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Benefits Realisation

Benefits Realisation. In RBBC projects. Benefits in Projects. We invest in projects because of the perceived Benefits they bring The Benefits justify the project Linked to Corporate Objectives & Priorities Can be wide-ranging Statutory, Social, Economic…

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Benefits Realisation

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  1. Benefits Realisation In RBBC projects

  2. Benefits in Projects • We invest in projects because of the perceived Benefits they bring • The Benefits justify the project • Linked to Corporate Objectives & Priorities • Can be wide-ranging • Statutory, Social, Economic… • Often financial (but not exclusively) • Sometimes hard to measure

  3. Financial Benefits • Time saved, posts lost, costs avoided, costs reduced… • Calculate a £ figure • Work out timing (investment & saving) • Payback (in years) • When Savings equal Investment • NPV (Net Present Value) • A common measure of a project’s value • Cash flows adjusted for time they occur • Using a 5% discount rate

  4. Non-financial Benefits • Is this a Corporate priority? • Look for a performance measure • BVPI • Other PI • Measure • Value at start of project • Predicted value at end of project • Actual value at end of project

  5. Organisation Development • The four pillars of Change • Driven by the Customer • Improving our Performance • Learning & Developing • Optimising our Finances • These describe the type of organisation we want to be • Each project has to contribute

  6. Later Benefits • Project puts a capability in place • To be exploited by a later project • Must link these projects • Is funding in place for later project? • Are we committed to later project? • If not, investment in first project may be wasted

  7. Later Benefits • Project delivers as expected • But Benefits only measurable later • Need to link to process • What process? • The owner? • When and how to measure?

  8. Realising Benefits • Financial saving • Remove £ from next year’s budget • Saving included in formal budget setting process • Clarity about what was saved where • Posts lost • At risk register • Identify the staff affected, communicate • Process based on existing Council policies • Consultation, redeploy, retrain … redundancy • Minimise redundancy costs • Affects timing of realisation of Benefits

  9. Tough decisions • Cost envelope • We must stay within this • Headcount and Budget • We need to manage both • May require restructuring • New ways of working may mean changes to some organisation structures Periodic reporting to Members

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