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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
photo
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
8
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
10
• 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
11
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)
13
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
14
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
15
CBSA - Who we are
16
• 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
17
Benefits Management at CBSA
18
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?
19
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
21
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
22
Project performance
measurement typically
begins here
What we’ve learned
23
• 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
24
• 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
25
• 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
26
Problem
A Benefits Map – the Investment Logic Map (ILM)
27
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
28
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
29
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)
30
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
31
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
33
Contact Us
Murray Kronick, [email protected](613) 780-6462
Alexandra [email protected](613) 954-2189
Shawn [email protected](613) 941-0347
Kasia [email protected](613) 237-9331 x6504
photo