benefits management and transformational change, 10 january 2017 - southampton
TRANSCRIPT
Neil WhiteMerv Wyeth
Benefits Management:
the essential ingredient forsuccessful [transformational]
change
Our Agenda▪ Context for transformational change▪ Transformational change examples
▪ Why transformation change is difficult
▪ Strategy and leadership▪ Stakeholder involvement▪ New ways of working▪ New capabilities▪ Behaviour change & learning
Benefits Management SIGTo develop and promote
benefits managementas a core driver of successfulproject, programme, portfolio
[P3M]and change management
To improve the change capability of organisations,
teams and individuals
Enabling Change SIG
the predictable alongside the totally unexpected!
Nothing stays the same
Transformational Change
A shift in the business culture of an organization resulting in a change to the underlying strategy and processes that the organization has used in the past.Source: Business Dictionary
Definition:
‘doing new things or the same things in a different
way’
Transformational Change Examples
Government Digital ServiceTransformational Change
Examples
“we’re a centre of excellence in digital, technology and data, collaborating with departments to help them with their own transformation. We work with them to build platforms, standards, and digital services” Source: Government Digital Service
‘formed in April 2011 to implement the 'Digital by Default' strategy’
Transformational changes
Financial
Reduced system running costs Reduced capital costs Reduction in training costs Reduced cost of spares
Organisation
More efficient processes Reduction in manpower Improved operational effectiveness more capable trained force elements
Capability
Improved operational agility Reduced fratricide Increased operational tempo Reduced physical and cognitive
burden Improved logistics
Compliance
Improved safety Improved security Improved sustainability Improved environmental
Benefits of Transformational change
The very nature of transformational change suggests that if we are to realise these benefits we
must ‘take our stakeholders with us’.
Delivering Major Projects in Government
• Portfolio [GMPP] contains > £400bn worth of major high risk projects
• > 1/3 of projects red or red/amber status• High proportion are transformational /
service delivery• Data on benefits realisation very poor.
Therefore, it is difficult to assess VfM!• Delivering transformation & benefits
realisation cited as key challenges for HM Govt this Parliament
Source: Delivering major projects in government: a briefing for the Committee Public Accounts: NAO, January 2016
Transformational Project Status
Government Major Project Portfolio by numbers
Transformation & Service Delivery examples
New State Pension Project To introduce the new single state pension, and end both Savings Credit and the contracting-out from defined benefit pension schemes [DWP]
Census Transformation ProgrammeTo deliver 2021 Census and build the evidence to enable a decision about the future provision of population statistics after 2021 [ONS]
CJS Common PlatformTo deliver a technology platform which supports business transformation across the Crown Prosecution Service and HMCTS [MOJ]“Transformation projects are often unique and
therefore do not benefit from lessons learnt”
What’s wrong with the status quo?
Up to 38% of initiatives are not helping to deliver strategySource: Portfolio and Programme Management 2014 Global Survey, PWC
Evolutionary change
Transformational change
Apparent‘equilibrium’
RefreezeChange
Unfreeze
Kurt Lewin’s change model
Transformational Change Models
BIG BANG Back DOOR Collaborative
Individuals and Change – a Curve
Adams, Hayes & Hopson (1976)
The need to manage change
The wider the gap between what
stakeholders want to do [their preferred agenda] and what
they are obliged to do, the more ‘difficult’
change becomes
Resistance/difficulty factor
What people ‘must’ do
What people are willing to
do
Change Challenge - Organisations
Out of 15 researched change models13 had the following two impacts Satir et al.
[1991]
Confidence
Method & process
Accurate InformationInvolvement
Just Cause
Respect
?
