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Benefits Management and Transformational Flow Tutorial

1 Benefits Management and Transformational Flow

This lesson focuses on the relationship between transformational flow and benefits management. It also covers the various roles and areas of focus in benefits management. Let us begin with the objectives of this lesson in the next screen.

2 Objectives

By the end of this lesson, you will be able to: Explain the relationship between transformational flow and benefits management Describe the roles of the Senior Responsible Owner, Programme Manager, Business Change Manager and Programme Office Let us move on to the next screen to discuss the relationship between benefits management within the transformational flow.

3 Benefits Management within the Transformational Flow

The table on the screen depicts the relationship between transformational flow and benefits management. In ’Identifying a programme’, the programme mandate contains an overview of corporate objectives and expected benefits that the programme must deliver. As part of developing programme brief, the programme provides an initial assessment of whether and how the benefits will be delivered. The initial ‘as-is’ information is captured for the blueprint and provides the baseline from which performance improvements can be sought. In ‘Defining a programme’, benefits management strategy is created. Benefits profiles are established along with benefits map. Initially, this may be a part of governance arrangements in the programme preparation plan. The benefits management strategy defines the practices and governance arrangements for benefits management. The main focus of the programme from a benefits perspective is the detailed definition, allocation of ownership and planning of the benefits themselves. Documentation created in this phase gives a complete picture of the programme’s viability. ‘Managing the tranches’ maintains strategic oversight of the delivery of capability and preparedness for change. Regular benefits reviews are conducted. Activities during managing the tranches ensure that the benefits context is considered while conducting regular benefits reviews and monitoring for any strategic changes. In the next screen, let us continue to discuss the relationship between benefits management and transformational flow.

4 Benefits Management within the Transformational Flow (contd.)

The table on the screen depicts the relationship between transformational flow and benefits management: In ‘Delivering the capability’, projects continue to deliver their commissioned outputs and the programme ensures that they remain aligned to the benefits realisation plan. The Business Change Manager or BCM provides support and expertise, and assesses any project alterations for impact on benefits. Engagements with stakeholders remain a high priority to fine-tune requirements and review design solutions and user acceptance testing. ‘Realising the benefits’ is the fundamental focus of benefits management. This stage is concerned with implementing the benefits realisation plan and benefits profiles. Programmes should always be alert to the possibility of new benefits and look towards accruing greater benefits. ‘Closing the programme’ is a crucial milestone for benefits management. Once the programme closes, no further new capabilities will be provided by it while benefits continue to be realised. As part of the closure process, the benefits profiles, benefits maps, benefits management strategy and benefits realisation plan are reviewed and updated. They act as reference points for post-programme activities. Let us look into the roles and area of focus in benefits management in the following screen.

5 Roles and Area of Focus in Benefits Management

Let us begin by discussing the roles and areas of focus of the Senior Responsible Owner. The Senior Responsible Owner or SRO reports to the sponsoring group on delivery of programme benefits and ensures that the programme and the business areas affected maintain focus on benefits delivery. It is the SRO’s responsibility to ensure that benefits management strategy is created, adjusted, improved and enforced. The SRO has to maintain focus on the sustainability of business performance during transition. He conducts benefits reviews involving relevant stakeholders, business managers and internal audits. The SRO also authorises benefits achievement. The Programme Manager is responsible for developing the benefits management strategy, on behalf of SRO, with BCMs and relevant stakeholders from affected business areas. The programme manager is also responsible for developing the benefits realisation plan with BCMs, relevant stakeholders and project teams. The Programme Manager ensures that the delivery of capability is aligned to maximise the realisation of benefits. The Programme Manager also initiates benefits reviews as part of benefits realisation plan or in response to other triggers. The Business Change Manager identifies and quantifies the benefits with the support of relevant stakeholders, programme managers and project teams. The BCM is responsible for delivering particular benefits as profiled in benefits profiles that are developed and maintained by the BCM. The BCM also provides information to support the creation and delivery of benefits realisation plan. The BCM ensures that there is no double counting of benefits and also maintains engagement with key individuals responsible for benefits delivery within operations. In addition, the BCM sets business performance deviation levels and early warning indicators to support benefits realisation. The BCM is responsible for initiating benefits reviews after programme closure. The programme office monitors the progress of benefits realisation plan and gathers information for benefits reviews. It produces performance reports as defined by the programme manager. The programme office also maintains benefits information under change control. In addition, it maintains the audit trail of changes. In the next screen, let us focus on the information provided by benefits management strategy.

