“Benefits Realisation: The Essence of Lean Thinking”
Mike Kagioglou Professor of Process Management Dean: Art, Design and Architecture
University of Huddersfield [email protected]
Contents
Present the results of a research project • What is the actual problem and problem area • How can lean thinking provide a potential solution
through Benefits Realisation • Explain the BeReal (Benefits Realisation) process, case
study material and how it relates to Lean • Conclude
12 May 2015 [email protected] 3
Background/context
• Programmes and projects are driven by a need to satisfy a set of benefits for different groups of stakeholders where benefits and outputs can be different e.g. delivering a building is not the same as delivering a benefit.
• Underlying theories of project management have been subjected to criticism since the 1980’s. It has been argued that such traditional approaches are too narrowly focused on managing cost, time and quality (Thorp, 1998), and are based on simplistic models that are insufficient to deal with practical problems (Koskela and Howell, 2001).
• Current practices lack in considering more soft issues, such as stakeholder management, communication and benefits. A more multi-disciplinary view is needed
4
The problem: Major reasons for failing programmes / projects
• The vagueness with which the expected benefits are defined and further difficulties to maintain focus when subsequent problems occur (Reiss et al., 2006) as well as a consequent uncertainty in allocating responsibility for managing and delivering benefits (Lin and Pervan, 2001);
• The non-consideration of some stakeholders and how they can influence projects’ results (Ward & Daniel, 2006);
• The long periods of a project’s life cycle, leading to a disconnection between benefits planning and delivery due to changes in personnel (Reiss et al., 2006);
• The non-consideration of necessary interconnected issues that might influence the project’s success (Thorp, 1998); and
• Poor identification of necessary means to achieve benefits and poor ability to manage change (Truax, 1997).
5
The Challenge
• How do we develop projects and programmes that deliver ultimate benefits, not just project outputs?
• In particular, how do we achieve this at the large scale when dealing with large complex programmes, in many cases around the city-scale and/or multiple site implementation and over a long period of time?
Industry need, driving the research
NAO report in May 2005, Innovation in the NHS: Local Improvement Finance. recognised that there was not ‘… a consistent performance and measurement framework to evaluate the schemes’. House of Commons Committee of Public Accounts in July 2006, published a report highlighting that ‘... the Department and CHP have not yet developed a mechanism for evaluating the impact of LIFT ... the aim is to assess the cost of providing facilities, the benefits to patients and the impact on longer term health outcomes’.
7
Scale of investigations
Policy
Investment
Infrastructure portfolio
Sectors - Health, Housing, Education
Projects and Schemes
What do we want?
How will we deliver it?
Traditional approach to project/programme development
!Needs!Approach!
!Needs!Approach!
Change!Strategy!
High5level!objec:ves! Programmes)
Requirements)(&)Constrains)) Projects)
Specifica9ons) Ac:vi:es!
Resources)
Change!Strategy!
Benefits!High5level!objec:ves! Programmes)
Requirements)(&)Constrains)) Projects)
Specifica9ons) Ac:vi:es!
Resources)
Tradi:onal!Approach!
Benefits!Approach!
Benefits-based approach to project/programme development
!Needs!Approach!
!Needs!Approach!
Change!Strategy!
High5level!objec:ves! Programmes)
Requirements)(&)Constrains)) Projects)
Specifica9ons) Ac:vi:es!
Resources)
Change!Strategy!
Benefits!High5level!objec:ves! Programmes)
Requirements)(&)Constrains)) Projects)
Specifica9ons) Ac:vi:es!
Resources)
Tradi:onal!Approach!
Benefits!Approach!
