Benefits Realisation Guideline 2011

Benefits Realisation Guideline
Version 1.2
Thursday, June 30, 2011
Document Ownership Information

Document Owner Document Preparation Document Confidentiality ICT Policy Branch S. Dey, M. Schniering
Document Name and Version Control (Circulated versions only)

Document Name & Location Version 1.0
(First Release)
www.services.nsw.gov.au Author S. Dey, M. Schniering Changes Included First release based on drafts and feedback from reviewers. Removed GCIO references Updated contact details
Date 29 June 2010
1.1 1.2
23 March 20111 30 June 2011
D Anspal D Anspal
Department of Finance and Services
Table of Contents
Table of Contents.................................................................................................................. 3 List of Figures ....................................................................................................................... 4 List of Tables ........................................................................................................................ 4 1 1.1 1.2 1.3 1.4 1.5 2 2.1 2.2 2.3 2.4 2.5 2.6 2.7 3 4 5 5.1 5.2 5.3 6 6.1 6.2 6.3 6.4 6.5 7 8 9 Introduction ................................................................................................................ 5 Document Purpose ................................................................................................. 5 The Case for Benefits Realisation ........................................................................... 5 Audience and User Guide ....................................................................................... 6 Challenges Typically Encountered in Benefits Realisation ...................................... 8 Applying this Guideline ........................................................................................... 9 Benefits Realisation Guideline .................................................................................. 10 Four Phases of Benefits Realisation ..................................................................... 10 Benefits Realisation Governance .......................................................................... 11 Understand Phase ................................................................................................ 12 Plan Phase ........................................................................................................... 14 Realise Phase....................................................................................................... 16 Report Phase ........................................................................................................ 18 Roles and Responsibilities in Benefits Realisation ................................................ 21 Case Study 1 - Government Licensing Service......................................................... 23 Case Study 2 Electronic Medical Records ............................................................. 25 Appendix A Articulating Benefits and Understanding how they are Delivered ........ 27 What is a Benefit? ................................................................................................. 27 Types of Outcomes and Benefits .......................................................................... 27 Understanding Outcomes and Benefits, and how they are derived ....................... 27 Appendix B - Potential Benefits Listed by Category .................................................. 34 Increased Effectiveness ........................................................................................ 34 Increased Efficiency .............................................................................................. 35 Enabling................................................................................................................ 35 Survival ................................................................................................................. 36 Research and Development.................................................................................. 36 Appendix C Template Benefits Realisation Plan .................................................... 37 Appendix D Template Benefits Register ................................................................ 45 Appendix E Suggested Further Reading................................................................ 46
List of Figures
Figure 1 - User Guide............................................................................................................ 7 Figure 2 - Benefits Realisation Phases ............................................................................... 10 Figure 3 - Benefits Realisation across the Program Lifecycle .............................................. 11 Figure 4 - Managing Outcomes for Business Change ......................................................... 12 Figure 5 - Example Report using Balanced Scorecard Format ............................................ 19 Figure 6 - Example Report using Benefits Register Extract ................................................. 20 Figure 7 - Example Report using Outcomes Dashboard Format ......................................... 20 Figure 8 - Example Benefits Pathway ................................................................................. 30 Figure 9 - Simplified Value Map .......................................................................................... 31 Figure 10 - Sample Value Map ............................................................................................ 33 Figure 11 - Report generated by completion of Benefits Register ....................................... 45
List of Tables
Table 1 - Table of Investment Type and Guideline Application .............................................. 9 Table 2 - RACI Table for Key Benefit Realisation Activities ................................................. 22
1 Introduction
1.1 Document Purpose
The Benefits Realisation Guideline (this Guideline) has been developed by the NSW Department of Finance and Services (DFS) to assist NSW Government Agencies manage benefits realisation. This includes the process of understanding, planning, realising and reporting both financial and non-financial benefits associated with ICT enabled and business change programs. This Guideline may also be used to establish a benefits management framework for other reform and transformation programs. Effective benefits realisation is critical to the achievement of the business outcomes desired from investments. Benefits realisation is an important contributor of key information to the development of business cases, portfolio management, governance and decision making by Government. This Guideline merges and updates the Benefits Management Plan Guideline (version August 2003) and Benefits Realisation Register Guideline (version March 2004). It has been developed after research of public and private sector models and in consultation with a number of NSW Government agencies. Several agencies have established processes to track the achievement of benefits throughout phases of the program lifecycle. Case studies and experiences from these agencies are included to illustrate the application of this Guideline. This Guideline covers the steps involved in effectively understanding, planning, realising and reporting benefits of ICT enabled business change programs. It also provides inputs into the NSW Treasury Business Case and Total Asset Management (TAM) Guidelines. It does not cover areas such as the writing a business case, undertaking project or program management, portfolio management or governance. Supporting this Guideline are two sample templates for Benefits Realisation: 1. The Benefits Realisation Plan is used as a key component in the development of business cases used to support proposals for new ICT enabled business change programs. This Plan describes the expected benefits or outcomes that will be realised from exploiting capabilities of an ICT enabled business change program. 2. The Benefits Register and Reporting are used to ensure that potential benefits are captured and realised. Reporting provides the Program Sponsor, Manager and Benefit Owners with the information vital to make the decisions required to ensure ICT enabled business change programs are successful in achieving the benefits articulated in their approved business cases.
1.2
The Case for Benefits Realisation
ICT enabled business change programs represent a large portion of spend for government. These programs are publicly funded; therefore it is ultimately the responsibility of agencies to ensure that taxpayers receive a positive return for their investment in the form of increased service delivery or decreased cost of service. The NSW Governments Total Asset Management (TAM) Guideline states that Post Implementation Reviews (PIR) should report on whether the desired benefits, expected in the business case have been realised. Additionally NSW Treasury Business Case Guideline TPP08-5 sets out the benefits requirements for business cases, which should be inextricably linked to the outputs of the Benefits Realisation process. This Guideline provides a structured approach for agencies to manage and demonstrate the realisation of benefits from an ICT enabled business change program. It helps agencies

