Benefits Identification Methodology

1. Benefits Identification Methodology

2. Contents Introduction to benefit management/ mapping Intro Stake holder Which stakeholders will be responsible/ affected? Overview Overview of the benefits mapping process Priority What are the priority benefits? Context Measure How do I measure the benefits? What is the context within which the project will be developed? How to identify the objectives of the project Next Steps What next steps do I need to take? Objective How do I run a benefit mapping workshop? Benefit How to identify the benefits of the project Workshop Change What changes will be needed to deliver the project Glossary Glossary of terms Next

3. This section: Describes the purpose of this guide Explains how to use this guide Defines benefits management Defines benefits mapping and explains how it fits into the benefits management process Contents Intro Overview Objective Benefit Change Stake holder Priority Measure Next Steps Context Workshop Glossary Introduction Previous Next

4. The purpose of this guide is to: Explain the concepts and terminology behind the benefits mapping process Give practical information as to how to carry out the benefit mapping process for a single project Give hints and tips how to deliver and refine fully completed benefit dependency maps Show how the benefit mapping links into the benefit management process. This guide does not seek to explain the entire benefit management process, rather a subsection of this process. The purpose of this guide Next Previous Intro

5. At the title page of each section, click on any of the buttons below to go straight to the relevant section. Contents Intro Overview Objective Benefit Change Stake holder Priority Measure Next Steps Context Workshop Glossary At the bottom of each page there are arrows. Follow these to move forward and backwards through the presentation Previous Next Intro Will move you to the previous page Will take you back to the title page of the section you are in Will move you to the next page How to use this guide In screen show format this guide is interactive. For example, if I click on ‘Benefit’ this will take me straight to the benefit identification title page. Previous Next Intro

6. The reason organisations invest in projects e.g. such as implementing a new IT system, is to either capitalise on a business opportunity e.g. to fulfil a public need, or to solve an issue that the company is facing e.g. rising admin costs. A large proportion of projects however fail to achieve their objectives or to deliver any real benefits for an organisation. This is caused when organisations fail to identify which issue/ opportunity the project is trying to address, and what benefits can realistically be achieved and who is responsible for making them happen. Benefits management is the process of identifying realistic benefits, their planning, ownership, tracking and actual realisation in order to ensure that any project an organisation undertakes delivers against its objectives and provides value for money. Benefits management sets out to bring definition, accountability, measurement, and discipline to business projects. What is Benefits Management? Previous Next Intro

7. The diagram above shows the end to end Benefits Management Process. Each part of the Benefits Management process should be undertaken for a single project in order for the end benefits to be realised. The initial steps of the Benefits Management process is known as Benefits Identification or Benefits Mapping. Identify Benefits, Objectives and Business Changes Quantify Measures Create Benefit profile Create benefit plan Monitoring and optimising programme value Benefit realisation The Benefits Management Process The process is often iterative e.g. the planning process may give rise to revision of the benefits expected Previous Next Intro

8. Benefits mapping is a process that: Identifies benefits that can be realised from a project. Visually depicts how an organisation can link benefits to its objectives. Identifies what business changes need to be put in place in order to realise the benefits. Identify which benefits can be quantified and hence which benefits to measure in order to determine how successful a project has been. Benefits mapping should be undertaken with stakeholders that are likely to be impacted by the project as well as those who have the capacity to make decisions e.g. senior executives. By getting sign-up at the early stage of the process there will be a common understanding of the project aims and what the likely benefits for stakeholders will be. What is benefits mapping? Previous Next Intro

9. This section includes: An overview of the benefit mapping process An overview of the tools and materials needed to undertake the process A detailed explanation of how carry out each step of the process Contents Intro Overview Objective Benefit Change Stake holder Priority Measure Next Steps Context Workshop Glossary Overview of the Process Previous Next