Benefit, change, and programme and project management (Reiss et al., 2006)
11
Bene$its(Management(
Programme(Management((
Change(Management((
Project(Management(
Transformation-Flow-Value (Lean Thinking) and Benefits realisation
12
Koskela
‘Lean’ at a Programme level
• Multi-client organisations • Separation between clients and users • Multi client and multi-users • Multi-stakeholder • Multi-project • Long duration
Benefits & learning loop
Policy
Investment
Infrastructure portfolio
Sectors - Health, Housing, Education
Projects and Schemes
Actual planned and unanticipated impacts
Planned Benefits
Strategic Intentions
Builds a series of benefit opportunities and interdependencies across emerging planning alternatives
Integrated Business
Plan
Strategic BeReal Case
Translates insight into strategic benefits Generates a holistic view of benefits performance against “5 case” Sets culture and stakeholder engagement Optimises resources [placement and allocation]
Strategic Business
Case
Strategic level
Programme Alignment
Programme / project level
Strategic BeReal Case
Outline BeReal Case
BeReal Case
Benefits Evaluation Review
Strategic Outline
Case
Outline
Business Cas
e
Full Business Cas
e
Post Project Review
Strategic benefits disseminated through benefits profiling and segmentation. Project plan aligned to benefits pathway to optimise outcomes / impact
Shapes benefits realisation activities within the governance documents and maintains stakeholder benefits commitment through the deliver phases
Change realisatio
n
Related programmes
Interrelated programmes
Independent programmes
Elicit Strategic Benefits
Strategic Outline
Programme
Portfolio level Planning alternatives converted in to options and opportunities to deliver Strategic Benefits
Elicited benefits form the Business Case evaluation and assessment platform for project design and procurement decisions
Strategic Direction
Knowledge Flow Down
Benefits Realisation Project
Literature review synthesis
17
Considerations+for+benefits+management+and+realisation
Trua
x+19
97
Leyton
+199
5
Ward+et+al.+1996
CCTA
+1999
Ashurst+and
+Doh
erty+2003
Ward+et+al.+2004
Man
tzan
a+an
d+Th
emistocleo
us+2004
Lin+an
d+Pe
rvan
+200
3
Farbey+et+al.+1999
Brad
ley+2006
Bartlett+2006
Ward+an
d+Dan
iel+2006
Glynn
e+20
07
OGC+2004+&+2007
Fox+2008
Ward+an
d+Griffiths+1996+
Thorp+19
98
Sakar+an
d+Widestadh
+2005
Remen
yi+and
+She
rwoo
dTSm
ith+1998
Payne+20
07
Reiss+et+al.+2006
Benn
ington
+and
+Baccarini+2004
NHS+ISIP+2005
Proactive+management+and+learningEnsure'stakeholders'will'search'for'opportunities'to'maximise'benefits X X XTrack'disbenefits'in'order'to'reduce'their'impact X X XTrack'and'proactively'manage'the'emergence'of'unplanned'benefits X X X XProactively'manage'change X X X X XContinuous'evaluation'if'process'is'adequate'to'deliver'benefits X XIdentify'opportunities'to'realise'further'benefits X X X X XReview'and'evaluate'results'and'feed@back'into'the'process X X X X XReview'and'evaluate'results'and'feed@forward'into'next'projects X XIdentify'how'internal'and'external'changes'may'affect'the'process X X XContinuously'review'the'list'of'expected'benefits'to'check'strategic'fit X XStakeholder+engagementClearly'define'benefits'at'the'outset X X X X X XEnsure'stakeholders'are'commited'in'realising'benefits X X X X XAlign'programme'benefits'with'stakeholder'strategic'objectives X X X X XEnsure'that'stakholders'are'aware'of'and'agree'to'face'disbenefits X X X X XEngage'stakeholders'throughout'the'entire'process X X X XStrategy+deploymentEnsure'outcomes'are'related'to'strategic'objectives X X X XDrive'the'process'based'on'measurements X X X X XTrack'and'report'realisation'of'benefits'and'other'achievements X XUse'expected'benefits'as'a'roadmap'for'change X X XIdentify'the'nature'of'benefits'through'classification X XInclude'assessment'of'intangible'benefits'on'investment'evaluation XTranslate'objectives'into'measurable'benefits'that'can'be'tracked X X X X XMeasure'things'that'really'count X XEnsure'expected'benefits'of'investment'are'achieved X X X X XThe'path'from'investment'to'benefit'delivery'must'be'effectively'planned X X X X X X
How benefits realisation fit with other processes
18
Gateway'intervention'
Procurement'lifecycle'
''Decision'point'
!Gateway'2'Procurement!strategy!!
