1. Benefits Management
The Process

2. Overview
• The following slide pack details the Benefits Management
Process from start to finish
• It is broken down into four work streams:
1. Identifying and Structuring
2. Planning for Benefits
3. General Management
4. Evaluation
• Current thinking from the OGC is incorporated to assist with
implementing best practice

3. Generic Benefits Management Process
Identifying and Structuring
Early Stage Objectives:
Owner Detailed Benefits • Identify and understand the full range of
Benefits
Identification Identification benefits
Identification
• Identify and involve business area
representatives
Benefit Dependency • Establish detailed benefit profiles for each key
Benefit Profiling
Modelling benefit
Planning for Benefits
Objectives:
Benefits Benefits • Detail how and when benefits will be monitored,
Realisation Management managed and realised throughout the benefits
Plan Strategy management lifecycle
General Management
Objectives:
Tracking • Ensure benefits are managed in line with the
Portfolio
and benefits realisation plan.
Management
Updating
Evaluation Objectives:
• Evaluate the effectiveness of the project in realising the
Assessment of proposed benefits as outlined in the Business Case
Baseline • Capture and document any lessons learned
benefits Post
Comparison to • Reveal opportunities for increasing the project’s yield of
actually Project Review
Business Case
achieved benefits and make recommendations on actions
required for these to be achieved.

4. Identifying and Structuring Planning for Benefits General Management Evaluation
Identifying and Structuring
The “Identifying and Structuring” work stream is split into five sub sections:
1. Early stage benefits identification
2. Benefits owner identification
3. Detailed benefits identification
4. Benefits dependency modelling
5. Benefit profiling
Each will be described in turn.

5. Identifying and Structuring Planning for Benefits General Management Evaluation
2. Owner Identification
• Two benefit owners should be identified, one who receives the benefit and
one who makes it happen
Senior Benefit
Owner A senior member of staff responsible for ensuring that the benefit is
achieved once handover from the project is complete.
(SBO)
Operational A business representative who is responsible for benefit
Benefit Owner measurement and the management of any activities required to
(OBO) ensure benefits are realised.
• It is possible for these owners to fall within different areas. This means the
SRO may have little or no control over the OBO so adequate support structure
must be put in place.

6. Identifying and Structuring Planning for Benefits General Management Evaluation
1. Early Stage Benefits Identification
• Gather all stakeholders to agree on the high
level benefits of a project.
• Must consider “dis-benefits” as well.
• Discussion should be kept at a reasonably high
level as benefit identification will take place at a
later stage.
• Clarifies the underlying reason for the
investment.

7. Identifying and Structuring Planning for Benefits General Management Evaluation
3. Detailed Benefit Identification
• Aim is to produce a detailed list of the main benefits and dis-benefits within
each high level benefit.
• This information should be documented and expanded in a benefits statement
as shown below.
Benefits Statement
Benefit Expected benefit Benefit Type Where will the Who will be
outcome benefit occur? affected?
EXAMPLE EXAMPLE EXAMPLE EXAMPLE EXAMPLE
EXAMPLE EXAMPLE EXAMPLE EXAMPLE EXAMPLE
Dis-Benefit Expected benefit Benefit Type Where will the Who will be
outcome benefit occur? affected?
EXAMPLE EXAMPLE EXAMPLE EXAMPLE EXAMPLE

8. Identifying and Structuring Planning for Benefits General Management Evaluation
4. Benefit Dependency Modelling
• The aim of this section is to document the
relationships between different benefits
• Additional benefits and/or dis-benefits my occur
and should also be formally captured
• Project outputs (enablers) should be linked to the
benefits they generate
• This information can be represented in a benefits
model as shown on the next slide

