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Managing Benefits™ study guide mind map by Mind Map: Managing Benefits™ study
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Managing Benefits™ study guide mind map

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Roles

Senior Responsible Owner (SRO)

Directors of Change

Strategic Planners

Policy Leads

Change appraisers and evaluators

e.g., Business Case Writers, Business Case Appraisers

Change implementers / enablers

e.g., Portfolio Programme, Project Managers, Business Change Managers

Change support staff

e.g., Portfolio, Programme and Project Office Staff, including Benefits Managers

Benefits Owner

Benefits Management Principles (7)

1. Alight benefits with strategy

Contribute towards one or more organizational or strategic objectives

Service Profit Chain

Service Value Chain

2. Start with the end in mind

Benefits-led change rather than benefits being used to justify a pre-selected solution

Activity-centred initiatives (Benefits to justify)

Benefit-led initiatives (Benefits rationale)

3. Utilize successful delivery methods

Tailored delivery methods, such as PRINCE2®, MSP®, DSDM®, PMBOK®

Staged release

Stakeholder engagement

Forward-looking

4. Integrate benefits with performance management

Benefits being integrated into the organization's operational and HR performance management system

Align with HR Performance Management System

5. Manage benefits from a portfolio perspective

Consistent approach applied to all initiatives within change portfolio, benefits-led investment appraisal and portfolio prioritization

Consistent alignment

Good practice applied

Double counting minimized

Lessons learned

Benefits realization Optimization

6. Apply effective governance

Clear accountability and responsibility for the enabling and business changes upon which benefits realization is dependent

Clear

Aligned

Consistent

Active

7. Develop a value culture

Take benefits and benefits management seriously, focus on creating sustaining value

Treat as program

Behavioural change, Coordination, Commitment, Competencies

Themes (9)

1. Principles themselves are integral to effective benefits management

2. Practices should therefore be tailored to the local circumstances

3. The 5 practices in the Benefits Management Cycle are broadly sequential but are characterized by iterative feedback loops

KSF of Effective Benefits Management (6)

Active

the focus is less on passive tracking against forecast and more on an active search for benefits based on ongoing participative stakeholder engagement.

Evidence-based

the practice of benefits management should be based on evidence about what works e.g. use the technique of reference class forecasting.

Transparent

based on open and honest reporting e.g. use the technique – clear line of sight reporting.

Benefits-led

the activities undertaken should be driven by the benefits sought.

Forward-looking

the focus is on learning and insight rather than backward looking tracking against forecast.

Managed across the full business change

from start up to beyond the closure of an initiative.

The Benefits Management Model

consists of:

Principles

Practices

Themes

Benefits

Benefits should be the driver behind all change initiatives

Each benefits should be measured at least with one measure, preferably suite of measures (in order to create “rich picture” from multiple perspectives):

leading and lagging measures

proxy indicators

evidence events

case studies

surveys

stories

Value index

Benefits contribute towards organizational/strategic objectives (benefits are identifiable and quantifiable in terms that link to the drivers of the organizational/strategic objectives)

Benefits are measurable and observable

Benefits are tangible (easy to measure) or intangible (not so easy to measure)

Benefits are identifiable and quantifiable

Benefits should have baselines

Benefits should have priorities

Benefits are an advantage to stakeholders (internal en external to the organization)

Benefits can be same for each stakeholder (which is different in case of values)

Benefits are derived from change initiatives (formally constituted projects and programmes)

Benefits can be automatic (same service for lower costs) or (mostly) manual (deliberate management action)

Benefits types:

Emergent benefits

Unplanned benefits

Intermediate benefits

End benefits

Mostly chain of intermediate benefits is linked to the end benefits, but in many cases intermediate benefits don’t automatically lead to the end benefits

Benefits Management

Benefits management should be coordinated with, and wherever possible integrated into, the wider organization’s context

Benefits management seeks to optimize rather than maximize benefits realization

Maximization does not respects constraints, optimization is about doing the best that can be achieved within constraint

Benefits management is a process that runs across the full business change lifecycle

Do not treat benefits management as a separate discipline

Objectives:

Forecast benefits are complete

Forecast benefits are realized in practice

Forecast benefits represents VfM

Benefits are realized as early as possible and sustained as long as possible

Emergent or unplanned benefits are captured and leveraged

Realization of forecast benefits is maximized

Dis-benefits are minimized

Managing Benefits Guide can be seen as a manifesto towards change:

FROM (as is / current status):, „Conspiracy of optimism” in forecasting., Passive tracking against forecasting., Backward looking accountability.

