Project Outcomes: The Key to Benefits Realization

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1 PMI Belgium Annual Congress PM Fair October 2017 Project Manager Compass Project Outcomes: The Key to Benefits Realization Brad Bigelow Principal Technical Advisor SHAPE CIS and Cyber Defence (NATO)

2 Speaker s Introduction Brad Bigelow 30+ years experience in IT, space, program and project management Chapter 2 lead for PMBOK 5th Edition Core Committee member, Standard for Program Management 4th Edition

3 The Benefits Buzz

4 Benefits Matter!

5 Benefits Management is a Hot Topic

6 Benefits 101 A benefit is an outcome of actions and behaviors that provide utility, value or a positive change to the intended recipient. The Standard for Program Management, 3 rd edition. Newtown Square, Pa.: Project Management Institute.

7 Benefits Realization: A means to ensure that benefits are derived from outputs. Benefits Realization Management Framework. Newtown Square, Pa.: Project Management Institute.

8 Benefits Realization Life Cycle

9 So Only Programs Realize Benefits?

10 Projects vs. Programs A project is a temporary endeavor undertaken to create a unique product, service or result. A guide to the project management body of knowledge (PMBOK guide), 5th edition. Newtown Square, Pa.: Project Management Institute.

11 Projects vs. Programs During their life cycle, projects produce deliverables, whereas programs deliver benefits. The Standard for Program Management, 3 rd edition. Newtown Square, Pa.: Project Management Institute.

12 Projects vs. Programs: Key Terms Benefits 21 Outcomes 41 Deliverable 164 Output 291 Benefits 414 Outcomes 66 Deliverable 61 Output 40

13 How the Project Manager Sees Benefits Realization Benefits Realization

14 How the Program Manager Sees It Benefits Realization

15 Question: How do you make something invisible?

16 Answer: Make it someone else s job.

17 Is This the Right Approach?

18 What Do Projects Have to Do with Benefits?

19 Benefits Realization Life Cycle

20 Benefits Realization Life Cycle Projects are the Primary Mechanism for Delivering the Program s Changes! Projects

21 Example: The Air Quality Project

22 Why Reduce Harmful Emissions?

23 What Would Be Outcomes from this Project?

24 Outcomes Reduced hazardous matter in the air Reduced harmful effects on other things Improved visibility

25 What Would Be Resulting Benefits?

26 Benefits Fewer health problems More attractive place to live Improved image internationally Greater confidence in government s ability to deal with problems

27 Outcomes Reduced hazardous matter in the air Reduced harmful effects on other things Improved visibility Benefits Fewer health problems More attractive place to live Improved image internationally Greater confidence in government s ability to deal with problems

28 From Project to Benefits Emission Control Systems Outputs Reduced Emissions Reduced Harmful Effects Improved Visibility Outcomes Fewer Health Problems Improved Quality of Life Greater Confidence in Government Benefits

29 From Outputs to Benefits The Serra model From Benefits Realization Management, by Carlos Serra, 2016

30 The Serra Model Emission Control Systems Reduced Emissions Fewer Health Problems Output Outcome Benefit

31 Back to the Air Quality Project Output Outcome Benefit Emission Control Systems Reduced Emissions Fewer Health Problems

32 Back to the Air Quality Project Output Outcome Benefit Emission Control Systems Reduced Emissions Fewer Health Problems

33 Measuring an Outcome Output Outcome Benefit Emission Control Systems Reduced Emissions Fewer Health Problems Air samples Sampling data archive Trend analysis

34 Back to the Air Quality Project Output Outcome Benefit Emission Control Systems Reduced Emissions Fewer Health Problems

35 Measuring a Benefit s Realization Output Emission Control Systems Outcome Reduced Emissions Benefit Fewer Health Problems Public health surveys Data collection Trend analysis

36 Who Could Do This Work? Output Outcome Benefit Emission Control Systems Reduced Emissions Air samples Environmental Data archive Agency Trend analysis Fewer Fewer Problems Health Problems Public health surveys Data Health collection Department Trend analysis

37 But Isn t the Project Over Before This Point?

38 Is the Project Life Cycle Too Short? Project After the Project Air Quality Project Emission Control Systems Reduced Emissions Fewer Health Problems Output Outcome Benefit

39 Or Are We Missing the Links? Project After the Project Air Quality Project Emission Control Systems Reduced Emissions Fewer Health Problems Output Outcome Benefit

40 The Trip to Las Vegas

41 Is This Why People Go to Las Vegas?

42 Or Is This?

43 Let s Go Back to Basics...

44 A project is a temporary endeavor undertaken to create a unique product, service or result. A guide to the project management body of knowledge (PMBOK guide), 5th edition. Newtown Square, Pa.: Project Management Institute.