!Gateway'3'Investment!decision!
!Gateway'4'Readiness!for!
service!
!Gateway'5'Bene6its!evaluation!
!Gateway'1'Business!justi6ication!
!Gateway'0'Strategic!assessment!
!De6ine!business!!need!
!Prepare!business!!case!
De6ine!procurement!!strategy!
Invite,!evaluate!and!re6ine!tenders!
Manage!implementation!of!contract!
Mange!and!operate!contract!
Strategic!context!SOC!
Outline!business!case!OBC!
Full!business!case!FBC!
Design,!Tender!contract!
Construction,!!Technical!Handover!!
Post!project!evaluation!
CIM'/PFI'Investment'appraisal'
LIFT'stages'0!
STRATEGY!1!
SCOPE!2!!
FEASIBILITY!4!
DESIGN!3!!
£!CLOSE!5!!
BUILD!6!!
COMMISSION!7!
OPERATION!8!!
BENEFITS!
Bene6its!characterisation!!
Bene6its!mapping!!
Bene6its!realisation!plan!!
Bene6its!management!strategy!!
Evaluation!&!Review!
BeReal'
From concept to final
19
25#
Bene$its(characterisation((
Bene$its(mapping((
Bene$its(realisation(plan((
Bene$its(management(strategy(( Evaluation(&(
Review(
((Case%Study%2%
((((
Case%Study%3%((
((Case%Study%1%
((
((Case%Study%1%
((
Bene0its%Strategy%
Bene0its%Performance%
Strategy%Alignment% Elicitation% Optioneering% Pathway%% Assessment%
Need(Characterisation(
Elicitation(Segmentation(
Options(Characterisation(
Bene$its(and(Change(Pathway(
Implementation(&(Controlling(
Bene$its(and(Change(Evaluation(Review(
Implementation(Plan(
Option(Selection(
Direction(of(Change(
Need(Justi$ication(
BeReal Process
Strategy Alignment Elicitation Optioneering Pathway Assessment
Strategic BeReal Case
Benefits Profile and Segmentation
Outline BeReal Case
BeReal Case Benefits Evaluation Review
Plan stakeholder involvement
Undertake benefits profiling
Stakeholders to assess level of
realisation
Post Occupancy Evaluation Plan &
lessons learnt
Benefits &
Options Ranking
Align project plan to Pathway
Dynamic Knowledge Database
Sub and End Benefits Elicitation
Optioneering Workshop
Stakeholders to agree BeReal
Pathway Strategic Benefits
Elicitation
Pro
cess
Life
cycl
e V
iew
Strategy Alignment P
roce
ss L
ifecy
cle
Vie
w
Pro
cess
eva
luat
ion
& A
ssur
ance
Strategic BeReal Case
Plan stakeholder involvement
Strategic Benefits Elicitation
Characterisation of the need
Strategy Alignment
Ø Set up BeReal Project Working Group
Ø Build Stakeholder Management Plan
Ø Initiate Strategic Benefits Profile with Stakeholders
Ø Review programme / project need
Ø Identify project Strategic Benefits
Ø Align Strategic Benefits with need
Ø Identify Dis-benefits
Ø Align with Strategic Outline Case
Elicitation - Benefits Profile and Mapping
(illustrative, not exhaustive)
repo
rtin
g
BeReal database The dependencies are inputted into the profile in the tool, automatically creating a map
BeReal database (illustrative, not exhaustive)
tran
sfor
min
g
Direction and Scope - BeReal Toolkit Elicitation Support
Benefits Evaluation Review
Stakeholders to assess level of
realisation
Post Occupancy Evaluation Plan &
lessons learnt
Assessment of outcomes and evidence of realisation
Assessment
Ø Execute BeReal Pathway
Ø Track outcomes and variations to BeReal Pathway
Ø Review outcomes impact
Ø Build remedial action plan
Ø Update BeReal Pathway
Ø Document lessons learnt
Pro
cess
Life
cycl
e V
iew
P
roce
ss e
valu
atio
n &
Ass
uran
ce
Assessment
Benefits (or Efficacy) View
Resources (or Efficiency) View
Performance
Cross (or Business Case) View
BeReal efficacy oriented approach, related with cross analysis of “as-is”, “to-be” and “emergent” organizational and
build environment related results.