TO (to be / desired state):, Realism in planning, Enthusiasm in delivery

Why do we need Benefits Management profession? (examples of unsuccessful outcomes)

Beer & Nohria (2000)

HM Treasury (2002), "There is a demonstrated, systematic, tendency for project appraisers to be overly optimistic.", "This is a worldwide phenomenon that affects goth the private and public sectors ... appraisers tend to overstate benefits, and underestimate timigs and costs.", see Optimis Bias, https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/191507/Optimism_bias.pdf

Gauld & Goldfinch (2006)

eGovernment Economics Project (2006)

Altschuler & Luberoff (2003)

Seldon & Colvin (2003)

Cameron & Green (2009)

Schaffer & Thomson (1992)

Ballhaus (2005)

Lovallo Kahneman (2003), "Delusional optimism: we overemphasize projects' potential benefits and underestimate likely costs, spinning success scenarios while ignoring the possibility of mistakes."

NAO (2011)

Bent Flyvbjerg et al (2003, 2005), "It is found with overwhelming statistical significance that the cost estimates used to decide whether such projects should be built are highly and systematically misleading."

Research in Australia by Capability Management (2006)

A study Moorhouse Consulting (2009)

Cognitive bias when overpredicting benefits

Techniques

'In-flight' benefit reviews

Benefits Measurement Taxonomy

Benefits contracts

Benefits discovery workshops

Benefits mapping

Benefits quantification workshops

Booking the benefits

Champion-challenger model

Clear line of sight

Conversion ratios

Cost-benefit analysis

Cost-effectiveness analysis

Customer insight

Decision conferencing

Delphi techniques

Driver-based analysis

Health-check assessment

Investment logic mapping

Journey mapping

Management by exception

Multi-criteria analysis

One version of the truth

Optimism bias adjustments

P3M3

PESTLE analysis

Pair-wise comparisions

Pareto rule

Post-investment review

Pre-mortems

Real options analysis

Reference class forecasting

Rich picture

SWOT analysis

Scout and beacon approach

Sensitivity and scenario analysis

Stage / phase gate reviews and 'staged' release of funding

Stakeholder segmentation and analysis

Start gate

Stochastic forecasting (including Monte Carlo simulation and three-point estimating)

The 'dog that didn't bark' test

Willingness to pay and Willingness to accept

The Benefits Management Cycle

The Benefits Management Cycle consists of 5 practices

Practices (5)

Identify & Quantify, Goals, To lay the basis for informed options analysis, investment appraisal, and portfolio prioritization; and the management of benefits realization in due course., Key techniques, Benefits discovery workshops, Benefits mapping, Benefits quantification workshops, Customer insight, Delphi techniques, Driver-based analysis, Investment logic mapping, Optimism bias adjustments, PESTLE analysis, Reference class forecasting, SWOT, Stochastic forecasting (including Monte Carlo simulation and three-point estimating)

Value & Appraise, Goals, To ensure resources are allocated to those change initiatives that individually and collectively represent best value for money., Key techniques, Conversion ratios, Cost-benefit analysis, Cost-effectiveness analysis, Multi-criteria analysis, Real options analysis, Sensitivity and scenario analysis, Willingness to pay and Willingness to accept

Plan, Goal, Ensuring accountability and transparency for:, The realization of identified benefits, The changes on which they are dependent, Mitigation of dis-benefits (both expected and unexpected), Identification and leveraging of emergent benefits., Key techniques, Benefits Measurement Taxonomy, Pair-wise comparisions, Pareto rule, Scout and beacon approach, Stakeholder segmentation and analysis, The 'dog that didn't bark' test

Realize, Goals, To optimize benefits realization by actively:, Managing planned benefits through to their realization;, Capturing and leveraging emergent benefits; and, Minimizing and mitigating any dis-benefits., This includes ensuring that the business and behavioural changes on which benefits realization is dependent actually take place., Key techniques, Benefits contracts, Booking the benefits, Management by exception, One version of the truth, Rich picture

Review, Goals, The benefits to be realized are achievable and continue to represent value for money., Appropriate arrangements have been made for benefits monitoring, management and evaluation, Benefits realization is being effectively managed, Lessons are learned for both the current initiative and as a basis for more effective benefits management practices generally., Key techniques, 'In-flight' benefit reviews, Post-implementation review, Post-investment review, Pre-mortems, Stage/phase gate reviews and 'staged' release of funding, Start gate

Practices are broadly sequential but are characterized by iterative feedback cycle.

Key techniques used across the benefits management cycle, Health-check assessment, Journey mapping, Clear line of sight, Decision conferencing, P3M3, Champion-challenger model

Interactive Glossary

Interactive Managing Benefits™ Glossary

This freeware, non-commercial mind map (aligned with the newest version of Managing Benefits™) was carefully hand crafted with passion and love for learning and constant improvement as well for promotion the Managing Benefits™ standard and as a learning tool for candidates wanting to gain Managing Benefits™ qualification. (please share, like and give feedback - your feedback and comments are my main motivation for further elaboration. THX!)

Questions / issues / errors? What do you think about my work? Your comments are highly appreciated. Please don't hesitate to contact me for :-) Mirosław Dąbrowski, Poland/Warsaw.

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