Benefit - HC2013

Report
Benefits Realisation Management
Extracting Value from Projects
Nigel Guest
Director, Health Advisory
2nd May 2012
Exceptional people delivering exceptional results
Definitions
Benefit
'An advantage on behalf of ...' an individual stakeholder
or stakeholder group.
Benefit Realisation Management (BRM)
‘the process of organising and managing, so that
potential benefits, arising from investment in change are
actually achieved’.
Why is BRM Different?
Do nothing……….…………………………
Cost benefit analysis…………………...
Benefits identification and
tracking……………………………………….
Benefits
Management………………..……………
Where Does it Fit?
Strategy
Turn Strategy into Reality
Portfolio Management
Choosing & Doing the Right
Projects
Programme Management
Manage Your Programmes
Effectively
Project Management
Deliver Effective Projects
Benefits Realisation
Management
Ensure What You Do is
Working – Get Results!
The ‘Value Chain’
Projects
Enablers
Benefits
Outcomes
Objectives
Understanding
‘Value
Chain’ is understanding Cause & effect
•Objectives need the
to link
to Strategy
•You should think about internal & external drivers
•They should be SMART
•They should set the boundaries
Setting good objectives is critical to success
Building A Map
5
3
2
4
Projects
Enablers
Electronic
Lean
Discharge
System
Medical
Pathway
Redesign
1
Benefits
Outcomes
Length of
Stay at 75th
Percentile
Reduction
of 30 Beds
Objectives
Reduce
Cost Base
by £1m
By 2013 we will
deliver cost
efficiencies
required by
QIPP
Programme
Building A Map
In this example the Electronic
Lean Discharge System
enables the process through
providing information
Some change action
needs to be taken to
exploit the information
There should be a link back
to the objectives
Benefit should exploit the
outcome to the advantage of
a stakeholder and indicate
measure
The outcome is the result of
change
Electronic
Lean
Discharge
System
Medical
Pathway
Redesign
Length of
Stay at 75th
Percentile
Reduction
of 30 Beds
Reduce
Cost Base
by £1m
By 2013 we will
deliver cost
efficiencies
required by
QIPP
Programme
In Practice
Monitor & Review




Benefits require ownership
Monitor whether projects & programmes are delivering
Benefits as well as Time, Cost, Quality
Maintain throughout and following delivery lifecycle
In Summary
 Too many projects focus on delivering to Time, Cost
& Quality; however, project outputs are not benefits in
their own right
 Investment in change needs to be actively managed
to realise measurable benefits
 Management of benefit realisation throughout the
change process will allow for practical
intervention/adjustments ‘in flight’
 Engage people early – build ownership
 Don’t just focus on financial benefits
Final Thought
"Objectives are not fate; they are
direction. They are not commands;
they are commitments. They do not
determine the future; they are a
means to mobilize resources and
energies of the business for the
making of the future."
Peter F. Drucker
Leading Management Academic & Writer
Thank You

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