BeReal efficiency oriented approach, related with cross analysis of “as-is”,
“to-be” and “emergent” use of a resources mix to perform results.
BeReal efficiency and efficacy mixed approach, under a cross analysis of “as-is”, “to-be” and “emergent” valuation states.
BeReal Performance Measurement & Controlling Structure
1 23
4
Links & Devia<ons
Benefits linked resources, and supported thought Gant and Earned Value
Management techniques.
Weigh<ng & Quan<fica<on
Considers both an upstream and downstream approach to benefits
valorization (validated through feedback loop and consequent complementing
techniques).
Cash Flow & KPIs
Covers inflow and outflow analysis, considering timings and discount rate
(and risk premium) over time.
Gant
Earned Value Management
Benefits Linked up to Resources
Cash Flow & Risk Analysis
Lifecycle Controlling
Benefits Elicitation & Relative Weighting
Upstream and Downstream
Quantification
Benefits quantification
01.Summary (Proposed)
Benefits Segmentation Matrix (1 of 2)
>> Summary of work developed (up-to-date). >> Preliminary proposal. >> Previous work: X-reference to strategic benefits.>> Please see details on sheet "02.Working Sheet". >> Please see details on sheet "02.Working Sheet".
Legend: Reorganised strategic benefits (see column "C" and "D")
Emerging sub-benefits (see column "D")
Strategic Benefits & Sub-Benefits 2nd Version Benefits Weighting Project Options: A B C D …/…100% Global score: 0 0 0 0 0 1 2 3 4 5 6
1. Strategic fit (and contextual) 4 10% 16,7% Score/calculus >> 0 0 0 0 0 X Legend of "Initial Strategic Benefits":9 Calculus >> 0 0 0 0 0 1 Accessibility
1. a) Stakeholder alignment 2 22% 4,2% add#1%5#valuation#>> 2 Capacity1. b) Co-location / distribution 3 33% 4,2% add#1%5#valuation#>> Please see 3 Functionality1. c) Context development & regenaration 3 33% 4,2% add#1%5#valuation#>> additional segmentation 4 Efficiency1. d) Synergy of services (e.g. secondary care) 1 11% 4,2% add#1%5#valuation#>> details on sheet "02. 5 Ease of implementation1. e) … 0% 0,0% add#1%5#valuation#>> Working Sheet". 6 Whole system optimisation1. f) … 0% 0,0% add#1%5#valuation#>>
Notes:2. Operations management & clinical outcomes 3 11% 16,7% Score/calculus >> 0 0 0 0 0 X - This x-reference exercice has not been developed under an exaustive approach.
