Thought Leadership
Embedding Benefits Realization in Project Lifecycles to Drive Improved Outcomes
Introduction
If you read almost anything on the subject of project management, the primary measures of success are typically defined as the effort being on schedule, on budget, and to specification. Referred to as the 'triple constraints' for the inherent trade-offs between them, these factors are considered critically important in determining an effort's overall success.
However, the reality is there are no shortages of IT projects across both the public and commercial sectors which meet or exceed all of these measures of success yet are universally considered failures. Many projects fully deliver what was intended on time and budget, however what was created or implemented adds no actual value to the organization. The real success measure - did the organization realize actual value from the project - is often not considered or even measured.
In many cases, duplicative projects or initiatives are launched repeatedly in an attempt to achieve the value of an earlier project when all that was really needed were adjustments to the previous effort's implementation. Perhaps minor changes to a process or the configuration of a new organization was all that was needed in order to realize the value the original effort was seeking to deliver.
Embedding Benefits Realization into Initiatives and Investments
Realizing actual benefits from an effort stems heavily from baking activities designed to measure those benefits directly into the plan. In order to realize actual benefits, they need to be identified at the beginning preferably not in the form of high level objectives such as 'increased efficiency or effectiveness' or a working group charter, but the actual benefit expected. By defining the explicit benefits or goals, such as a 'ten day reduction in cycle time', or '30% reduction in complaints’, the foundation for measuring progress against an actual benefit is established.
In many organizations, establishing such high levels of specificity regarding expected benefits is considered an unnecessary risk. High level goals with plenty of 'wiggle room' are more compatible with a risk averse culture. In such cases where significant resistance exists to specific goals, using an incrementally increasing approach is often a more viable option. For example, a reduction in cycle time might start with a one day reduction followed by a target of three days, and so on.
As efforts move forward benefits progress should be measured in addition to traditional project metrics such as cost and schedule - specifically evaluating whether activities are in line with realizing the intended benefits. Even status reports should include an analysis of alignment with intended benefits in addition to other items such as completed activities and identified risks.
Defining and Including a ‘Benefits Realization’ Phase
One of the best ways to ensure benefits are realized from an effort is to embed the post implementation adjustment activities into the effort itself. By acknowledging the need for, and scheduling, post-implementation analysis into an effort, the formal opportunity to adjust for improved benefit is created. What often happens after the implementation of a change is that organizational performance or effectiveness actually goes down after the rollout. This is a quite common reality but rarely anticipated. What naturally occurs is a decrease in productivity for example based on the need for individuals and the organization to adjust. Unfortunately, this is often mistaken as the result of a failed effort. In some cases, the changes are undone in order to restore the environment to a 'better' operating state. The reality is this effect simply needs to be better anticipated, communicated, and baked into the plan itself.
It's also highly unlikely the initial implementation or changes are perfect, yet so many efforts and plans simply assume that they will be, and thus conclude with the roll-out and logistical transition activities. To increase the actual benefits, the best projects or efforts go beyond 'go live' or traditional completion steps and include post-implementation analysis and refinement. This often missing step is where, in many cases, virtually all of the value of an effort will stem from.
By embedding the additional steps of collecting and analyzing performance information and making adjustments, otherwise fruitless efforts are often transformed into successful ones.
Example: Using Versus Not Embedding Benefits Realization Activities
Kamal, a project manager in an inspection division was asked by his management to join a working group created to look at ways to improve industry inspection processes at his organization. During the first working group meeting, which included equal parts discussing the group's charter and when the group would meet next, Kamal was appointed the group's chair based on his knowledge and tenure. Kamal was excited about the opportunity and saw it as a mechanism for finally addressing the organization's outdated procedures that included references to systems not used since the mid-1990s.
Baking Benefits Realization into the Life of a Project
Through a series of discussions during the first meeting, the group concluded that the first task for Kamal was to develop a project plan covering tasks and timing. Kamal agreed, but insisted the group spend more time defining the specific outcomes of the effort they were trying to achieve. While the discussion started slowly and high level, Kamal kept asking questions that helped the group define increasingly specific expected benefits of the effort including a 25% decrease in requests for additional information from industry, and in the number of follow up inspections. Some in the group questioned the value of defining specific targets so early in an effort without any visibility into the issues at hand but eventually the group agreed that the outcomes would be described as initial targets from which to judge potential changes against.
Embedding Post-Implementation Benefits Analysis into the Plan
At the next meeting, Kamal presented his plan to the group, which included mapping current processes, analyzing the processes, developing recommendations, implementation, and refinement. The group heavily debated their charter and whether implementation was even within their scope, let alone refinement. Many in the group felt that implementation was really up to the division's management and they alone were responsible for implementing changes.
In addition, many felt the refinement phase went way beyond their commitment or the purpose of the working group. Those individuals defined the group as nothing more than a recommending body and did not want to be accountable for outcomes that were outside their control to realize.
Kamal agreed that the managers were responsible for implementation but they were indeed accountable for actually helping improve the processes and that doing this was not a single pass effort. In order to meet management's objective for the group, they had to perform multiple passes on the processes; consisting of at least two analysis, recommendation, refinement iterations. The group was comfortable with the distinction and agreed that the group should at least see the process through a second round of implementation; even if just to report that the organization did not implement the recommended changes.
Conclusion #1: When Using the Techniques
After completing the initial development of updated end to end processes with the goals of reducing requests for information and follow up visits required, Kamal's group worked with the organization's managers to implement them. Initially the inspectors pushed back on the processes due to a number of additional validation steps which added incremental value but appeared redundant. After meeting with the inspectors and collecting feedback from several who tried the new processes, the group refined the processes and identified some basic web technologies that would greatly facilitate the process. After implementing the refinements, the organization was then positioned for the first time in almost twenty years to actually measure the levels of requests and follow up from which to continue to make improvements.
Conclusion #2: Not Using the Techniques
Using the basic outcomes of increased efficiency and effectiveness, the group developed a plan designed to identify improvements. Through discussions with inspectors, the group identified twelve basic recommendations and presented the findings to management. No one followed up to see if any recommendations had been implemented and the organization's managers, with more pressing issues to deal with, moved on to other organizational fires. A year later, a high profile issue in the industry caused the organization to acknowledge significantly out of date procedures to which management responded by simply initiating another effort to review and update the organization's processes.
Summary
Projects in the public and private sectors are successfully managed off of cliffs every day. By staying focused on the realization of benefits relative to the level of maturity of whatever the project is focused on, individuals can help an organization drive greater value from its initiatives and projects through better selection and course correction. The act of consistently asking about and focusing on benefits can also help an organization slowly move away from a compliance oriented culture where a significant amount of activity is devoted to answering someone else's mail.