if the desired impact is articulated beforehand, the Business Case becomes more robust, targeted to that impact and thus stronger.

Techniques which may help in identifying benefits are Investment Logic Map (ILM) and Benefits Mapping. Both produce a visual representation of the links between impacts (benefits), the outcomes (business change) and project outputs. At ACU they will be available to Benefits Owners and Business Owners to be used in benefit identification workshops.

Three key questions to ask are:1) What are the benefits we want to achieve?2) Who will own each them and ensure they will be achieved?3) Which ACU Strategic Plan goals or other priorities are progressed by each of them?

Information produced during identification:A) Project Benefits Register – Project outputs, resulting outcomes, intended benefits, categoriesv, owners,

strategic alignment, current baselines or levels, target values or levels, when achieved, baseline dates.B) Business Case (section ‘Benefits’) – Benefit category and title, current baseline or level, target value or level,

target timeframe.

ii. Plan realisationPlanning benefits realisation is they key activity where benefits and the means to realise them articulated in full. This amends the outline information produced in benefits identification by adding information about the measurement methods and data, assumptions made and risks (to achieving a benefit).


BusinessCase approved

Projectdelivered


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Information produced during planning:A) Project Benefits Register – Measurement methods to be used, data sources to be used, measurement or

monitoring frequencies, benefit values (how much change will be produced), confirm total $ (value of financial benefits), assumptions, and risks.

B) Benefits Realisation Plan – A document describing how the realisation of the benefits will be progressed and tracked until they are achieved.

iii. Track benefitsTracking the benefits allows the Benefit Owner(s) to confirm the progress and achievement of the benefits. This verifies the impact delivered through the business change. The tracking commences when the Benefits Realisation Plan is approved and continues until all benefits have been achieved.

For the first 12 months after the completion of the respective implementation project, the Portfolio Project Office (PPO in Corporate Services) will assist in tracking benefits. If the targeted timeframe for realising a benefit is more than a year from, the remaining time will be tracked by the relevant Benefit Owner. Reporting of all active benefits in the project portfolio is done by the PPO.

A key activity during benefits tracking is the periodic measurement of benefits. The measurement is done at the frequency set for each benefit and results recorded in the Project Benefits Register. Based on this, the Benefits Owner(s) can review their plans to achieve the benefits so that the targeted values or levels will be met or exceeded.

Information produced during tracking:A) Project Benefits Register – Measurement date, current values or observations, potential commentary.B) Benefits Realisation Plan – Review and any potential adjustments to the plan.C) Portfolio Benefits Report – The Portfolio Project Office (PPO) produces a quarterly report to the COO and

Corporate Services’ Portfolio Executive Committee (PEC) on the benefits currently active (being realised) in the portfolio.

4. Testing your benefitsAll benefits should always be tested prior to approving the Benefits Realisation Plan. This ensures they are defined well and can realistically be achieved, thus setting you up for success with them.

Questions to ask with each benefit are:1) Do the benefits address the need(s) ACU has? Are they aligned to the expressed goals and priorities ACU

has?2) Are they meaningful and measurable? Can we show when a benefit has been achieved? Do we have or can

we get the data related to them?3) Are they attributable? Are the business change(s) and benefits directly linked to each other? Or, would a

benefit occur without the change (or alternatively, requires multiple different changes)?4) Are they cost effective? Is the effort required to realise and track a benefit commensurate to the value of it?

More thorough quality criteria for project benefits management can be applied, as required. Please refer to Appendix 1.

5. ReportingThe intended and realised benefits are reported in two ways:

1) During the project that delivers the outputs required for a benefit, those benefits are included in their monthly status reporting. This allows the Business Owner and Project Board members have a record of the progress of the benefits during the project and direct the project in a way that maximises the realisation of the benefits.

2) After the project completion, the benefits are tracked at the frequency set in the Benefits Realisation Plan and the progress towards achieving the benefits is included by the Portfolio Project Office (PPO) in their quarterly portfolio-level benefits reporting. This continues until a benefit has been fully realised.



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6. Tools and templatesProject Benefits Management uses the following tools and templates to identify, plan for, track and report on benefits.

i. Business CaseBusiness Case is the foundational document required for medium and large projects, developed by the Business Owner and approved in the Initiate Phase. It defines the business need or opportunity, the benefits of making the respective business changes, the approach to be taken to implement the changes and associated risks, and the resources needed.