10 Score: Calculus >> 0 0 0 0 0 - Objective of this x-reference exercice is only to hilith major links/patterns between previous work versus emerging work.2. a) Decrease internals (admissions) 1 10% 5,6% add#1%5#valuation#>> - For additional/detailed information please consider contents of sheet "02. Working Sheet" (at both strategic benefits and sub-benefits levels).2. b) Improved service coordination 1 10% 5,6% add#1%5#valuation#>> Please see2. c) Improved quality of care 8 80% 5,6% add#1%5#valuation#>> additional segmentation2. d) … 0% 0,0% add#1%5#valuation#>> details on sheet "02.2. e) … 0% 0,0% add#1%5#valuation#>> Working Sheet".2. f) … 0% 0,0% add#1%5#valuation#>>
3. Appropriated built environment 4 34% 16,7% Score/calculus >> 0 0 0 0 0 X X32 Score: Calculus >> 0 0 0 0 0
3. a) Use / capacity fit (for purpose building & infrastructure)9 28% 4,2% add#1%5#valuation#>>
3. b) Facilities flexibility and future proofing 13 41% 4,2% add#1%5#valuation#>> Please see3. c) Increased patient/user security and safety 4 13% 4,2% add#1%5#valuation#>> additional segmentation3. d) Greater privacy & comfort 6 19% 4,2% add#1%5#valuation#>> details on sheet "02.3. e) … 0% 0,0% add#1%5#valuation#>> Working Sheet".3. f) … 0% 0,0% add#1%5#valuation#>>
4. Accessibility 4 23% 16,7% Score/calculus >> 0 0 0 0 0 X21 Score: Calculus >> 0 0 0 0 0
4. a) Increased avaliability of services 5 24% 4,2% add#1%5#valuation#>>
4. b) Increased physical access (within site) 7 33% 4,2% add#1%5#valuation#>> Please see4. c) Service diversity / range 1 5% 4,2% add#1%5#valuation#>> additional segmentation4. d) Appropriate location (and access to the site) 8 38% 4,2% add#1%5#valuation#>> details on sheet "02.4. e) … 0% 0,0% add#1%5#valuation#>> Working Sheet".4. f) … 0% 0,0% add#1%5#valuation#>>
5. Whole system optimisation and efficiency 5 13% 16,7% Score/calculus >> 0 0 0 0 0 X X12 Score: Calculus >> 0 0 0 0 0
5. a) Resource synergies (improved efficiency) 1 8% 3,3% add#1%5#valuation#>>
5. b) Better equipment / resourses 1 8% 3,3% add#1%5#valuation#>> Please see5. c) Better working environment 6 50% 3,3% add#1%5#valuation#>> additional segmentation5. d) Service synergies 1 8% 3,3% add#1%5#valuation#>> details on sheet "02.5. e) System overall integration 3 25% 3,3% add#1%5#valuation#>> Working Sheet".5. f) … 0% 0,0% add#1%5#valuation#>>
6. Ease of implementation 3 10% 16,7% Score/calculus >> 0 0 0 0 0 X9 Score: Calculus >> 0 0 0 0 0
6. a) Project negative impact 3 33% 5,6% add#1%5#valuation#>>
6. b) Stakeholders involvement 2 22% 5,6% add#1%5#valuation#>> Please see6. c) Invest. / change management effort 4 44% 5,6% add#1%5#valuation#>> additional segmentation6. d) … 0% 0,0% add#1%5#valuation#>> details on sheet "02.6. e) … 0% 0,0% add#1%5#valuation#>> Working Sheet".6. f) … 0% 0,0% add#1%5#valuation#>>
Strategic benefits (number) 6. 100,0%Sub-benefits (Number) 23 100,0%
Initial Strategic Benefits Notes and Legend
Graphic Representation
© Copyright by HaCIRIC - Health and Care Infrastructure Research and Innovations Centre / University of Salford
Emerging Strategic Benefits (new structure)
Benefits Weighting Exercise
0%
10%
20%
30%
40%
50%Strategic#fit#(and#contextual)
Operations#management#&#clinical#outcomes
Appropriated#built#environment
Accessibility
Whole#system#optimisation#and#efficiency
Ease#of#implementation
0%10%20%30%40%50%
Strategic#fit#(and#contextual)
Operations#management#&#clinical#outcomes
Appropriated#built#environment
Accessibility
Whole#system#optimisation#and#efficiency
Ease#of#implementation
KPIs – Key Performance
Indicators
Direct quantification and costs redistribution, based on relative importance (and
survey validated).