10. End to End Process The Benefit Mapping Process STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 Establish ‘The Context’ Establish objectives of project Identify benefits Identify changes and enablers Identify stakeholders Prioritise and baseline Identify benefit measures What do we want to get out of the Initiative? What do we need to do? Who is responsible for making it happen? How will we know we’ve succeeded? What problem/ opportunity do we want to address? Where do we need to focus? What do we want do to? Previous Next Overview

11. Overview of process STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 Establish ‘The Context’ Establish objectives of project Identify benefits Identify changes and enablers Identify stakeholders Prioritise and baseline Identify benefit measures Activity • Identify key user • objectives • Identify end • benefits • Link end benefits • to user • objectives • Identify intermediate • benefits • Identify any • disbenefits • Identify changes /enablers required to deliver a benefit. • Identify Business Change required. • Identify • stakeholders • responsible for • realising the • benefits • Identify • stakeholders • responsible for • realising the • changes • Identify gaps in • the maps and • update • Select key priority benefit chains for project • Identify benefit • measurements • Identify owner of • measurement • Identify • measurement • plan • Identify the aim or v ision • of the project • Identify any • limitations to • implementing • the project Key Tasks • Limitations log • Identified • objectives • Vision statement • Assumptions log • End benefit map • Limitations log • Identified • benefits and • changes • Draft benefit • dependency map • Base-lined • benefit • dependency • map Inputs Objective Linkage Map End Benefit Map Benefit Dependency Map (draft) Stakeholder Map Base-lined Benefits Dependency Map Measures log and plans Limitations list Outputs Workshop materials Tools Visual drawing software Previous Next Overview

12. Environments The benefits mapping work usually takes place within the following three environments Via one on one meetings Via e-mail and telephone correspondence Via a benefit mapping workshop The benefit mapping workshop is one of the most effective mediums to identify benefits with large groups of stakeholders. Details of how to set up a workshop is listed in How to Run and Benefits Mapping Workshop. Details of how to run a workshop are included under each relevant step of the benefit mapping process. Tools In order to document the outputs of each step in the benefit mapping process, a visual documentation tool such as Microsoft Visio can be used. Alternatively there is also benefit tracking software such as Change Director which can also be used. Environment and Tools Previous Next Overview

13. This section: Explains why it is important to establish the context of an organisation before undertaking a project Explains how to create an assumptions Log Contents Intro Overview Objective Benefit Change Stake holder Priority Measure Next Steps Context Workshop Glossary Identifying ‘The Context’ Previous Next

14. Before implementing any project it is essential to understand: The aim of the project/programme, how it links into the organisations objectives. The context within which the initiative will be undertaken e.g. any resource limitations or political environment that may impact on the project delivery. Benefits identified outside of context are unlikely to be delivered as often they will be too aspirational to achieve. For example, I may not be able to reduce the number of staff without a redundancy package. When undertaking each step of the benefits mapping process it is essential that each stakeholder is aware of the context of the organisation in order to identify valid benefits. The Context Previous Next Vision

15. The easiest way to produce the following is in one on one meetings or in a small group meeting with senior stakeholders. Assumptions logged This is a list of assumptions and limitations that the organisation is currently experiencing. For example, there may be a limit on budget, time, the number of staff available etc. Ask the stakeholders to compile and document this list. It is essential that stakeholders have access to this information throughout the entire benefit mapping process to ensure that they identify realistic, context rich benefits. Establishing Context Previous Next Vision

16. This section: Defines an objective Explains why it is necessary to identify organisational objectives Explains what an Objectives Linkage Map is Explains how to create an Objectives Linkage Map Contents Intro Overview Objective Benefit Change Stake holder Priority Measure Next Steps Context Workshop Glossary Identifying Objectives Previous Next

17. The first step in the benefits mapping process is to identify an organisation’s objectives for a project or programme. An organisational objective can be defined as the ‘why’ – the reason for undertaking the project. This could be an issue the organisation is trying to fix or it could be that the organisation is trying to capitalise on an opportunity. By first identifying an organisation’s objectives it makes it easier to clarify what the ultimate goal of any change programme should be i.e. what you are actually trying to achieve. The output of this step is to produce an Objectives Linkage Map (OLM). This is a diagram that enables stakeholders to decide which objectives are most pertinent for the change programme they are going to undertake and what their ultimate goals will be. What is an Objective? Identify objectives Create OLM Agree key objectives for project Previous Next Objective

