Optimizing Value through Programs, Portfolios and Organizational. Change Management. Craig J. Letavec, PgMP, MSP, PMP

Transcription

1 STRATEGIC GEW REALIZATION Optimizing Value through Programs, Portfolios and Organizational Change Management Craig J. Letavec, PgMP, MSP, PMP J.ROSS} / PUBLISHING

2 CONTENTS Acknowledgements About the Author Introduction WAV Page xiii xv xvii Iii Chapter 1: Introduction to Benefits Realization Management 1 Introduction 1 What Is a Benefit? 1 Where Do Benefits Come From? 4 Characteristics of Benefits 6 Intermediate and End Benefits 6 Disbenefits 6 Emergent Benefits 7 Tangible and Intangible Benefits 7 Time Bound Benefits 8 What Is Benefits Realization Management? 9 Benefits Identification 9 Benefits Analysis and Flanning 10 Benefits Delivery 10 Benefits Transition 10 Benefits Sustainment 10 Summary 10 References 11 Chapter 2: Benefits Realization Management in the Project, Program, and Portfolio Contexts 13 Introduction 13 Distinguishing between Projects and Programs 13 Understanding Portfolio Management 15 Projects, Programs, and Portfolios Together 17 Summary 20 References 21 v

3 vi Strategie Benefits Realization Chapter 3: Benefits Realization Management Roles and Responsibilities 23 Introduction 23 Primary Roles 23 Program Manager 24 Senior Responsible Owner 25 Business Change Manager 26 Program Management Team 28 Effort Allocation to Primary Roles 28 Supporting Roles 29 Benefit Owner 29 Program Office 30 Program Management Office 31 Portfolio Management Office 32 Summary 34 Chapter 4: A Benefits Realization Management Life Cycle 35 Introduction 35 Benefits Realization Management in the Program Life Cycle 36 Benefits Identification 36 Benefits Analysis and Flanning 38 Benefits Delivery 39 Benefits Transition 40 Benefits Sustainment 40 Relationship between the Benefits Realization Management Life Cycle and Associated Life Cycles 42 Relationship to the Program Management Life Cycle 42 Relationship to the Portfolio Management Life Cycle 43 Relationship to the Project Management Life Cycle 44 Relationship to Organizational Project Management Processes 45 Summary 46 Chapter 5: Benefits Identification 49 Introduction 49 Beginning with the End in Mind 49 Benefits Identification 51 Tools and Techniques for Benefits Identification 52 Benefits Register 52 Benefit Profile 54 Benefits Workshop 55 Benefits Brainstorming 58

4 Contents vii Benefits Map Benefits Quantification Baseline Performance Determine Improvement Potential. Validate Benefits Summary Chapter 6: Benefits Analysis and Flanning 67 Introduction 67 The Benefits Realization Plan 68 Component Identification and Prioritization 71 A Note on Interdependencies 73 Establishing Measurement and Monitoring 74 Types of Measures 74 Measure Development Example 75 The Measurement Plan 76 Characteristics of Good Measures 77 Setting the Performance Baseline 79 Communicating Performance 79 Summary 80 Chapter 7: Benefits Delivery 83 Introduction 83 Maintaining Benefits Alignment 83 Benefits Tracking and Reporting in Benefits Delivery 85 Benefit Realization Management Reviews 86 Benefits Reviews 87 Managing Work and Interdependencies 88 Benefits Monitoring 89 Risk Management Activities 90 Summary 92 Chapter 8: Benefits Transition 95 Introduction 95 Determining Transition Scope 95 Determining Transition Success 96 Required Transition Activities 97 Transition Flanning 97 Transition Initiation 97 Transition Management 98 Transition Review 99 Benefits Validation 99

