The Benefits Management Approach Principles and a...

The Benefits Management

Approach – Principles

and a Case Study

May 18, 2016

Presentation to the

PPX Annual Symposium

2

About Us

Murray Kronick, FCMCNational Service Lead, Performance Management, Interis | BDO

Alexandra KowbelPolicy, Planning and Performance Analyst, Canada Border Services Agency (CBSA)

Shawn McNamaraSenior Policy, Planning and Performance Analyst, Canada Border Services Agency (CBSA)

Kasia PolanskaSenior Consultant, Planning and Performance, Interis | BDO

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Agenda

• Introduction to Benefits Management

• Principles of Benefits Management

• Case Study – Benefits Management at CBSA

• Exercise – “If You Text, You’re Next”

• Questions and Discussion

3

What is Benefits Management?Stephen Jenner defines it as: “the identification,

quantification, analysis, planning, tracking, realization,

and optimization of benefits.”

4

What is a Benefit?

Benefits are the consequences of change, or more formally,

a benefit is the:

“Measurable improvement resulting from an initiative which

contributes to one or more organizational objectives.”

Reference: Managing Benefits, APMG International, 2014

BenefitsRealizeOutcomesEnableOutputsActivities Create

The Evolution of Benefits Management

5

The Information

Paradox by John

Thorp – Canadian

Business Bestseller

OAG report –

Large IT Projects

TBS Outcome

Management

Guide and Tools

TBS Results-Based

Management

Lexicon

Benefits Management

originated in the UK with

the inclusion of BM by

the UK, Office of

Government Commerce

in their standardized

approach to

programs, Managing

Successful Programmes

Managing Benefits by Stephen

Jenner – introduced an approach

to benefits aligned with

PRINCE2® methodology

Project management

organizations such as PMI

OPM3® – Benefits Realization

and PRINCE2® – Benefits

Management start to evolve

towards managing and

realizing benefits

1998 2006 2011

2012 2015 to Today

What has changed recently?

• In his mandate letters to ministers, Prime Minister Justin

Trudeau wrote: “I expect our work will be informed by

performance measurement, evidence and feedback…”

• Privy Council Office now has a “Deputy Secretary to the

Cabinet (Results & Delivery)”, to ensure the government’s

priorities are monitored, tracked and delivered.

• Treasury Board Secretariat’s Program Performance and

Evaluation Division is coming out with a Policy on Results.

• Adopting “Deliverology” approach - UK’s Sir Michael Barber.6

So what is the problem we’re trying to solve?

• Projects frequently do not deliver promised results, even

if they are on-time and on-budget

• The 2006 OAG report on Large IT Projects identified

significant deficiencies in identifying, estimating,

monitoring and obtaining “Expected Outcomes”

• Organizations are primarily focused on and are rewarded

for managing expenditures, less on obtaining the

expected results they are supposed to deliver

• Negative or dis-benefits are rarely considered

• A portfolio view to optimize benefits is rarely taken

7

Corporate Executive Board Study:

“Project Managing to Business Outcomes”

1. On-time and on-budget project performance is necessary

but not sufficient for attaining business outcomes

2. Only a select number of project activities drive business

outcome attainment

3. Project manager effectiveness is the number-one driver of

business outcome attainment

4. Re-center project planning around business outcomes to

estimate and track benefits

5. Over-manage stakeholder involvement at Concept Definition

The top-performing projects in terms of budget and schedule compliance

attain on average only 53% of their business outcome expectations.Source: Project Managing to Business Outcomes, PMO Executive Council, The Corporate Executive Board, 2009

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Agenda

• Introduction to Benefits Management

• Principles of Benefits Management

• Case Study – Benefits Management at CBSA

• Exercise – “If You Text, You’re Next”

• Questions and Discussion

9

Principles of Benefits Management

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• Begin with the end in mind

• Ensure that investment is problem-driven and benefits-led

• Identify stakeholders to ensure ownership and

accountability for the benefits

• Visualize the cause-and-effect linkages using a model

• Make explicit those implicit assumptions and validate them

• Set clear expectations (benchmarks, targets, tolerances)

• Build it and the benefits won’t necessarily come

• Benefits must be managed proactively

• Create a culture of value

A typical project manager’s view of the world

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Benefits Management requires a different view

P

P

P

P

P

P

CREATES

CAPABILITIES

…TO

ENABLE

BUSINESS

CHANGE

…TO REALIZE

BENEFITS

…TO MEET

ORGANIZATIONAL

GOALS &

OBJECTIVES

Traditional Project Management vs.