18. Stakeholders often lack clarity about what the key objectives for a project are. An Objective Linkage Map (OLM) is a cause and effect diagram that helps stakeholders to identify these key objectives. What is an Objective Linkage Map? So for example, in this OLM the Police are going to implement a new ‘on the beat’ rota system. The stakeholders believe one of the main drivers of the project is ‘to improve processes’. However a stakeholder has noted that this would actually result in ‘Improved services’. This in turn would ultimately lead to ‘improved public confidence’ Therefore it is evident to the stakeholders that the key objective of the new rota is to improve public confidence in police services. To improve processes Objective To improve services To improve public confidence Key Objective The key objectives identified are used in Step 2 of the benefit mapping process. They are used to identify the benefits of the change programme. Previous Next Objective

19. Method The easiest way to produce an OLM is in a benefits mapping workshop. Details of how to set up a workshop are listed in How to Run a Benefits Mapping Workshop. Workshop Equipment 3 x sheets of paper & cards. Process 1. Give three orange cards to each participant. Ask them to write one key objective for the project or programme on each card. 2. Ask each representative to choose two of the three objectives they have written and cluster them into logical groups. This exercise should establish a group of common objectives amongst the group. 3. Write the common objectives on blue cards. 4. Ask the representatives to link the objectives together in a causal order. This will produce an OLM. 5. Ask the group to agree the key objectives for the programme using the OLM i.e. ultimately why are they undertaking the programme?. How do I create an OLM? Previous Next Objective

20. This section: Defines a benefit and a disbenefit Explains what an End Benefit Map is Explains how to create an End Benefit Map Contents Intro Overview Objective Benefit Change Stake holder Priority Measure Next Steps Context Workshop Glossary Identifying Benefits Previous Next

21. The second step in the benefits mapping process is to identify the project’s benefits. A benefit can be defined as the enhanced efficiency, economy and effectiveness of future business or other operations to be delivered by a programme or project. The measurable improvement to existing and new business operations and services. Stakeholders need to identify what benefits they need to realise in order to fulfil their objectives. By linking objectives and benefits in this way the stakeholder can be confident that any benefits realised by the project will ultimately contribute to their key objectives i.e. If I achieve A = I will have the opportunity to get B The output of this step 2 is to produce a Benefits Map, a diagram that links benefits to objectives. Ultimately this will assist in identifying what the project actually needs to do in order to achieve each of the benefits in the value chain. Disbenefits inform risk management What is a benefit? Identify Benefits Identify Disbenefits Create Benefit Map Previous Next Benefit

22. When stakeholders seek to identify benefits from a change programme, they will often also identify disbenefits. A disbenefit can be defined as an outcome of change that is perceived as negative by a stakeholder e.g. increased social exclusion. It is important to capture the disbenefits as they are changes that will occur that will have a negative impact on the outcomes of the project. By mapping disbenefits and their potential effects it will be possible for the stakeholders to specify how they are going to mitigate the effects and what potentially they need to put into place to reduce the impact of the disbenefit. The same benefit can be perceived as a benefit to some stakeholders and a disbenefit to other stakeholders. An example is “reduced staff members” results in reduced organisational costs but is a disbenefit to unions. What is a disbenefit? Previous Next Benefit

23. In order to produce a Benefit Map the stakeholders must have previously identified the key objectives for the organisation. What is a Benefit Map? A Benefit Map shows which benefits need to occur in order for the user to be confident that their objective has been realised by their project. Improved access to services Improved no. of service channels To improve customer service All benefits are measurable either directly or indirectly. Part of the benefit mapping process involves identifying the benefit measures. At the end of any project, by measuring the value of the benefit it should be possible to see exactly what the project has delivered for the organisation. Previous Next Benefit

