benefit realization management izenbridge
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© 2014 iZenBridge | PUBLIC
Benefit Realization Management (BRM)
- 27th Feb 16
Projects don't end with a 'technical' delivery and a closure report
© 2014 iZenBridge | PUBLIC
AGENDA
Introduction
Benefits Categorization
BRM Ecosystem
Role of PM
BRM Models
© 2014 iZenBridge | PUBLIC
BENEFIT
‘An outcome whose nature and value are considered advantageous by an
organization’
- (OGC, 2007b, Jhon Thorp 1998 and ward et al. 1995)
An outcome which is perceived as positive by Stakeholders
- (Gerald Bradley 2006)
Benefit realization should always be owned by stakeholder(s) who
are expecting Value from an investment.
© 2014 iZenBridge | PUBLIC
Benefit <> Financial Impact
Benefit: Measurable improvements resulting through projects outcome
Financial impact: Measurable improvement in business performance
resulting from projects outcome (Direct or indirect)
Change
Outcome
Benefit
Financial Impact
Program/Project
Positive or Negative
Overall positive impact
Tangible Monetary
© 2014 iZenBridge | PUBLIC
Benefits:
• Less pollution
• Less traffic
• Less accounting effort
• Cashless transaction less risk of
theft
• Happy customers (less wait time)
• Less workforce
Project ;
Expansion and Modernization of
Toll Booth
Change
Outcome
Benefit
Financial Impact
© 2014 iZenBridge | PUBLIC
•
Benefits
Tangible
Definite Excepted
Non Tangible
Expected or Anticipated
Increased Sales
Easier time reporting
Reduce 2 steps in loan
approval process
Better brand
Image
Improved ESI
BENEFIT CLASSIFICATION
Short Term Medium Term Long Term
Hard Soft
© 2014 iZenBridge | PUBLIC
BENEFIT CLASSIFICATION BY BUSINESS IMPACT
Strategic
Benefit which support strategic business
growth/vision
Speculative Benefits with High Risk high
reward
Disrupt organization culture
Key operational
Short term benefit with Quick Win
Support
Nice to have
Non critical
Business Impact
Bu
sin
ess V
alu
e
Difficulty
1 2
3 4
To be Top 5 global Car manufacturer by 2025
1. Expansion into new geographies
2. Robotics/AI/Solar Powered Cars
3. Improve website user friendliness
4. Workspace enhancement/look and feel of report
© 2014 iZenBridge | PUBLIC
BENEFIT REALIZATION MANAGEMENT
Benefit - An outcome whose nature and value are considered advantageous
by an organization
Realization - Being aware of something that is achieved
Benefits realisation management (BRM) (also benefits
management or benefits realisation) is one of the many ways of managing
how time and resources are invested into making desirable changes. - Wiki
Framework
Organization Function
Responsibilities at various levels
Closed loop
© 2014 iZenBridge | PUBLIC
BRM MODELS
• There is no universally adopted framework
• All BRM models are based on cycle of PDCA
• Models have different Flavors
- IT IS specific projects
- Business change management alignment (Continuous
evaluation)
- Predictability of Benefits
- Delivery of Benefits
© 2014 iZenBridge | PUBLIC
Ben
efi
t L
ife C
ycle
Man
ag
em
en
t
Benefit Management Strategy
Benefit Realization Plan
Benefits
Prioritization
Implement
Benefits Deliver
/Realize
Benefit Measure
/Evaluate
To Organization
Organization
Vision
En
terp
rise C
han
ge/R
isk M
an
ag
em
en
t
Portfolio
Program
Project
Influenced by OGC generic approach model T
ime L
ine
Benefits
Identification
BRM GENERIC MODEL
Operations
Time Line
© 2014 iZenBridge | PUBLIC
BRM Stakeholders
Management
• Organization CXO
• Board
Line Management
• BR Manager
• Business Head
• Operation Head/PMO
• Some CXO
Organization
• PMO (Project/Program)
• Line Functions
• Operations
Line Management
• BR Manager
• Business
• Operations Head
poll
© 2014 iZenBridge | PUBLIC White Paper published by HBRC Journal - 2014
T
C S Q Q
S B
C T
Iron
Triangle
Parallel
Balance
I- Validate
Benefit
P – Benfeit
Realization plan
E – Implement
M & C –
Measure and
control
C –
Measure/Evalua
te/Feedback
ROLE of PROJECT MANAGER
© 2014 iZenBridge | PUBLIC
Ben
ID #1 Project
#1
Ben
ID #2
Ben
ID #3
Ben
ID #4
Ben
ID #7 Program
#1
Project
#3
Project
#4
Project
#2
Evaluatio
n
Risk
#1
Risk
#2
Benefit R
egis
ter/
Pla
n
Owner
A
Owner
B
Benefit #1
Benefit #7
Today
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Benefit Traceability
© 2014 iZenBridge | PUBLIC
BRM MODELS
Model Key Features
Active Benefits Management –
Leyton, 1995
•Focus on Change Management link to
Benefit Management
Cranfield process model of Benefits
Management, 1996
•Focus primarily on Benefits from IT/IS
investments.
•External/internal influences
•Focus on CHECK and ACT
Benefits Realization Approach –
Thorp , 1998
•Benefits from Information technology
investments.
•More focus on PLAN.
•Stress on Predictability and consistency
Active Benefit Realization- Remenyl
&Sherwood Smith , 1998
•Continuous evaluation
•Continuous stakeholders involvement
Dynamic role change
•3 stage Approach – 1. Setting the Course, 2.
Formative evaluation, 3. Moving Forward
Best Practices to Benefit
Management – Ashurst and Doherty,
2003
• Exclusive research of various models
•Primary focus on IT investment but can be
used elsewhere
© 2014 iZenBridge | PUBLIC
Thank You
Manish.panchmatia@gmail.com
https://www.linkedin.com/in/manish-panchmatia-61b4047
@manishsay
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