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Realising the Benefits Step 3 Tutorial

1 Realising the Benefits Step 3

This lesson focuses on the third step involved in the process, ‘realising benefits’. This step focuses on managing post-transition. 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: ? Describe the steps involved in ‘manage post-transition’ ? Explain the responsibilities of various roles in the process, ‘realising the benefits’ In the next screen, we will introduce the steps in 'manage post-transition’.

3 Manage Post transition

In ‘manage post-transition’, the focus shifts to activities after the transition has been achieved. It starts with measuring benefits. Reporting on benefits realised till now should be a part of end of tranche review and other planned benefits reviews. Key performance indicators that are selected as measures and recorded in benefits profile will form the basis of comparison. The next step is removing access to legacy working practices and systems. This is necessary as there is a danger that the business will revert to using old ways of working once pressure from the programme is removed. This in turn threatens the sustainability of improvements. The third step is responding to changing requirements. It involves highlighting and recognising new ideas and problems, which have been scoped in the programme, due to the new ways of working. These need to be forwarded to the Programme Manager for consideration. The final step is monitoring and reporting benefits realisation. This deals with monitoring and tracking the progress of benefit measures defined in benefits profiles, for signs of deviation outside anticipated parameters. In the next screen, let us focus on the first step, that is, ‘measure benefits’

4 Measure Benefits

Benefits profiles define how each benefit will be measured. Reporting on the benefits realised should be a part of end of tranche review or any other planned benefits review. Normally, at the end of tranche, it needs to be analysed whether the strategy embedded in the programme can work satisfactorily. It needs to be ensured that the next tranche is not started prematurely till the previous tranche is analysed. Otherwise, there will be a significant risk. As it needs time to collect and analyse sufficient benefit measures, a gap or delay can be planned between two tranches. For example, a tranche review decides that it is useless to proceed with the next tranche with current set of projects. If in the meanwhile, the next tranche has already started, this will lead to a waste of effort and expense. It is wise to review historic averages and seasonal trends to forecast expected performance over the life of a programme. Key performance indicators are recorded in benefits profiles and form the basis of comparison. It is important to understand that as performance is monitored, the consequences are understood. For example, an organisation may be focused on headcount reduction but if there is a sudden increase in resignation, the cause and effect need to be investigated. In the next screen, we will focus on removing access to legacy working practices and systems.

5 Remove Access to Legacy Working Practices and Systems

One of the difficult aspects of delivering any change is to stop the old practices that are embedded and remove access to tools and systems that support these old practices. The Business Change Manager or BCM must ensure that old working practices and systems are identified. Then the impact of removing them should be analysed and finally they should be decommissioned as soon as business stability has been achieved. If old ways of working remain, there is a danger that the business will revert to using them. In the next screen, we will focus on how to respond to changing requirements.

6 Respond to Changing Requirements

New ideas and problems are recognised when new benefits are realised and put in use. These may be unforeseen and can give rise to additional requirements. It is a natural part of programme flow that the programme should be able to respond to these changing requirements. Once the additional requirements have been quantified, they should be forwarded to the Programme Manager. After getting his approval, these requirements should be included in the projects dossier through the issue register. Any simultaneous impact on blueprint, programme plan, benefits realisation plan, and others should be assessed and the documents need to be updated. In the next screen, we will discuss ‘monitor and report benefits realisation’.

7 Monitor and Report Benefits Realisation

The benefit measures should be monitored and tracked for signs of deviation outside the anticipated parameters. In case tolerance limits are breached, they should be escalated to the Senior Responsible Owner or SRO and the Sponsoring Group. The benefits realisation plan and benefits profiles should be updated and released according to the arrangements defined in the benefits management strategy. The BCMs will provide input to benefits reviews when benefit measures are completely analysed and conclusions are drawn. Benefits reviews will also help the programme to understand the extent to which stakeholders have been satisfied with the improvements. While reporting on benefits, it should be ensured that the programme is viable at all stages. In case a benefit does not materialise as planned, it should be escalated to the Programme Manager and analysed for its impact on other benefits. It is not always possible or necessary for a programme to continue until the end of benefits measurement period. If benefits realisation gives a clear indication of the final realisation and operational managers are ready to accept responsibilities for completing pending measures, the programme can be closed. In the next screen, we will discuss the roles and responsibilities in ‘realising the benefits’ process.

8 Roles and Area of Focus

Let us focus on the responsibilities of roles, namely, the SRO, Programme Manager, Business Change Manager, and Programme Office in ‘realising the benefits’. The SRO is accountable for all sub-processes in ‘manage pre-transition’, ‘manage transition’ and ‘manage post-transition’. The Programme Manager is consulted for all the steps and shares the responsibility of planning transition with the Business Change Managers. The most important role in this process is played by the BCMs and their respective change management teams. They are responsible for getting the work done during realising the benefits. Throughout ‘manage pre-transition’, ‘manage transition’ and ‘manage post-transition’, the BCMs are responsible for each task. The Programme Office supports the BCMs with the information and information baselines especially in ‘manage pre-transition’. In ‘manage transition’, they are normally notified of what is happening. Again, they help the change management team in ‘manage post-transition’. The Programme Office supports the BCMs to measure benefits, repond to changing requirements and monitor and report benefits realisation. In the next screen, we will focus on an example based on the concepts discussed.

9 Realising the Benefits Problem Statement

Mr. Smith Gordon, the CEO of Nutri Worldwide Inc., has identified Kylie Honkele, the CFO, to be the Senior Responsible Owner of the programme ‘Nutri Snack’. The programme’s aim is to create and launch a new evening snack. The projects that need to be undertaken are: Project 1: Creating a new recipe Project 2: Advertisement and marketing Project 3: Identifying the sellers Project 4: New production unit The Programme Manager and the Business Change Manager are discussing how they can monitor the transformational flow, ‘realising the benefits’, and are preparing notes for the steps to be included in it. This is essential for the overall success or failure of the programme. In the next screen, let us discuss the steps to be included in ‘manage pre-transition’, ‘manage transition’ and ‘manage post-transition’.

10 Realising the Benefits Solution

In ‘manage pre-transition’, the BCM first establishes the benefits measurement. These values can be derived from the benefits profiles. Some of the benefits can be the finalisation of figures of increase in sales and expected growth in the number of customers. Next, the performance indicators need to be identified. Teams need to be prepared for the use of the new production unit. The BCM needs to identify the training needs and also assess if the employees are ready for change. In ‘manage transition’, the production line is finally put to use. The new product is in the launch phase. The BCM needs to establish support arrangements in case help is needed with new production lines. The employees should also be more aware of the new product. The BCM will have to review the transition frequently to ensure that it is progressing as planned. In ‘manage post-transition’, the focus shifts to removing the old ways of working. In case more training is required for the employees, it should be provided. Most importantly, it will completely be up to the BCM to monitor and report benefits realisation.

11 Summary

Let us summarise what we have learnt in this lesson. ? In ‘manage post-transition’, focus shifts to activities after the transition has been achieved. ? The steps involved in ‘manage post-transition’ are measure benefits, remove access to legacy working practices and systems, respond to changing requirements and monitor and report benefits realisation. ? The SRO is accountable for all sub-processes in ‘manage pre-transition’, ‘manage transition’ and ‘manage post-transition’. ? The most important role in ‘realising the benefits’ is played by the BCMs and their respective change management teams. Next, we will look at a few questions based on the lessons covered so far.

  • Disclaimer
  • 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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