A key element in decisions related to funding the business changes (i.e. funding projects) needs to be the impact produced. This impact is expressed as benefits.

Should the benefits materially change, be removed or new ones added after the approval, the Business Case will be amended and submitted for re-approval, respectively.

ii. Benefits Realisation PlanA document describing how the realisation of the benefits will be progressed and tracked until they are achieved. This document is developed by the Benefits Owner in the Plan Phase.

The focus of the plan is on how the intended benefits will be measured and realised. It describes the approach to be used for measuring, sourcing the required data, resourced needed, and reporting on the benefits until they have been achieved.

iii. Project Benefits RegisterThe Project Benefits Register is a list of the intended benefits, their baseline, targeted and current values, and information developed during the benefits management process. This is the central register for benefits in a project and owned by the Benefits Owner. The register is started in the Initiate Phase and continually updated until the intended benefits have been achieved.

iv. Portfolio Benefits RegisterThe Portfolio Benefits Register is the master list of all active benefits (benefits being realised) and copies the data from the individual Project Benefits Registers. This register is owned by the PPO and data used to assist Benefits Owners in tracking their benefits and for the Portfolio Benefits Report.

v. Project Status ReportInformation on the status of benefits realisation can be added in Project Status Reports as verbal comments to the fields describing he deliverables completed, to be completed, or adding a section under the decisions and guidance requested. The Project Managers will get input for this from the Benefit Owner or Business Owner.

Currently the Project Status Report template lack the capability of reporting on benefits, but future versions of the report template will include a section for reporting on benefits realisation.

vi. Portfolio Benefits ReportPortfolio Benefits Report is a quarterly report summarising the currently active benefits and their status. The report is produced by the PPO to the COO and Corporate Services’ executive and attached to the Portfolio Projects Summary.

vii. Portfolio and Project Management System (PPM system)Any future PPM systems used in ACU will incorporate a project benefits register functionality for listing and tracking the benefits in the project portfolio. The data will be used for reporting. A well-suited system will replace both above mentioned registers and reports as they are built into the system and configured for use at ACU.

viii. Investment Logic Map (ILM)A technique which helps to illustrate on a page the logic that underpins a business change or project. It represents an ‘agreed change story’ that is created through discussions between stakeholders. It is written in plain English in a way that will allow a layperson to understand the business need or opportunities, the benefits or addressing the need or opportunity, proposed response and potential solutions. It provides the core focus of a change or project and is maintained to reflect changes to the logic throughout its lifecycle.vi



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The ILM is developed in a series of workshops with key stakeholders. The workshops map out responses to the following questions:

Figure 3 Key questions asked for an ILM

The responses are presented in an ILM which is a visual representation of the links between the business need or opportunity, benefits, responses and solutions.

Figure 4 Outline of the sections in the Investment Logic Map

ix. Benefit MapBenefit Map is a one-page document that depicts the logical connection of a change’s or project’s benefits to the KPIs, measures and targets. A standard template for this is available to ACU staff from the PPO on request.

Figure 5 An example of a Benefit Map



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D. WHO IS INVOLVED?The following roles are essential for effective development and management of benefits.

1. Benefits OwnerA senior role who is accountable for the success of a business change and owns the benefits. This role is integral in defining and realising benefits. The role is long-term, covering the time when the intended business change and resulting impacts are defined, implemented through project(s), and until the benefits have been achieved after the changes. The Benefits Owner attends all Program Board or Project Board / Steering Committee meetings.

When multiple Benefits Owners have been identified within a business change (e.g. each benefit has a different owner), they all can attend governance groups but one is selected to represent the Benefits Owners in front of other stakeholders.

The Benefits Owner role differs from being a recipient of a benefit. Typically, a business change will benefit multiple parties (e.g. teams or organisational units), i.e. be received by multiple stakeholders. However, each benefit is still owned by a single stakeholder.

2. Senior Responsible OwnerThe Senior Responsible Owner (SRO) is accountable for the success of a program of work. This role exists when a program is set up to carry out business change. They chair the program governance (Program Board) and approve key documents at the program level.

The Benefits Owner and SRO roles are often combined but can be kept separate, if it is seen applicable. The focus of the roles is similar, therefore suggesting they can be combined. The separation of the roles would be applicable in particularly long and high-impact programs of work where the benefits are owned at the top of the organisation while the delivery of the business change is delegated (e.g. the Vice-Chancellor as the Benefits Owner and the PVC, a DVC or COO as the SRO).