show the linkage between ICT investment and Government policy priorities, agency business objectives and service delivery outcomes. This Guideline has been developed based on a number of well accepted good practice principles of benefits realisation. These are: Business change programs deliver benefits. Technology by itself does not deliver business benefits technology delivers new capabilities which can be exploited to deliver business benefits. Organisations only realise business benefits through a coordinated, focused combination of changes in technology, organisation, people, processes and relationships with external suppliers, customers and partners. Benefits are not automatic. In addition to effective project management, delivery of desired business benefits requires active monitoring of program progress and the outcomes and benefits to be realised. Benefits need to be first understood as business outcomes. With an understanding of the holistic business change required to realise business outcomes, benefits can be planned, realised and reported. Benefits are dynamic. Benefits identified at the commencement of the investments life cycle will almost certainly change over the life of the investment. They need to be regularly reviewed and updated, in response to changes in program scope, objectives and delivery. Intermediate outcomes are needed to realise business benefits. Achievement of and reporting on intermediary outcomes (those associated with the change along the way) are just as important as the benefits associated with final strategic outcomes. The Business need to own the benefits. Benefits must be owned by appropriate business sponsors and managers, not by the project / program manager. Benefits are both financial and non-financial. Benefits realised and measured include both financial and non-financial outcomes. Change management is integral to benefit realisation. Change management is essential to the introduction of benefits realisation disciplines. Benefits realisation needs strong executive sponsorship across an agency to be successful. Following these principles, benefits realisation becomes a critical value adding role in a business change program.
1.3
Audience and User Guide
This document is intended for the use of the agency and cross-agency roles involved in benefits realisation, including: Program Sponsors: the executive responsible for the program and its benefits. Program Managers: responsible for the delivery of the program - its new capabilities and the environment in which successful business change will deliver the business benefits. Outcome/benefit owners: the officers who have the responsibility for realising the business outcomes/benefits. Benefits Realisation Manager: the officer responsible for the establishing, operating and maintaining of the benefits realisation disciplines outlined in these Guidelines. This role may be a specific function within the Program Management Office. Program Management Offices: the governance body responsible for co-ordinating and overseeing the delivery of the program, and has an oversight of the benefits realisation activities. This Guideline consists of four phases. The next section of the document will break out and provide detail of each of these phases. As the users of this guideline will focus on different

