The End Game - Benefits Realisation

[00:00:02] Welcome to another episode of Transformation Professionals, sponsored by CXO Transform.

[00:00:09] Crafted to enhance the strategic acumen of ambitious managers, leaders and consultants.

[00:00:15] We hope you enjoy this episode about Benefits Realisation. Here's Rob Llewellyn.

[00:00:22] The owners of reaping benefits from technological investments squarely falls on the business itself.

[00:00:28] Nearly implementing technology is not enough to guarantee success.

[00:00:33] At the very least, comprehensive training and robust support are essential to ensure users can effectively utilize new digital tools.

[00:00:43] The wealth of lessons learned from past experiences cannot be overlooked.

[00:00:48] To extract the fullest value, the convergence of technology with process and business modifications is crucial.

[00:00:55] Alongside the businesses, a depth utilization of the insights that technology yields.

[00:01:01] While a project might deliver technological advancements and process alterations,

[00:01:06] the business must own the changes required to enhance performance and actualise the benefits that is the essence of business responsibility.

[00:01:16] For all key stakeholders within the business to sign up to the benefits,

[00:01:20] it's essential they understand their business responsibilities for defining and executing business changes

[00:01:26] and measuring performance improvements in their business areas.

[00:01:30] Key to this is continued business involvement.

[00:01:34] The business needs to be involved in identifying the potential benefits to be gained from an initiative,

[00:01:39] and ideally this starts with digital use cases, then the business case.

[00:01:44] This should include defining the scope of technology, process change and business change necessary to deliver the benefits.

[00:01:54] Because of the general lack of knowledge and understanding about benefit realization,

[00:01:59] it's very important that a ray sea matrix is established and communicated leaving no room for ambiguity.

[00:02:05] It should be clear to everyone who is responsible for undertaking an activity,

[00:02:10] accountable for ensuring that the activity is undertaken satisfactorily,

[00:02:14] consulted in conjunction with the activity and informed as the activity progresses.

[00:02:19] Without the ray sea, it's almost certain that people will begin making incorrect assumptions about who's doing what

[00:02:25] and sooner or later the benefits realization effort will run into trouble.

[00:02:30] Every transformation should have a set of tools and proven techniques to manage the business benefits,

[00:02:35] which should be evident at every stage of the transformation.

[00:02:39] And it's important to remember that value is not just about financial benefits.

[00:02:44] It's about any improvement which is perceived as being beneficial by stakeholders,

[00:02:49] which could be financial, measurable, quantifiable or observable.

[00:02:54] Benefits are often colourfully painted in business cases to secure funding.

[00:02:58] But once those funds are secured, the very people who did a splendid job of selling the benefits to those who held the keys to the budget.

[00:03:05] Sometimes pay little if any attention to benefits management.

[00:03:09] They promise value in the business case, get the money they need, but then fail to measure the value.

[00:03:15] The business case should be supported by a benefits management strategy,

[00:03:19] which does more than just explain the activities time and resources needed to achieve a set of benefits.

[00:03:26] It should describe the process that will be used for monitoring, realising and assessing benefits

[00:03:31] and contain relationships and dependencies between the changes and benefits.

[00:03:36] Other content would address a dependency network and criteria to assess whether benefits have been achieved

[00:03:41] and how they should be quantified.

[00:03:44] This will serve to build stakeholder confidence and trust from the outset.

[00:03:48] Once the transformation has been kicked off, a benefits plan should be consistently and proactively managed

[00:03:54] and monitored with a set of tools and proven techniques.

[00:03:58] Benefits management takes more than a financial spreadsheet and a list of benefits sitting on a timeline,

[00:04:05] and it should also involve extensive communication.

[00:04:08] As with every aspect of transformation, under communication is often at the root of many issues,

[00:04:14] so plan for extensive pictures, charts, maps and diagrams that will resonate with stakeholders far better than verbose documents and spreadsheets.

[00:04:23] The benefits management strategy should define the approach to realising benefits and the framework within which the benefits realisation will be achieved.

[00:04:35] It should cover methods for identifying, mapping, monitoring and reviewing benefits,

[00:04:41] scope and explanation of which areas of the business will be covered by benefits management and realisation activity.

[00:04:48] Measurement methods and processes to monitor and assess the realisation of benefits.

[00:04:54] Success factors against which the effectiveness of benefits management should be measured.

[00:04:59] Tools, systems and sources of information to enable measurement.

[00:05:05] Descriptions of function, roles, accountabilities and responsibilities for benefit planning and realisation.

[00:05:12] Priorities of benefit types.

[00:05:15] Relationships between capabilities and benefits.

[00:05:19] Opportunities to be managed in relationship to risk management.

[00:05:24] Clarification of benefits related terminology appropriate to the organisation.

[00:05:29] And a review and assessment process for measuring benefits realisation.

[00:05:33] A benefits realisation plan should be designed to track the realisation of benefits across the transformation portfolio and set review controls.

[00:05:42] It should contain detailed benefits mapped to illustrate sequential relationships between benefits.

[00:05:50] Schedule detailing when each benefit-disbenefit or group of benefits will be realised.

[00:05:57] Mild stones for benefit reviews.

[00:06:00] Estimated effort and costs associated with the plan.

[00:06:05] Detail of transition schedules.

[00:06:08] Benefit reporting schedule and relationships with program outcomes.

[00:06:12] Dependencies external to the program.

[00:06:15] Hand over and embedding activities to enhance the process of benefits realisation after delivery of a capability.

[00:06:23] And details of how benefits realisation will be maintained after program closure.

[00:06:29] Investment is made to make transformation happen, which should be to provide value.

[00:06:34] Those who ignore the concept of value management and benefit realisation management are essentially neglecting the very

[00:06:41] purpose of the transformation.

[00:06:44] Three key questions, stakeholder should ask.

[00:06:47] What does the benefits management strategy look like?

[00:06:51] What does the benefits management plan look like?

[00:06:54] And who is executing the benefits management plan?

[00:06:57] No matter who the tasks are assigned to, the accountability for value and benefits management

[00:07:01] rests with the digital business transformation manager.

[00:07:05] In an ideal scenario, they would appoint a dedicated individual focused solely on managing and realising the

[00:07:11] value and benefits.

[00:07:13] This podcast is sponsored by CXO Transform.

[00:07:17] Professional development for managers, leaders, and consultants who strive for excellence.

[00:07:22] If you want to perform at your very best, in the most sought after transformation roles, visit cxotransform.com.