The PPSO SIG Spring 2006
Conference…
Agenda
9:45 - 10:30
Registration
10:30 - 11:15
“How to Identify Benefits” – John Zachar
11:15 - 11:35
Coffee / networking
11:35 - 12:45
“Changing Project Management Processes to Include Benefits
Realisation” – David Marsh
12:45 - 14:00
Lunch / networking
14:00 - 14:45
“Extending Progress Reporting to Include Benefits” – David Marsh
14:45 - 15:00
Tea / networking
15:00 - 15:45
“Embedding changes” – Terri Kinton
16:00
Close
BENEFITS CENTRED PROJECT
MANAGEMENT
David Marsh MMP
AIM
To provide you with some ideas for
introducing Benefits Centred Project
Management into your organisation
OBJECTIVES
 To explain what is Benefits Centred Project
Management and why you need it
 To explain the techniques
 To hear what Effect a Benefits Centred Project
Management approach had
Why Do We Need
Benefits Centred Project Management
 The need for real success
 Need to include the management of the
benefits in the project
 A business benefit driven approach to delivering
the project
 The holistic approach
 Effective/efficient use of scarce resources (M’s)
Benefits From
Benefits Centred Project Management
 Defined bridge between the project
and the benefits
 Improved :
 Project structure
 Project governance
 Realism
 Understanding
 Chance of success
 Reduced risk of adverse impact on
business
 Senior management focus
What is
Benefits Centred Project Management
The efficient management of the execution of
a project/ work packages within a controlled
environment to:

achieve the required benefits for the
operation of the business.
 achieve a set of defined business
outcomes.
 co-ordinate the planning, monitoring and
control of the project/work packages with
benefit efficiency as the key.
Differences in
Benefits Centred Project Management
 Revised contents of the Project Control
Documents
 Revised Project Management organisation
structure
 New planning techniques
Revised Contents of the
Project Control Documents
 The use of a wider (benefits centred)
definition (Blueprint) of what the project is
to deliver.
 Re-structured User Requirements –
lateral and vertical MOSCO.
Re-Structured User Requirements
 Subdivide the requirements – Laterally
 What functions must, should and could
you have.
 Subdivide the requirements – Vertically
 What performance/capacity/look and feel
in each of these groups of functions
must, should and could you have
Blueprint
 Operational Vision
 What the organisation or function will be like
once we have completed the Project
 Business Vision
 The business benefits or changes (Quantitative
or Qualitative - to be obtained)
 Change Vision
 The attitude and or culture changes needed
Revised Project Management Organisation
Structure
 Who in your existing organisation structure is
responsible for:
 Agreeing that the planned benefits are
realistic
 Ensuring that the project will deliver the
benefits
 Ensuring the project is structured to deliver
the benefits
 Responsible for delivering the benefits
 Is the the Senior User the right person?
Organisation Structure
Board Of Directors
Sponsoring Group
Project Board
Project
Support Office
Project Manager
Project
Assurance
NEW ROLE
Benefits
Realisation
Manager and
Team
Role of Project Board
 Ultimate responsibility stewardship/keeper of the Vision
 Establish the project
 Responsible for resources and funding
 Manage the interfaces with other projects
etc
 Ensure project links to strategy and
evolving business needs
 Ensure efficient organisation of the staff
 Commissioning reviews
 Control of project implementation
Role of Benefits Realisation Manager






Establishing how the benefits will be delivered
Leading Prioritisation and Change Control
Responsible for planning the delivery of the benefits
Preparing business areas for transition
Leading benefits realisation activities
Optimising the release of deliverables for the
business
 Ensure the Project Boards requirements are met
 Working with Project Manager to ensure Work
Packages will enable project to deliver
 Reviewing potential new requirements for inclusion in
the project
PREPARING THE PROJECT PLAN
The Project Planning Process (1)
 Graph Required Benefits Profile
 Identify potential new and existing work packages
 Prepare /obtain estimates
- duration, resource requirement, costs &
benefits
 Prepare Work Package-Project Contribution Matrix
The Project Planning Process (2)
 Prepare Project Plan - match Required
Benefits Profile
 Identify & confirm dependencies and
’Handshakes'
 Identify & agree Project Milestones
 Identify & agree Project review points
 Update risk analysis, Benefits Management
Plan
 Prepare Quality and Configuration
Management Plan
Initial Benefits Realisation Points/Profile
Benefits
Benefit Realisation Point
100%
Benefit Realisation
Point
50%
Benefit Realisation Point
Time
The Work Package-Project Contribution Matrix
 All Work Packages to be included
 Contribution can be measured in terms of :
 Benefits obtained (outputs and outcomes)
 Earned Value Analysis
 Must, should, or could etc..
 Weighting and ranking tables
 Difficulty and/or risk
 etc.
Work Package -Project Contribution Matrix
Work Package
1
2
3
4
5
6
Benefit (and Value)
%age
Contribution
PROJECT - BENEFITS AND COSTS PROFILE AND WORK PACKAGES
Benefits
Expenditure
80%
BK 7
70 %
BK6
60%
BK5
7.9 Million
4.5 Million
40%
BK4
BK3
BK2
1.5 Million
BK1
BK4
Time
Year One
Year Two
Year Three
Year Four
PROJECT - Handshakes
Benefits
GE 10
Required Benefits Profile
Handshake Point
GE 9
GE 7
GE 8
50%
GE5
GE 6
GE 4
GE3
GE 2
10%
GE 1
Year One
Year Two
Time
Year Three
Defining Project Milestones
 Milestones important to the project:
 Obtaining benefits
 Commitments for expenditure or resources
 Strategic decision points outside the project
 Asset transformation points