Benefits Management (1 of 2)

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Traditional Project Management Benefits Management

• Backward looking for inputs

(earned value, actuals to-date,

retrospective view of performance, etc.)

• Forward-looking – ongoing / regular /

continuous review intervals for benefits

– to revalidate project value

• If we build it, benefits will come • “Activist accountability” – managing the

project to ensure that benefits are being

realized

• Projects are managed independently,

leading to double-counting or

contradictory benefits

• Portfolio view of benefits reconciles

double-counting, and rationalizes /

optimizes all claimed benefits

• Projects have no incentive to

continuously search for additional

benefits

• Projects also proactively look for

“emerging” benefits that had not been

previously anticipated / planned for

Adapted from Benefits Management – A better method for maximizing performance

Canadian Government Executive Magazine, May 2015

Traditional Project Management vs.

Benefits Management (2 of 2)

Traditional Project Management Benefits Management

• Weak mechanisms to deal with poor

results as they occur during and post-

project

• Promotes continuous monitoring of results

and the culture of acceptance

of “bad news” with appropriate

explanations and mid-course corrections

• Known negative impacts of projects are

rarely managed or reported

• Allows and encourage identification of “dis-

benefits” where appropriate to ensure that

all impacts are tracked and managed

• Rarely used “lessons learned” regarding

performance – next project doesn’t learn

from the results of prior projects

• Central repository of “lessons learned” –

project must show evidence of having

reviewed and applied lessons learned

before gaining approval

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Adapted from Benefits Management – A better method for maximizing performance

Canadian Government Executive Magazine, May 2015

Agenda

• Introduction to Benefits Management

• Principles of Benefits Management

• Case Study – Benefits Management at CBSA

• Exercise – “If You Text, You’re Next”

• Questions and Discussion

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CBSA - Who we are

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• Manages 119 land-border crossings and operates at 13 international airports and 27 rail sites plus 3 mail sites across Canada

• Workforce of nearly 14,000 employees, including over 7,200 uniformed CBSA officers who provide services at approximately 1,200 points across Canada and at 39 international locations

Context

• Departments and agencies commit large sums of money on IT-enabled business change based on a promise of a return on investment

• Projects are typically managed well, but managing the return needs improvement

• CBSA is currently pursuing a complex set of IT initiatives to transform its business

• Strong project management foundation, but many challenges measuring and reporting on investment value

• Gradual recognition across CBSA that delivery of projects ‘on time, on scope, on budget’ was no longer entirely sufficient – IT projects must demonstrate business value

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Benefits Management at CBSA

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Introduced in 2013 to serve two primary functions:

1. As a business tool to

help inform investment

decision-making

2. To help ensure that

investments generate

the desired business

value (performance

matches the “promise”)

Remember This?

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The Benefits Management View

20

P

P

P

P

P

P

• Capture of traveller

biometrics at airports

…To

Realize

Benefits

…Facilitation of

admissible

travellers

• Ability to validate and

confirm traveller

identity more quickly

…Create

Business

Change

• Automation of tasks

previously conducted

manually

Benefits Management Essentials at CBSA

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Investment Logic Map

“What is the problem and why is it worth solving?”

Outcomes Map

“How will the project create change in the

business that will generate the desired

benefits?”

Benefits Realization Plan

“What must be done and by whom to realize the

desired benefits, and how will we measure them?”

Benefits Health Assessment

“Is the project on track to realize the intended benefits?

Does the project continue to represent business value for CBSA?”

