Francine Belzile & Sophie Rebello: experienced practitioners at the cutting edge of Benefits and Portfolio Management with the Société de Transport de Montreal (STM) presented to Benefits Management SIG on 24th March. STM is an organisation of more than 9000 employees, an annual operating budget of $1.2BN and in 2011 accounted for over 400M passenger trips. STM aims to increase this to 540M trips as part of their own 2020 strategy. In 2005 STM were faced with a familiar problem of having an increasing number of projects, limited financial and human resources and significant pressure on operations. They needed to make better project choices without jeopardising existing ones. The solution was to implement project portfolio management as an evolutionary approach, incorporating best practice and engaging employees so far as possible. STM had learned that you cannot achieve benefits management without change management. Both required teams of people. STM defines benefits as “An advantage / earning realized when the project is delivered and perceived as so by the stakeholders.” When they revisited activities specific to benefits management, such as identifying targets, approving projects and tracking benefits, they had realised that these should be integrated with existing information management. It didn’t make sense to create something different to what they already had. STM objectives for the next three years include sustainable operationalization of benefits management and improved integration between project management and operations. People need to be challenged and refocused, and as a result STM has now added the requirement to develop an action plan for all projects, which tend to arrive piece by piece - every project in itself, is a worthy project! When it comes to tracking planned benefits it was sometimes like a ‘game of ball’ with the ball being tossed between projects and operations. Both teams need to have accountability at the appropriate levels and the linkages between the need testing and it helps where a person responsible for the KPIs in a particular sector is made responsible for results and benefits. People feel that it is a challenge to find things that you can measure, or formulating benefits in a manner that it meaningful to the organisation. Another problem is people accepting accountability, which can be easily resolved by management – “it is part of your job!” A recommendation for clearer parameters and mechanisms has now been addressed as STM has now organised benefits categories by impact – e.g. growth, satisfaction, commitment, optimisation and sustainability, with clear targets and enhanced reporting for each. Clearer roles and responsibilities are being addressed by strengthening the role of the sponsor. The sponsor defines success factors and establishes benefits targets linked to project objectives for the project manager and, in turn, is accountable to the portfolio manager. http://bit.ly/apmstm

1. Benefit
Management
Implementation at
STM
Francine Belzile & Sophie Rebello
Société de Transport de Montréal
Montréal, Canada
Presentation to APM
Benefit Management SIG
March 24, 2014

2. Agenda
STM is…
Implementation of Project Portfolio Management
Implementation of Benefits Management
2014 and beyond
Discussion

3. 3
STM is…

4. History

5. STM FACTS
9,042 employees
In 2012, operating budget of $1 227 million
and expenditures of $586 million
Asset replacement values: $14.5 billion
404.8 million trips in 2011 with an objective to
reach 540 million trips in 2020

6. Corporate mission
The STM is a key driver of economic development in
the Montréal area and contributes to sustainable
development and overall quality of life. The STM is
tasked with developing and operating an integrated bus
and métro system, as well as paratransit service, in
order to enable people to get around reliably, quickly,
safely and comfortably. The STM’s customers and
employees, as well as its institutional and business
partners, are all proud to be associated with the
company, which is well known as a provider of high
quality service at a fair price.

7. 7
Implementation of Project Portfolio
Management

8. Implementation of
Project Portfolio Management
Organizational context in 2005
Issues at STM:
Number of projects was growing
Limited financial and human resources
Pressure on operations
Risk not delivering service
according to expectations

9. Implementation of
Project Portfolio Management
Vision
mission
Operations
Management of
On-Going Operations
-
ProjectsWithin normal course of activities
FINANCIAL AND HUMAN RESOURCES
Project
Portfolio
Management
•Metro
•Autobus
•Paratransit
•Infrastructures
Management of
Authorized Programs
and Projects
Organizational
Strategy and
Objectives
Vision
mission
Operations
Management of
On-Going Operations
-
ProjectsWithin normal course of activities
FINANCIAL AND HUMAN RESOURCES
Project
Portfolio
Management
•Metro
•Autobus
•Paratransit
•Infrastructures
Management of
Authorized Programs
and Projects
Organizational
Strategy and
Objectives

10. Implementation of
Project Portfolio Management
The implementation approach:
An evolutionary multi-phased approach
Inspired by industry best practices
Tailored to STM’s needs
Developed by a group of directors from
different sectors

11. Implementation of
Project Portfolio Management
Audit 2010
5 changeboxing 3 changeboxing
2010 2011 20122005 2006
Audit 2006
2009
First PPM
initiative
PPM Status Report

12. 12
Implementation of
Project Portfolio Management
2010 Audit:
The approach
Interviews with 12 executives (chief executives and executive directors)
20 self-audits from pre-selected employees
Evaluation of processes and procedures in place by Qualiscope
Prerequesites
according to
Qualiscope
Two top expectations:
Project portfolio monitoring
and accountability
Benefit management and
impact on the organisation
Results from the 2010 audit

13. 13
Implementation of
Project Portfolio Management
Balanced choicess Portfolio status reportAlignment
Identification Preparation Implementation ClosingDefinition
1 2 3 4 5
Project management lifecycle
Portfolio management
Transfer to
operations
Balanced choicess Portfolio status reportAlignment
Identification Preparation Implementation ClosingDefinition
1 2 3 4 5
Project management lifecycle
Portfolio management
Transfer to
operations
Benefit
realization
management
Project management lifecycle
Project portfolio process

