Implementing Project and Program Benefit Management

Kenn Dolan

• Publisher: Auerbach Publications
• Year: 2018
• eBook ISBN: 9780429627675
• Topic: Negocios y empresa
• Subtopic: Tecnología de la información

One of the most difficult, yet important, questions regarding projects is "What advantages will this project create for the investors and key stakeholders?" Projects and programs should be treated as investments. This means that the focus of projects shifts from delivering within the triple constraints (time–cost–quality) towards some of the more fundamental questions:

• What is the purpose of this investment?
• What are the specific advantages expected?
• Are these benefits worth the investment?

Implementing Project and Program Benefit Management is written for executives and practitioners within the portfolio, program, and project environment. It guides them through the important work that must be addressed as the investment progresses towards the realization of benefits. The processes discussed cover the strategic elements of benefits realization as well as the more detailed requirements, which are the domain of the program delivery teams and the operational users. Using real cases to explain complex situations, operational teams and wider groups of stakeholders, including communities affected by infrastructure projects, will be able to engage in the conversation with the sponsors and delivery teams.

Covering an area of program and project management that is rapidly becoming more widely valued, this book blends theory with practical experience to present a clear process flow to managing the benefits life cycle. Best practices are defined, and pitfalls and traps are identified to enable practitioners to apply rigor and structure to this crucial discipline.

Contents

Dedication

Preface

Acknowledgments

About the Author

Introduction

Part One
Establishing the Language

Chapter 1: What Are Benefits and Why Are They Important?

