(Insert Project/Program Name)

BENEFITSMANAGEMENTSTRATEGY

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Preparedfor:

(Insert Project/ProgramBoard Name)

AMENDMENT LOG

REVISIONHISTORY

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CONTENTS

AMENDMENTLOG2

CONTENTS3

1PURPOSE OF THIS STRATEGY4

2BENEFITSMANAGEMENT IN THEXXXPROJECT/PROGRAM –WHY?4

3PLANNINGTHEBENEFITS5

3.1IDENTIFYINGANDMAPPINGTHEBENEFITS6

3.2SETTINGBENEFITPRIORITIES6

3.3BENEFITPROFILES7

3.4BENEFITREALISATIONPLAN8

4REALISINGTHEBENEFITS9

4.1EXECUTINGTHEBENEFITREALISATIONPLAN9

4.2REVIEWINGANDEVALUATINGBENEFITREALISATION10

4.3GLOSSARYOFSPECIFICBENEFITSMANAGEMENTTERMINOLOGY13

ATTACHMENTA:CHECKLIST OFDETAILEDACTIVITIESTO MANAGE
PRE- TRANSITION,TRANSITIONAND POSTTRANSITION.14

1PURPOSEOFTHISSTRATEGY

This Benefits ManagementStrategysets out the approachandframework that the XXXProject/Programwilluse to manage the realisationand deliveryof benefits.

It provides directionandinformationin terms of:

•Thepurpose of benefits managementintheXXXProject/Program;

•The approach to benefits planning,whichincludes how benefits are identified,definedand prioritised;

•The approach for the benefits realisationmanagement process (after benefits planning),and the criteriaagainstwhichthe effectiveness of that process is to bemeasured;

•Thefunctions,roles and responsibilities ofthoseinvolvedin benefits planningand benefitrealisation;

•Whenandhow reviews andassessments concerned withmeasuring benefit realisationwillbe carriedout,andwho is to beinvolved;

•Measurement methods andsteps thatwillbe used tomonitorand assess the realisationof benefits;

•Thetool(s),system(s)andsource(s)ofinformationthat may beused to enable benefit measurement; and

•The use and definitionofany benefits managementterminologythatis specific to the XXXProject/Programand the (Agency)context.

2BENEFITSMANAGEMENTINTHEXXXPROJECT/PROGRAM–WHY?

The keyobjectives of benefits managementin the XXXProject/Programis to:

•Provide ongoingalignmentandclearlinksbetween the XXXProject/Program, the (Agency)Strategic Planandultimately,theinitiative endorsed by government;

•Ensure that benefits are identified,defined,andclearlylinked to(Agency) outcomes;

•Ensure that the desired benefits areachievable andverifiable (and that theycan,andwillbemeasured);

•Ensure that the affected parts of the (Agency)businessareas understand their responsibilities and the critical role theyplayinbenefit realisation, andare able to committo undertaking those activities;

•Activelydrive (ratherthanleave to chance)the process of realising benefits,whichincludes actively measuring,trackingand recording benefits duringthe periodof benefits realisation;and

•Provide a“benefitsroadmap” thatserves as acontinuingfocus for the deliveryof the Project/Program and the necessarychanges thatneed to occurin the (Agency)operationalareas.

Tip: This strategyshould be reviewedona regularbasis to makesure that things are still beingdone as intended.A good time to do this iswhen the XXXProject/Program conductsaBenefits Review.
The“keyobjectives”thatarelistedinthepreviousparagraph provideagoodchecklistfordetermininghowwelltheProject/Programis “managingbenefits”.
Useittocheckwhether thingsarebeingforgottenorwhether managementactionshavegoneoff-the-track andarestartingto missthepoint.

3PLANNINGTHEBENEFITS

Soundand realistic planningof benefits will be essential to the eventualsuccess of the XXXProject/Program.

Benefits Planningis anongoinganditerative activity,especiallywhen the Project/Program(lateron) considers orimplements change(s) thatare likelyto

impact onits vision,business case,blueprint,and/orproject/programplan.