3. Business OwnerThis role is responsible for the delivery of the overall business change when it is delivered through projects. They are also accountable for the success of the project delivery and the ultimate decision-maker in a project. They typically define the project (Proposal for Business Change, Business Case) in liaison with the Benefits Owner and potential SRO, chair the project governance (Project Board or Steering Committee) and approve key documents in the project.

The Benefits Owner and Business Owner are separate roles but can be carried out by the same person. If they are kept separate, the Benefits Owner role should be taken by the more senior person (e.g. a Dean or COO as the Benefits Owner, and a Faculty Manager or Director as the Business Owner).

Business Owner was earlier called Project Sponsor. The role ‘Business Owner’ refers to the wider context of a business change in addition to overseeing a project within a change.

4. Project Board / Steering CommitteeThe governance committee which oversees a project is usually chaired by the Business Owner. The Benefits Owner(s) is included in the committee to influence the decisions impacting the benefits realisation. Adding the status of benefits as a standing item on the agenda ensures the committee’s work considers the long-term impact to the University.

5. Program BoardA key focus of a Program Board’s work is on the outcomes enabled through individual projects and ensuring they result in the intended benefits. Including the respective Benefits Owner in the Board helps in balancing the program’s workings to best guarantee a favourable result.

6. Program and/or Project ManagerThis role is responsible for the program or project planning and delivery. The Project Manager works under the guidance of the Business Owner and supervision of the Program Manager (for the project delivery purposes), where applicable. The Project Manager plans, organises and guides the work, and controls and monitors the project execution. They also are responsible for keeping the stakeholders informed of the project progress and any potential challenges or risks.



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7. SME’s and data providersSubject matter experts (SME) and data providers assist the Benefits Owner in defining the benefits, measurements and data to be used, and perform the measurements or source current data, when required.

8. Management AccountantManagement Accountant (Finance) assists in defining financial benefits, especially modelling cost-benefit analysis and confirming the reliability of the estimates made. They can also consult in measuring and tracking the benefits realisation, as agreed. In large projects, the Management Accountant is likely to assist the Benefits Owner(s) throughout the benefits identification, planning and tracking.

9. Portfolio AnalystThis is a specialist role within the PPO which reviews and tracks benefits identified and being realised across the project portfolio. In portfolios other than Corporate Services, for most projects this is implemented at a local level, but guidance and assistance can be sought from the PPO.

E. INTERFACES TO SURROUNDING ENVIRONMENT1. Strategic planning

The most significant driver for any business change in ACU is the Strategic Plan. Meeting the goals expressed in the plan underpins many business changes implemented and the resulting benefits directly link to the strategic goals. This linkage also allows the University to effectively monitor the progress towards those goals and ensure all objectives receive adequate attention and investment over time.

2. VC Focus Areas and portfolio prioritiesOther significant contributor to business change in ACU are the Vice-Chancellor’s annual Focus Areas, portfolio-level and potential local priorities. Where a business change directly contributes to those, the resulting benefits are linked to them. Should a business change be seen to contribute both to the strategic goals and other priorities, the strategic goals take precedence and should be reported as the benefits from the change.

3. Proposal for Business ChangeProposal for Business Change is the first step in defining a proposed future project. If is the result of the thought process which leads to expressing the opportunity or business need where a business change is proposed to be implemented and the resulting benefits or impact to ACU. The Proposal introduces the benefits as an outline.

4. Business CaseThe Business Case for a project is the key document submitted for a decision about the project. Identifying the benefits resulting from a successful business change is one of the most critical aspects to a well-informed decision along with well-estimated costs, risks and timeline.

5. Project outputsThe project outputs (deliverables) enable the intended outcome (business change) to be implemented, resulting in the intended impact (benefits). Therefore, there is a direct link between the project outputs and benefits and one would not exist without the other: a project output is warranted only when it results in a benefit, and a benefit is enabled only through the outcome created using the project outputs.


APPENDIX 1 – QUALITY CRITERIA FOR BENEFITS MANAGEMENTBenefits Management in project should be subjected to quality checks to ensure a high degree of confidence on the work done.

The following quality criteriavii can be used when preparing for and implementing the business change.

