Analytics to Support Benefits Realisation Practice

1. Analytics to Support Benefits Realisation Practice V 1.7 May 2018

2. Content • Important definitions • The benefits life cycle for analysts • Investment Logic Map • Benefits in anAgile environment • Monitoring benefit performance

3. Important definitions • Benefit a measurable gain from an investment which is perceived to be advantageous by a stakeholder • Benefits Management the practice of identification, analysis, planning, realisation and reporting of benefits • Benefits Owner the person accountable for achieving agreed benefits (may represent interests of a senior user) • Benefits Analyst the person who investigates, challenges, advises and reports to the benefits owner on the expected benefits outcome • Benefits should be Measurable monetary and non-monetary. Meaningful, in that there is a direct relationship between the achievement of the measure/s and the achievement of the benefit. Attributable, where it can be reasonably claimed that the benefit measure/s results are due to the investment and not any other. Contribute to strategic outcomes and targets. • Measures should be SMAARRT (Specific, Measurable, Achievable, Attributable, Relevant, Repeatable, Time-bound)

4. Benefit Analyst Role across the Benefit Management Life Cycle Identification • Provide feedback into benefits map (e.g. ILM Investment logic map) • Determine how the benefits will be measured • Weight the benefits Analysis • Prove the benefits / disbenefits can be measured • Identify or create the baseline data • Evaluate against past performance Planning • Prepare benefit profile(s) • Confirm benefit report baselines • Review the benefit realisation plan (or benefits management plan in ILM) Realisation & Reporting • Prepare benefit realisation reports • Assess impact of benefit realisation plan variations • Maintain reporting from project / project increment into BAU • Evaluate emerging benefits g n i t r o p e I R d e & n t n i o fi i c t a a t s i i l o a n e R Note the steps usually overlap P s i l s a y n l n a i n n A g

5. Of these functions, who should perform them? • Analysing the impact of the benefit against the broader goals of the initiative • Directing the project manager about a benefit that the benefits owner is accountable for • Re-planning benefit realisation following a project variation • Validating measures to use for a benefit • Provides advice on prioritisation of initiatives based on the benefits The benefits analyst. The Senior Responsible Owner (SRO) or Programme Manager The project manager and Benefits Analyst The benefits analyst The EPMO

7. Deriving values from anInvestment logic map • Overview of ILM • Problem (or opportunity), benefit, Response and Solution • Weighting and contribution • Benefits, KPIs • From ILM to an achievable plan • Collaborate with stakeholders • Gather supporting evidence • Establish baseline material • Investigate results from previous similar projects • Roles • Investor should be the Benefits Owner • Ideal for Benefits Analyst to be an observer. • Facilitator and Participants • Benefits analysts could support ILM participants by listing potential data sources and benefits during pre-workshop preparation

8. Benefits Management Plan • Combines all benefits , KPIs and measures • Baseline • Target • Reporting arrangements • Challenge the benefits • Are the targets clear stated? • Will achievement clearly demonstrate a measurable gain? • Use real numbers to demonstrate achievement. • Check dates are in logical order • Validate the evidence • Confirm the data exists and is reproducible • Test that it works – will the evidence be produced as described? Instead of 20% reduction over 4 years, use 5,000 fewer per year. Be clear on dates – use day, month and year Reporting end likely to need to be one period after target is reached

9. Benefits Management in an Agile environment

10. Tools to help analysis • Spreadsheets are helpful to understand the process and suited to a single project • BUT are limited in managing effectively across multiple projects and portfolios • Agencies should use an appropriate tool to support their change portfolio and programmes and projects benefits.    This could be in Excel, a web based tool such as MS Sharepoint, or a Project Portfolio Management (PPM) tool • A portfolio level approach is critical to achieving a good ICR score • The Treasury has a range of best practice guidance and templates on its website to assist agencies with their benefits. • Annex F of the Benefits Guidance* includes the Axelos benefit maturity levels • Treasury’s ICR facilitated P3M3** diagnostic assessments analyses the tools and systems used to manage and support capability. This is an indicator of maturity based on intent and the need for better management information.  * Treasury Benefits Guidance https://treasury.govt.nz/publications/guide/managing-benefits-projects-and-programmes-guide-practitioners ** ICR Guidance https://treasury.govt.nz/publications/guide/guidance-icr-assessment-and-moderation

11. Checking Benefit, KPI and Measure Rigour

12. Benefit Realisation Plan Tracker Tool • Tool overview • Guidance, Benefits realisation Plan, Chart Info • Measures are recorded in per cent • Calculator • Charts • Benefits Summary • Baseline and Progress • Monetary, non monetary, individual • Benefit data • Numbering • Transposing data from the ILM • Baseline target • Current approved - all variations are overwritten, duplicate weighting • Check baseline total 100%, current approved may be more • The tool should be treated as an example and we are not advocating this tool over any other • Important to have a method to assess and monitor the data

13. Summary • The benefits analyst plays in key role in supporting good benefits practice for investments and at a portfolio level • They also undertakes many key activities across the benefits management lifecycle • An ILM, or similar benefits map is very good at setting up an investment to be benefits led, and the analyst is key in preparing for the benefits ILM workshop • Agile delivered investments require similar benefit practices as waterfall projects, with small variations • Using a benefits reporting tool assists at the individual investment level to report and optimise benefits and also enables programme and portfolio benefits reporting