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Fig1:Thesequenceof stepsto befollowedin benefitsplanning

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3.1IDENTIFYINGANDMAPPING THE BENEFITS

TheXXXProject/Programis required to establishandmaintainaBenefitsMap*that captures and illustrates the relationships betweenthe outputs that the projects are producing; the business changes thatare neededto take onthe new capability; the outcome(s) thatare expected from the successfulconductof those business changes; the benefits (intermediateandendbenefits) thatare anticipated to be realised because of thoseoutcomes; and the (Agency)strategicobjective(s) that will be achievedas a result.

Fig2:BenefitMap–Categories

*Tip: The BenefitsMap is veryhandypiece of information thatshows ata glance all the relationships between what the projects are producing, what changes need to bemade in the business,the correspondingoutcomes, and what benefits areanticipated to be deliveredas a result.
Justlikeanyplanninginformation,itshouldbemaintained.Useit tocapturewherethingsareuptoandrecordanyapproved changes. Itisalsoausefultoolfortheproject/programboardto understandwhatimpacttheirdecisionsarelikely tohaveonthe project/program,especiallyifthingsneedtochangeorare“notrunningtoplan”.

3.2SETTING BENEFITPRIORITIES

Prioritising the deliveryof benefits ensuresthatthe (Agency)derives the rightbenefits sooner rather thanlater,butalso thatitderivesvaluefaster byhavingits most importantneeds,if theycan be delivered,being metearlier.

Setting benefit priorities is a partof benefitplanning(and re-planning),andis required to be done each time the project/programconsidersachangein its plans, reviews progress,orresponds to anissue impactingon benefits.

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To be clearof whatisdrivingthe priorities,theproject/programis to,ataminimum, conductananalysis of“benefitsvsimpacton business area”andalso be clear about who is beingimpacted(i.e.throughabenefit/ stakeholdermatrix). This analysis should be revisitedduringanybenefit(re)planningevent(e.g.when stakeholderexpectations change) or whenthere is amove to change the scopeof what the project/programis delivering.

Remember: The schedule of when benefits are expected is managed in detail through the project/program’s BenefitRealisation Plan.
Anychangetobenefitprioritiesshouldbereflectedandmanaged intheBenefitsRealisationPlan.

3.3BENEFITPROFILES

A Benefit Profile enables everyone concernedwiththe project/programto be clearabout what the benefitis; where itwilloccur; who isinvolvedand what must done to achieveit; andfinally,how we know thatwe have achievedit.

The BenefitProfiles,once approved,helpdefine the scope ofwhy the project/programis runningandconstantly guides notonly thethingsthat the project/program need to deliver,butalso the changes that the operationalmanagers need to makein the day-to-day business to bringthose capabilities “tolife”(i.e.the Business Change Managers).

Ataminimum,aBenefitProfileis to record:

  • Description - What preciselyis the benefit?
  • Observation - What verifiable differences will be observable before and after the project/programhavingbeen run?
  • Attribution - Where do we expect the Benefit to occur?Is the ownership for the making the changes in the operationalareasclearandagreed? Does the benefit really resultfromourproject/program?
  • Measurement - Howand when will the achievementof the benefitbe measured?

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The XXXProject/Programis required tomaintainandapply change controlto allBenefitProfiles once theyhave beenapproved. Once approved,these shouldonly change with the approvalofthe XXXProject/ProgramBoard (BoM).

Remember: The expected benefits are an important partof the project/program’s Business Case. Anychange to these (onceapproved)shouldonly be done with the approvalofthe project/program board(orevenhigher in the organisation).
WhenBenefitProfileschange, theproject/program’sbusinesscaseshould bereviewedtounderstandtheimpact.

3.4BENEFITREALISATION PLAN

The project/programis to manage,trackandcontrolthe realisationofbenefits through the project/program’sBenefitsRealisationPlan.

