Bm intro 2019
- 2. Contents •Add value – why we do stuff •Pick best objectives – end in mind •Pick best benefits – define benefit •Need to recognise good benefits – not features, outcomes •Need process to pick and manage the benefits - iteration •Need to apply the process – tools, techs, templates •Further learning – where to learn more 2
- 3. Glossary – the key terms used here • Benefit • a result that a stakeholder perceives to be of value. • Benefit Owner • The person who is responsible for the delivery of an individual benefit, (cf. Senior Responsible Owner for a whole project). • Feature • A discrete component of the enabler, e.g. separate applications in a portfolio of software. • Objective • A purpose for the programme/project, determined by the drivers of the key stakeholder groups. 3 • Outcome – The result of change, normally affecting real-world behaviour and/or circumstances. • SRO – Senior Responsible Owner, the individual responsible for ensuring that a project or programme of change meets its objectives and delivers the projected benefits. • Stakeholder – An individual or group who will face a significant impact from a business change or make a significant impact upon it.
- 4. Starting from the top Behind every business change there are six seemingly naïve questions: •What does ‘good’ look like? •What’s the point of this change? •Who is it really for? •What do they actually want? •How do we get this done? •What makes this option better than Plan B?
- 5. Start with the end in mind Why did Nye Bevan create the NHS? It’s not only what you do, it’s also why you choose to do it B) Ensure a healthy workforce for the nationalised industries A) A comprehensive health service designed to secure improvement in the physical and mental health of the people C) Find his neighbour’s idle kid a job Answer: A (if you didn’t pick A you are not taking this seriously)
- 6. Endgame •The game ends when: a)You are checkmated, or b)My King is in g3, my Queen is in c5, etc….
- 7. Which Direction? •Patients •Partnership •Pride •Performance ENDS (what we want) •Clinical Effectiveness •Clinical Efficiency •Start / Stop / Improve Processes WAYS (what we do) •Scheduling •Record to hand •Standard Forms •… MEANS (what we have) STRATEGIC Top-down TACTICAL Bottom-up
- 8. The measurable improvement resulting from an outcome perceived as an advantage by one or more stakeholders, which contributes towards one or more organisational objectives. - APMG Managing Benefits 2012 A benefit is a result that a stakeholder perceives to be of value. What is a Benefit? •Improve •Increase •Reduce •Eliminate •Stop
- 9. Features, Outcomes, Benefits •Feature - my car is painted ‘Police Car’ white •Outcome - people move over for me on the motorway so I get home for 6 pm •Benefit - I get to watch The Simpsons on TV and am a happier person
- 10. Benefits, Outcomes, Measures •Change : improve the speed of order processing •Currently: six days required to process •Action:automate order processing •Outcome: order processed in 1 day •Measure: time taken to process order •Benefit: 5 days time saved?
- 11. Benefit realised from time saved •More time with patients •Improved service •Resource transferred to other activities •Knowledge work The benefit is what productive use is made of the 5 days, e.g. more work done, better work done, etc. Who gets the benefit? What do they want to achieve?
- 13. A cautionary tale “The amount of effort used in preparing a list of 101 benefits may have been better focused on identifying a small number of benefits to be tracked, allocating owners and ensuring that baseline measurements were taken” Benefit Realisation Review May 2006 13
- 14. Benefits Management Its purpose is to: Identify Quantify Prioritise Select Manage Business Benefits Benefits Management is the best application of scarce resources to select and deliver appropriate benefits to identified stakeholders
- 16. Benefits analysis What benefits do we want / could we get? •Identify benefits •Link to business objectives •Link to enablers For each benefit: •How can you measure it •Can we quantify it •Is there a financial value?
- 18. This is manageable Three significant benefits means a manageable amount of project activity to deliver them
- 19. This is not If there were 50 benefits in the business case then the project activity would grow proportionately There is little chance of all these benefits being managed successfully
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- 21. Stakeholder Analysis •Who are the key stakeholders? •What changes must they make? •What will they gain/lose? •How committed will they be? •How would you manage them?
- 22. Stakeholder table Stakeholder group Perceived benefits Changes needed Perceived resistance Commitment (Current and required) Anti None Allow it to happen Help it happen Make it happen Nurses Nursing staff will be skilled and adequately Resourced to support Changing Patient needs. Development of skills Happy with how it is C R Benjamin & Levinson 1993
- 23. Benefits-led Business •Shared objectives •Stakeholder commitment to the numbers •A few big, genuine benefits •A feasible solution
- 24. Complementary Methods •Model for Improvement – PDSA cycle •Business Policy and Strategy models •Change Management •Group Dynamics •Facilitation skills •Performance Management •Managing Successful Programmes
- 25. Psychology of Decisions Prediction •Optimism Bias •Strategic Misrepresentation •Anchoring •WYSIATI Delivery •Illusion of Control •Confirmation Bias •Affect Heuristic •Framing •Regression to the Mean
- 26. Benefits Management challenge • Technology driven • Value for MONEY • Expenditure proposal • Loose linkage to business need • IT implementation plan • Business manager as on-looker • Large set of unfocussed functionality • Stakeholder “subject to” • Trained in technology • Do a technology project audit • Benefits driven • VALUE for money • Business case • Integration with business drivers • Change management plan • Business manager involved and in control • IT investment sufficient to do the job • Stakeholders “involved in” • Education in exploiting. • Obtain business benefit then review Move from To
- 27. Find out more •Keldale website (Yorks BM Network) http://www.keldale.com/ • LinkedIn groups •Public Sector Benefits Forum https://www.linkedin.com/grp/home?gid=8192157 •Benefits Realisation Experts Forum https://www.linkedin.com/grp/home?gid=3569453 •Managing Benefits – Community of Interest https://www.linkedin.com/grp/home?gid=4493501 Or contact me: david.waller@keldale.com