Efficiency and efficacy mixed approach, under a cross analysis of “as-is”, “to-be” and “emergent”
valuation states.
NPV EVM RISK VFM CSF
Project Management Investment Analysis Benefits Management
MCDM
§ Economic (cash flow analysis) Directly Assign Value
Indirectly Assign Value
(Dis
-)Ben
efits
Assign (Indirect)
Resources Cost
Cos
ts
Inflows
Outflows
Risk Free Rate
Premium Risk Rate
Cash Flow Analysis
Risk Modelling
§ Optioneering might mixes cash flow analysis (above) and weighted score Method (below). § Note: this might be used for large scale and small scale optioneering.
Benefits measurement should be done “as-is” (actual), “should-be” (planned) and “to-be” (emerged).
2
Dimension Weight Project Options A B C
Economic (cash flow analysis) 5 1 3 5 .... 3 4 3 2 … … … … … Classification 41 29 37
Ranking 1 2 3
3
1
Assign (Direct)
Resources Cost
Appraisal
benefits change
management
benefits change
management
benefits change
management
benefits change
management
Elic
itatio
n St
rate
gy a
lignm
ent
Opt
ione
erin
g Pa
thw
ay
Ass
essm
ent
Strategic benefits
Communication and
stakeholder management
plan
Strategic business
case
Progress Reports
Need justification
Risk register
Benefits profiles
Segmentation
matrix
Progress Reports
Elicited benefits
list
Change brief document
Change directions
Selected & ranking of options
Benefits profiles
Segmented benefits and assessment
structure
Outline business
case
Progress Reports
Option selection
Change brief document
Progress Reports
Benefits-change
action plan
Implementation Plan
Controlling process:
as-is (baseline),
to-be (target), as-is (actual)
Full business
case evaluation
Progress Reports
Benefits and change evaluation
review
Need characterisa
tion
Elicitation segmentatio
n
Options characterisa
tion
Benefits and
change pathway
Implementation &
Controlling
2nd
3rd
Full business
case
Remedial action plan
Controlling process:
as-is (baseline),
to-be (target)
Organisation chart
1st
Risk register
1st
2nd
Change brief document
1st
2nd
Change budgeting
Change projects
plans
Strategic benefits elicitation workshops & surveys
Set-up BeReal™ project working group
Review needs
Elicitation
Del
iver
able
s
Strategic benefits
Communication and
stakeholder management
plan
Need justification
BeR
eal M
anag
emen
t C
hang
e Fu
nctio
ns
Org
anis
atio
n Fu
nctio
ns
Need Identification
BeReal feasibility study
Develop stakeholder management and
communication plan
Organisation chart
Strategic business case development
Need justification development
Context information
Progress reports
Progress review and lessons learned
Risk register
Strategic business
case
1st
Change consultation
Change brief document
1st
Finalise benefits segmentation
Del
iver
able
s B
eRea
l Man
agem
ent
Cha
nge
Func
tions
O
rgan
isat
ion
Func
tions
Risk register
Benefits profiles
Segmentation
matrix
Elicited benefits
list
Change directions
1st 2nd
Progress review and lessons learned
Progress Reports
Optioneering
Strategy alignment
Elicitation of benefits workshops & survey
Initiate benefits segmentation
Develop benefits profiling
Change brief document
2nd
Change consultation
Need justification development
Dimension: Benefits Dimension: Economic Dimension: Mixed
Progress review and lessons learned
Del
iver
able
s B
eRea
l Man
agem
ent
Cha
nge
Func
tions
O
rgan
isat
ion
Func
tions
Selected & ranking of options
Benefits profiles
Segmented benefits and assessment
structure
Outline business
case
Progress Reports
Option selection
2nd
Pathway
Elicitation
Workshop for relative weighting
benefits
Workshop for weighting and rank
of options