45 A project is a temporary endeavor undertaken to create a unique product, service or result. A guide to the project management body of knowledge (PMBOK guide), 5th edition. Newtown Square, Pa.: Project Management Institute.

46 A project is a temporary endeavor undertaken to create Outcomes! A guide to the project management body of knowledge (PMBOK guide), 5th edition. Newtown Square, Pa.: Project Management Institute.

47 Who Cares About Outcomes?

48 A stakeholder is an individual, group, or organization who may affect, be affected by, or perceive itself to be affected by a decision, activity, or outcome of a project.

49 Most Stakeholders are Interested in Outcomes!

50 How the Project Manager Sees It

51 How the Stakeholders See It

52 Example: A New Cultural Center

53 Is this the End of the Project?

54 Or the Start of the Outcomes?

55 Years Later.

56 What s Missing from This Picture?

57 What s Missing from This Picture?

58 Delivering the Change

59 Delivering the Change Vs. Embedding the Change

60 Outcomes Are What s Achieved When the Change Has Been Embedded Outputs Outcomes Benefits

61 Or, to Put It Another Way

62 Going to Vegas. Vs. Enjoying Vegas

63 How Can Outcomes Change the Project??

64 Project Elements That Might Change Project Scope Work Breakdown Structure Stakeholder Analysis Project Communications Risk Assessment Change Management Approach

65 How Can Projects Help to Embed the Change?

66 Turning Outcomes Into Outputs Doctrine Organization Training Material Logistics Personnel Facilities (One Approach) DOTMLPF Used by US Military and NATO

67 Turning Outcomes Into Outputs Training Equipment Personnel Information Doctrine and Concepts Organization Infrastructure Logistics (Another Approach) TEPIDOIL Used by UK Military

68 Turning Outcomes Into Outputs Processes (A Third Approach) Organization Technology POTI Information Used in ITIL and Managing Successful Programmes

69 Back to the Air Quality Project Output Outcome Benefit Emission Control Systems Reduced Emissions Fewer Health Problems

70 Process Desired Outcome? Required Output?

71 Organization Desired Outcome? The right size and skilled staff is in place to maintain the systems and collect/analyze air quality data Required Output? Staff adaptation Initial training Recurring training

72 Technology Desired Outcome? Environmental Agency has tools to collect and analyze air quality data Required Output? Collection tools Data storages Analytical tools

73 Information Desired Outcome? Metrics for benefits realization are in place Reports provided to inform authoritieis Required Output? Monitoring and reporting guidance

74 Work Breakdown Structure Deliver Air Quality Project Manage Project Install Emissions Control Systems Deliver Outcome Enablers

75 Outcome Enablers Organization Technology Information Staff adaptations Initial Training Collection tools Data storages Analytical tools Monitoring and reporting guidance

76 The Road to Benefits Project After the Project Air Quality Project Emission Control Systems Reduced Emissions Fewer Health Problems Output Embedding the Change Outcome Realizing the Benefits Benefit

77 Project Benefits Realization Plan Project After the Project Air Quality Project Emission Control Systems Reduced Emissions Fewer Health Problems Benefits Realization Plan Output Air samples Data archive Trend analysis Outcome Public health surveys Data collection Trend analysis Benefit

78 Project Benefits Realization Plan Project After the Project Air Quality Project Emission Control Systems Reduced Emissions Fewer Health Problems Benefits Realization Plan Output Air samples What & When to Data archive Measure Trend analysis Outcome Public health surveys What & When to Data collection Measure Trend analysis Benefit

79 Project Benefits Realization Plan Project After the Project Air Quality Project Emission Control Systems Reduced Emissions Fewer Health Problems Benefits Realization Plan Output Environmental Air samples What & When to Data archive Measure Agency Trend analysis Outcome Public health surveys What & Health When to Data collection Department Measure Trend analysis Benefit

80 Air Quality Project Project Benefits Realization Plan Project Emission Control Systems Program Manager After the Project Benefits Reduced Realization Emissions Plan Fewer Health Problems Output Environmental Air samples What & When to Data archive Measure Agency Trend analysis Outcome Public health surveys What & Health When to Data collection Department Measure Trend analysis Benefit

81 Re-Orienting to Outcomes Output Outcome Benefit Emission Control Systems Reduced Emissions Fewer Health Problems Outcome Enablers

82 Understanding Outcomes When the PM understands the desired outcomes, he will have a better understanding of the full set of required deliverables

83 BENEFITS REALIZATION PMs Can Help with Benefits Realization! Program Manager PM

84 It just requires thinking outside the box! My Project

85 Questions?