The PPSO SIG Spring 2006 Conference…

Agenda9:45 - 10:30 Registration

10:30 - 11:15 “How to Identify Benefits” – John Zachar

11:15 - 11:35 Coffee / networking

11:35 - 12:45 “Changing Project Management Processes to Include Benefits Realisation” – David Marsh

12:45 - 14:00 Lunch / networking

14:00 - 14:45 “Extending Progress Reporting to Include Benefits” – David Marsh

14:45 - 15:00 Tea / networking

15:00 - 15:45 “Embedding changes” – Terri Kinton

16:00 Close

BENEFITS CENTRED PROJECT MANAGEMENT

David Marsh MMP

AIM

To provide you with some ideas for introducing Benefits Centred Project Management into your organisation

OBJECTIVES

To explain what is Benefits Centred Project Management and why you need it

To explain the techniques

To hear what Effect a Benefits Centred Project Management approach had

Why Do We Need Benefits Centred Project Management

The need for real success Need to include the management of the benefits

in the project A business benefit driven approach to delivering

the project The holistic approach Effective/efficient use of scarce resources (M’s)

Benefits From Benefits Centred Project Management

Defined bridge between the project and the benefits

Improved : Project structure Project governance Realism Understanding Chance of success

Reduced risk of adverse impact on business

Senior management focus

What is Benefits Centred Project Management

The efficient management of the execution of a project/ work packages within a controlled environment to:

achieve the required benefits for the operation of the business.

achieve a set of defined business outcomes.

co-ordinate the planning, monitoring and control of the project/work packages with benefit efficiency as the key.

Differences in Benefits Centred Project Management

Revised contents of the Project Control Documents

Revised Project Management organisation structure

New planning techniques

Revised Contents of the Project Control Documents

The use of a wider (benefits centred) definition (Blueprint) of what the project is to deliver.

Re-structured User Requirements – lateral and vertical MOSCO.

Re-Structured User Requirements

Subdivide the requirements – Laterally What functions must, should and could

you have. Subdivide the requirements – Vertically

What performance/capacity/look and feel in each of these groups of functions must, should and could you have

Blueprint

Operational Vision What the organisation or function will be like

once we have completed the Project Business Vision

The business benefits or changes (Quantitative or Qualitative - to be obtained)

Change Vision The attitude and or culture changes needed

Revised Project Management Organisation Structure

Who in your existing organisation structure is responsible for: Agreeing that the planned benefits are

realistic Ensuring that the project will deliver the

benefits Ensuring the project is structured to deliver

the benefits Responsible for delivering the benefits

Is the the Senior User the right person?

Project Board

ProjectSupport Office

Organisation Structure

Board Of Directors

Project Assurance

NEW ROLEBenefits

Realisation Manager and

Team

Project Manager

Sponsoring Group

Role of Project Board

Ultimate responsibility - stewardship/keeper of the Vision

Establish the project Responsible for resources and funding Manage the interfaces with other projects

etc Ensure project links to strategy and

evolving business needs Ensure efficient organisation of the staff Commissioning reviews Control of project implementation

Role of Benefits Realisation Manager

Establishing how the benefits will be delivered Leading Prioritisation and Change Control Responsible for planning the delivery of the benefits Preparing business areas for transition Leading benefits realisation activities Optimising the release of deliverables for the

business Ensure the Project Boards requirements are met Working with Project Manager to ensure Work

Packages will enable project to deliver Reviewing potential new requirements for inclusion in

the project

PREPARING THE PROJECT PLAN

The Project Planning Process (1)

Graph Required Benefits Profile Identify potential new and existing work packages

Prepare /obtain estimates

- duration, resource requirement, costs & benefits

Prepare Work Package-Project Contribution Matrix

Prepare Project Plan - match Required Benefits Profile

Identify & confirm dependencies and ’Handshakes'

Identify & agree Project Milestones

Identify & agree Project review points

Update risk analysis, Benefits Management Plan

Prepare Quality and Configuration Management Plan

The Project Planning Process (2)

Time

Benefit Realisation Point

100%

50%

Benefit RealisationPoint

Benefit Realisation Point

Benefits

Initial Benefits Realisation Points/Profile

The Work Package-Project Contribution Matrix

All Work Packages to be included

Contribution can be measured in terms of :

Benefits obtained (outputs and outcomes)

Earned Value Analysis

Must, should, or could etc..

Weighting and ranking tables

Difficulty and/or risk etc.

Work Package -Project Contribution Matrix

Work Package %age Contribution

Benefit (and Value)

1

2

3

4

5

6

Time

BK1

Benefits

70 %

80%

Expenditure

Year One Year Two Year Three Year Four

40%

PROJECT - BENEFITS AND COSTS PROFILE AND WORK PACKAGES

7.9 Million

4.5 Million

1.5 Million

BK5

BK6

BK4

BK3

BK2

BK 7

60%

BK4

GE5

GE 7

GE 6

Year Three

Time

Year TwoYear One

50%

10%

GE3

GE 4

GE 1

GE 8

Benefits

Handshake Required Benefits Profile

GE 9

GE 10

GE 2

Point

PROJECT - Handshakes

Defining Project Milestones

Milestones important to the project:

Obtaining benefits

Commitments for expenditure or resources

Strategic decision points outside the project

Asset transformation points