Itcan best be thoughtofas aschedule ofresourcedactivities focusedon achievingthe benefitsand the transition thatneeds to occurinthe (Agency) operationalareas,asdistinctto the project/program’s plan,whichis focusedon the deliveryof the project/program.

The Benefits Realisation Planis to be maintainedby the XXXProject/ProgramOffice,and is managedin detailby theXXXBenefits Managerworkinginconjunctionwiththe identifiedBusiness Change Manager(s)(typically the (Agency)operationalmanagersorcoordinators managingthe business change or transitionin theirareas).

Ataminimum,the planisrequired to containandprovideinformationon:

•A schedule that details wheneach benefitor groupsof benefits

(includinganydis-benefits) will be realized;

•Milestones for the conductofBenefits Review(s), to determine progress andinformquestions about the likelihoodofongoingsuccess inthe future;

•Dates whenspecific outcomes (i.e.business transition(s))that will bring about benefits,are planned to be achieved;

•Anyandalldependencies; and

•Details of the necessaryhandoverandembeddingactivities necessary to realise any benefitsoccurringafter the project/programhas closed.

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Tip: Just like it is important to gauge andreporton the status and progress of what the project/programs are delivering, it is justas important to reporton the status and progress ofwhat is happening in the operationalareas,andhowmuch benefit isactuallybeing“realised”.
Often this is considered to be “hard to do”,and therefore is oftennot done.
TheBenefitRealisationPlanalongwith theproject/programplan shouldbetracked,controlledandreportedon. Agoodhabitisto see,andtreatthese,asequalsintheday-to-daymanagementoftheproject/program.

4REALISINGTHEBENEFITS

Benefits need to be managed fromtheirinitialidentificationall the way through to theirsuccessful“realisation”.

Animportantpartof“Realising the Benefits”is essentiallyaboutthe XXXBenefits Managerand(Agency)Business Change Managersmonitoringthe project/programto make sure that the deliverables that theyare producingcan“do the job”and that the things theyare deliveringcan beintegratedinto the (Agency)business and operationalareas (so that the benefits thatwere planned forearlier,can be realised).

Outside of monitoring,the XXXBenefits Managerand(Agency)Business Change Managersalso need to carryoutactivities that prepare andsupport the (Agency) areas thatare undergoing transition. Thisis inaddition to the workneeded to track,“push”andmeasure the benefits astheyareoccurring.

4.1EXECUTING THE BENEFITREALISATION PLAN

The BenefitRealisationPlanis used to track the realisationof benefits across the XXXProject/Program. Italso sets the frequencyof the “review”controls. The planis executedunder the controlof the XXXProject/Programby the project/program’sassigned Business Change Managers and the Benefits Managerin the project/programoffice.

Like “Benefits Planning”,the process ofRealisingBenefits is made upofongoing and iterative managementactivities that require the project/programto work together withmembers of the project/programboard,operational(Agency) areas,its stakeholders and other projects/programs upon which the project/programis dependentoracontributor to. These activities will take time,consume resourcesand require control(notunlike activities beingundertaken by the project/program’s projects to delivercapability).

Ataminimum, “executingthe BenefitRealisationPlan” requiresthat the followingscheduledactivities take place:

  • Benefit measurementactivities (before,duringandafteratransition);
  • Handover/ acceptance andembeddingactivities (beyond the mere
  • Implementationofaproject’s deliverable);
  • The conductof benefit reviews; and
  • Sustainmentactivities (to “sustain” the ongoing realisationofabenefit).

A checklistof detailedactivities to be undertakento manage thepre-transition, transitionand post transition phases ofBenefits Realisationis providedat

AttachmentA.

Tip: The informationassembled during benefits planning willbeessential to guidingandcontrolling the benefit realisationactivities of the XXXProject/Program.
Expect thattherewillbevariancebetweenwhatisactuallyachieved andwhatwasplanned. ReferbacktotheBenefitMap,BenefitProfiles,Blueprint,BusinessCaseandotherplanstoguideyournextsteps.

