BENEFITS REALIZATION.

Transcription

1 BENEFITS REALIZATION

2 Mike Krouse Medical Informatics Engineering, CSO STAR Financial Bank, ISO Lincoln Financial Group, IT Audit Manager PMI-NEIC Treasurer, President, Past-President and Region 2 Liaison Let s have a collaborative discussion about Benefits Realization Don t present, persuade!

3 Agenda Background Blasphemy Benefits "January is cold, BR

4 Agenda Background Blasphemy Benefits "January is cold, BR Benefits Realization is HOT"

5 Business Value Business value is a concept that is unique to each organization Value may be created through the effective management of ongoing operations However, through the use of PPPM, organizations will possess the ability to employ reliable, established processes to meet strategic objectives and obtain greater business value from project investments 2013 Project Management Institute: A Guide to the Project Management Body of Knowledge (PMBOK Guide) Fifth Edition, Page 15

6 Success by Component Table 1-1. Comparative Overview of Project, Program, and Portfolio Management 2013 Project Management Institute: A Guide to the Project Management Body of Knowledge (PMBOK Guide) Fifth Edition, Page 8

7 Realized Benefits Business Value Creation Mission & Vision Strategic Objectives Portfolios, Programs & Projects

8 Mission and Vision Statements To be one of the world s leading producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content, services and consumer products, we seek to develop the most creative, innovative and profitable entertainment experiences and related products in the world. To Make People Happy

9 Mission and Vision Statements "We take pride in making a perfect pizza and providing courteous and helpful service on time, all the time. Every customer says, "I'll be back! To improve the well being of our customers, community and people connected to our enterprise. Run-Great-Restaurants.

10 Mission Statements Helping Northeast Indiana Manage Projects

11 Strategic Objectives A broadly defined objective that an organization must achieve to make its strategy succeed. Strategic objectives are used to operationalize the mission statement and keep the organization on the path towards the vision statement.

12 Strategic Objectives - Examples Increase Market Share Strengthen Financial Resources Productivity Innovation Community Involvement

13 Blasphemy

14 Blasphemy

15 Blasphemy A Stephen A. Smith ESPN talk show host and analyst

16 Blasphemy Realizing benefits is more important than the triple constraint Benefits Realization

17 PM Network Gary R Heerkens, MBA, CBM, PMP Lasting Measures (July 2012) Longer Lasting Measures (October 2012) Generating Value (December 2014) Project Management Institute

18 Generating Value Which is better: A project that runs on time and budget and meets it objectives OR A project that runs late and is over budget but overachieves on cost savings that have a change for life impact?

19 Lasting Measures Imagine you just invested some of your own money in a variety of personal investments based on criteria you developed. What is one of the first things you would do?

20 Longer Lasting Measures 1. What benefits should be measured and tracked? 2. Who shouldn t and should do the measuring? 3. When should measurement take place? 4. What challenges exist in getting reliable data?

21 Process Groups Initiating Planning Monitoring and Controlling Executing Closing

22 Process Groups and Benefits Initiating Planning Business Case CBA Monitoring and Controlling BR Template Executing Change Request Time Report Invoices Closing

23 BR Resources During Project Business Case CBA Change Request Benefit Tracking Template PPM Tool Time Tracking General Ledger Expense Tracking (HW, SW, Materials)

24 Business Case Benefits: Should align with strategic initiatives What are the expected benefits? For example, increased market share, trained employees, reduced headcount, competitive advantage, regulatory compliance, etc. The benefits must be stated so they can be measured according to a realization schedule.

25 Change Request Benefit Explain how this change request augments, creates or destroys business value.

26 BR Template We discussed the scenario of achieving outrageous benefits, but violating the triple constraint. Let s look at the other side of the coin PM s need to track internal organizational changes and external influences that may erode expected benefits. If benefits are diminishing, should the project be shutdown even if complying with triple constraint?

27 Process Groups and Benefit Feedback Improve Benefit Forecasts Initiating Planning Monitoring and Controlling Executing Closing Benefits Tracking

28 BR Resources After Project Turnover to Independent Group PMO, Finance -? General Ledger

29 Q&A