elements of the framework for their roles, below is a guide to the relevant sections broken down according to the phases in the process.
Key Users:
Program Sponsors Program Managers Benefit Owners Benefits Realisation Mgr PMO
i
1. Introduction 2.2 Governance 2.3 Understand Phase 2.7 Roles Appendix A Appendix B
i i i
1. Introduction 2.2 Governance 2.3 Understand Phase 2.4 Plan Phase 2.7 Roles Appendix A Appendix B Appendix C
i i i
1. Introduction 2.2 Governance 2.5 Realise Phase 2.7 Roles Appendix C
i i
1. Introduction 2.2 Governance 2.6 Report Phase 2.7 Roles Appendix C
Mandatory Reading for Each Phase:
Figure 1 - User Guide
Mandatory Reading
i Suggested Reading
1.4
Challenges Typically Encountered in Benefits Realisation
This Guideline aims to increase successful benefits realisation. It addresses typical challenges encountered in benefits realisation, including: Benefits to be delivered by the program are not clear and/or agreed. The initiatives required to deliver the benefits are not defined nor linked to the outcomes/benefits that they deliver. The scope and objectives of the program are not clear and/or agreed. Linkage between the actual benefits delivered and the original business case is weak or unclear. The original (and approved) Business Case and Business Realisation Plan (BRP) developed at a projects conception are not updated throughout the project lifecycle to reflect better and more detailed planning; refinement of objectives, scope, cost and risk; and benefits expected to be delivered. Benefits are not measured or reported. Benefits measures not defined or measures at the beginning of the program. Objective comparisons of the changes and benefits realisation can not be easily identified and reported. Ownership and accountability for benefit realisation is not clear and/or agreed.
1.5
Applying this Guideline
Whilst the focus is on realising benefits from ICT enabled business change programs, these Guidelines can be applied to any investment where there is a desire to achieve specific business outcomes (and thus benefits). The following table provides some examples:
Type of Investment
Primary Focus / outcomes
Investment Categorisation
Scope of the investment
Relevant Section in these Guidelines
ICT enabled business change program (at either agency of whole of government level) e.g. Electronic Clinical Documentation Program Reform and transformation initiatives of government eg. Corporate and Shared Services Reform Stand-alone ICT projects eg. Virtualising servers or consolidating data centres
Changing the way the agencies work to achieve specific business outcomes eg. Increased patient safety; Decreased costs of service Changing the way the agencies work to achieve specific business outcomes eg. Decreased cost of service
Transformation of the Business
People, process, organisation, technology, citizens, suppliers, etc
All
Transformation of the Business
People, process, organisation, technology, citizens, suppliers, etc
All
Focus is less on benefits, and more on managing delivery cost and risk, and maintaining core services. eg. Decreased ICT cost
Core or Maintaining ICT Infrastructure
Technology
Minimal use of abridged Plan, Realise and Report for monitoring ICT cost reduction
Table 1 - Table of Investment Type and Guideline Application
2 Benefits Realisation Guideline