24. How do I create a Benefits Map? • Method • The easiest way to produce a benefit map is in a benefits mapping workshop. Details of how to set up a workshop are listed in How to Run a Benefits Mapping Workshop. • Workshop Equipment • 3 x sheets of paper and cards. Key objective cards previously identified in step 1 • Process • Set up the boards as necessary and stick the objective cards on the right hand side of the boards. • Ask each group to identify the benefits that will need to be achieved in order to make an objective occur. Ask the group to write each benefit on a green card and attach to the boards. Write disbenefits and their effects on red cards. • Where gaps in the logic of the paths occur, encourage groups to add new benefits. • Link the map together Objective Benefit Benefit Previous Next Benefit

25. This section: Defines a Change Explains what a Benefit Dependency Map is Explains how to create a Benefit Dependency Map Contents Intro Overview Objective Benefit Change Stake holder Priority Measure Next Steps Context Workshop Glossary Identify Changes Previous Next

26. The third step in the benefits mapping process is to identify what business changes an organisation needs to put in place in order to realise their benefits from a project I.e. what activities need to be undertaken in order to make a useful change in the organisation? An example of a business change would be training staff in the use of a new computer system or introducing a new administration process, or the implementation of a new process. The output of this step 3 is to produce a Benefit Dependency Map (BDM). This is a diagram which links an organisation's objectives, benefits and changes/ enablers together in one map to ultimately show what a project is going to deliver and how it will deliver it. What is a Change? Identify Changes Link to Benefits Create Benefit Dependency Map Previous Next Change

27. A Benefit Dependency Map is the principle output of any benefit mapping process. It shows what what the outcome of a project can be. What is a Benefit Dependency Map? Project Outcome Change Change Benefit Benefit Change Objective Benefit Change Benefit Change Change Benefit Benefit This map, once reviewed, agreed and base-lined with the organisation, can be used as the start of a benefits realisation plan. By using this technique the stakeholders can be confident that any project they undertake will deliver value for their organisation. Previous Next Change

28. Method The easiest way to produce an BDM is in a benefits mapping workshop. Details of how to set up a workshop are listed in How to Run a Benefits Mapping Workshop. Workshop Equipment 3 x sheets of paper and cards. Key objective cards previously identified in step 1. Benefits and Disbenefits identified in step 2 Process On white cards ask the group to identify business changes that would need to be put in place in order for the benefits to be realised/ the effects of disbenefits to be mitigated. Link these to the benefits on the benefits map. Once the group is satisfied with their output, ask them to draw in the links to complete the BDM. How do I create a BDM? ! Use the assumptions/limitations log to give yourself a good idea of what is and is not realistically achievable! Previous Next Change

29. This section: Defines a stakeholder Explains why it is important to identify stakeholders within a BDM Explains how to identify stakeholders See also hoppit stakeholder toolkit Contents Intro Overview Objective Benefit Change Stake holder Priority Measure Next Steps Context Workshop Glossary Identify Stakeholders Previous Next

30. The fourth step in the benefits mapping process is to identify the stakeholders who will either be affected by the project, or be responsible for delivering parts of it. Note: it is often worthwhile involving key stakeholders in the objective and benefits identification stages also. A stakeholder is someone who has a stake in an organisation or a programme, who either affects the programme or are affected by it. In order for a project to delivered, someone will need be responsible for making sure the changes happen and the benefits are realised. The purpose of this step it to identify: Which stakeholders will be responsible for realising benefits Which stakeholders will need to take ownership of delivering the changes Which stakeholders will be the primary beneficiary of the benefits e.g. who will gain from the project? Which stakeholders expect disbenefits By identifying the stakeholders at this stage it will help the organisation to create a coherent implementation plan for the project at a later date as it will be clear as to who will be responsible for delivering what. Identify stakeholders Previous Next Stakeholder

