Presentation on theme: "What Happened to the Promise of Benefits Realization? Presented by:Dave Peters Date: November 12, 2013."— Presentation transcript:
What Happened to the Promise of Benefits Realization? Presented by:Dave Peters Date: November 12, 2013
Purpose 2 To explore why it is difficult to realize benefits from projects and what we can do about it!
Agenda 3 What Are The Benefits Realization Fundamentals? What Have We Experienced With Benefits Realization? How Can We Do Better With Benefits Realization?
WHAT ARE THE BENEFITS REALIZATION FUNDAMENTALS? 4
Achieving desired business outcomes from the intentional and effective interplay of strategy and actions Proven technique for leveraging greatest value Selecting, structuring and delivering projects with the best potential to advance the enterprise’s strategy Focusing resources and energy on the most valuable projects for highest impact 5 Benefits Realization Fundamentals What is Benefits Realization?
Benefits Realization Fundamentals 6 Client Right Things Right Way Getting Done Getting Results Are we doing the Right Things? Are we Getting the Benefits? Are we Getting Work Done as expected? Are we organized to work the Right Way?
Benefits Realization Fundamentals 7 Client Right Things Right Way Getting Done Getting Results Are we doing the Right Things? Are we Getting the Benefits? Are we Getting Work Done as expected? Are we organized to work the Right Way? Strategic Tactical Value Focus Traditional Focus Portfolio Program Project
Benefits Realization Fundamentals Transformational or strategic change is complex There are multiple ways to achieve the objectives Each path requires a well thought out set of deliberate actions taken to get the desired result 8 Why is Benefits Realization Important? Unless we think through all the possibilities and act on explicit choices, our stakeholders will make their own choices … which may not be what we expect or want!
Benefits Realization Fundamentals 9 People Skills, Qualifications, Experience, Attitude People Skills, Qualifications, Experience, Attitude Organization Strategy, Structure, Controls Technology Applications, Infrastructure,etc. Business Processes Policy, Process, Procedures Business Processes Policy, Process, Procedures What Must Be Considered? Optimal benefits achieved through the interaction of four business domains
Benefits Realization Fundamentals 10 What Types of Projects are Suitable for Benefits Realization? Projects suitable for benefits realization Innovation Sustainment Obligation If a project has no benefit, why are you doing it?
Increasing Value Benefits Realization Fundamentals 11 Must do to survive; greatest risk Compliance, legislated, regulated, contractual Mandated, mitigate risk Obligation Remain at same level; moderate value & risk Investigative, maintenance, info request Stream line, modify, new capabilities Sustainment Go to the next level; highest value Brand new services, markets, technology Proof of concept, research & development Innovation How Do Different Projects Contribute Benefits? Leverage potential with other initiatives Understand risk and actively manage
Benefits Realization Fundamentals Business Cases versus Benefits Cases Adds and emphasizes business benefits to standard business cases Measurement is paramount Must measure before, during and after to determine how you are doing Tracking and monitoring benefits may go beyond the project 12 How to Measure Success? Identify and prioritize benefits Establish benefits metrics Sequence benefits actions Manage and deliver benefits results
Benefits Realization Fundamentals 14 Forge a Clear Path Scalable to represent actions within a project or multiple projects within a program within a portfolio of investments Powerful Roadmap Useful to plan and execute deliberate actions and link to the realization of strategic benefits
Benefits Realization Fundamentals 15 What About Managing Risk? Value Risk Management Is this strategically aligned? Will we succeed at this? Traditional Risk Mgmt What are the risks? Are we closing the gaps, overcoming obstacles?
Benefits Realization Fundamentals Most benefits are orchestrated Conscious choices, planned actions Requires program and integrative thinking People, process, technology, organization Look beyond Return on Investment Align with strategic objectives 16 Practical Tips
Benefits Realization Fundamentals A business outcome owner is imperative Cannot be delegated to support or external resources One size does not fit all Scalability, not all benefits are equal Adjust your approach based on the potential risks and reward s Patience and Persistence Benefits may not appear at project close out 17 Practical Tips
Benefits Realization Fundamentals Benefits-driven portfolio Evolves to deliver the greatest strategic value Business risk to value assessment Used to determine the likelihood of realizing the benefits Benefits identification, prioritization, sequencing Many things have to happen before achieving the “ultimate” outcome Know interdependencies, prerequisites 18 Practical Tips
WHAT HAVE WE EXPERIENCED WITH BENEFITS REALIZATION? 19
Benefits Realization Experiences Fundamental thinking has been too tactical Focus on narrow project level benefits not broad enterprise level strategic benefits Not seeing possibilities beyond the immediate narrowly focused need 20 Tactical Thinking
Business not committing the “right” people or time to identify and produce meaningful enterprise level strategic benefits Responsibility is delegated to support groups or external parties who do not have the line of sight to the bigger picture 21 Business Commitment Benefits Realization Experiences
People will say whatever is needed to get the project approved Requirement to identify the benefits not taken seriously so little or no possibility of achieving meaningful benefits 22 Bureaucratic Hurdles Benefits Realization Experiences
All projects identify business benefits the same way, even when not appropriate Rigid enforcement in the identification of or realization of benefits leading to projects delivered under crisis 23 One Approach For All Projects Benefits Realization Experiences
24 Applying Inappropriate Timeframe Benefits Realization Experiences Timeframe for the realization of benefits is typically too short
HOW CAN WE DO BETTER WITH BENEFITS REALIZATION? 25
What Can We Do Better Benefits identification is not a step in a project plan Benefits are identified, prioritized and sequenced long before any projects or programs are identified Benefits identification should spawn projects, not the other way around 26 Improve Our Understanding
Multiple initiatives each producing their own sub benefits together produce the ultimate benefits 27 What Can We Do Better Apply Critical Thinking To Our Initiatives Only after all components are complete and adopted by the business will benefits appear
What Can We Do Better Choose projects with greatest potential Facilitate clear direction from upper management Ensure visible and fully engaged sponsorship 28 Select Projects Thoughtfully Keep in mind that mandated projects are primarily about survival, establishing a base or reducing risk
29 What Can We Do Better Keep Our Eye On The Ball Be disciplined and persistent about staying focused on business benefits