Sta
keho
lder
s br
iefin
g se
ssio
ns
Weighting calculation and rank
of options
Benefits Differentiated
Options
1st Rank of options (full list)
Marginal Cost-Benefit
Analysis (MCBA)
Decision-making and ranking meeting
Selection of weighting
dimensions Workshop for
weighting dimensions
& rank options Weighting
calculation and rank of options
Meeting for the selection of
the final option
Opt
imis
e be
nefit
s el
icita
tion,
pro
filin
g an
d se
gmen
tatio
n
Context information
Change consultation
Cost Differentiated
Options
2nd Rank of options (short list)
Outline business case development
Change budgeting
Business Case Detailing Benefits-Change Alignment
Del
iver
able
s B
eRea
l Man
agem
ent
Cha
nge
Func
tions
O
rgan
isat
ion
Func
tions
Assessment
Implementation Plan
Full business
case
Benefits breakdown structure
Breakdown structure dependencies
Change breakdown structure
Full business case composition
Implementation plan development
Context information
Optioneering
Benefits characterisation
workshop
to-be (target)
as-is (baseline
)
Controlling Structure
Change Brief document
Progress Reports
Benefits-change
action plan
3rd
Controlling process:
as-is (baseline),
to-be (target)
Three-tier benefits segmentation detailed
Change project Identification and
plans
Change Projects
plans
Benefits-change action plan
validation workshop
Progress review and lessons learned
Change consultation
Surveying methods
Controlling
Fine-tuning
Del
iver
able
s B
eRea
l Man
agem
ent
Cha
nge
Func
tions
O
rgan
isat
ion
Func
tions
Controlling process:
as-is (baseline),
to-be (target), as-is (actual)
Full business
case evaluation
Progress Reports
Benefits and change evaluation
review
Remedial action plan
Pathway
Controlling Structure
to-be (target)
as-is (baseline
)
as-is (actual)
Benefits breakdown structure
Breakdown structure dependencies
Change breakdown structure
Field benefits measurement
(and elicitation)
Field change measurement
Progress review and lessons learned
Control of deviations
Remedial Action plan
Change consultation
Context information
Business case evaluation
Communicate, agree and implement corrective actions
Facility
Equipment
Technology
Location Culture
Competency
Built Environment Organisation People
Process
Change Strategy
Change Performance
Resource View
Project Strategy
Project Performance
BeReal Management Change
Functions Organisation
Functions
Engineering Architecture
… …
Procurement Controlling
… ...
Cross View Benefits Resources
Benefits Management
Change Management
Cash Flow & KPIs
Targeting Efficacy
Targeting Efficiency Performance
Controlling & Investment Analysis
Weighting & Quantification
Links & Deviations
Planned Actual Achieved
Benefits Management
Change Management
“To-Be” (target) Resources &
Benefits
Status-Quo Characterization
Benefits-Change Optimisation
Benefits-Change Justification
Controlling Analysis
“As-Is” (baseline) Resources &
Benefits
“Actual” (actual) Resources &
Benefits
Investment Analysis
Benefits Breakdown
Benefits Management
End Benefits
Sub- Benefits
Strategic benefits
Charatherisation
Cla
ssifi
catio
n
Sub SU.001 Strategic SB.001 End EB.001
Sub SU.002 End EB.002
Sub SU.003 End EB.003
Sub SU.004 Strategic SB.002 End EB.004
Sub SU.??? End EB.???
Activity Breakdown
Benefits Breakdown
Resource Breackdown
Benefits Management
Change Management
Activity A.001 Benefit B.001 Resource R.001
Activity A.002 Benefit B.002 Resource R.002
Activity A.003 Benefit B.003 Resource R.003
Activity A.005 Benefit B.004 Resource R.004
Cost View
Time View
Quality View
Activity A.??? Benefit B.??? Resource R.???
