steve jenner. managing benefits; the new guidance and certification scheme from apmg-international
DESCRIPTION
This presentation was made at the UK APMG-International Showcase events. Join us in London, 20th June 2013. Keynote addresses, masterclasses and round table discussions with leading PPM visionaries. Free to attend if you pre-register. http://uk.apmg-showcase.com/TRANSCRIPT
www.apmg-international.com
Managing Benefits
The new Guidance and Certification
Scheme from APMG-International
Steve Jenner, Author and Chief Examiner
1. Why develop this Guide?
2. What’s the scope of the Guide?
3. What’s the format of the exams?
4. What schedule are we working to?
5. Q&A
Scope of this Briefing
“The fundamental reason for beginning a programme is
to realise benefits through change. The change may
be to do things differently, to do different things, or to do
things that will influence others to change.” OGC
“It is only possible to be sure that change has worked if
we can measure the delivery of benefits it is
supposed to bring.” Cabinet Office
Why this new Guide?
Why this new Guide?
“Deficiencies in benefits capture bedevils nearly 50% of government
projects” and “30-40% of systems to support business change deliver no
benefits whatsoever.” OGC
“Most large capital investments come in late and over budget, never living
up to expectations. More than 70% of new manufacturing plants in North
America, for example, close within their first decade of operation.
Approximately three-quarters of mergers and acquisitions never pay-
off…And efforts to enter new markets fare no better”
Lovallo & Kahneman
“The brutal fact is that about 70 per cent of all change initiatives fail.”
Beer & Nohria
But the track record isn’t good
6
And research indicates things aren’t getting
any better
So the existing guidance is necessary
but not sufficient to address
• The ‘Knowing-Doing’ gap
• ‘Box ticking’
• And the twin dangers of…
“Delusional optimism: we overemphasise projects’
potential benefits and underestimate likely costs,
spinning success scenarios while ignoring the
possibility of mistakes.” Lovallo & Kahneman
“the planned, systematic, deliberate misstatement of costs and benefits to get projects approved.”
Flyvbjerg et al
Optimism Bias & Strategic Misrepresentation
So ‘Managing Benefits’ – An Overview
The Benefits Management Cycle
A Multi-disciplinary Practice
based on good practice from:
• Project & Programme Mgt
• Management Accounting
• Economics
• Behavioural finance
• Psychology
• Neuroscience
• Change Mgt
• Systems thinking
With techniques from around the world
BENEFITSPROBLEM SOLUTION
Southbank Arts Precinct Redevelopment (Fictional)
Department of Premier and CabinetInvestment Logic Map
Generate vision for
use of arts precinct
over 20 years
Existing facilities will
not support Victoria’s
continued leadership
position in the arts
(60%)
Create a precinct
which functions as a
distinctive attraction
(40%)
Arts precinct is
dislocated and is no
longer aligned with
the way the city is
developing
(40%)
Improve the
connection of the arts
precinct with
Melbourne and its
local community
(20%)
Renew and upgrade
existing facilities so
they can meet
current and future
needs
(40%)
DRIVEREnabling
AssetsOBJECTIVE CHANGESBENEFITS
Strengthen enterprise
and precinct
marketing
Redeveloped Arts
Centre
New Sturt Street
Ramp
Develop integrated
ticketing, security and
precinct management
systems
Establish a precinct
governance and
management model
Make physical
changes to arts
precinct
New CRM - ticketing
platform and services
Strengthen the
Victorian
community
(40%)
Improve Victoria’s
industry
(20%)
Enhance Victoria’s
arts profile and
reputation
(40%)
BENEFITS DEPENDENCY NETWORK
IS/IT
Enablers
Enabling
Changes
Business
Changes
Business
BenefitsInvestment
Objectives
D
R
I
V
E
R
S
JW113
http://www.livetime.com/wp-content/uploads/2010/05/Service_profit_chain_model.jpg.
And examples from around the world
including:
• Bristol City Council
• WiBe® Framework -
Germany
• Tetra Pak
• Openreach
• NASA
• Obayashi Corporation
- Japan
• Western Australia
Police
• Tell Us Once
Thanks to the Review Group: • Rod Baker APM Group Director
• Best Management Practice
• Michael Acaster Cabinet Office, Efficiency Reform Group
• Michael Dallas MoV Lead author & Chief Examiner
• Craig Kilford MoP Co-author and P3O Lead Reviewer/Mentor
• Keith Williams P3M3 & ‘Change Management’ Chief Examiner
• Benefits Management Practitioners
• Peter Glynne Co-chair, APM Benefits Management Specific Interest Group
• Sarah Harries Head of Business Improvement, BT
• Steve Parker (Interim) Value & Benefits Lead, TfL PMO Centre of Excellence
• John Thorp International benefits management thought-leader
• Accredited Training Organizations/APMG assessors/ACOs
• Jeroen Geurtsen European ATO representative
• Mark Ives Australian ACO representative
• Paulo Keglevich South American APMG assessor
• Patrick Mayfield Part MSP author & UK ATO representative
• Additionally, the following commented on the second draft: Walter Dirix; Alan Ferguson; Melanie Franklin; Anne McGrath; and Svetlana Plotnikova.
The Next Steps
• Guide published – Early September
• Launch event – September 25th, London
• Managing Benefits Repository? – From
September
• Foundation exams – Late September
• Practitioner exams – Early 2012
Want to stay in touch/find out more?
http://www.linkedin.com/groups/Man
aging-Benefits Community-
Interest4493501?gid=4493501&trk=
hb_side_g
www.stephenjenner.com
Managing Benefits – Community
of Interest