4.2REVIEWING AND EVALUATING BENEFITREALISATION

A critical requirement during the executionof theBenefits Realisation Planis to ensure that measurements areactually beingtaken. The takingof measurements allows the project/programto determine the extentto which benefits arebeingrealised, and to also identifyanyissues that may beprecludingthemfromhappening.

To be effective,measurements are to be madepre andpost the transition(i.e.when the capabilities are transferred by the projects/programsto the operationalareas). In some cases,where agreed,“post measurements” mayoccurafter the XXXproject/programhas closed. This recognises thatsome benefits may take years to fully realise. Where this happens,the XXXProject/Programis toensure that theresponsibilities for measurementare transferred toanappropriate (Agency)corporateareaas partofits project/programclosure activities.

The measurementapproach that the XXXProject/Programintends to use to measure its benefits should be clearlyexplainedintheBenefitProfiles andanysupporting planninginformation. Ataminimum,there should beclarityaround the tools, systems,informationsources (and responsibilities) thatwillbe used to perform the measurements.

Tip: Using the samemeasurement tools and approach before andaftera transition provides muchgreaterconfidence thatachange has occurred.
Also remember thatjust because a benefitmay be difficult to measure, it shouldnonetheless be done. Proxymeasures (i.e.indirectmeasures) and even quantitative measures are better thannone atall.
Ifabenefitcannotbemeasureditusuallydoesnotexist,and thereforecannotbeclaimedbytheproject/program.

Foreachproject/programbenefit,ameasure orsetof measures willneed to be devised to describe and prove the deliveryof the benefits outlinedin the Business Case.

The tools for measurement mayinclude:

  • Existing(Agency) information,reporting,business systems;
  • Measurementsystems thatareintended to be / mustbe designedinto the deliveredcapability(e.g.anew reporting process/tool); and
  • Independent manual measurement tools suchas surveys orinterviews, audits orhealthchecks,(Agency)database queries.

Thisis notaninclusive listas there are amultitude of ways to measure benefits. Importantly,the project/programneeds to balancethe wayitintends to measure against the backdropof deliveryand theimpactonday-to-day(Agency)operations. Inall cases,measurementactivities should passthe testof being worthwhile andfitfor-the-purpose for which theyareintended. The project/programshouldalso be mindfulthat whatis expectedis acost-effective,leanapproach to measurement that leads to a demonstrationof realised benefits anddoes notnegativelyimpacton the continuationof the day-to-dayconductof(Agency)operations.

To enable measurements to be takenlateron,the project/programis required to maintainall document-based tools and“instructions for measurement” withinits informationsystem(s). This willensure thatthey can be replicatedand drawnon whenneededlateroninthe project/program.

Important: Consider the followingcriticalsuccessfactorswhenplanningand managing benefit delivery:
Clearownershipofbenefits;
Each benefitneeds to be owned byanappropriateindividual.Look for the positionorindividual whose KPIs willbe affectedif the benefitisnot realised!
This isthe BenefitOwner);
Benefitsmustbemeasurable;
Ifa benefitcannotbe measureditcannotbe managed,andsofailsone of the critical validationtests ofa benefit;
Benefitsarisefromchanges; and
Be clearof where changes need to occurin(Agency)thatwillgive rise to an outcome fromwhichyouare expecting benefits. These changes need be activelymanaged byindividualsinthese areas! (these are theBusiness Change Managers - sure theyexistandare performing theirfunctions).

Inadditionto doing“ongoing measurements”ofeachbenefit,the XXXProject/Programis to ensure thatitperforms formal reviews thattake stockand make an assessmentof“benefits realisation”acrossthe project/program. These BenefitReviews are to include anEnd-Tranche-Review,whichis to be conductedat the endof eachof the project/program’sdelivery“tranches”.

Where atranche is expected toexceed 12months induration,aMid-Tranche Review is also warranted. The requirement formid-tranche reviewis atthe SRO’sdiscretiononadvice fromtheproject/programmanager,and therefore may be conductedatanytimeduringa tranche.