31. Method This step can either be undertaken in a Benefit Mapping Workshop or in one to one meeting with stakeholders. Workshop Equipment Copies of the Draft Benefit Dependency Map, whether printed copies or during a workshop. Process Ask the group to identify the primary recipient of the benefits Ask the group to identify the primary owner of the benefit Ask the group to identify the owners of the changes and if there are any changes that will be/ are currently being undertaken by external stakeholders (dependency). Avoid ‘everyone receives everything’ syndrome. How to identify stakeholders Previous Next Stakeholder

32. This section: Explains why it is important to prioritise the benefits Explains how to review and Baseline a Benefit Dependency Map Contents Intro Overview Objective Benefit Change Stake holder Priority Measure Next Steps Context Workshop Glossary Prioritise and Baseline the Benefit Dependency Map Previous Next

33. Once an initial Benefit Dependency Map (BDM) has been created, and before measures can be allocated to the end benefits, it is necessary to Prioritise the key benefit value chains. Review and baseline the BDM with the organisation. Prioritise the key benefits Although an organisation has developed a BDM with its limitations and capacity constraints in mind, it may not always be possible to realise all of the benefits identified e.g. due to lack of staff, the cost is too great for the benefit expected or there may be some areas which are particularly crucial to the success of the project than others. As a consequence it is important that the stakeholders prioritise the benefits so that they can direct their efforts as those benefits that are most important or will deliver the most value. Review and Base-line the BDM Once a BDM has been created, it be improved by reviewing the maps through one to one sessions or via e-mail. Once a map has been agreed, this provides a platform from which to develop a benefits realisation plan. Priority Benefits and Base-lining Previous Next Prioritise

34. Method This step can be undertaken in any environment, depending on what is most suitable for the stakeholder. Workshop Equipment Copies of the Draft Benefit Dependency Map, whether printed copies or during a workshop. Process Ask the group to identify and agree which benefit chains are most important for the success of the project. Ask the group to review the BDM and make any changes if necessary e.g. some wording may not be clear or a benefit may need to be clarified. Agree and base-line the BDM. Base-lining the Benefit Dependency Map Previous Next Prioritise

35. This section: Defines a measure Explains why it is important to identify measures Explains how to identify measures Contents Intro Overview Objective Benefit Change Stake holder Priority Measure Next Steps Context Workshop Glossary Identify Benefit Measures Previous Next

36. In order to know what impact a project has had and if any of the benefits have been realised, stakeholders need to have a means by which they can measure their success. Therefore this step asks the stakeholders to identify means and ways by which they can measure any changes in their agreed benefits before, during and after the project has been completed e.g. If I expect to improve customer perception of my company I may conduct a customer survey at regular intervals throughout the project lifecycle. By establishing measures a stakeholder will be able to see how successful the project has been and where there remains further room for improvement. What is a measure? Identify what measures are needed Identify existing measures Create measure plans and assign ownership Previous Next Measure

37. Method This step can either be undertaken in a Benefit Mapping Workshop or in one to one meeting with stakeholders. Workshop Equipment Copies of the Base-lined Benefit Dependency Map, whether printed copies or during a workshop. Process Ask the group to identify what the measurement needs are for each agreed benefit. Ask the group to identify measures that currently exist that could meet these requirements, Ask the group to identify what new measures need to be put in place and how these will be established. This is called a measurement plan. Ask the group to assign ownership to each measure e.g. who will be responsible for tracking the measure. How do I identify a benefit measure? Previous Next Measure

38. This section: Outlines some of the next step that will need to be undertaken as part of the benefit management process For further information on benefit management please refer to the home office benefits guide Contents Intro Overview Objective Benefit Change Stake holder Priority Measure Next Steps Context Workshop Glossary Next Steps Previous Next

