Eleco Plc · LSE:ELCO
Eleco — Bestoutcome — Conference Presentation (October 2017)
25 slides from Eleco's conference presentation, October 2017
Slide 1: Why Realising Benefits from projects is a rarity and how to ensure you realise benefits
Why Realising Benefits from projects is a rarity and how to ensure you actually realise benefits Version 1.0 Prepared by: David Walton
Slide 2: Who are we?
Who are we? The Company Specialist Project & Programme Management Consultancy, founded in 2000 Services Programme and project delivery Project/Programme Management Office: setup and management Project audits and turn-around Project Management training and project health checks Project management and
Slide 3: Benefits Realisation - Times are a Changing
Benefits Realisation - “Times are a Changing’ What’s the Point? Majority of Organisations put benefits in a business case and then never refer back to It There is a trend in the Private Sector to now focus on benefits planning and benefits realisation In Public Sectors, e.g. Health – benefits must b
Slide 4: Definition of a Benefit
Definition of a Benefit Benefit is “An outcome of a change which is perceived as positive by a stakeholder” Gerald Bradley, Author of Benefits Realisation Management A Disbenefit is “An outcome of a change that is perceived as negative by a stakeholder” 4 © Bestoutcome Limited 2016
Slide 5: When is a Project Successful?
When is a Project Successful? Quality Not only… Time Benefits Cost But also… Scope 5 © Bestoutcome Limited 2016
Slide 6: Benefits Planning and Realisation Process
Benefits Planning and Realisation Process Plan Benefits Realise Benefits Define Benefits Realisation What information do How do you plan to How do you track and you need and how will realise the benefits monitor the benefits you measure it 6 © Bestoutcome Limited 2016
Slide 7: Defining Benefits - Typical problems
Defining Benefits –Typical problems Benefits are typically not credibly defined in a PID or a business case Sponsor is responsible for delivering those benefits but often has no idea that this is his or her role Benefit plans tend to be the proverbial finger in the air, i.e.: Save 5% cost of a depar
Slide 8: Link between Objectives and Benefits
Link between Objectives and Benefits Improve Process Reduction in Level Reduction in Reduction Efficiency of Effort Headcount in Costs Intermediate Benefits End Benefit Objective Source: Practical Benefit Realisation Management Jagivan & Mike Green 8 © Bestoutcome Limited 2016
Slide 9: Link between Objectives and Benefits - (2)
Link between Objectives and Benefits – (2) Improved Improved Increase in Increase Customer understanding of Customers Sales Interaction Customers Intermediate Benefits End Benefit Objective An enabling project could be the implementation of a new CRM system 9 © Bestoutcome Limited 2016
Slide 10: Make Sure the Benefits are Understood and not Assumed
Make Sure the Benefits are Understood and not Assumed 10 © Bestoutcome Limited 2016
Slide 11: M&S Transformation Programme
M&S Transformation Programme Ensure benefits of the Programme are Understood! “Its not just an office move” 11 © Bestoutcome Limited 2016
Slide 12: Benefits Definition - Profiles
Benefits Definition - Profiles Description Probability Owner Recurring / Dis-benefit / Measure Non- Recurring Benefit 12 © Bestoutcome Limited 2016
Slide 13: Benefits Planning
Benefits Planning Need to develop 2 plans Delivery Plan Benefits Realisation Plan Typically these plans are not linked but should be 13 © Bestoutcome Limited 2016
Slide 14: Benefits Planning - Develop an holistic Delivery Plan including Change
Benefits Planning – Develop an holistic Delivery Plan including Change 14 © Bestoutcome Limited 2016
Slide 15: Avoid the Mastermind Approach to Project Management
Avoid the Mastermind Approach to Project Management Update the Benefits Plan and Check that the new Benefits still justify the Project / Programme I’ve started so I’ll finish 15 © Bestoutcome Limited 2016
Slide 16: Gateways - Ensure Checks in Gateways to Focus on Benefits
Gateways – Ensure Checks in Gateways to Focus on Benefits 16 © Bestoutcome Limited 2016
Slide 17: Project Lifecycle
Project Lifecycle “Projects have a beginning, a muddle and no end” Keep a focus on delivering the benefits. When a Project is underway, benefits are often forgotten 17 © Bestoutcome Limited 2016
Slide 18: Benefits Plan
Benefits Plan 18 © Bestoutcome Limited 2016
Slide 19: Link Milestones to Benefits Delivery Plan
Link Milestones to Benefits Delivery Plan 19 © Bestoutcome Limited 2016
Slide 20: Benefits Planning - Ensure Benefits are not double counted
Benefits Planning – Ensure Benefits are not double counted 20 © Bestoutcome Limited 2016
Slide 21: Benefits Realisation - How to do it?
Benefits Realisation – How to do it? Maximise Benefits detailed in the plan Minimise Dis-benefits detailed in the plan Benefits realisation starts when all the enablers have been completed for each benefit Engage with key stakeholders for each benefit Programme activities don’t typically end with th
Slide 22: M&S Case Study - Head Office Transformation Programme
M&S Case Study – Head Office Transformation Programme After everyone was moved into the new M&S Headquarters, Programme activities continued for a number of months to ensure expected benefits were going to be realised. 22 © Bestoutcome Limited 2016
Slide 23: Summary
Summary Benefits Planning and Realisation are becoming Increasingly important Ensure both benefits and disbenefits are clearly identified Link Delivery Plan with Benefits Plan Categorise benefits properly Ensure Sponsor or SRO understand their role Use PM3 to manage your benefits at project, program
Slide 24: References
References Source: Practical Benefit Realisation Management Jagivan & Mike Green Screenshots are from PM3 24 © Bestoutcome Limited 2016
Slide 25: Click to edit Master title style
Click to edit Master title style 25 © Bestoutcome Limited 2016 www.bestoutcome.com