brm framework_part 4

June 2014

Benefits Realisation Management FrameworkPart 4: Tailoring

Benefits Realisation Management Framework | PART 4 | June 2014 of 16

Table of contents

1. Benefits Realisation Management Framework

3

2. Tailoring your organisation’s Benefits Framework

4

2.1 What is Tailoring? 4

2.2 Tailoring the NSW Benefits Framework to your Organisation

4

3. Tools 9


1. Benefits Realisation Management Framework

This document is part of the NSW Government Benefits Realisation Management framework. The structure of the framework is as follows:

The purpose of the Benefits Realisation Management Framework is to provide:

• a framework of best practice principles and concepts drawn from latest experiences and proven practice in setting up and managing programs that is transferable across NSW agencies

• a standard approach for benefits realisation management for anyone not familiar with the subject matter, including program directors and managers, change managers project managers, business analysts and program management office (PMO) staff across NSW Government

• consistent terminology & benefits categorisation

• introduction and guidance for program sponsors and business benefit owners.

The framework:

• is aimed at those who are interested in benefits realisation within agencies, enabling them to adapt and tailor the guidance to their specific needs

• must be accessible by strategy groups, operational business areas and program/project teams as well as by individual practitioners and business benefit owners

• should help PMO practitioners improve their decision making and become better at implementing beneficial change.

Part 1: Principles

Part 2: Process

Part 3: Guidelines

Part 4: Tailoring

Part 5: Glossary


2. Tailoring your organisation’s Benefits Framework 2.1 What is Tailoring?Tailoring a framework within an organisation is essential to optimise its use and its value. A tailored framework is aligned to the specific environment an organisation operates in and strikes the balance between efficient but effective governance. To achieve this balance, consideration of the factors that influence the delivery of a project and its outcomes is required (e.g. organisational maturity, project size, complexity, priority and risk).

The goal of tailoring a framework is generate efficient process and deliverables while providing appropriate control given the above influencing factors.

2.2 Tailoring the NSW Benefits Framework to your OrganisationWhile the NSW Government Benefits Framework provides best practice processes and deliverables, an organisation is encouraged to tailor the framework to maximise its application. The following are some key areas to consider when tailoring your organisation’s Benefits Framework:

2.2.1 Tailoring Benefit Realisation Management (BRM) principlesThe BRM principles are always to be applied when managing benefits. The principles will act as a guide for an organisation when tailoring the governance required to successfully manage benefits. The degree to which the principles are applied to the processes and guidelines will depend on the organisation’s specific maturity and the specific environment the project or program is operating in.

The table on the following page suggests how the BRM principles may be applied depending on an organisation’s P3M3 BRM Maturity level.


BRM Principle P3M3 – Level 2 P3M3 – Level 3

1. Benefits management starts by defining the program/project objectives and the benefits they deliver

Potential use of benefits mapping for large projects to ensure the outputs produced will achieve the desired outcomes.

Consistent use of benefits mapping to identify and understand the relationship between project outputs, outcomes and benefits.

2. Benefit identification and understanding drives refinements to the business case

High level financial benefit identification should be conducted as part of the initial phase of the project, particularly with the project sponsor.

Formal benefits identification workshop must be held with key business stakeholders to identify financial and non-financial benefits, their assumptions, risks and dependencies.

3. Benefits must be aligned with the strategic goals of the organisation

All benefits must be aligned to one or more strategic goals of the organisation.

All benefits must be aligned to one or more strategic goals of the organisation, and show how the project will positively contribute to the goal’s associated KPIs.

4. Benefits Realisation Management needs to integrate with an organisation’s Financial, Program, and Change Management Frameworks

The management of benefits must acknowledge financial policies and consider the impact change management may have on the realisation of key outcomes.

The BRM framework must align and cross-reference existing financial policies and program/change management frameworks.

5. Benefits are enabled by successful change – people, process, technology and organisational

Changes required to enable the benefits are typically limited to the project outputs and planned training.

People, process, technology and organisational changes required to enable benefits need to be linked to ensure realisation.

6. Benefits need to be owned and managed by a designated person in the business; they don’t just happen

An appropriate business representative is identified to measure and report benefits of large projects.

