What Happened to the
Promise of Benefits Realization?
Presented by: Dave Peters
Date: November 12, 2013
Purpose
To explore why it is difficult to
realize benefits from projects
and what we can do about it!
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Agenda
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
What Are The Benefits
Realization Fundamentals?

What Have We Experienced
With Benefits Realization?

How Can We Do Better
With Benefits Realization?
WHAT ARE THE BENEFITS
REALIZATION FUNDAMENTALS?
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Benefits Realization Fundamentals
What is Benefits Realization?
 Achieving desired business outcomes from the
intentional and effective interplay of strategy and
actions

Proven technique for leveraging greatest value


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Selecting, structuring and delivering projects with the
best potential to advance the enterprise’s strategy
Focusing resources and energy on the most valuable
projects for highest impact
Benefits Realization Fundamentals
Are we doing the
Right Things?
Are we Getting
the Benefits?
Right
Things
Getting
Results
Client
Right
Way
Are we organized
to work the
Right Way?
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Getting
Done
Are we Getting
Work Done as
expected?
Benefits Realization Fundamentals
Strategic
Are we doing the
Right Things?
Portfolio
Are we Getting
the Benefits?
Right
Things
Right
Way
Getting
Done
Are we organized
to work the
Right Way?
Traditional Focus
Are we Getting
Work Done as
expected?
Tactical
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Value Focus
Client
Program
Project
Getting
Results
Benefits Realization Fundamentals
Why is Benefits Realization Important?



Transformational or strategic change is complex
There are multiple ways to achieve the objectives
Each path requires a well thought out set of
deliberate actions taken to get the desired result
Unless we think through all the possibilities and act on
explicit choices, our stakeholders will make their own
choices … which may not be what we expect or want!
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Benefits Realization Fundamentals
What Must Be Considered?
Organization
Strategy, Structure,
Controls
Business
Processes
Technology
Applications,
Infrastructure,etc.
Policy, Process,
Procedures
People
Skills, Qualifications,
Experience, Attitude
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Optimal benefits achieved through the
interaction of four business domains
Benefits Realization Fundamentals
What Types of Projects are
Suitable for Benefits Realization?
If a project has no benefit,
why are you doing it?
Projects suitable for
benefits realization


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Innovation
Sustainment
Obligation
Benefits Realization Fundamentals
How Do Different Projects Contribute Benefits?
Innovation
Sustainment
Obligation
• Go to the next level; highest value
• Brand new services, markets, technology
• Proof of concept, research & development
• Remain at same level; moderate value & risk
Increasing
• Investigative, maintenance, info request
Value
• Stream
line, modify, new capabilities
• Must do to survive; greatest risk
• Compliance, legislated, regulated, contractual
• Mandated, mitigate risk
Leverage potential with other initiatives
Understand risk and actively manage
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Benefits Realization Fundamentals
How to Measure Success?

Business Cases versus Benefits Cases


Adds and emphasizes business benefits to standard business
cases
Measurement is paramount


Must measure before, during and after to determine how you
are doing
Tracking and monitoring benefits may go beyond the project
Identify and prioritize benefits
Establish benefits metrics
Sequence benefits actions
Manage and deliver benefits results
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Benefits Realization Fundamentals
Outcomes Mapping
Results Chain
Identify, prioritize,
sequence actions
Understand and
communicate
contributing and
ultimate benefits
Initiative
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Critical
Assumption
Intermediate
Outcome
Final
Outcome
Benefits Realization Fundamentals
Forge a Clear Path
Powerful
Roadmap
Useful to plan and
execute deliberate
actions and link to
the realization of
strategic benefits
Scalable to represent actions within a project or multiple
projects within a program within a portfolio of investments
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Benefits Realization Fundamentals
What About Managing Risk?
Value Risk Management
Is this strategically aligned?
Will we succeed at this?
Traditional Risk Mgmt
What are the risks?
Are we closing the gaps ,
overcoming obstacles?
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Benefits Realization Fundamentals
Practical Tips

Most benefits are orchestrated


Requires program and
integrative thinking


People, process, technology,
organization
Look beyond Return on
Investment

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Conscious choices, planned actions
Align with strategic objectives
Benefits Realization Fundamentals
Practical Tips

A business outcome owner is
imperative


One size does not fit all



Scalability, not all benefits are equal
Adjust your approach based on the
potential risks and rewards
Patience and Persistence

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Cannot be delegated to support or
external resources
Benefits may not appear at project
close out
Benefits Realization Fundamentals
Practical Tips

Benefits-driven portfolio


Business risk to value assessment


Used to determine the likelihood of realizing
the benefits
Benefits identification,
prioritization, sequencing


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Evolves to deliver the greatest strategic
value
Many things have to happen before
achieving the “ultimate” outcome
Know interdependencies, prerequisites
WHAT HAVE WE EXPERIENCED
WITH BENEFITS REALIZATION?
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Benefits Realization Experiences
Tactical Thinking

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Fundamental thinking has
been too tactical
Focus on narrow project
level benefits not broad
enterprise level strategic
benefits
Not seeing possibilities
beyond the immediate
narrowly focused need
Benefits Realization Experiences
Business Commitment


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Business not committing the
“right” people or time to
identify and produce
meaningful enterprise level
strategic benefits
Responsibility is delegated
to support groups or
external parties who do not
have the line of sight to the
bigger picture
Benefits Realization Experiences
Bureaucratic Hurdles


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People will say
whatever is needed to
get the project
approved
Requirement to identify
the benefits not taken
seriously so little or no
possibility of achieving
meaningful benefits
Benefits Realization Experiences
One Approach For All Projects
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All projects identify
business benefits the
same way, even when
not appropriate
Rigid enforcement in the
identification of or
realization of benefits
leading to projects
delivered under crisis
Benefits Realization Experiences
Applying Inappropriate Timeframe
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Timeframe for the realization of
benefits is typically too short
HOW CAN WE DO BETTER WITH
BENEFITS REALIZATION?
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What Can We Do Better
Improve Our Understanding
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Benefits identification is not
a step in a project plan
Benefits are identified,
prioritized and sequenced
long before any projects or
programs are identified
Benefits identification
should spawn projects, not
the other way around
What Can We Do Better
Apply Critical Thinking To Our Initiatives

Multiple initiatives
each producing
their own sub
benefits together
produce the
ultimate benefits
Only after all components are complete and
adopted by the business will benefits appear
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What Can We Do Better
Select Projects Thoughtfully

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Choose projects with
greatest potential
Facilitate clear direction
from upper management
Ensure visible and fully
engaged sponsorship
Keep in mind that mandated projects are primarily
about survival, establishing a base or reducing risk
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What Can We Do Better
Keep Our Eye On The Ball
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Be disciplined and persistent about
staying focused on business benefits
Discussion
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Calgary, Alberta T2R 1J5
www.veriscanada.com
403.237.7430
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