1. Benefits Management overallA) Are the benefits aligned with the organization’s strategic goals?B) Does project or program governance take into account benefits management, including tracking of them?C) Are project selection and/or funding decisions based on the impact to expected benefits?D) Have the benefits owners been consulted and confirmed?E) Have the expected benefits been clearly communicated to key stakeholders involved with delivery?F) Does the project or program team understand how project outputs contribute to the benefits?G) Are the benefit owners responsible, accountable, and evaluated for achieving benefit targets?

2. Business CaseH) Are the benefits – financial, tangible and intangible – explicitly defined in the Business Case?I) Does the Business Case outline when benefits are forecasted to be delivered?J) Is the project or program still relevant based on what benefits can be realised against unexpected events or

changes to the Benefits Realisation Plan?

3. Benefits Realisation PlanK) Does the Benefits Realisation Plan describe how the benefits will be measured?L) Have key stakeholders signed off on the Benefits Realisation Plan?M) Is progress of the project(s) or business change regularly reviewed against the Benefits Realisation Plan?N) Are benefits frequently reviewed and adjusted to reflect the most current information regarding changing

business conditions (i.e. benefits are optimised)?O) Is effective change control in place to close potential gaps between expected benefits and actual benefits?P) Is there a way to discover new benefit opportunities?

4. Project Benefits RegisterQ) Are all project or program benefits documented in the Project Benefits Register?

The following quality criteria can be used following the implementation.R) Have the benefits been reviewed and adjusted to changing business conditions (i.e. optimised)?S) Have the project outputs been transitioned to and approved by the business owners?T) Have project or program outcomes been handed over to business owners?U) Are realised benefits being measured and verified against the portfolio’s business plans or goals?V) Are actual benefits being delivered within the timeframe of the Benefits Realisation Plan?W) Were lessons learned captured and communicated, and any follow-on activities assigned?X) Have unanticipated benefits been realised and captured for the future?



APPENDIX 2 – GLOSSARYThe following terminology is used in relation to the Benefits Management Framework.

Term DefinitionBenefit A measurable improvement resulting from an outcome.Benefits management Benefits Management is the practice of defining, measuring and confirming that

the desired impact is created and sustained. It focuses on securing and sustaining the benefits, and then further improving the benefits achieved.The associated framework provides guidance, roles and templates for ACU.

Benefits Owner A senior role who is accountable for the success of a business change and owns the benefits.

Benefits realisation Benefits realisation ensures that benefits are derived from outputs.Benefits Realisation Plan A document developed after the Business Case has been approved.

It describes how each benefit will be developed, measured and reported, and associated timelines.

Benefits Register The central register for benefits in a project, containing the intended benefits, baselines, targeted and current values, and associated information. The data is used for reporting on benefits.

Business Case A foundational document required for medium and large projects. It defines the business need or opportunity, the benefits of making the respective business changes, the approach to be taken to implement the changes and associated risks, and the resources needed.

Business Change A change that concerns processes, work practices and related systems. Business change considers how an individual’s and team’s work changes and focuses on ensuring staff successfully adopt the new process, practices or systems. This typically involved communication, training and reinforcement.

Business change manager, Business change specialist

A specialist role who is responsible for planning and implementing business change activities.

Business Owner A role who is responsible for the delivery of the overall business change when it is delivered through projects. They are also accountable for the success of the project delivery and the ultimate decision-maker in a project.

Impact The long-lasting, sustained result from a business change. ThIs is the goal of any change that is initiated.

Portfolio priorities Prioritised improvements targeted for the year at the portfolio level.PPO Portfolio Project Office, a team responsible for the ACU Project Management

Model. They also run the project portfolio management practice for Corporate Services. PPO is placed in the Office of the Deputy Chief Operating Officer.

Project Manager A role who is responsible for the program or project planning and delivery. They plan, organise and guide the work, control and monitor the project execution.

Proposal for business change A document outlining a proposed business change. This is intended as the first document describing why and what is proposed to be changed and the intended goals (later developed into benefits).

Value Value describes the desired effect from the total project portfolio.VC Focus Areas Vice-Chancellor’s annual priority statement. This typically lists specific

improvements targeted for the year in specific areas or across ACU.


APPENDIX 3 – ACKNOWLEDGEMENTS AND CREDITS

Material for this Guideline has been taken from the following sources, most which are publicly available. Where material has been used as is or with adaptations, it is marked with an endnote. Otherwise, the source text or figures have been adapted to suit this Guideline.

The material will also provide additional reading to staff interested in more information on benefits management.