39. Next Steps Identify Benefits, Objectives and Business Changes Quantify Measures Create Benefit profile Create benefit plan Monitoring and optimising programme value Benefit realisation Some of the further tasks in the benefit management process are described under the various headings Benefit Profiles Benefits realisation plan Benefits progress report Benefits Handover document • Validate measures • Establish cost of measure • Establish targets • Establish dependencies/ risks/ assumptions - See hoppit • Summarise monitoring and tracking activities • Document dependency milestones • Identity business change activities • Identify handover and review activities • Produce realisation Gantt chart • Identify any external changes that could impact on benefit delivery • Summarise financial benefits delivered in year • Identify any changes and their impact • Initiate change process if necessary and update any documentation • Update documents • Check risks, changes, stakeholders are identified • Monitor benefits Business Case Previous Next Next Steps

40. This section: Outlines key steps in a workshop Explains the presentation slide pack Explains the equipment needed and the room set up Explains how to pack up and write up from a workshop Contents Intro Overview Objective Benefit Change Stake holder Priority Measure Next Steps Context Workshop Glossary How to run a benefit mapping workshop Previous Next

41. What is a benefit mapping workshop ? A mapping workshop has several functions To identify user objectives. To identify benefits and their dependencies to each other and to the changes required to achieve them. How many workshops do I need to create a BDM? A BDM is usually created and refined over a series of workshops. Changes are also made in one to one meetings and via e-mail correspondence. Who attends? A mapping workshop is usually held with the SRO and key executive representatives of an organisation that are empowered to make high level decisions. Benefit Mapping Workshop ! The more descriptive stakeholders are when identifying objectives / benefits/ changes the easier it will be to develop comprehensive benefits realisation at a later stage ! Previous Next Workshop

42. The amount and type of equipment needed for each workshop depends on what you are trying to achieve within that workshop. Plenty of wall space (1 BDM will take about 2.5m-3m by 1m) Brown paper to cover the walls Spray mount Workshop stationery which includes: Case of pens, pins etc Blue cards (Objectives) Green cards (these represent benefits) White cards (Changes) Red Cards (Dis-benefits) Orange cards What equipment do I need? Previous Next Workshop

43. The set up of the room will vary on which steps you are trying to cover in a particular workshop. How do I set the room up? Book a venue that is spacious and place the tables away from the walls Fix the brown paper roll to the wall. One BDM/ OLM will take up about 2 –3 sheets of paper. Room set-up Previous Next Workshop

44. Mark up and label all of the cards and brown paper Number each of the cards on the BDM/ OLM. E.g. Group 1: Group 2: 101 102 103 201 202 203 101 103 104 102 105 101 101 103 103 104 104 102 102 105 105 Packing up from a workshop Review the progress of the session with the stakeholders At the end of a session discuss with the representatives how useful they have found the session and what could be done to improve it. Discuss and agree next steps with the representatives Mark the paper with the card numbers (shown). This means the maps can be recreated later. TIP! Stick the notes more securely to the paper with sellotape Write up the material from the workshops to distribute to stakeholders Visual representation of the maps can be documented using a visual programme such as Microsoft Visio. Previous Next Workshop

45. Contents Intro Overview Objective Benefit Change Stake holder Priority Measure Next Steps Context Workshop Glossary Glossary of terms Previous Next

46. Benefits Management - the identification of potential benefits, their planning, modelling, relationships, ownership, and actual realisation as a result of investing in business change. Benefits Mapping – The visual identification and representation of benefits that can be realised from a change programme and the changes needed to achieve them. - The reason why the project is being undertaken - outcome of change that is seen as positive by a stakeholder - outcome of change that is seen as negative by a stakeholder - A business change that needs to occur in order to realise the benefits Glossary Objective Benefit Disbenefit Change Previous Next Glossary

47. An Objectives Linkage Map - a cause and effect diagram that helps stakeholders to identify their key objectives for a project. A Benefits Map - a diagram that links benefits to objectives. Ultimately this will assist in identifying what the project actually needs to do in order to be worth the time and effort invested A Benefit Dependency Map - This is a diagram which links an organisation's objectives, benefits and changes/ enablers together in one map to ultimately show what a project is going to deliver and how it will deliver it. Glossary Previous Glossary