14. Implementation of
Project Portfolio Management
Portfolio Committee:
5 members of the STM Executive
10 to 12, 2 hour meetings a year
Responsibilities:
Approve project business case
Analyse and autorize best projects
Optimize the project portfolio
Ensure coordination with CEP
Autorize project modification
Confirm project closing

15. ComplexityStrategicalignment ComplexityStrategicalignment
Implementation of
Project Portfolio Management
Maintain assets
Expand services
Improve customer experience
Attract, develop, mobilize talents
Further improve performance
Sustainability
72%
123 projects
26%
39 projects
2%
33 projects
10 G$
Portfolio categories

16. Implementation of
Project Portfolio Management
Value of PPM:
Clear indications that projects are in line with
strategic directions;
Optimized resource allocation;
Better coordination and improved synergy between
projects;
Standardization of project presentations.

17. 17
Implementation of Benefits Management

18. 18
Implementation of Benefits
Management
Identification Pre paration Implementation ClosingDefinition
2 3 4 5
Project
Charter Projet
Modificaton
Status
Report
Project
Report
1
Benefits
Analysis
Benefits
Realisation Plan
Dashboard
Transfert to
operation
Benefits
Status Report
Strategy of
change management
Transfer
Certificate
Certificate of
Conformity
Business
Opportunity
Stakeholders + Impact
Analysis

19. 19
Implementation of Benefits
Management
Objectives of benefit management:
Optimize project contribution to strategic objectives
Facilitate benefit identification and measurement
Control benefit tracking after the project
What is a benefit:
An advantage/earning realized when the project is
delivered and perceived as so by the stakeholders

20. Implementation of Benefits
Management
Government • Reduce GGE •- Measure before and after
City • Reduction of traffic
congestion
• Modal share of public transport
STM • Bus clientele growth
• Growth of commercial
revenues
• Reduction of operating
costs
• Number of trips
• $
• $
Client • Reduction of travel time
• Punctuality improvement
• Cleanliness of metro
station
• Measure before and after
• Satisfaction before and after %
Employee • Safe environment • Work accidents (frequency)
• Satisfaction before and after %
20
Stakeholders Benefits Indicators

21. Implementation of Benefits
Management

22. Implementation of Benefits
Management

23. 23
Integrated processes

24. The BRM essentials
Source: Jean-Marc Proulx (2014)
Result Chain System driver

25. 25
2014 and beyond

26. 26
2010-2013 AUDIT RESULTS
Successes
Prioritization of projects and strategic alignment of
portfolio
Project and portfolio tracking
Recognition of benefits management as a significant
measure of project performance
Objectives 2014 – 2015
Sustainable operationalisation of benefits management
Improved integration between project management and
operations

27. 27
Benefits
Identification
Tracking of planned benefits
Strategic KPI’s
Project close
(Gate 5)
Action Plan 2020
INTEGRATION OF BENEFITS MANAGEMENT TO
STM ORGANISATIONAL PROCESSES
Change management
Project authorization
(Gates 1 & 2)
Tracking of
benefits realisation Operational transfer

28. IMPLEMENTATION DRAWBACKS
Perceived challenge to identify measurable and
targeted benefits
Hesitation in formulating benefits in a manner that is meaningful to the
organisation
Hesitation in accepting accountability
Perceived effort that is required to identify and track benefits

29. 29
SUSTAINABLE OPERATIONALISATION
Recommendation # 1: Clearer parameters and mechanisms
Improved benefits realisation plan
Enhanced reporting
To include analysis of existing operation processes and change
requirements to fully realise benefits
Realistic and measurable indicators
Targets for the business unit rather than at the strategic plan level
Categorisation of benefits based on impact (Growth, satisfaction,
commitment, optimisation and sustainability)
Targets linked to performance evaluation of the project
More precise qualitative data that could affect benefits realisation
Use of available information and data to guide optimal project decisions
that will support full realisation of benefits
Implementation of reporting mechanism to track benefits realization
(post-project)

30. 30
SUSTAINABLE OPERATIONALISATION
Recommendation # 2: Clearer roles and responsibilities
Strengthening of the sponsor role
Continuum between project and operation
For the project manager: sponsor = client
Defines success factors
Establishes benefits targets linked to project objectives
For the portfolio manager: sponsor = accountable spokesperson
Accountable for quality reporting and benefits tracking
Consideration of decisions of benefits realisation
Implementation strategy for benefits realisation done concurrently with
implementation for project deliverables
Benefits management as a business process rather than a project or
portfolio activity
Benefits management at the business unit level rather than by project
or portfolio level

31. 31
OUR CHALLENGES
Large organisation with different acceptance levels and varying
capacity for change between business units
High number of non measurable benefits and benefits without
financial value
YOUR WORD OF ADVICE?
OUR PLANNED INITIATIVES
Revised benefits realisation plan template & support tools
Repertoire of usual / available measures
Project re-evaluation at each gate of the project
Change requests driven by benefits realization – not only by project needs
Design of a dashboard
Communication plan
Review of the project strategic evaluation criteria to increase weight of project related benefits
To address soft issues pertaining to accountability, integration and business process

32. 32