9. Identifying and Structuring Planning for Benefits General Management Evaluation
4. Benefit Dependency Modelling

10. Identifying and Structuring Planning for Benefits General Management Evaluation
5. Benefit Profiling
• Each intermediate benefit is looked at in details to understand exactly what
needs to be done to realise them
• The following information should be captured:
Senior Benefit Operational Method of Measurement
Baseline Target Value
Owner Benefit Owner Measurement Dates
Benefit
Benefit
Benefit Ranking Benefit Priority Likelihood of Benefit Risk
Dependencies
failure
• Each profile should be a living document and could potentially be expanded to
include existing information such as
– Outstanding actions
– Risk owners and countermeasures

11. Identifying and Structuring Planning for Benefits General Management Evaluation
5. Benefit Profiling

12. Identifying and Structuring Planning for Benefits General Management Evaluation
Planning for Benefits
The “Planning for Benefits” work stream is split into two sub sections:
1. Benefits Realisation Plan
2. Benefits Management Strategy

13. Identifying and Structuring Planning for Benefits General Management Evaluation
1. Benefit Realisation Plan
• A simple document which details the
benefits time plan across all projects.
• Key dates will be shown including activity
milestones, benefit measurements and
other key dates which are relevant to
specific benefits.
• It may be of use to arrange formal Benefit
Working Groups which meet at regular
intervals

14. Identifying and Structuring Planning for Benefits General Management Evaluation
1. Benefit Realisation Plan

15. Identifying and Structuring Planning for Benefits General Management Evaluation
2. Benefit Management Strategy
• A document designed to encompass all the
information and rationalle leading up to this point
• It should include
– Summary of benefits
– Description of roles, functions and
responsibilities for benefits planning and
realisation
– All the benefits statement
– Benefit dependency nmodel
– Benefit profile for each benefit
– Benefit realisation plan
– Details of how and when a Post Project
Review (PPR) will be completed.

16. Identifying and Structuring Planning for Benefits General Management Evaluation
General Management
This work stream focusses on the day to management of the benefits
plan. The following slides give a general overview of what should be
done but the reality will be heavily dependent on the individual
organisation. The two management areas are as follows:
1. Portfolio Management
2. Tracking and Updating

17. Identifying and Structuring Planning for Benefits General Management Evaluation
1. Portfolio Management
This work stream looks at benefit management from a programme level.
Tracking and prompting
– Ensuring all measurement activities occur
Strategic intervention
– Intervening when projects are not performing or disrupting the wider portfolio
Review
– Ensuring the benefits management plan is fit for purpose and adjusting as needs be
Communications and reporting
– Disseminating the information across the organisation to highlight management
priorities to all

18. Identifying and Structuring Planning for Benefits General Management Evaluation
2. Tracking and Updating
This work stream is focussed at the individual project level.
Measuring
– The act of actually measuring the benefit performance criteria
Assessing
– Comparing these measurements to the baseline and expected results
– Understanding the reasons behind certain results and its wider implications
Reporting
– Disseminate both benefit measurements and other key information about individual
projects which impact on the wider programme
Updating
– Updating the existing benefits plans for individual projects in light of previous analysis

19. Identifying and Structuring Planning for Benefits General Management Evaluation
Evaluation
This final section is one of the most important and one that is often overlooked. It is
important to set out upfront the evaluation procedure to ensure it is carried out
correctly. Its purpose is:
– Evaluate the effectiveness of the project in realising the proposed benefits as
outlined in the Business Case
– Compare planned costs and benefits with actual costs and benefits to allow an
assessment of the project’s overall value for money to be made
– Capture and document any lessons learned - identify particular aspects of the
project which have affected benefits either positively or negatively and make
recommendations for future projects
– Reveal opportunities for increasing the project’s yield of benefits and make
recommendations on actions required for these to be achieved.

20. Summary
• The Benefits Management Process is broken down into four work
streams:
1. Identifying and Structuring
2. Planning for Benefits
3. General Management
4. Evaluation
• Work streams 3 and 4 will be heavily dependent on the individual
organisation
• All information shown within this slide pack is merely guidelines and
suggestions of best practice
• A clear and logical approach to Benefits Management will increase its
likelihood of successful implementation