Time
Acc
umul
ated
Benefits Management & Change Management
Controlling Analysis
Budget Planned
Budget Scheduled Actual Planned
Resources & Benefits: “To-Be” Versus “Emerged”
“Quantities” (SV) Versus “Costs” and “Values“ (CV)
= 0 < 0 > 0
As planned SV = BCP-BCS Behind Ahead
As planned CV = BCP - ACP Ahead Behind
As planned Performance Poor Good
Directly Assign Value
Indirectly Assign Value
(Dis
-)Ben
efits
Cos
ts
Inflows
Outflows
Risk Free Rate
Premium Risk Rate
Cash Flow Analysis
Risk Modelling
Assign (Direct)
Resources Cost
Assign (Indirect)
Resources Cost
Non-Assigned
Costs Benefits Management
Change Management
Investment Analysis Dimension: Economic
Weight Options Assigned
1-5 Yes/No
Economic 2 Yes
... 1 No
… 5 No
Dimension Weight No
Ranking
Dimension B A C …
3 1 4 ...
5 1 3 …
... … ... ...
29 41 37 …
1 3 2 ...
Investment Analysis Dimensions: Mixed
Process key aspects (common in BR and Lean)
• Decision making support based on a benefits driven approach;
• Performance optimisation; • Control and accountability; • Assurance; • Stakeholder management and communication; and • Knowledge management enabler.
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Performance optimisation
• For benefits to be achieved they have to linked directly with the activities and resources on the project plan that drives the infrastructure development.
• The research has strongly indicated that achievement of sustainable good performance should emerge from proper identification and allocation of resources to elicited benefits.
• A benefits driven approach (such as BeReal) on project management has positive influence in – reducing friction, – breaking down silos and, – focusing the team on optimising project outcomes, and as a consequence
have a positive effect on the organisation’s performance
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BeReal and Lean knowledge mgt
• The process offers a means of turning fragmented data into useful information, as introduced when described the benefits segmentation and profiling techniques. BeReal in project knowledge management terms is about getting the right information related to benefits, in the right form, to the right people at the right time
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Lean/BR knowledge management 1/2 (Koskela 2000, Rooke & Sapountzis 2010)
• Ensure that relevant customer requirements are available in all phases of design solutions, production plans and products’; BeReal progresses the use of stakeholder elicited and structured benefits through all phases of the process and in particular when selecting options and generating the final project plans. BeReal’s dataset allows those involved understanding the ambitions and the achievements of a project to date. It ensures that relevant stakeholder requirements (translated into benefits) are available in all phases of production (the BeReal phases);
• ‘Ensure by measurement that value is generated for the customer’; BeReal controlling structure of benefits and their measurement on the Assessment phase aims to determine their level of realisation in terms of capturing the stakeholders perception of it.
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Lean/BR knowledge management 2/2 (Koskela 2000, Rooke & Sapountzis 2010)
• Ensure all customer requirements, both explicit and latent have been captured’; in BeReal terms that can be seen as the identification and elicitation of all desired benefits;
• ‘Ensure that customer requirements have bearing on all deliverables for all customers’; in BeReal terms this is the link of benefits identified, by the stakeholders involved, with planned project outcomes during the optioneering and pathway
• Ensure the capability of the production system to produce products required’; BeReal adopts this in the pathway phase were the dependency between benefits, resources and project plan activities is achieved;
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“Benefits Realisation: The Essence of Lean Thinking”
Mike Kagioglou Professor of Process Management Dean: Art, Design and Architecture
University of Huddersfield [email protected]
Research Team: Dr. Stelios Sapountzis Dr. Jose Lima Dr. John Rooke Dr. Ricardo Codinhoto Dr. Patricia Tzortzopoulos - Fazenda Kathryn Yates www.bereal.salford.ac.uk
Thank you