Benefits management and organisational change
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During an APM Benefits SIG committee meeting, a request was made for someone to present on Benefits Management at a lunchtime working session at the Open University (an APM Corporate member) in Milton Keynes. Have previously gained and benefited from an OU degree I immediately volunteered with a view to both ‘giving something back’ and having a genuine interest in what the OU were doing to tackle this subject of which I am a keen proponent. The popularity and success of this event is in no small part due to the energy and approach of Will Levy. Will, who has only been in post for 12 months, has during this time introduced Benefits and Portfolio management to the OU. The OU is clearly a progressive organisation with a strong desire to succeed and flourish and Will is currently working to ensure that its transformational change initiatives are fully aligned with its strategic plan. It is apparent that developing their Portfolio and Benefits Management capabilities together is enabling both disciplines to gain traction in way that by approaching them independently would have been less effective. The event gave me an opportunity to present on my firmly held belief that effective Benefits Management is a wonderful enabler for sustainable organisational change. The BM processes themselves becoming much more effective when viewed and implemented through a Change Management Lens. There were two other speakers in the line up; Jim Yates, an OU tutor and lecturer, gave a presentation on the importance of recognising and accommodating the different perspectives of an organisation’s stakeholders. And Sean Sellers, a Business Transformation Manager, presented on the progress of an OU change programme for which he has Benefits Management responsibilities. This was a good event which was finished off by a networking opportunity, fuelled by a great selection of sandwiches, and some more Benefits and Change conversation. Will suggested that he would be interested in seeking representation from other APM SIGs to help inform and develop his organisations Change Management capability.
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Benefits management and organisational change
- 1. “A world in which all projects succeed” APM’s 2020 Vision Benefits Management & Organisational Change Open University Milton Keynes 12 Feb 2014 Neil White APM Benefits Management Specific Interest Group
- 3. Context for Benefits Management (BM) Today, the ability of organisations to adapt (change) is becoming even more important than the changes themselves. Prevalent drivers of change include: Globalisation Economy Technological Environmental Innovation Regulation De-regulation Today, an inability to respond to these change drivers = a high risk of failure
- 4. Poor change performance & individuals = = X X GRADUAL CHANGE = X ANXIETY = X CONFUSION = X CHANGE FRUSTRATION = FALSE STARTS
- 5. Individuals and change Adams, Hayes & Hopson (1976)
- 6. Organisations and change Satir et al (1991)
- 7. Benefits and Change Management – the proposition Change is increasing in scope, scale and frequency Businesses must have the capability to respond to change drivers quickly and effectively Our experience has shown us what the change problems are How? Our experience tells us what the solutions to our change problems are BM reduces the impact of many of the known problems with change BM enables a common platform & agenda on which to identify & engage stakeholders
- 8. BM Overview BM – helps ensure that an organisation’s investment in change is both wholly beneficial and aligned to the organisation’s business strategy
- 9. Example benefits dependency map (Cranfield) Enabler Business Changes Benefit Benefit Objective Disbenefit HS2 More good workers attracted to London HS2 Hybrid Bill To widen labour pool Reduce commute time Link Midlands to London ( 1) Increased regional spend HSR Bill Link economic centres ( 2) Shorter meeting journey time Increased UK Trading Improved GDP To increase passenger satisfaction To increase regional economic growth To increase jobs in regions
- 10. Enables effective measurement Measurement – essential for effective BM. Metrics and progress measures available to all stakeholders
- 11. Sophisticated Tool Support (1)
- 12. Sophisticated Tool Support (2)
- 13. Relationship between Management Capabilities Business Contribution Change People, business & organisation Change BRM Shared agenda & benefits aligned to strategy BRM P2 Effective delivery of change enablers P2 Portfolio Strategic Oversight & control Portfolio Sustainable change aligned to organisational strategy Change Change Change BRM BRM P2
- 14. To summarise: BM enables an organisation to provide meaningful answers to the following questions: Why are these changes necessary? What benefits do these changes realise? Are we making the best use of our investment? How are we performing? When will the expected benefits be realised?
- 15. To summarise: BM enables an organisation to provide meaningful answers to the following questions: What executive support is there for these changes? Who is accountable/responsible for what? Who is impacted and what is their WIIFM dividend? What is my role and how do I contribute? How are other stakeholders contributing to the changes?