Benefit roles are defined and clear accountability for benefits are managed to ensure their realisation.

7. Benefits must be measurable and linked to performance data and reporting frameworks

Key benefits are quantified through ‘guestimation’ and may not be using standard techniques and rates.

Benefits are quantified using effective estimation techniques and available standards and rates.

8. Benefits can be tangible (financial or non-financial) or intangible, e.g. improvements in quality, efficiency, access, and financial performance

Benefits are typically categorised as either tangible (financial) or intangible (unquantified).

Benefits are categorised using a defined standard and rates consistently across business operations, and quantified for both tangible (financial and non-financial) and intangible benefits.

9. Benefits realisation requires a baseline and benefit targets in order to measure resulting outcomes

Benefit baselines are typically limited to the initial business case development.

Benefit baselines are reassessed at planned gateways throughout the project lifecycle.

2. Tailoring your organisation’s Benefits Framework (cont.)

2.2.1 Tailoring Benefit Realisation Management (BRM) principles (cont.)


BRM Principle P3M3 – Level 2 P3M3 – Level 3

10. Dis-benefits need to be recognised and mitigated

Dis-benefits are rarely identified and are only measured when significant for selected large projects (e.g. risk mitigation projects)

Dis-benefits are identified and treatment plans or corrective action for significant dis-benefits are planned within the project and benefits realisation plans.

11. The same benefits cannot be claimed by two or more projects (i.e. no double counting)

There is likely to be overlap and double counting of benefits between some related projects.

Processes are in place at a portfolio level to ensure benefits are not claimed by more than one project and business cases are not inflated.

12. Benefits need to be communicated

Benefits are communicated by the initial business case and through ad hoc or incidental means to other key stakeholders.

Planned and scheduled communication of benefits are conducted in conjunction with the project’s change management plan.

13. Benefits are not automatically realised; active monitoring is required

Informal or ad hoc benefits tracking and management.

Formal processes are in place to track and manage the performance of benefit realisation

14. Benefits are dynamic; they need to be regularly reviewed and updated

Limited reviews with some corrective action conducted by the project.

Formal processes are in place to validate the realisation of benefits and refine their targets

15. Intermediate outcomes are needed to realise end benefits (and are just as important)

Intermediate outcomes are only identified within large project or programs.

Intermediate benefits are identified in early benefits identification using benefits mapping techniques.

16. Benefits tracking continues long after a program/project has ended

Focus on benefit identification in the project/program start-up but not maintained over the initiative’s life cycle.

Structure and governance in place through standard benefit realisation plan processes and templates.

2.2.1 Tailoring Benefit Realisation Management (BRM) principles (cont.)




2.2.2 Tailoring BRM processes and deliverables

While the benefit principles are mandated when managing benefits, an organisation has scope to create efficiencies in their framework by tailoring benefit processes and deliverables to suit the specific external and project factors in which they operate. Below is the suggested minimum required from an organisation to provide sufficient benefit realisation management according to these guidelines:

Stage Key Tasks Deliverables

Small Project Large Project/Program

1. Understand 1.3 Identify key stakeholders

1.4 Identify benefits with key stakeholders

1.5 Estimate benefit value

1.6 Establish benefits register

Draft Benefits Register • Benefits Realisation Strategy

• Draft Benefits Register

• 3 Column Analysis

• Benefits Map

2. Plan 2.2 Confirm benefit ownership

2.3 Confirm benefit baselines and targets

2.4 Develop benefit profiles

Baselined Benefits Register

• Benefits Realisation Plan and Profiles

• Baselined Benefits Register

3. Manage and Report 3.6 Review progress against business case

Updated Benefits Register Updated Benefits Register

4. Evaluate 4.1 Handover benefits reporting and measurement to BAU team

Updated Benefits Register Updated Benefits Register


2.2.3 Tailoring BRM – project and external factorsSpecific external and project factors in which an organisation operates will impact the way a Benefits Framework is tailored. The following are typical factions that are to be considered when introducing or enhancing a benefits framework within an organisation:

• Magnitude of the Change

The size, complexity, priority and risk of a project and its benefits will affect the level of governance required to control its delivery and benefit realisation. The use of an organisation’s Project and/or Change Sizing Guides to tier benefit management requirements will ensure efficiencies in benefit processes and deliverables. The differences between the project and change lifecycles for ‘large’, ‘medium’ or ‘small’ projects is a helpful guide to determine the appropriate and sufficient governance control required for benefits management. For example, for large project an organisation may mandate Benefit Profiles and Benefit Map are required for all benefits, where as for small projects a Benefit Realisation Plan might be sufficient. Benefit processes should also be aligned to the defined project stages for a particular project. See Table 1 for a sample project sizing guide. See Table 2 for a sample tiered benefit process and template table.

• Roles and Responsibilities required for Benefits Management

The standard role descriptions should be adapted to required accountability and management of the change. Tailoring the standard role descriptions should ensure clear lines of accountability and oversight, while avoiding excessive and duplicated governance. Avoid recruiting to the position description as some functions may be performed by staff already in place, particularly for smaller projects.


• Terminology and Language of the Organisation

The terminology and language of an organisation should be embedded when tailoring benefit processes and templates. Using an organisation’s language will help provide consistent communication across project and business areas. Using familiar terminology and language will also accelerate adoption and help ensure continued use of the framework.

• Audience of the Change

The particular audience required to review and approve a change and its benefits will alter the processes and benefit information required from a project. For example, large projects requiring the development of a capital business case will need to adhere to Divisional and Treasury policies including TPP 08-5, TPP 07-5 and TPP 07-4. A small internal recurrent project may find adherence to Treasury requirements excessive and may benefit from tailored ‘lite’ version the required deliverables.

• Maturity level of the Organisation

Determining the maturity level of an organisation may help tailor the framework to help ensure adoption and continued use of benefit processes and templates. Low benefit management maturity may resist the introduction of a complex and comprehensive benefits framework. An organisation may consider distilling the framework, processes and templates to the gain the essential required to improve the organisation’s benefit management and perform required governance reporting. A road map may be developed to plan the continued improvement of benefits management within the organisation. See Table 3 for P3M3 BRM Maturity Guidelines.


3. Tools

Project Sizing Guide

Decision Factors Small Project Medium Project Large Project

Scope Scope small, impacts one branch

Scope medium, impacts many branches within one division

Scope large, impacts more than one division

Likely Project Cost Low, less than $100k Medium, $100k to $500k More than $500k

Effort 10 person days to 26 person-weeks

26 person-weeks to 1 person-years

More than 1 person-years

Duration Less than 6 months 6 months up to 1 year More than 1 year

Experience Project Manager has experience in undertaking and delivering similar projects

Project Manager has some experience in undertaking and delivering similar projects

Project Manager has little/no experience in undertaking or delivering projects of this type

Complexity Easily understood problem and the solution is clear and easily achievable

The problem is difficult to state, or the solution is unclear or difficult to achieve

Both problem and solution are difficult to define or understand, and the solution will be difficult to achieve

Program Environment Is not part of a program/is stand alone project

Some major dependencies or inter-related projects but considered low risk

Major high-risk dependencies or inter-related projects

Strategic Importance Operational impact only Tactical impact; not strategic but relates to low-priority initiatives in a Divisional Plan

Strategic impact; directly relates to key initiatives in OSR’s Strategy & Corporate Plans

Customer Impact During Delivery

Internal end users within single branch and single location

Internal end users within one division and multiple locations

Internal end users across multiple divisions, multiple locations and external users

Internal Impact During Delivery

Impacts branches within a division

Impacts multiple branches across more than one division

Impacts on the whole of the organisation

IT Component/ Systems No IT component involved

Existing systems - upgrade or increased utilisation

New system or significant reframing of existing systems

Stakeholder Consultation Within own branch Across multiple branches in more than one division

Across more than one division, interest groups, external parties

Project-Specific Risks Low overall risks Medium overall risks High or Extreme overall risks