Pro

jects

an

d P

rog

ram

sO

vers

igh

t

Benefit Maps

Alignment of CBSA’s Project Management Lifecycle and Benefits

Management Processes

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Project performance

measurement typically

begins here

What we’ve learned

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• Treat Benefits Management as a change initiative

• The value of Benefits Management decreases the later it is applied in the project lifecycle

• Benefits ownership (identification, accountability)

• Observable and intangible benefits: unmeasurable but not unimportant

• Track a mix of leading and lagging indicators

• Focus on primary benefits – not every possible positive impact matters

• Design a Benefits Management approach that is easy to complete and is proportional to project value

• Foster a culture of value

The Benefits of Benefits Management

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• Increased engagement of the Program area throughout the project lifecycle

• Project’s value (benefit) to the business is the key determination of project performance

• Increased precision, framing, and validation of expected benefits

• Benefits are measured, monitored and reported to senior management

• Constant search for additional value throughout the project lifecycle

• Greater transparency about project dis-benefits

• Assigned accountability for benefit realization

• Created ability to make mid-course project corrections to mitigate value erosion

On-going Challenges

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• Benefits accountability

• Enabling projects

• Benefit eligibility rules:• What is a benefit?

• What do we do with projects that don’t fit neatly into our framework?

• Portfolio view of benefits• Double counting (overlaps)

• Gaps

• Ensuring that all strategic objectives are “being invested in”

• How do we assess our own performance?

Agenda

• Introduction to Benefits Management

• Principles of Benefits Management

• Case Study – Benefits Management at CBSA

• Exercise – “If You Text, You’re Next”

• Questions and Discussion

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Problem

A Benefits Map – the Investment Logic Map (ILM)

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DriversBenefits

Objectives Changes Enabling Assets

What is the

problem we

are trying to

solve? Why

now?

What do we

want to see

changed?

What do we need

to address the

problem and

create change?Measurable

consequence of

expected change

SolutionOutcome

What is going to

change given the

solution?

Investment Logic Map - Example

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Problem

DriversBenefits

Food in my

belly!

Objectives Changes Enabling Assets

I’m hungry and

tired!

I have nothing

in my fridge!

I want to eat

healthy!

To stop hunger

and have more

energy

To have food in

the fridge

To find healthy

options

Increased

amount of

healthy food

Increased

ability to cook

healthy meals

Choose healthy

food options

Shop at the

grocery store

Learn how to

cook healthy

meals

SolutionOutcome

Increased

consumption of

beneficial

nutrients

Maintained

energy levels

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Exercise – Instructions

The Scenario: The province, as part of the Highway Safety Act, would like to

reduce the growing trend of texting while driving. They are considering drafting

legislation, setting up a campaign called “If You Text – You’re Next” to increase

driver awareness, and working with industry to find solutions.

1. Take the Post-it™ notes and the blank ILM sheet.

2. Work in your teams to create the Investment Logic Map:

a) identify each note as either a driver, an objective, an enabling asset, an

outcome or a benefit

b) lay out the notes on the ILM worksheet in the appropriate column

c) connect the symbols with arrows

3. Report back - what went well, what was difficult, what you learned

Problem

A Benefits Map – the Investment Logic Map (ILM)

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DriversBenefits

Objectives Changes Enabling Assets

Why now? Identify the

conditions or events that

have created the

opportunity/ challenge to

be acted upon.

Identify the desired

result from the

investment / change (the

reason for undertaking

the project).

Identify the solution(s)

required to address the

drivers and achieve the

objectives and realize

the benefits.

Identify the positive and

measurable expected

improvements to be

realized as a result of

the investment in the

solution(s).

SolutionOutcome What has to be in place to

realize the benefits? Identify the

necessary changes to the

operational state to such things

as business processes,

technology and people that are

required in order to realize the

benefits.

Investment Logic Map Exercise - Solution

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Agenda

• Introduction to Benefits Management

• Principles of Benefits Management

• Case Study – Benefits Management at CBSA

• Exercise – “If You Text, You’re Next”

• Questions and Discussion

32

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Contact Us

Murray Kronick, FCMCMurray.Kronick@interis.ca(613) 780-6462

Alexandra KowbelAlexandra.Kowbel@cbsa-asfc.gc.ca(613) 954-2189

Shawn McNamaraShawn.McNamara@cbsa-asfc.gc.ca(613) 941-0347

Kasia PolanskaKasia.Polanska@interis.ca(613) 237-9331 x6504

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