- 16. Top tips Implicate stakeholders in the process – BM needs effective stakeholder engagement Emphasise that it is all about benefits! Understand the relationship and dependencies between the key organisational capabilities ‘Manage’ the impact of change on the organisation and its people If possible, pilot the rollout of BM and respond to and reconcile issues as they arise – as with most things ‘ORGANIC IS BEST’
- 17. Useful Links APM The Association for Project Management (Official group) Slideshare slideshare.net/assocpm Facebook Association for Project Management Google+ Association for Project Management Twitter @APMProjectMgmt YouTube youtube.com/APMProjectM gmt Benefits Management References Bradley, G (2006) Benefits Realisation Management, Gower Jenner, S, (2012) Managing Benefits, APMG http://bit.ly/1erQ4U0 APM, Benefits Management SIG APM, Enabling Change SIG Neil White - LinkedIn Profile uk.linkedin.com/in/changevista/
Notas del editor
- Brief Intro – APM and myself APM a progressive organisation aimed at furthering the profession of project management Aimed at establishing and improving on individual skills and experience Neil White BSc in Maths and Computer Science MSc in Change Management
- Benefits Management SIG Benefits Management Thought leadership My interest is in leveraging change management thinking to maximise worth of BM practices Joint conference with Portfolio SIG
- Organisations are able to make and sustain change when allowed to do so organically Many external change pressures for change Competition Globalisation More for less Etc
- Describes the factors behind poor change performance Describe the impact of each feature to stakeholders Explain that all of these are avoidable
- Developed from work originally carried out by kubler-ross and her team Human nature People can go through a number of emotions when faced with change Some go through all some just a few Change Management is about flattening this curve Change Management is about connecting and implication people with the change environment Stakeholder Management – People Enagagement
- All change results in a loss of performance before benefits are realised Loss of performance due to: The negative impact on people Poor Change Management Poor business change management Change Management is about flattening this curve!
- Relationship between Benefits Management and Change Management Benefits Management works best when organisational change thinking is applied to the capability Change Management thinking addresses the people and organisational aspects of change
- The underlying BM process Linkage with organisations strategy Smart objectives allocated to accountable and responsible owners Benefits identified and agreed by all stakeholders – including who will measure and how Changes are identified and selected on their ability to enable delivery of benefits Realisation of benefits – made possible through all that preceded – needs great energy and rigour NOTE – benefits will probably not be fully realised until projects and programmes have closed
- Make special mention of Benefits Maps Explain there are different type of maps Benefits Dependency Map (Cranfield) – shows benefits and enabling change Results Chain (DMR/Thorp) Provides a graphical representation of the vents and conditions required to achieve stated business outcomes. Four components: Outcomes (benefits) – circles Initiatives – squares Contributions – shown as arrows Assumptions – hexagons Logic Map Describe briefly participant approach to constructing them
- Importance of measurement emphasised for each stage Keep people informed on continued relevance and progress of changes and benefits realisation Investors Business Managers End users Change Team Must be embedded where possible into BAU
- Where multiple initiatives are underway tools become essential Manage complexity Labour saving Enable stakeholders to ‘picture’ progress Helps sustain required post change rigour
- The ability to generate reports from tools mean reduced reporting burden Based upon dashboard concept Can usually be tailored to individual presentation preferences
- – recognising the contribution and relationship that Benefits Management has with other organisational capabilities Change Management– the ability to manage the organisation, its people and business operations through change BRM – an end to end benefits driven process that engages with stakeholders and links changes with business strategy. Provides meaningful data to enable management P2 – enabling changes must delivered with key abilities such as measurement, reporting, risk, estimating etc Portfolio – tuned to meet organisations strategic needs – puts organisation in control
- An opportunity in a single discipline to bring together the lessons learned around organisational change and project management Approached from a capability standpoint - learning is at the heart of successful organisational change management Addresses: Poor stakeholder engagement Limited confidence in approach & solution Lack of trust Poor communication and/or misinformation Fear & Anxiety & Isolation Disillusionment & Cynicism Limited/zero sustainability Unrealistic objectives Unclear WIIFM Poor understanding of how people contribute to change Poor performance measurement - feedback Limited accountability & ill-defined responsibilities Poor use of organisations resource etc
- An opportunity in a single discipline to bring together the lessons learned around organisational change and project management Approached from a capability standpoint - learning is at the heart of successful organisational change management Addresses: Poor stakeholder engagement Limited confidence in approach & solution Lack of trust Poor communication and/or misinformation Fear & Anxiety & Isolation Disillusionment & Cynicism Limited/zero sustainability Unrealistic objectives Unclear WIIFM Poor understanding of how people contribute to change Poor performance measurement - feedback Limited accountability & ill-defined responsibilities Poor use of organisations resource etc
- Introduce links