Managing the benefits of change

Get Started. It's Free
or sign up with your email address
Managing the benefits of change by Mind Map: Managing the benefits of change

1. How do I manage benefits to stakeholders in change

1.1. Value is something that is valued by stakeholders who include not just customers but employees which may be but doesn't need to be financial

1.1.1. It is delivered by people who need to be inspired to work in a different way The reason for change may be clear to you but it isn't necessarily clear to others What motivates you doesn't necessarily motivate someone else

1.2. Big idea: Change doesn't just involve an investment for the business for which it expects a return - it is also an investment for the stakeholders who are being asked to change

1.2.1. How do they have a shared understanding of what these benefits will be to them and a common purpose in bringing this about

1.2.2. Benefits management isn't about measuring the effectiveness of something done to stakeholders but about something done by them to deliver value

1.2.3. These people are helped by having a way to connect the change they are being asked to deliver with the benefits for them

1.3. If you can get people on board and have a shared understanding of the benefits the change with have for them success is more likely

1.3.1. I think this is an argument that elements of the stakeholder strategy are leading edge indicators for benefit delivery of change programs

1.3.2. They need to be brought on board early on in the process

2. How do I manage benefits in change and transformation projects

2.1. "Benefits management is often described as what you do after you have spent all the money"

2.2. Most projects (investments) are not the traditional ones about delivering physical assets like building - 66% are programs to deliver transformational change in service delivery

2.2.1. The worlds changed and has become about service delivery - amazon doesn't own stores and AirB&B doesn't own hotels

2.2.2. So why do we use the same Benefit management approaches built for traditional projects for service delivery platforms. Earned value is the common way of tracking if a project is on time and on budget It takes into consideration the work that has been accomplished so far and costs incurred until now, and puts that into perspective to the original budget and schedule That works where a project is about delivering a physical asset like a bridge A physical asset for accountants is the money it costed to build it however well or badly it performs But it doesn't work for service delivery platform which is valued by the return it makes If that is the case if the service delivery platform doesn't deliver what is expected (70% don't) does earned value represent what was spent on it or the value that was destroyed.

2.2.3. The delivered value of transformational and service delivery projects need to be monitored early and constantly In traditional projects where value is what it costs the benefits can be identified once it is delivered - you have the asset whatever happens In service delivery and transformational projects where value can be destroyed you need to check the return on your investment all the time

2.2.4. Four step investment process Identify what the business benefits of the project is supposed to be - this was a failing documented in the PMI Pulse report 2016 - see attachment In traditional projects the benefit delivery (earned value) is measured by what has been delivered when for what ost In service delivery and transformational projects a more important metric is whether valuable business outcomes where delivered Integrate the project and benefit deliverables - meaning that the benefits are scheduled along with the project In traditional projects you can wait till the end for the benefits In service delivery and transformational ones you can't wait because there is no asset valuable asset being delivered You need to prove that you are delivering value soon an often - sprints or time boxes in agile Monitor and evaluate progress against the delivery of the benefits and value against our cost benefit analysis in the business case The bridge will be built no matter what and will deliver a valuable asset in a traditional project In a transformational or service delivery project the requirements for service delivery can change Determine if the investment is still viable for the business - which is a review process And decide whether the future investment is worthwhile given that valuable outcomes have already been delivered

3. What do I need to know about project benefit management

3.1. Big Idea: Understand the benefits you are buying for your investment in change BEFORE you start the project or program

3.1.1. But 30% -40% of change management projects deliver NO benefits at all

3.1.2. KPMG "project success appears to equate to achieving an acceptable level of failure"

3.1.3. Why don't they deliver theses benefits Knowing doing gap - most businesses know what to do we just don't do it Box ticking - people do stuff rather than focus on what the stuff is supposed to deliver Planning Falacy - which is a cognitive bias that "this time it will be different" even if all experience is against this view Strategic misrepresentation - planned and deliberate over statement of benefits in business cases to justify a change Big Idea - you should never write a business case to justify a change by the benefits it will deliver - they are often consciously or unconsciously a fraud

3.2. How do you do this and effectively manage the delivery of benefits

3.2.1. This needs to be a multi disciplinary approach which includes behavioural change as well as systems thinking The five practices of benefits management will only happen if we follow the seven principles of management which are explored in other parts of the map Aligning benefits with the strategy is often difficult because it is articulated at such a high level and you need to understand your business model Start with the end in mind - steven covey - don't start with a business case to justify a solution Integrate Benefit management with performance management through by getting peoples agreement to book the benefits within the way their performance is managed - the acid test Manage Benefits from a Portfolio perspective to get a consistent approach Apply governance through understanding how the benefits will deliver value using a variety of mapping approaches Develop a value culture which doesn't just track benefits but actively goes out to deliver benefits and improve on them Other techniques used include

4. Who should we think of as stakeholders

4.1. Stakehoder theory affects benefit management because it suggests that any one affected by what the business does (change) can be parties to a contract which has 6 elements

4.1.1. People need the entry, exit and terms of renegotiation of this contract to be clear and transparent

4.1.2. Any changes to these contratcs should require unanemous consent

4.1.3. All people who are affected by what a business does has a right to be parties to this contract - even if they have a right to not be a part

4.1.4. Every party to the contract is also a party to the costs of the contract - which may give stakeholders pause for thought

4.1.5. All agents have the responsibility to look after the interests of all the parties to the contract - not just the principles (e.g., business managers promote the interests of all the stakeholders)

4.1.6. Every party to the contract should try to preserve the contract abd act in good faithto the other parties

4.2. The consequneces of this idea is that the ations of the business in what it can change is more limited and in particular it has to think about four things in benefit management

4.2.1. Identifying what the options or choices are between the different change projects that you could implement

4.2.2. Find out who will be affected by the outcomes of these different options which is difficult to do because it includes both internal AND external stakeholders

4.2.3. Identify the benefits and disbenefits (risks) of each of these stakeholder groups

4.2.4. Which means understanding the human context of this change for these stakeholders which is made up of Their purpose which they are realising through the contract they have with the business The processes that they are using to further their purpose and the vision What they actually do day to day in following this process and achieving their purpose

4.3. There are two key issues with this approach which would mean rethinking the basis for the way businesses work now

4.3.1. One of the potential issues is that it could then lead to a company not being able to to make any changes becuase some will be a disbenefit to someone who could object But this doesn't have to be the case if we had a different stoy about what Capitalism is

4.3.2. Another is that this could make it illogical to hire agents like change managers who may make up their own minds about how best to serve the interests of the wider community That being the case why would the company hire them in the first place