6 Benefits Management Strategy Information

The purpose of benefits management strategy is to define the approach to realising benefits and the framework within which benefits realisation will be achieved. This document lists the scope and explanation of areas covered by benefits. It also defines measurement and monitoring methods for the identified benefits. It describes the functions, roles, accountabilities and responsibilities for benefits planning and the priority of benefits in a programme. The benefits management strategy describes a process to ensure that benefits are not double counted. The relationship between capabilities and benefits are listed to ensure efficient realisation. All the tools, systems, sources of information to enable measurement are identified along with critical success factors against which benefits will be measured. The benefits management strategy also details the review and assessment process for measuring benefits. All the standards for identifying, mapping, monitoring and reviewing programme benefits are identified and included in this document. In the next screen, let us discuss the information provided by a benefits management plan.

7 Benefits Realisation Plan Information

Benefits realisation plan is used to track benefits realisation across the programme and set review controls. The content of the document includes the scheduling detail of when each benefit or dis-benefit will be realised, and also the appropriate milestones for benefit reviews. It also provides the estimated effort and costs associated with the plan along with details of transition schedules so that operations are prepared for the upcoming transition. The plan will also include benefits reporting schedule, which is submitted to the programme board for approval. Benefits realisation plan explains the relationship between outcomes and benefits in schedule, which helps identify impacts on benefits realisation in case of delays in outcome delivery. It includes the dates when specific outcomes that enable benefits will be achieved. Benefits realisation plan also highlights external dependencies. The details of handover and embedding activities after capabilities have been delivered are a part of the benefits realisation plan. It also includes the reference to how benefits realisation will be maintained after programme closure. In the next screen, let us understand what information can be obtained from benefits map.

8 Benefits Map Information

The purpose of benefits map is to illustrate the sequential relationship between benefits. The content of benefits map includes identified benefits and dis-benefits, including short- and long-term benefits. The benefits map will list all the outputs, capabilities, outcomes and strategic objectives for the benefits to be realised. The dependencies between benefits, on project outputs and on capabilities and outcomes are listed in the benefits map. The additional business changes to enable realisation of benefits and other external dependencies for benefits are also highlighted in the document. Let us look into the information obtained from benefits profiles in the next screen.

9 Benefits Profiles Information

Benefits profiles are used to define each benefit and dis-benefit and provide detailed understanding of what will be involved and how benefit will be realised. Benefits profiles include the description of benefit or dis-benefit with a unique identifier. It also includes a list of supported programmes or organisational objectives and relative outcomes. It includes details of benefits categorisation and KPIs that will be affected by benefits. It also contains information on baseline and expected (improved or degraded) performance levels. The other details included in benefits profiles are benefits realisation and business change costs, and capabilities required for benefits to be realised. Benefits profiles also provide details on the outcomes and business changes needed to enable benefits realisation, along with dependencies, risks and issues related to each benefit. Benefits profiles identify the benefits owner and operational area to receive the benefit. It also includes financial measurements to ensure that we have a measurable value for benefits.

10 Summary

Let us summarize what we have learnt in this lesson: The relationship between transformational flow and benefits management can be defined on the basis of identifying a programme, defining a programme, managing tranches, delivering capability and realising benefits and closing the programme. The SRO reports to the Sponsoring Group on delivery of programme benefits. The Programme Manager develops the benefits realisation plan with BCMs, relevant stakeholders and project teams. The BCM initiates benefits reviews after programme closure. The Programme Office monitors the progress of benefits realisation plan.

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  • PMP, PMI, PMBOK, CAPM, PgMP, PfMP, ACP, PBA, RMP, SP, and OPM3 are registered marks of the Project Management Institute, Inc.

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