External Exposure No external exposure Exposure to other government agencies

Exposure to Treasury and/or public


Tiered Benefit Process and Templates

Phase Pre-Project ConceptJustify & Plan

Execute/Implement

FinaliseRealise & Improve

Status Potential benefits

Expected benefits

Committed benefits

Validated benefits

Baselined benefits

Realised benefits

Process Understand benefits

Plan benefits Manage and report benefits

Evaluate benefits

Stakeholders Sponsor

Business Analyst

EPMO

Project Manager

SMEs

Business Analyst

Data Analyst

EPMO

Project Manager

Senior Suppliers

Senior Users

Business Analyst

SMEs

EPMO

Project Manager

Project Steering Committee

Senior Users

Benefits Owner

EPMO

Project Manager

Benefits Owner

EPMO

Benefits Owner

EPMO

Accountable Project Sponsor

Project Manager

Project Manager

Project Manager

Project Manager

Business Owner

Key activity Identify benefits

Profile benefits

Identify metrics

Monitor benefits

Measure benefits

Measure sustainability

Output Project mandate

Outline business case

Draft benefit profile (tier 2 and 3)

Draft benefit map (tier 2 and 3)

Complete business case

Approved benefit realisation plan

Approved benefits profile (tier 2 and 3)

Approved benefit map (tier 2 and 3)

Updated benefit realisation plan

Updated project status report

Updated benefit map (tier 2 and 3)

Finalised benefit realisation plan

Updated benefit realisation plan

Templates Project mandate

Benefit self-assessment worksheet

Project brief

Benefits profile

Benefits map

Change impact analysis

Change readiness audit

Project management plan

Benefits realisation plan

Benefits profile

Benefits map

Benefits quality checklist

Project management plan

Project status report


Benefits map


End project report

Benefit realisation plan

3. Tools (cont.)


P3M3 BRM Maturity Guidelines

P3M3 Benefits Management

Specific Attributes Generic Attributes

Level 1

There is some recognition that the concept of benefits can be differentiated from project outputs.

1. Outcomes defined in terms of features and results rather than measurable performance improvement

2. Benefits seen as justification rather than core element of project’s delivery

3. Little or no recognition of how benefits are to be managed and realised.

1. Training provision is uncoordinated, with little or no knowledge sharing

2. Key individuals lack experience

3. No standard roles, and responsibilities are not defined or are generic

4. Some information available but is outdated, unstructured and dispersed

5. Limited, if any, formal checking or review

6. Plans, if any, are conceptual or merely sequences of events with rough timescales

7. Planning, if any, likely to be an initial activity with little maintenance of ownership or tracking.

Level 2

Benefits are recognised as an element within project Business Cases. There may be a Benefits Review Plan documenting who is responsible for particular benefits and their realisation, but this is unlikely to be followed through or consistent.

1. Evidence in some projects of understanding of differences between products, outputs and outcomes

2. Responsibility for benefits may be assigned within some project Business Cases but outside project management team

3. Role of project Executive and Senior User in benefits management and realisation may be articulated in some projects

4. May be some benefit measurement criteria

5. Different areas manage and account for benefits in different ways

6. Post-project reviews focused on project activities and products.

1. Localised information structures, with some information sharing between teams

2. Focus on documentation during start-up and definition, but not maintained over initiative’s life cycle

3. Limited localised information controls, with no formal release management arrangements

4. Local reviews, with some corrective actions undertaken within the group

5. Generic training may be provided in key concepts, and there may be individuals undertaking qualification training

6. Local sharing of knowledge may exist but mostly ad hoc

7. Key individuals may have practical delivery experience and track record

8. Roles, responsibilities and competencies defined in some areas but not consistently across the organisation

9. Plans exist but are not underpinned by consistent development methodology, yet may still be effective locally

10. Planning seen as activity tracking rather than proactive/forecasting

11. Estimation is more ‘guesstimation’ and does not use standard techniques.

3. Tools (cont.)


P3M3 BRM Maturity Guidelines (cont.)



Level 3

There is a centrally managed and consistent framework for defining and tracking the realisation of benefits arising from project outputs.