What people ‘need’ to know but often don’t…
Why
What
How
Where
When
Who
?Resources
Strategic DirectionVision
“Describes an end state. Short, inspirational, aspirational and memorable. The cornerstone for delivery of a strategy”
Strategic Objectives
Delivering the Vision
Outputs what needs to
be produced
Changes/CapabilitiesService, function, operation
Outcomes the results
of change
Benefits measurable
improvements
Strategic Objectives
business goals
Reduce Operational
Support Costs
Reduced Waiting Lists
Greater Productivity
Reduced no. of FTE
Patients seen & receive
treatment more quickly
New End to End Patient
Management Processes
New Corporate IT Solution
Create MOD/Industry Commercial Partnering
Arrangement [PPP]
Increased System
ReliabilityReduced Cost of Asset Ownership
Communications Service Provision
using Global Assets Controlled
from UK
Radio Comms Network Control
Centre
New Global Strategic
Terrestrial Radio Comms Solution
Develop & Leverage Smart
Technologies and Innovation
Improved Efficiencies
Reduction in Cost of Peak Demand
Two-Way Power & Information
Flows between Supplier & Customers
Real-time Consumer
Information
Digital Smart Meters
Health
Defence
Utilities
Transformational flow: ‘left to right’
Strategic Planning: ‘right to left’
ProjectOutputs
Organisationalchanges
Side-effects andconsequences
Benefits
Disbenefits OrganisationalObjectives
also cause
result in
realise further
helps achieveone or more
enable
trigger
enable Outcomes
realise
Path to Organisational Objectives
Managing Successful Programmes: 2011
build
Capabilities
Ownership: Roles & Responsibilities
Organisations use many different job titles Individuals may have more than one
role[double-hatting] But someone must own the key
responsibilities
1. Responsibility & accountability for delivering each of the enabling products / services and business changes [on which benefits depend]
2. Ownership of each significant benefit3. Overall accountability for benefits
realisation from each initiative
Benefits-related roles for change initiatives
Source: Managing Benefits by Steve Jenner Appendix C [APMG]
Positioning of related disciplines
Note:The order of precedence helps ensure organisational changes meet the required business needs
Organisational Change Management
Benefits Management
Business Change Management
P3M [initiatives]
Leading Transformational Change
Source: IPA - Annual Report on Major Projects 2015-16
Appointment letters for each SRO detailing individual accountabilities
Major Projects Leadership Academy List of SROs published on Gov.uk site
Benefits Management Life-Cycle
1. Identify
& Quantify
2. Value and
Appraise
3. Plan4. Realise
5. Review
1. What are the benefits?
2. What are they worth?
3. How do we realise them?
4. How are we doing?
5. What should we change?
Integrating Benefits &Change Management Products
Vision BusinessGoals
Context
Governance Framework
Controls
Assurance
Measurement approach
Roles and responsibilit
ies
Benefits
Dis-benefits
Outputs
Capabilities
Outcomes
Changes
Strategic Objectives
Benefit descriptio
ns
Categories
Ownership
Baseline performan
ce
Changes required
for realisation
success
Benefits schedule
Reviews
Effort and costs
Reporting
Change activities
Sustainability
The Change Life-Cycle
1.Strategy 2. Delivery3. Embedding
Change
Identifying & Planning Benefits
Enabling the Benefits Realising the Benefits
Benefit Focus
Timeline for Change
Typically project/programme delivery
Note:BRM processes enable stakeholders to participate in the change process and the resulting change solutions throughout the change life-cycle
Spectrum of Public Participation
Increasing Level of Public Impact
Inform
Consult
Involve
Collaborate
Empower
Example: Stakeholder Interest Matrix
Areas of InterestStakeholder
Group
Strategic Alignment
Competition
Customer Relations
Operational Changes
Financial Safety Legal
Customers
PartnersSuppliersShareholdersSenior ManagersStaffUnionsRegulatory bodies
Stakeholders:“It’s all about behaviours & relationships”
1. Convince stakeholder
s that change is
valid through strong
leadership and vision 2. Ensure
readiness for change and
that key stakeholders ‘understand’
benefits management
3. Change and
benefits activities
are agreed and
planned in detail
4. Change performanc
e is managed,
communicated and reported
5. Business change
decisions are made
with benefits in
mind
The ‘hard’ stuff The ‘soft’ stuffMaintain
relationships through good
and bad
Engage people at an emotional
level
Joint thinking and problem-
solving
Show empathy and
compassion
Focus on mind-set
Shared goals and
objectives – and organisational
learning
Inspire individuals and teams [leadership]
Win hearts and minds
Critical Change Success Factor!
supporters, opposers, saboteurs, abstainers,‘on the fencers’, blockers, friendly allies, dangerous
adversaries
Organisational waste due to low levels of benefits
maturity Nearly three quarters of organizations frequently identify benefits before the start of the project.