1.1 What Are Benefits?

1.1.1 Characteristics of Benefits

1.1.2 Why Are Benefits Important?

1.2 Benefits Realization Management

1.3 Categorization of Benefits

1.3.1 Financial and Nonfi nancial Benefits

1.3.2 Triple Bottom Line

1.3.3 Efficiency and Effectiveness Factors

1.3.4 Tangible and Intangible Benefits

1.4 Stakeholders and Benefits

1.5 Changing the Conversation

Exercises and Activities

Chapter 2: Definitions and Terminology

2.1 Project

2.2 Program

2.3 Portfolio

2.4 Initiative

2.5 Progressive Elaboration

2.6 Pathway to Benefits

2.6.1 Output

2.6.2 Capability

2.6.3 Outcome

2.6.4 Intermediate Benefits

2.6.5 Emergent Benefits

2.6.6 Dis-Benefits

2.6.7 Benefits

2.7 Transition Period

2.8 Transition Activities

2.9 Baseline

2.10 Operational Environment

2.11 Business as Usual

2.12 Gateways

2.13 Benefits Reviews

2.14 Fiscal Year (or Financial Year)

2.15 Front-End Loading

2.16 Return on Investment

2.17 Benefit Cost Analysis

2.17.1 Payback Period

2.17.2 Net Present Value

2.17.3 Benefit-Cost Ratio

2.18 Diagrammatic Methods

2.18.1 Benefit Map

2.18.2 Dependency Network

2.19 Documentation

2.19.1 Benefits Management Strategy

2.19.2 Benefit Profile

2.19.3 Benefits Register

2.19.4 Business Case

2.19.5 Benefit Realization Plan

2.19.6 Program Plan

2.19.7 Transition Plan

2.19.8 Sustainment Plan

2.19.9 Review Report

2.19.10 Benefits Closure Report

2.20 Summary

Exercises and Activities

Chapter 3: Team Roles and Responsibilities

3.1 Sponsoring Group

3.2 Sponsor

3.3 Program Manager

3.4 Project Manager

3.5 Program/Project Management Office (PgMO/PMO)

3.6 Project Office

3.7 Program Office

3.8 Business Change Manager (BCM)

3.9 Change Team

3.10 Benefit Manager/Owner

3.11 Assurance Roles

3.12 Governance Roles

3.13 Specialist Support Roles

3.14 Additional Considerations

3.15 Summary

Exercises and Activities

Part Two
The Benefits Life Cycle

Chapter 4: Benefits Life Cycle

Chapter 5: Establish the Context

5.1 Drivers for Programs and Investments

5.1.1 PESTLE

5.1.2 Triple Bottom Line

5.2 Other Program Types

5.2.1 Strategic Initiatives

5.2.2 Evolving Initiatives

5.2.3 Compliance Initiatives

5.2.4 Technology-Driven Initiatives

5.3 Recognizing the Stakeholders’ Perspectives

5.3.1 Getting to Know the Stakeholders

5.4 Documentation

5.4.1 Benefits Management Strategy

5.5 Summary

Exercises and Activities

Chapter 6: Identify the Benefits

6.1 Getting Off to a Bad Start

6.2 Begin with the End in Mind

6.3 Diagrammatic Techniques

6.3.1 Benefit Mapping

6.3.2 Benefits Dependency Network

6.3.3 Benefits Dependency Map

6.3.4 Benefits Logic Map

6.3.5 Applying These Methods

6.4 Identifying the Right Benefits

6.5 Who Identifies the Benefits?

6.6 Documentation

6.6.1 Benefit Profile

6.6.2 Benefits Register

6.6.3 Benefits Map (or Other Diagrammatic Representation)

6.7 Summary

Exercises and Activities

Chapter 7: Assess the Benefits

7.1 Quantifying

7.1.1 Cognitive Bias—Some of the Traps

7.1.2 Combatting the Biases

7.1.3 Calculating the Value of Benefits

7.2 Assessing

7.3 Documentation

7.3.1 Benefit Profile

7.3.2 Benefits Realization Strategy

7.3.3 Business Case (Initial)

7.3.4 Benefits Register

7.4 Reviewing and Decisions

7.4.1 Initial Business Case Document

7.4.2 Assurance

7.4.3 Independent Review

7.4.4 Learning Lessons

7.5 Summary

Exercises and Activities

Chapter 8: Plan for Benefits Realization

8.1 Who Needs to Be Involved in Planning Benefits

8.2 The Planning Regime for a Benefit Life Cycle

8.2.1 Project Planning

8.2.2 Transition Planning

8.2.3 Post-Transition—After the Outcome Has Been Realized

8.3 Planning for Benefits

8.3.1 Early Wins

8.4 Documentation

8.4.1 Program Plan

8.4.2 Benefit Realization Plan

8.4.3 Transition Plan

8.4.4 Sustainment Plan

8.5 Summary

Exercises and Activities

Chapter 9: Coordinate and Realize the Benefits

9.1 Pre-Transition

9.1.1 Changes to the Project

9.1.2 Scope Changes

9.1.3 Schedule Changes

9.1.4 Training

9.1.5 Communications

9.1.6 Baseline

9.2 Transition

9.2.1 Induction

9.2.2 Training

9.2.3 Reinforcement

9.2.4 Outcome

9.3 Post-Transition

9.3.1 Stepping Stones

9.3.2 Minor Adjustments

9.3.3 Reinforcement

9.3.4 Measuring Benefits

9.3.5 Decommissioning Obsolete Systems

9.4 Sustainment

9.5 A Case Study

9.5.1 Pre-Transition

9.5.2 Transition

9.5.3 Post-Transition

9.6 Documentation

9.7 Summary

Exercises and Activities

Chapter 10: Review the Initiative

10.1 Addressing Failure to Meet Benefits Targets

10.2 Managing Emergent Benefits

10.3 Revisiting Planning

10.4 Closure

10.5 Documentation

10.5.1 Review Report

10.5.2 Benefits Closure Report

10.6 Summary

Exercises and Activities

Part Three
Embedding the Practices

Chapter 11: Embedding Benefits Realization Management into Organizations

11.1 Change the Conversation

11.2 Enforce the Development of Benefit Profiles

11.3 Apply Successful Delivery Mechanisms

11.4 Integrate BRM with Existing Organizational Processes

11.5 Induct All Stakeholders

11.6 Establish a Single Sponsoring Group

11.7 Focus on the Significant Benefits

11.8 Substantiate the Attribution of Benefits

11.9 Test the Legitimacy of Benefits

11.10 Beware “Double Dipping”

11.11 Apply a Model for Change

11.12 Be SMART

11.13 Engage Stakeholders

11.14 Conduct Independent Assurance and Reviews

11.15 Create Champions

11.16 Summary

Exercises and Activities

Appendix I: Documentation

Appendix II. Summary of Cognitive Biases Impacting Benefits Realization Management

Abbreviations and Acronyms

References

Index

Preface

Increasing accountability for expenditure and transparency to all stakeholders has led to benefits realization management being brought to the fore within the program and project management environments. It is, increasingly, being accepted as a function of the program manager, in particular, and a skillset with which the project manager must become comfortable.

I am passionate about benefits management because it elevates the project management profession and its professionals to a strategic level of engagement and contribution in the advancement toward the objectives. ftis involvement opens up new territory and raises problems and questions which may be new. Fundamental to these is WHY? Why is an investment being made? What do the investors and other stakeholders want from their investment?

Project management practitioners are expected to take on additional responsibilities and functions within their team. ftey are the inspiration behind this book. My aim was to write an interesting and supportive book which would allow practitioners to understand some of the complexities of benefits realization management with confidence. While theories are important, it is the application of them which adds value in the real world.

As someone who places great store on learning and education, I wanted to present the topic in a straightforward and practical way. ftis accounts for the anecdotes and case studies within the text. As the writing progressed, I enjoyed discovering and integrating onto the overall processes many of the “softer” aspect of benefits and their relevance to the program and project managers.

I hope that an initial reading will illuminate the subject but suggest that referring to the chapters and topics as they become relevant within the readers’ work environment will enable the subject to come to life and apply the techniques.

Acknowledgments

As I have recently discovered, writing a book is not ...

Table of contents

• Cover
• Halftitle
• Title Page
• Copyright Page
• Dedication
• Table of Contents