Tip: Remember to optimise and look forother benefits as partof your normal benefit reviewprocess.

Anexample checklistforundertakingaBenefitReview,andanEnd(or mid) Tranche Reviewis coveredin the best-practice guidance bookletThinkMSPTM (availableto the XXXProject/ProgramOffice).

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Tip: Duringany formal review, there is asignificant benefit inalsoreviewing the performance of the Benefits Realisation Plan to determine its effectiveness andefficiency.
TheBenefitsRealisationPlanisadynamicpieceofmanagement information.Itshouldbereviewedtomakesurethatitremains relevantandachievable.

4.3GLOSSARY OFSPECIFIC BENEFITSMANAGEMENTTERMINOLOGY

BoM–BoardofManagement.Thisis the XXXProject/ProgramBoard.

SRO–The SeniorResponsible Owner.This is the singleindividualwho hasthe responsibilityforensuringthat the XXXProject/Programmeets its objectives and delivers the projected benefits.Thisis the chairofthe BoM.

Project/Program Manager–Thisis the role thatis responsiblefor the set-up, managementand deliveryof the XXXProject/Program.

BenefitsManager–Thisis theindividualthatis responsible withinthe XXXProject/ProgramOffice forprovidingthe centre ofexpertiseinimplementingthis strategy,managingthe benefitplanninginformation,andensuring that benefit realisationplanisimplemented.

BenefitOwners– These are the individualsinthe (Agency)who have adirect interestin the benefitbeingdelivered.A good rule of thumbis that these are the individuals who headup the areas whose KPIs willbe affectedifthe benefitis not realised.

BusinessChange Managers–These arethe individuals who are responsible to the Project/Programfor managingthe requiredchanges in the operationalareas,(i.e. after takingon the capabilities being delivered bythe Project/Program’s).Also sometimes referred to as Change Agents.

Project/ProgramOffice–the individualsinthe XXXProject/ProgramOffice.Itsfunctionis to serve as the informationhub for the Project/Programandsupport the Project/ProgramBoard, Project/ProgramManagerandBusiness Change Managers inmanagingandcontrolling the deliveryofcapabilityand benefits.

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ATTACHMENTA:CHECKLIST OF DETAILEDACTIVITIESTO MANAGEPRE-TRANSITION,TRANSITIONAND POST TRANSITION.

As the project/programs approachcompletion,the(Agency)areas need to be prepared for implementingthe deliverables that theyare handingover.

  • Manage the pre-transition. Thisisabout the analysis;
  • preparationand planning for the business transformation;
  • Establish benefits measurements (if theydo notalreadyexist);
  • Monitor benefits realisation in the projects. (I.e.maintaina benefits focus on the projects. Escalate if adjustments are required);
  • Plan the transition(if theyare notalready planned);
  • Communicate the change to the business / operational areas; and
  • Assess andestablishthe readiness forchange of the business /
  • operational area(s).

As the project/programs handover the capability, the (Agency)areas willneed to manage the acceptance of the newcapabilitiesintotheir wayofworking. Manage the transition:

  • Initiate the transition into the business / operational areas (remembering that business-as-usual needs to be maintained and should not be placed at risk);
  • Establish any required support arrangements (which may be above and beyond that what was originally planned for);
  • Enact the transition (i.e. continue the transition into the business /
  • Operational areas until it is done);
  • Manage the achievement of the outcome detailed in the plan; and
  • Reviewing the outcome of the transition (and be prepared to feed back shortfalls or opportunities).

As the (Agency)areas beddownandstabilise the newcapabilitiesinto partof their normal day-to-dayworkenvironment,theproject/programwillneed tomeasure and understand whathasbeenachievedandwhatis stilloutstanding. Manage post transition:

  • Measure the benefits;
  • Decommissionoldsystems / practices when ready to do so;
  • Respondand feedbackchanging requirements; and
  • Monitorand reporton benefit realisation.

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