Yet 83% still report a lack of maturity with their benefits realization
Source: The Strategic Impact of Projects: Identify benefits to drive business results. PMI Pulse of the Profession [2016]
Maturity Assessment & Good Practice Guide
Source: Benefits Realizaton Management Framework, PMI [2016]
Benefits Management &
Capability Maturity
Source: P3M3 Maturity Model [Axelos]
Level Type Identifying & Planning
Enabling the Benefits
Realising the Benefits
Business Results
5 Adaptability Granular accountability for
all tasks, changes, benefits,
assumptions
Benefits dependency
network maintained with value challenge
Industrialised learning
capturing unplanned benefits
Robust Value focus
4 Accountability
Benefits baked into budgets, headcounts
Sponsor recommits to
benefits at key gates
Scheduled harvesting
reviews
Fragile Value focus
3 Holistic visibility
Business cases are based on value model
Integrated review across functions and programmes
Analysis of benefits realised /
platform for future benefits
Visibility
2 Basic Visibility
Business cases are based on accounting
metrics
Clear understanding of work done against plan
Post-implementation project review
Biased awareness
1 Chaos Charisma-based decision
making
Inconsistent project
management
“Throw it over the wall”
A Value Lottery
What a Benefits Management Model might look like?
Review stage Benefits slogan Description
Project Validation Review
“Define Success”
At this early stage in a project’s life the key thing is to articulate the strategic objective of the project and its link to wider organisational objectives.
Gate 1[Business Justification]
“Identify benefits”
By the time of the Strategic Outline Case, a “long list” of benefits should have been identified, linked to the strategic objective of the project. These should be categorised according to the recipient stakeholder, & prioritised.
Gate 2[Delivery Strategy]
“Value and appraise”
For an Outline Business Case a selection of the most important benefits identified will need to be valued, to ensure the project is justified on economic grounds [in accordance with Green Book guidance]
Gate 3[Investment Decision]
“Plan to realise”
By the time of a Full Business Case, a plan for realisation needs to be in place. This should include selecting which benefits the project team will concentrate on realising; allocating responsibility for delivering each benefit; and determining metrics for tracking progress
Gate 4[Readiness for Delivery]
“Work to realise”
As the project transitions into “business-as-usual” (BAU), concrete plans need to be in place to ensure the benefits from the project are delivered, including any changes in in operations that need to be undertaken.
Gate 5[Operation Review & Benefits Realisation]
“Review performance”
By this stage the project needs to know how they have performed relative to the original and updated business cases. Having followed the guidance for gates 1 – 4 this should be straightforward.
Assurance of Benefits realisation in Major Projects
Source: Assurance of benefits realisation in Major Projects[Supplementary Guidance]
Gateway 1: Identify BenefitsKey Question
“Have the expected benefits from the project been identified for each preferred option?”
Areas to Probe:
Gateway 1: Identify BenefitsEvidence Expected
Documents for inspection Strategic Outline Case including:
Clear definition of strategic objectives of the project [e.g. in Strategic Case]
Comprehensive list of project benefits including categorisation and prioritisation
Benefits MapPotentially a separate benefits map might be required for each option considered
Departmental benefits management frameworks
Benefits Management Skills & Competencies Log
Source: Managing Benefits. Appendix E. Steve Jenner [APMG]
Benefits, Change & related discipline Certifications
Guess the APMG Chief Examiner Quiz?
Source: APMG International Products and Certifcations
Engage stakeholders throughout the change process
Appoint good leaders & make them accountable
Define clear roles & responsibilities with clear boundaries
Recognise that doing new things will require new learning and new capabilities
Respect the scale and complex nature of delivering transformational change
Key learning points
Neil White, MSc
Managing DirectorChange Vista Ltd
Chair,Benefits Management SIG
[email protected]+44 7890 397046
Merv Wyeth, FAPM
Benefits ManagementBusiness Partner, Amplify-UK
Secretary,Benefits Management SIG
[email protected]+44 7824 776480
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