What Happened to the Promise of Benefits Realization ?

1. What Happened to the Promise of Benefits Realization? Presented by: Dave Peters Date:November 12, 2013

2. Purpose To explore why it is difficult to realize benefits from projects and what we can do about it!

3. Agenda • What Are The Benefits Realization Fundamentals? • What Have We Experienced With Benefits Realization? • How Can We Do Better With Benefits Realization?

4. What ARE THE Benefits Realization FUNDAMENTALS?

5. Benefits Realization Fundamentals • 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 What is Benefits Realization?

6. Benefits Realization Fundamentals Are we doing the Right Things? Are we Getting the Benefits? Right Things Getting Results Client Right Way Getting Done Are we organized to work the Right Way? Are we GettingWork Done as expected?

7. Benefits Realization Fundamentals Strategic Are we doing the Right Things? Are we Getting the Benefits? Right Things Getting Results Value Focus Client Portfolio Program Project Right Way Getting Done Traditional Focus Are we organized to work the Right Way? Are we GettingWork Done as expected? Tactical

8. 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 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!

9. Benefits Realization Fundamentals What Must Be Considered? Organization Strategy, Structure, Controls Business Processes Policy, Process, Procedures Technology Applications, Infrastructure,etc. People Skills, Qualifications, Experience, Attitude Optimal benefits achieved through the interaction of four business domains

10. Benefits Realization Fundamentals What Types of Projects are Suitable for Benefits Realization? If a project has no benefit, why are you doing it? Projects suitable for benefits realization • Innovation • Sustainment • Obligation

11. Benefits Realization Fundamentals How Do Different Projects Contribute Benefits? Increasing Value Leverage potential with other initiatives Understand risk and actively manage

12. 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 How to Measure Success? Identify and prioritize benefits Establish benefits metrics Sequence benefits actions Manage and deliver benefits results

13. Benefits Realization Fundamentals Outcomes Mapping Results Chain Identify, prioritize, sequence actions Understand and communicate contributing and ultimate benefits Initiative Critical Assumption Intermediate Outcome Final Outcome

14. Benefits Realization Fundamentals Forge a Clear Path Powerful Roadmap Useful to plan and execute deliberate actions and link to the realization of strategic benefits Scalable to represent actions within a project or multiple projects within a program within a portfolio of investments

15. Benefits Realization Fundamentals 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?

16. 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 Practical Tips

17. 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 rewards • Patience and Persistence • Benefits may not appear at project close out Practical Tips

18. 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 Practical Tips

19. What HAVE WE Experienced WITH Benefits Realization?

20. 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 Tactical Thinking

21. Benefits Realization Experiences Business Commitment • 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

22. Benefits Realization Experiences Bureaucratic Hurdles • 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

23. Benefits Realization Experiences One Approach For All Projects • 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

24. Benefits Realization Experiences Applying Inappropriate Timeframe Timeframe for the realization of benefits is typically too short

25. HOW CAN WE DO BETTER WITH BENEFITS REALIZATION?

26. 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 Improve Our Understanding

27. What Can We Do Better • Multiple initiatives each producing their own sub benefits together produce the ultimate benefits Apply Critical Thinking To Our Initiatives Only after all components are complete and adopted by the business will benefits appear

28. What Can We Do Better • Choose projects with greatest potential • Facilitate clear direction from upper management • Ensure visible and fully engaged sponsorship 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

30. Discussion

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