1. Measures of project success are becoming defined and explicit

2. Common approach and procedures that ensure consistency across all projects in relation to benefits measurement and realisation

3. Benefits management procedure described within project Benefits Review Plan

4. Changes to project considered against impact on benefits

5. Common set of tools and templates used for benefits management activities, including their detailed description within the Benefits Review Plan

6. Business Case and Benefits Review Plan stored centrally and subject to issue and change control procedure

7. Detailed statements explaining how benefits will be achieved from project products

8. Benefits calculated in financial terms against centrally managed assessment criteria

9. Clear responsibilities for benefits realisation cited in Business Cases and Benefits Review Plans

10. Post-project benefit reviews used to report formally on outcomes and benefit realisation

1. Information has a refresh cycle or is regularly accessed

2. Organisation-wide information standards on confidentiality, availability and integrity

3. Formal information release management procedures

4. Independent reviews take place

5. Scrutiny largely for compliance reasons, identifying failures rather than opportunities for improvement

6. Plans developed to a central and consistent standard that is output – or goal-based

7. Plan development takes into account a range of relevant factors

8. Evidence of effective estimating techniques

9. Dependencies are identified, tracked and managed effectively

10. Training is focused on the organisation’s approaches and raising competence of individuals in specific roles

11. Forums exist for sharing organisational experience to improve individual and organisational performance

12. Centrally managed role definitions and sets of competencies defined and used to support appointments

3. Tools (cont.)





Level 4

Benefits management is embedded within the PRINCE2 approach and there is a focus on delivery of business performance from project outputs. Project performance metrics are collected and analysed.

1. Procedures in place to identify and resolve double counting of benefits

2. Benefits defined at programme level and may be cascaded down to projects

3. Benefit reviews undertaken regularly and action taken to leverage opportunities

4. Complex variety of benefits measures designed and applied according to circumstances (e.g. Balanced Scorecard)

5. Common, performance-based benefits measurement and assessment mechanisms in place

6. Clear and active ownership of plans to improve performance from project outputs

7. Procedures for management of benefits realisation owned, reviewed and being improved

8. The organisation ensures that claimed benefits are realistic and endorsed by the project Executive and Senior User.

1. Information is current and extensively referenced for better decision-making

2. Trend analysis and measurement undertaken on performance information to identify improvement opportunities

3. Knowledge management is a central function and is used to help improve performance and planning

4. Reviews focus on opportunities to improve as well as compliance

5. Plans kept up to date, with the application of sophisticated planning techniques and recognition of interdependencies

6. Extensive training is provided, focusing on personal development and performance improvement

7. Evidence of interventions to avoid conflicts and take advantage of opportunities

8. Mentoring and individual development is used to improve organisational performance

9. Succession plans exist for key roles.

3. Tools (cont.)





Level 4

Benefits management is embedded within the organisational approach to change and is assessed as part of the development of organisational strategy.

Business performance metrics are linked to, and underpin, the recognition of benefits realisation.

There is evidence of continual improvement.

1. Clear links between strategic decision-making and benefits realisation

2. Evidence of development and innovation of techniques based on experience of realising a variety of benefits in several different environments

3. Active management of opportunities to enhance benefits realisation

4. Decisions taken to balance benefits and “dis-benefits” based on statistical measures

5. Strategic priorities affect benefit measures (e.g. changes to strategic Key Performance Indicators are filtered down into projects)

6. Post-project benefit reviews studied, trends established, and lessons learned fed back into benefits realisation planning and other management activities.

1. Information is valued, with continual maintenance and referenc

2. Evidence of extensive intelligence-gathering processes, with information disseminated through a variety of channels

3. Review and improvement is continual and proactive, with lessons being shared openly

4. Planning inherent in decision-making process, with adjustments and implications managed and deployed

5. Active management of interdependencies between initiative plans and other business plans

6. Estimations are accurate and used effectively to ensure delivery

7. High levels of competence embedded in all roles and seen as part of career paths

8. Knowledge transfer is an inherent behaviour within the organisation

9. Skills embedded into organisational leadership and management development programmes.

3. Tools (cont.)

© Crown copyright 2010. Reproduced with permission from OGC

Source: Prince2 Maturity Model (P2MM)

P3M3® is a registered trade mark of the Cabinet Office.

www.nsw.gov.au

More information

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