5 viii Strategie Benefits Realization Benefits Realization Reporting 100 Developing a Transition Plan 100 Overview 101 Transition Flanning 101 Transition Delivery 102 Benefits Delivery 103 Transition Approval 103 Managing Transition Issues 104 Summary 105 Chapter 9: Benefits Sustainment 107 Introduction 107 Benefits Sustainment Flanning 108 Performance Monitoring Flanning 108 Benefits Sustainment Monitoring 109 Supporting Benefits Sustainment 110 Evolving Products, Services, and Results 112 Summary 112 Chapter 10: Descriptions for Primary Benefits Realization Management Roles 113 Introduction 113 Benefit Owners 113 What Does a Benefit Owner Do? 114 How Do Benefit Owners Fit within the Benefits Realization Management and Program Context? 115 Where Do Benefit Owners Come From? 115 What Skills Are Required? 116 How Can Benefit Owners Best Support Benefits Realization Management? 117 What Are Potential Traps to Avoid? 118 Senior Responsible Owner 119 What Does the Senior Responsible Owner Do? 119 How Does the Senior Responsible Owner Fit within the Benefits Realization Management and Program Context? 120 Where Does the Senior Responsible Owner Come From? 121 What Skills Are Required? 121 How Can the Senior Responsible Owner Best Support Benefits Realization Management? 122 What Are Potential Traps to Avoid? 123 Business Change Manager 125 What Does the Business Change Manager Do? 125

6 Contents ix How Does the Business Change Manager Fit within the Benefits Realization Management and Program Context? 127 Where Does the Business Change Manager Come From? 128 What Skills Are Required? 130 How Can the Business Change Manager Best Support Benefits Realization Management? 131 What Are Potential Traps to Avoid? 132 Summary 133 Chapter 11: Organizational Change Management in the Benefits Realization Management Context 135 Introduction 135 The Fundamental Concept of Organizational Change Management 137 The Notion of Movement 137 Who Are We Impacting? 137 How Do We Manage Change? 138 Minimizing Disruption 138 Maximizing Benefits 139 Change Management Roles 139 Business Change Manager 140 Benefit Owners 140 Change Agents 140 Champions 141 Management 141 Relationships between Roles 142 An Organizational Change Management Life Cycle 143 Define Change Drivers 145 Define Change 148 Plan Change 151 Execute Change and Monitor Results 166 Perform Transition 168 Support Sustainment 172 Organizational Change Management Life Cycle Summary 173 Summary 174 Chapter 12: Benefits Realization Management in the Portfolio Management Context 175 Introduction 175 The Role of the Portfolio Manager in Benefits Realization Management 177 Prerequisites to Portfolio Management for Benefits Realization Management *78

7 x Strategie Benefits Realization Portfolio Selection Impacts 179 Portfolio Reporting and Review Impacts 180 Portfolio Reporting 180 Portfolio Review 182 Benefits Considerations in Portfolio Risk Management 184 Assessing the Application of Benefits Realization Management on the Portfolio Level 186 Portfolio Management Considerations in Benefits Realization Management Implementations 187 Applying Benefits Realization Management in Portfolio Management Implementations 188 Summary 188 Chapter 13: Benefits Realization Management in Project-based Organizations 189 Introduction 189 General Implementation Approach 190 Prerequisites 191 Benefits Realization Management Considerations in the Project Context 193 Structuring the Team 195 Selecting Pilot Scope 198 Implementation Considerations 200 Confirming Pilot Scope 200 Selecting Benefits Scope 201 Educating People 202 Monitoring Progress 203 Establishing Reporting 204 Concluding and Validating Success 205 Summary 206 Chapter 14: Program Management Office Role in Supporting Benefits Realization Management 207 Introduction 207 Types of PMOs and Their Involvement in Benefits Realization Management 208 Enterprise Program Management Office 208 Portfolio Management Office 210 Project Office 212 Center of Excellence 213 Organizational Unit Program Management Office 215

