benefit realization management izenbridge

© 2014 iZenBridge | PUBLIC

Benefit Realization Management (BRM)

- 27th Feb 16

Projects don't end with a 'technical' delivery and a closure report


AGENDA

Introduction

Benefits Categorization

BRM Ecosystem

Role of PM

BRM Models


BENEFIT

‘An outcome whose nature and value are considered advantageous by an

organization’

- (OGC, 2007b, Jhon Thorp 1998 and ward et al. 1995)

An outcome which is perceived as positive by Stakeholders

- (Gerald Bradley 2006)

Benefit realization should always be owned by stakeholder(s) who

are expecting Value from an investment.


Benefit <> Financial Impact

Benefit: Measurable improvements resulting through projects outcome

Financial impact: Measurable improvement in business performance

resulting from projects outcome (Direct or indirect)

Change

Outcome

Benefit

Financial Impact

Program/Project

Positive or Negative

Overall positive impact

Tangible Monetary


Benefits:

• Less pollution

• Less traffic

• Less accounting effort

• Cashless transaction less risk of

theft

• Happy customers (less wait time)

• Less workforce

Project ;

Expansion and Modernization of

Toll Booth

Change

Outcome

Benefit

Financial Impact


•

Benefits

Tangible

Definite Excepted

Non Tangible

Expected or Anticipated

Increased Sales

Easier time reporting

Reduce 2 steps in loan

approval process

Better brand

Image

Improved ESI

BENEFIT CLASSIFICATION

Short Term Medium Term Long Term

Hard Soft


BENEFIT CLASSIFICATION BY BUSINESS IMPACT

Strategic

Benefit which support strategic business

growth/vision

Speculative Benefits with High Risk high

reward

Disrupt organization culture

Key operational

Short term benefit with Quick Win

Support

Nice to have

Non critical

Business Impact

Bu

sin

ess V

alu

e

Difficulty

1 2

3 4

To be Top 5 global Car manufacturer by 2025

1. Expansion into new geographies

2. Robotics/AI/Solar Powered Cars

3. Improve website user friendliness

4. Workspace enhancement/look and feel of report


BENEFIT REALIZATION MANAGEMENT

Benefit - An outcome whose nature and value are considered advantageous

by an organization

Realization - Being aware of something that is achieved

Benefits realisation management (BRM) (also benefits

management or benefits realisation) is one of the many ways of managing

how time and resources are invested into making desirable changes. - Wiki

Framework

Organization Function

Responsibilities at various levels

Closed loop


BRM MODELS

• There is no universally adopted framework

• All BRM models are based on cycle of PDCA

• Models have different Flavors

- IT IS specific projects

- Business change management alignment (Continuous

evaluation)

- Predictability of Benefits

- Delivery of Benefits


Ben

efi

t L

ife C

ycle

Man

ag

em

en

t

Benefit Management Strategy

Benefit Realization Plan

Benefits

Prioritization

Implement

Benefits Deliver

/Realize

Benefit Measure

/Evaluate

To Organization

Organization

Vision

En

terp

rise C

han

ge/R

isk M

an

ag

em

en

t

Portfolio

Program

Project

Influenced by OGC generic approach model T

ime L

ine

Benefits

Identification

BRM GENERIC MODEL

Operations

Time Line

../Desktop/Benefits_Management_Strategy_Template.doc


BRM Stakeholders

Management

• Organization CXO

• Board

Line Management

• BR Manager

• Business Head

• Operation Head/PMO

• Some CXO

Organization

• PMO (Project/Program)

• Line Functions

• Operations

Line Management

• BR Manager

• Business

• Operations Head

poll

© 2014 iZenBridge | PUBLIC White Paper published by HBRC Journal - 2014

T

C S Q Q

S B

C T

Iron

Triangle

Parallel

Balance

I- Validate

Benefit

P – Benfeit

Realization plan

E – Implement

M & C –

Measure and

control

C –

Measure/Evalua

te/Feedback

ROLE of PROJECT MANAGER


Ben

ID #1 Project

#1

Ben

ID #2

Ben

ID #3

Ben

ID #4

Ben

ID #7 Program

#1

Project

#3

Project

#4

Project

#2

Evaluatio

n

Risk

#1

Risk

#2

Benefit R

egis

ter/

Pla

n

Owner

A

Owner

B

Benefit #1

Benefit #7

Today

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Benefit Traceability


BRM MODELS

Model Key Features

Active Benefits Management –

Leyton, 1995

•Focus on Change Management link to

Benefit Management

Cranfield process model of Benefits

Management, 1996

•Focus primarily on Benefits from IT/IS

investments.

•External/internal influences

•Focus on CHECK and ACT

Benefits Realization Approach –

Thorp , 1998

•Benefits from Information technology

investments.

•More focus on PLAN.

•Stress on Predictability and consistency

Active Benefit Realization- Remenyl

&Sherwood Smith , 1998

•Continuous evaluation

•Continuous stakeholders involvement

Dynamic role change

•3 stage Approach – 1. Setting the Course, 2.

Formative evaluation, 3. Moving Forward

Best Practices to Benefit

Management – Ashurst and Doherty,

2003

• Exclusive research of various models

•Primary focus on IT investment but can be

used elsewhere


Thank You

[email protected]

https://www.linkedin.com/in/manish-panchmatia-61b4047

@manishsay

mailto:[email protected]






benefit realization management izenbridge

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