Benefits Management and Benefits Realisation Literature Report Benefits Management & Benefits Realisation – a Literature Report
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Benefits Management and Benefits Realisation Literature Report Benefits Management & Benefits Realisation – A Literature Report Benefits Management & Benefits Realisation A LITERATURE REVIEW Stelios Sapountzis Kathryn Harris Mike Kagioglou Health and Care Infrastructure Research and Innovation Centre School of the Built Environment The University of Salford United Kingdom April 2008 Working Paper. Do not cite or reproduce without the permission of the authors. © 2008 Benefits Management & Benefits Realisation – A Literature Report Working Paper. Do not cite or reproduce without the permission of the authors. © 2008 Benefits Management & Benefits Realisation – A Literature Report CONTENTS 1 INTRODUCTION ...........................................................................................7 2 BENEFITS TERMINOLOGY .......................................................................10 3 BENEFITS CLASSIFICATION....................................................................11 3.1 BENEFITS CLASSIFICATION BY VALUE TYPE....................................................................... 11 3.2 BENEFITS CLASSIFICATION BY ORGANISATIONAL OR BUSINESS IMPACT............................... 14 3.3 UNPLANNED OR EMERGENT BENEFITS............................................................................. 16 3.4 ACTOR ORIENTATED CLASSIFICATION............................................................................... 16 4 BENEFITS MANAGEMENT AND REALISATION ......................................18 4.1 BENEFITS REALISATION AND MANAGEMENT APPROACHES & MODELS ............................... 19 5 RESPONSIBILITY FOR BENEFITS REALISATION ..................................28 5.1 ROLES ........................................................................................................................... 28 5.2 GOVERNANCE ................................................................................................................ 29 6 BENEFITS MANAGEMENT TOOLS AND TECHNIQUES..........................30 6.1 BENEFITS IDENTIFICATION ............................................................................................... 32 6.2 BENEFITS PROFILE ......................................................................................................... 32 6.3 BENEFITS REALISATION PLAN & STRATEGY ..................................................................... 33 6.4 BENEFITS DEPENDENCY NETWORK AND MAPPING............................................................ 34 6.5 BENEFITS MEASUREMENT, RANKING AND PRIORITISATION ................................................. 36 6.6 BENEFITS MONITORING & REVIEW ................................................................................... 37 6.7 EVALUATION................................................................................................................... 39 6.7.1 A Value assessment technique in Benefits realisation............................................ 39 6.7.2 `Summative' evaluation or evaluation for accountability.......................................... 40 6.7.3 ‘Formative’ evaluation or Evaluation for informing the present and learning from the past; 41 6.7.4 Post Occupancy Evaluation (POE).......................................................................... 42 7 BENEFITS MANAGEMENT AND OTHER MANAGEMENT DISCIPLINES44 7.1 PROGRAMME & PROJECT MANAGEMENT ......................................................................... 44 7.2 CHANGE MANAGEMENT .................................................................................................. 48 7.3 COMPLEXITY AND MANAGEMENT BLIND SPOTS.................................................................. 50 7.4 CONTINUOUS IMPROVEMENT ........................................................................................... 51 7.5 PERFORMANCE MANAGEMENT & MEASUREMENT ............................................................. 52 7.5.1 Performance Management ...................................................................................... 52 7.5.2 Performance Measurement ..................................................................................... 53 7.6 STAKEHOLDER MANAGEMENT ......................................................................................... 55 7.6.1 Stakeholder Definition.............................................................................................. 55 7.6.2 Stakeholders Management...................................................................................... 57 7.6.3 Stakeholders Requirements .................................................................................... 59 8 SUMMARY ..................................................................................................61 Working Paper. Do not cite or reproduce without the permission of the authors. © 2008 3 Benefits Management & Benefits Realisation – A Literature Report 9 REFERENCES ............................................................................................65 LIST of FIGURES Figure 1 : Chain of benefits from output to objective (OGC 2007) ......................10 Figure 2 : Examples of direct and indirect benefits (CCTA, 2000) ......................13 Figure 3: Generic form of benefits (Farbey et al 1993) .......................................14 Figure 4: Active Benefits Management (Leyton, 1995) ......................................19 Figure 5: Cranfield Process Model of Benefits Management ( Ward 1996) .......20 Figure 6: Cornerstones of Benefits Realisation Approach (Thorp, 1998)............21 Figure 7: The process of ABR (Remenyi & Sherwood- Smith 1998)...................22 Figure 8: Conceptual model for BR developement (Ashurst, 2003)....................23 Figure 9: Benefits Management Process (OGC, 2007a, Bradley, 2006).............25 Figure 10: Benefits Management Framework – Gatewaytm Process (OGC 2004) .....................................................................................................26 Figure 11: Benefits Breakdown Hierarchy (Nogeste and Walker, 2005, Reiss et al., 2006) .................................................................................27 Figure 12: A typical organisational structure, showing how the various positions involved in Benefits management inter-relate (Reiss 2006) .....................................................................................................28 Figure 13: Governance Model for Benefits Management (Glynne 2006) ............30 Figure 14: Generic approach to Benefits Management (OGC, 2003) .................31 Figure 15: Critical elements of a benefits management environment (Payne, 2007) .....................................................................................................32 Figure 16 Best Practice Benefits Management Cycle (Glynne, 2007) ................34 Figure 17 Benefits Dependency Network (adapted from Ward et al 1999 by Crown 2007 & OGC 2007) ....................................................................35 Figure 18: Benefits dilution from planned benefits to realisation (Bartlett, 2006) .....................................................................................................38 Figure 19: The four AREs in value assessment (Thorp, 1998) ...........................40 Figure 20 : Choosing the right level of POE (Turpin-Brooks and Viccars, 2006) .....................................................................................................43 Figure 21 : Three main POE toolkits - The categories (Remenyi and Sherwood-Smith, 1998, Turpin-Brooks and Viccars, 2006)...................43 Figure 22: Relating benefit, change, and programme and project management (Reiss et al., 2006) ..........................................................45 Working Paper. Do not cite or reproduce without the permission of the authors. © 2008 4 Benefits Management & Benefits Realisation – A Literature Report Figure 23: High level Benefits Management Process Model- V2 (ProgM 2003) .....................................................................................................46 Figure 24: The importance of Project Mgt and Operations Mgt working together to deliver beneficial change from projects (Cooke-Davies 2002) .....................................................................................................47 Figure 25 What Benefits Management can achieve (NHS, 2007).......................50 Figure 26 the Strategic performance management development cycle (Waal, 2006)..........................................................................................53 LIST of Tables Table 1: Paradigm shift for benefits realisation (Truax, 1997)...............................8 Table 2 : Benefit Value Types (Bradley, 2006) ...................................................12 Table 3: Benefits classification by business impact using the Cranfield Grid / Boston Matrix (Bradley, 2006, OGC, 2007a)........................................15 Table 4: Taxonomy of healthcare actors (Mantzana and Themistocleous, 2004) .....................................................................................................17 Table 5: Stakeholder Types (Harris, 2008) .........................................................56 Working Paper. Do not cite or reproduce without the permission of the authors. © 2008 5 Benefits Management & Benefits Realisation – A Literature Report BENEFITS MANAGEMENT & BENEFITS REALISATION A LITERATURE REPORT Stelios Sapountzis, Kathryn Harris, Mike Kagioglou HaCIRIC, University of Salford, UK ABSTRACT During the past ten years in the UK,