1) Benefits Realisation Management Framework (Third edition, 2018).State of New South Wales (Department of Finance, Services and Innovation).Licensed under a Creative Commons Attribution 3.0 Australia License.http://www.finance.nsw.gov.au/publication-and-resources/benefits-realisationmanagement-framework

2) Managing Benefits from Projects and Programmes: Guide for Practitioners (October 2017).New Zealand Government (The Treasury).© Crown Copyright. Licensed under the Creative Commons Attribution 4.0 International licence.http://www.treasury.govt.nz/statesector/investmentmanagement/plan/benefits/guidance

3) Benefits Management at the University of Auckland. University Strategic Programme Office Guidelines.The University of Auckland (University Strategic Programme Office, USPO), New Zealand.Provided generously to ACU in collaboration in November 2018.https://www.auckland.ac.nz/en/about-us/about-the-university/our-ranking-and-reputation/planning-and-information-office.html

4) PMBOK® Guide – Sixth Edition (2017)© Project Management Institute, Inc., Pennsylvania, United States.Selected definitions provided in the Guide are referred to in this document.https://www.pmi.org/pmbok-guide-standards/foundational/pmbok

5) Investment management standard 2017 (IMS)The standard includes the Investment Logic Map (ILM)State of Victoria (Department of Treasury and Finance)https://www.dtf.vic.gov.au/infrastructure-investment/investment-management-standard

6) Body of Knowledge: Benefits Management.Association for Project Management (APM)https://www.apm.org.uk/body-of-knowledge/delivery/scope-management/benefits-management/

7) Project Management Methodology: Benefits RealisationUniversity of Tasmaniahttp://www.utas.edu.au/project-management-methodology/useful-resources/expected-benefits

8) Benefits Realisation and Value Management Using Project Management 2.0/3.0Dr Harold Kerzner, PhD. Webinar (1h 28 min).https://www.axelos.com/webinars/realize-the-value-of-your-projects

9) PMI (2016). The Strategic Impact of Projects: Identify benefits to drive business results.Project Management Institute. The Pulse of the Profession®, In-depth Report.https://www.pmi.org/learning/thought-leadership/pulse/identify-benefits-business-results

10) PMI (2016). Benefits realization management framework.Project Management Institute. PMI® Thought Leadership Series.https://www.pmi.org/-/media/pmi/documents/public/pdf/learning/thought-leadership/benefits-realization-management-framework.pdf


https://www.pmi.org/-/media/pmi/documents/public/pdf/learning/thought-leadership/benefits-realization-management-framework.pdf

https://www.pmi.org/-/media/pmi/documents/public/pdf/learning/thought-leadership/benefits-realization-management-framework.pdf

https://www.pmi.org/learning/thought-leadership/pulse/identify-benefits-business-results

https://www.axelos.com/webinars/realize-the-value-of-your-projects

http://www.utas.edu.au/project-management-methodology/useful-resources/expected-benefits

https://www.apm.org.uk/body-of-knowledge/delivery/scope-management/benefits-management/

https://www.dtf.vic.gov.au/infrastructure-investment/investment-management-standard

https://www.pmi.org/pmbok-guide-standards/foundational/pmbok

https://www.auckland.ac.nz/en/about-us/about-the-university/our-ranking-and-reputation/planning-and-information-office.html

https://www.auckland.ac.nz/en/about-us/about-the-university/our-ranking-and-reputation/planning-and-information-office.html

http://www.treasury.govt.nz/statesector/investmentmanagement/plan/benefits/guidance

http://www.finance.nsw.gov.au/publication-and-resources/benefits-realisationmanagement-framework

i As defined in Prince2, Management of Successful Programs (MSP) and Portfolio, Programme and Project Offices (P3O).ii Adapted from PMBOK Guide, and The Strategic Impact of Projects: Identify benefits to drive business results (PMI).iii Adopted from Benefits Realisation Management Framework. State of New South Wales (Department of Finance, Services and Innovation).iv Adapted from: Benefits Management at the University of Auckland. University Strategic Programme Office Guidelines.v Financial (increased revenue, reduced cost), tangible (student experience, staff experience, increased efficiency), compliance (avoid risk or cost, legal compliance, maintenance of service), intangible, or dis-benefit.vi Adapted from Investment Management Standard 2017 (IMS) by State of Victoria.vii Adapted from PMI (2016). Benefits realization management framework.

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