500 - management of project benefits
TRANSCRIPT
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Embracing Benefits Realization ManagementFrom Identification to Management
to Sustainment
PMI Montreal SymposiumApril 4th, 2017
Evan Zelikovitz, Corporate & Government Relations Manager (Canada), PMI
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Presentation Agenda
• Embracing Benefits Realization Management (BRM) to Achieve Project Success
• What’s happening in the Project Management – PMI world– Pulse of the Profession 2017– PMIAA Legislation in the United States
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WHY DO WE DO PROJECTS?
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PMI Materials on Benefits Realization Management?
Pulse of the Profession® In-Depth Reports Thought Leadership Series
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What is BRM?
Source: PMI’s 2016 Thought Leadership Series, Creating Lasting Value: Benefits realization management
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Value of BRM
1.6xmore likely to realize project
objectives
3.0xmore likely to
meet or exceed target ROI
Companies that report mature BRM capabilities
Source: PMI’s 2016 Thought Leadership Series, Creating Lasting Value: Benefits realization management
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of organizations say projects not aligned with strategy are implemented
66%anyway
Alignment to Strategy
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Source: PMI’s 2016 Pulse of the Profession® In-Depth Report on Benefits Sustainment
Everyone is interested but few are doing it well1
Confusion about who is responsible2
Looking for the easy answer3
3 Challenges with Benefits Realization
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Source: PMI’s 2016 Pulse of the Profession® In-Depth Report on Benefits Sustainment
Everyone is interested but few are doing it well1
Confusion about who is responsible2
Looking for the easy answer3
3 Challenges with Benefits Realization
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Key Barriers to BRM
• Culture and attitude• Communication• Difficulty measuring benefits – creating metrics
– Only 36% create metrics for identified benefits• Failure to define and assign roles and responsibilities
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Improving the Dialogue Between the Project and Executive
Effective benefits management requires a formal approach that should start before the project itself.
• While nearly three quarters of organizations identify expected benefits before the project starts, 83% report lack of maturity in sustaining the identification and monitoring of benefits received as a result of the project.
• This suggests a lack of a formal process to sustain this quest to identify and sustain the monitoring of return from the project effort,
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OtherShareholder equity
Training, morale, or retention of employeesEnvironmental protection
Workplace safetyCorporate image or PR value
Product/service portfolio expansionMargin improvement
Customer retention or loyaltyRevenue generation
Aligment of resources with strategyReturn on investment (ROI)
Efficiency of operationsAchievement of strategic business objectives
Customer user satisfaction
0% 10% 20% 30% 40% 50% 60% 70%3%
13%21%
24%24%
26%33%34%
39%47%
51%52%
63%67%67%
Commonly Identified Benefits
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Source: PMI’s 2016 Pulse of the Profession® In-Depth Report on Benefits Sustainment
1%6%
21%
36%
37%
4%15%
27%
31%
23%
Benefits Identified at Start Benefits Realization Assessed at End
73%
54%Always
Often
Sometimes
Rarely
Never
Half of Organizations Look to See if Benefits Were Realized
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Benefits Should be Part of the Business Case
41%of organizations explicitly
identify the goals and business intent of a
project
29%identify metrics to assess
whether a project has delivered the expected
benefit
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Source: PMI’s 2016 Pulse of the Profession® In-Depth Report on Benefits Sustainment
Everyone is interested but few are doing it well1
Confusion about who is responsible2
Looking for the easy answer3
3 Challenges with Benefits Realization
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Questions – “Ownership of Benefits”
• Within your organization, who is responsible for identifying project benefits?
• Within your organization, who is responsible for ensuring that benefits are being managed and aligned with your organization’s strategic goals?
• Since many anticipated benefits will not be seen until after the project has been delivered, who within your organization is responsible for benefits monitoring and measurement?
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Who is Accountable for Benefits?
Source: PMI’s 2016 Pulse of the Profession® In-Depth Report on Benefits Sustainment
40% 30%
40% 50%
20% 20%
80%
?Project
Manager
Someone inSenior Mgmt
ProjectManager
Someone inSenior Mgmt
Who identifies benefits?
Who determines whether benefits were realized?
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Source: PMI’s 2016 Pulse of the Profession® In-Depth Report on Benefits Sustainment
Everyone is interested but few are doing it well1
Confusion about who is responsible2
Looking for the easy answer3
3 Challenges with Benefits Realization
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And Still… there is no Silver Bullet
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Position Benefits as a Shared Responsibility
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From the Study – Benefits Identification
“Our benefits identification process has truly been a cultural shift for us… at any time, the sponsor can make a decision to stop the project if benefits aren’t being realized or the ROI period is too long… led to a product rationalization exercise which saved us US $70 million… and led to cancel over 80 projects that had poor to no ROI.
Haresh DesaiVice President, Enterprise Project Officer
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WHY DO WE DO PROJECTS?
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Questions and Activities
Questions
Why are we doing the project or program ─ what are the business drivers?
What are the measurable benefits?
Who is accountable for the benefits?
Who ensures the project benefits are aligned with strategic goals?
Who signs off on the benefits?
Define objectives and critical success factors
Recognize and quantify business benefits
Develop meaningful metrics and key performance indicators to measure the delivery of benefits
Establish processes for measuring progress against planned benefits
Create a communications plan that shares progress with stakeholders
Activities
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Benefits are about Value Creation
A great project is not the right project if it has no value to the organization. It is
even less of the right project if it does not deliver the outcomes creating the value identified by the organization strategy.
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Doing it Well
Source: PMI’s 2016 Pulse of the Profession® In-Depth Report on Benefits Sustainment
“Good project managers are focused on the successful execution of their projects. Excellent project managers are good project managers who also understand fully how their project fits in the life cycle of the strategy their project is implementing, and make decisions accordingly that ensure benefits realization.”
Michel Renard, Senior Executive (former),EMIT Projects, ExxonMobil
Global Services Company
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2017 Pulse of the Profession®
9th Global Project Management Survey
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Project success rates rise, and fewer are failing
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Less Waste
For every invested$1Billion
We see $97 million wasted for every $1 billion invested due to poor project performance, a
20%decline from last yearNote: Amounts represent a percentage that applies to any currency
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Benefits Realization Maturity
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PMIAA: the law of the land
• On 14 December 2016, President Barack Obama signed the Program Management Improvement and Accountability Act into law!
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PMIAA: key elements
• Upon implementation, PMIAA will enhance project and program management leading practices throughout the U.S. federal government in four important ways:
– Creating a job series and career path for federal program managers
– Developing a standards-based model for program management consistent throughout the government
– Designating a senior executive in each agency to be responsible for program management policy and strategy across the agency
– Establishing an interagency council on program management to align agency approaches across the federal government
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Thank You
Evan Zelikovitz, Corporate & Government Relations Manager (Canada)Email: [email protected]
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