Trademarks are properties of the holders, who are not affiliated with mind map author.
e.g., Business Case Writers, Business Case Appraisers
e.g., Portfolio Programme, Project Managers, Business Change Managers
e.g., Portfolio, Programme and Project Office Staff, including Benefits Managers
Contribute towards one or more organizational or strategic objectives
Service Profit Chain
Service Value Chain
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)
Tailored delivery methods, such as PRINCE2®, MSP®, DSDM®, PMBOK®
Benefits being integrated into the organization's operational and HR performance management system
Align with HR Performance Management System
Consistent approach applied to all initiatives within change portfolio, benefits-led investment appraisal and portfolio prioritization
Good practice applied
Double counting minimized
Benefits realization Optimization
Clear accountability and responsibility for the enabling and business changes upon which benefits realization is dependent
Take benefits and benefits management seriously, focus on creating sustaining value
Treat as program
Behavioural change, Coordination, Commitment, Competencies
the focus is less on passive tracking against forecast and more on an active search for benefits based on ongoing participative stakeholder engagement.
the practice of benefits management should be based on evidence about what works e.g. use the technique of reference class forecasting.
based on open and honest reporting e.g. use the technique – clear line of sight reporting.
the activities undertaken should be driven by the benefits sought.
the focus is on learning and insight rather than backward looking tracking against forecast.
from start up to beyond the closure of an initiative.
leading and lagging measures
Benefits can be same for each stakeholder (which is different in case of values)
Maximization does not respects constraints, optimization is about doing the best that can be achieved within constraint
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
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
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)
Lovallo Kahneman (2003), "Delusional optimism: we overemphasize projects' potential benefits and underestimate likely costs, spinning success scenarios while ignoring the possibility of mistakes."
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)
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