Benefits Management

Raghu Bandreddi, PMP

Agenda
Project vs. Program Program Management Activities Benefit Management Framework Benefit Management Approach Benefit Management Strategy Benefit Realization Plan Summary Survey

Project Vs Program
Project
Definite start and end point, clear path for delivery

Program
Programs have a wide scope that man\y have to change to meet the benefit expectations of the organization (Vision of intended end state but may not have clear path to get there) Success is measured in terms of Return on Investment (ROI), new capabilities, and benefit delivery Leadership style focuses on managing relationships and conflict resolution. Program managers need to facilitate and manage the political aspects of the stakeholder management

Success is measured by budget, on time, and products delivered to specification

Leadership style focuses on task delivery and directive in order to meet the success criteria.

Short term and very clearly defined? Should be managed as a project

Large scale and/or complex and/or uncertain, with a long timeframe? Should be re-scoped as a set of coordinated projects and managed as a program

Program Management Activities

Program planning Quality management Risk management

Project prioritization

Benefit Management

Issue management

Stakeholder Communication

Progress Reporting

Program closure

Benefits Management Framework

Program Benefits Management

Benefits Identification

Benefits Analysis

Benefits Planning

Benefits Realization

Benefits Transition

The Standard for Program Management, figure 2-3, Program Life Cycle and Benefits Management, Project Management Institute, 2006

Approach
Why The primary purpose of a program management to deliver the benefits What Manage them actively from beginning to end. They must not be left as an after-thought assuming that they will accrue at some point. How Understand outcomes expected from the program Examples: an efficient organization a world class leader in the specific industry a gain in market share Identify benefits to be realizable Measure of the outcome Be absolutely clear about who will deliver and where Prepare a benefit profile for each benefit to help ensure there is no misunderstanding and confusion. Ensure the operational side of the business is ready to receive them having appropriately planned the transition

Benefits Management Strategy

Purpose: Used to establish the approach to managing benefits. Check list Is the Benefits Management Strategy fully integrated into the program plan? Is there evidence of active management of the potential benefits? Are the potential benefits clearly identified? Is there a clear plan to manage the delivery of those potential benefits? Are the benefits understood across the business? Suggested content: Outline description of the program's benefits and where in the organization the benefits will occur Model of the benefits showing any interdependencies and dependencies on specific areas of change required within the organization Description of the functions, roles and responsibilities for benefits planning and realization, aligned to the program's organization structure Review and assessment process for measuring benefits realization covering who will be involved in reviews and how and when the reviews will be carried out.

Benefits Realization Plan

Purpose: Used to track realization of benefits across the program Checklist: Are the dates by which the benefits should accrue clearly understood and realistic? Are the dates by which the benefits should accrue in line with the program milestones and relevant project deliverables? Are the actual benefits accruing compared to the projected benefits? Suggested content: Schedule detailing when each benefit or group of benefits will be realized Identification of appropriate milestones when a program benefit review could be carried out Details of any handover activities, beyond the mere implementation of a deliverable or output, to sustain the process of benefits realization after the program is closed.

Summary
Summary of Benefits Management approach: Expected benefits are identified and fully defined, including attributes, measures, owners and risks Benefits realization plans are in place and actively monitored for all programs Program owners are demonstrably accountable for delivery of benefits

Lack of Benefits Management across the Board 59% of Organizations have no formal Benefits Management process (of those that DO, only 18% enforce it) Only 13 % of Organizations track benefits until they are realized Only 23 % of Organizations integrate benefits with Operational Plans Benefits Leakage 86% of Organizations lose of their benefits Benefits Realization Only 2 % of Organizations claim they achieved all their project benefits all the time over the past 12 months
Source: KPMG Global IT Project Management Survey 2006

The Truth About Project Benefits

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Thank You