8 Contents xi Other PMO Types 217 Determining an Approach 218 Keys to Success 218 Case Study Example 219 Summary 219 Chapter 15: Business Case Considerations 221 Introduction 221 Business Case Overview 222 Relationship between the Business Case and Benefits Realization Management 223 Business Case Structure 223 Executive Summary 224 Business Challenge or Opportunity 224 Alternatives 224 Financial Analysis 226 Risk Analysis 226 Recommendation 227 Future State Blueprint 228 Project or Program Overview 229 Who Develops and Validates the Business Case? 230 Business Case Review and Evolution 231 Business Case Düring Project or Program Execution 234 Summary 235 Chapter 16: Practical Guidance for Implementing Benefits Realization Management 237 Introduction 237 Practice #1: Begin with the End in Mind 238 Practice #2: Establish Organizational Commitment 240 Practice #3: Start Small and Grow 242 Selecting the Pilot Scope 243 Selecting the Pilot Timeline 244 Determining Pilot Success Criteria 245 Establishing Organizational Commitment to the Pilot 245 Growing over Time 246 Practice #4: Build a Competency Network 247 Practice #5: Focus on the Process 252 Practice #6: Practice What You Preach 255 Practice #7: Manage and Measure 256 Practice #8: Demonstrate Success Early 258

9 x Strategie Benefits Realization Portfolio Selection Impacts 179 Portfolio Reporting and Review Impacts 180 Portfolio Reporting 180 Portfolio Review 182 Benefits Considerations in Portfolio Risk Management 184 Assessing the Application of Benefits Realization Management on the Portfolio Level 186 Portfolio Management Considerations in Benefits Realization Management Implementations 187 Applying Benefits Realization Management in Portfolio Management Implementations 188 Summary 188 Chapter 13: Benefits Realization Management in Project-based Organizations 189 Introduction 189 General Implementation Approach 190 Prerequisites 191 Benefits Realization Management Considerations in the Project Context 193 Structuring the Team 195 Selecting Pilot Scope 198 Implementation Considerations 200 Confirming Pilot Scope 200 Selecting Benefits Scope 201 Educating People 202 Monitoring Progress 203 Establishing Reporting 204 Concluding and Validating Success 205 Summary 206 Chapter 14: Program Management Office Role in Supporting Benefits Realization Management 207 Introduction 207 Types of PMOs and Their Involvement in Benefits Realization Management 208 Enterprise Program Management Office 208 Portfolio Management Office 210 Project Office 212 Center of Excellence 213 Organizational Unit Program Management Office 215

10 Contents xi Other PMO Types 217 Determining an Approach 218 Keys to Success 218 Case Study Example 219 Summary 219 Chapter 15: Business Case Considerations 221 Introduction 221 Business Case Overview 222 Relationship between the Business Case and Benefits Realization Management 223 Business Case Structure 223 Executive Summary 224 Business Challenge or Opportunity 224 Alternatives 224 Financial Analysis 226 Risk Analysis 226 Recommendation 227 Future State Blueprint 228 Project or Program Overview 229 Who Develops and Validates the Business Case? 230 Business Case Review and Evolution 231 Business Case Düring Project or Program Execution 234 Summary 235 Chapter 16: Practical Guidance for Implementing Benefits Realization Management 237 Introduction 237 Practice #1: Begin with the End in Mind 238 Practice #2: Establish Organizational Commitment 240 Practice #3: Start Small and Grow 242 Selecting the Pilot Scope 243 Selecting the Pilot Timeline 244 Determining Pilot Success Criteria 245 Establishing Organizational Commitment to the Pilot 245 Growing over Time 246 Practice #4: Build a Competency Network 247 Practice #5: Focus on the Process 252 Practice #6: Practice What You Preach 255 Practice #7: Manage and Measure 256 Practice #8: Demonstrate Success Early 258

11 xii Strategie Benefits Realization Practica #9: Publicize Success 259 Practice #10: Pick Your Batties 260 Summary 261 Appendix A: Case Study A PMO Role in Benefits Realization Management 263 Introduction 263 Brief History of PMOs 263 Case Study 265 Program Description 265 Results 266 Benefits Realized and Lessons Learned 267 PMO Model 267 Role 1: Information Broker 269 Role 2: Work Manager 270 Role 3: Benefits Manager 271 Model Application in General 271 Model Application in Case Study 272 Summary 273 Appendix B: Sample PgMP Examination Questions 275 Introduction 275 Sample Questions 275 Answers to Sample Questions 279