Benefit

advertisement
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
How to identify benefits!
Benefits realisation
John Zachar
Principal consultant
CITI Limited
Why should a PPSO be
interested?






Strategic fit of project
Maximisation of portfolio value
Validity of business case
Resource (people) optimisation
Portfolio risk diversification / management
Demonstration of PSO proactiveness
MoSCoW
What is a benefit?
Main Entry: 1ben·e·fit
Pronunciation: 'be-n&-"fit
Function: noun
Etymology: Middle English, from Anglo-French benfet, from Latin bene
factum, from neuter of bene factus, past participle of bene facere
1 : archaic : an act of kindness : BENEFACTION
2 a : something that promotes well-being : ADVANTAGE
b : useful aid : HELP
3 a : financial help in time of sickness, old age, or unemployment
b : a payment or service provided for under an annuity, pension plan, or
insurance policy
4 : an entertainment or social event to raise funds for a person or cause
Merriam-Webster On-Line
http://www.m-w.com/cgi-bin/dictionary
What is a benefit?

Prince 2 Manual – no definition

PMI BoK – 3rd Edition – no definition

APM Pathway – addresses benefits, but a bit nebulously

Benefits – Quantified increases in revenue, decreases in costs,
reductions in working capital and / or increase in performance
which occur directly as a result of a project.
Project Workout, Roberet Buttrick 2nd Ed., Prentice Hall, 2000

Benefit: something that can be couched in measurable terms —
a tangible benefit (e.g., 'a cost saving', 'more sales of existing
product X', 'sales of new product Y') — or a non-tangible benefit
(e.g., 'customer satisfaction').
Most projects are put in place to deliver products that will lead to
benefits.
e:PMguide, CITI Limited,
Benefits
 Tangible
 Intangible
 Real benefits, not wishful thinking
 Not over egged to attract the funding
 Realisable (SMART)
Risk avoidance
Tangible benefits
 Cost avoidance
 Additional revenue
 New revenue
Intangible benefits
 Strategic match
 Competitive advantage
 Competitive response
 Management information
Value linking
Value acceleration
Value restructuring
Information Economics, Parker, Benson, Trainor, Prentice Hall, 1988
Impacts vs. benefits
Deliverable
(Product)
Impact
(Change)
Benefit
Impacts vs. benefits
Deliverable
Fault diagnosis
database
Impact
Faults diagnosed
over the phone
Impact
Fault fixed on first
visit
Impact
Fewer visits
required
Impact
Fewer engineers
required
Benefit
Lower salary
expenditure
Fewer spares
required
Tools
Reduced
&
inventory costs
Vans
Benefit realisation plan
 What is the expected benefit?
 What is the value / how will it be measured?
 What impacts (changes) are required to
realise the benefit?
 When will those impacts occur?
(When will the product(s) be delivered that
will spawn the impacts?)
 How can I verify that the benefit has actually
been acquired or realised?
 Who is responsible?
Q & As
John Zachar
Principal consultant
CITI Limited
Lovat Bank, 37 Silver Street,
Newport Pagnell, Buckinghamshire,
MK16 0EJ
01908 283 600
jzachar@citi.co.uk
Download