Benefits Realisation Management

Extracting Value from Projects Nigel Guest Director, Health Advisory

2 nd May 2012

Exceptional people delivering exceptional results

Definitions

Benefit

'An advantage on behalf of ...' an individual stakeholder or stakeholder group.

Benefit Realisation Management (BRM)

‘the process of organising and managing , so that potential benefits, arising from investment in change are actually achieved’.

Why is BRM Different?

Do nothing……….………………………… Cost benefit analysis…………………...

Benefits identification and tracking……………………………………….

Benefits Management………………..……………

Where Does it Fit?

Strategy Portfolio Management Programme Management Project Management Benefits Realisation Management

Turn Strategy into Reality Choosing & Doing the Right Projects Manage Your Programmes Effectively Deliver Effective Projects Ensure What You Do is Working – Get Results!

The ‘Value Chain’ Enablers Projects Outcomes Benefits Objectives

Understanding the ‘Value Chain’ is understanding Cause & effect •You should think about internal & external drivers •They should be SMART Setting good objectives is critical to success

Building A Map 5 3 2 4 1 Enablers Projects Outcomes Benefits Objectives

Electronic Lean Discharge System Medical Pathway Redesign Length of Stay at 75 th Percentile Reduction of 30 Beds Reduce Cost Base by £1m By 2013 we will deliver cost efficiencies required by QIPP Programme

Building A Map

In this example the Electronic Lean Discharge System enables the process through providing information There should be a link back to the objectives Electronic Lean Discharge System Some change action needs to be taken to exploit the information Benefit should exploit the outcome to the advantage of a stakeholder and indicate measure The outcome is the result of change Medical Pathway Redesign Length of Stay at 75 th Percentile Reduction of 30 Beds Reduce Cost Base by £1m By 2013 we will deliver cost efficiencies required by QIPP Programme

In Practice

Monitor & Review

    Benefits require ownership Monitor whether projects & programmes are delivering Benefits as well as Time, Cost, Quality Maintain throughout and following delivery lifecycle

In Summary

     Too many projects focus on delivering to Time, Cost & Quality; however, project outputs are not benefits in their own right Investment in change needs to be actively managed to realise measurable benefits Management of benefit realisation throughout the change process will allow for practical intervention/adjustments ‘in flight’ Engage people early – build ownership Don’t just focus on financial benefits

Final Thought

"Objectives are not fate; they are direction. They are not commands; they are commitments. They do not determine the future; they are a means to mobilize resources and energies of the business for the making of the future."

Peter F. Drucker

Leading Management Academic & Writer

Thank You