2.1 Four Phases of Benefits Realisation
The Benefits Realisation Guideline is a collection of steps, templates and frameworks designed to achieve the goal of realising business value from an ICT enabled business change program. It achieves this via four key phases, each with its own purpose and outputs. This document defines each phase and explains how, when carried out they combine to allow a program to successfully realise benefits.
Understand: Before we can plan or measure benefits, we must understand which outcomes are in fact the targets of such investment. The Understand phase is all about establishing the strategic intent and identifying the outcomes required to achieve this intent. Plan: A plan is then created in which further develops the findings from the Understand phase. It includes additional details such as the owner, the target to be achieved and the units with which to measure progress. It also includes the necessary arrangements needed to be in place to realise the benefits. The outputs of the Plan phase form the basis for the benefits section of the program business case. Realise: Realising the benefits is then achieved by monitoring progress towards the planned outcomes. Deviations from plan can be picked up early with the appropriate corrective action taken. Throughout this process the business case should be updated and maintained as there will inevitably be differences between what was initially proposed and what is attainable as the program progresses. Report: Reporting of actual versus planned is provided to the Governance body in accordance with the plan, facilitating accountability of performance of the program.
Figure 2 - Benefits Realisation Phases
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Benefits Realisation needs to be executed across the program lifecycle, from concept stage to benefits realisation. The figure below shows the 4 phases across the typical stages in a program lifecycle, from Concept to Operate & Maintain. It shows that understanding the program scope and objectives is critical early in the lifecycle, as part of the initial business case development. Identifying and articulating the benefits at this point will inform the benefits in the business case. Initial definition of the benefits is then built upon with detailed benefits realisation planning. At this stage, the initial business case is updated and revised as the benefits to be realised are defined and ownership assigned. As soon as business change is delivered, benefit realisation activities are executed by the program and benefit owners. At the same time, benefits are measured and reported to track success of the program and benefit realisation.
Benefits Realisation Governance
Program Sponsor and Benefits Owners
Stage gates
Concept
Initiation/ Business Case Ownership
Requirements and Design
Build & Test
Prepare for Go-Live
UAT/ Deploy / Migrate
Realise Benefits
Operate & Maintain
Realisation Activities Measurement
Program and Project Management
1. Understand Program Scope and Objectives
Milestone Tracking
2. Plan for Benefits Realisation Benefits Realisation Managers PMO Initial Business Case Revised Business Case 3. Realise Benefits 4. Report Outcomes
Benefit Tracking
Figure 3 - Benefits Realisation across the Program Lifecycle
2.2
Benefits Realisation Governance
As shown in Figure 2 Benefits Realisation Governance governs and supports the four phases of Benefit Realisation. In addition to the ownership and accountability reinforced by the Benefits Realisation Guidelines, three key principles of benefits governance should be followed: 1. Commitment and support at the senior leadership and executive level. Active support for the program will support and reinforce benefit ownership and realisation; 2. Clear and active program sponsorship and accountability. Sponsorship of the program, together with accountability for the benefits realised reinforces the benefits realisation process and framework; and 3. Program management and responsibility for defining, measuring and reporting benefits. Clear responsibility and accountability of the roles to deliver the four phases of the benefits realisation guideline are critical.
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Benefits Realisation Guideline 2.3 Understand Phase
The first step in benefits realisation is to identify and define potential outcomes and benefits. The goal is to explore and assess business ideas while maintaining focus on the proposed benefits answering 'why we are doing this?' The process is continued by developing the initiatives and intermediate outcomes that will need to be delivered to realise the anticipated benefits. This phase will distinguish outcomes from benefits. Outcomes are the capabilities created, changes made and results sought from the investment. Benefits are the specific outcomes where accountability can be assigned and measurement defined. Benefits are used for defining and declaring success of an investment. Benefits are the net positive changes resulting from outcomes. It is essential to understand the outcomes before we can define and declare them as benefits. The following example illustrates this distinction.
Project delivery of New Capability Outcomes

Created new behaviours with staff to drive clinical docucmentation
Business Change Outcomes Enables Creates
Desired Business Outcomes Helps achieve
Strategic Outcomes
Created enabling technology for clinical Documentation
Increased Multidiscipline team information sharing and communications. Decreased use of paper records
Increased information based clinical decision making. Decreased variations in clinical practice
Increased patient safety (decreased adverse events)
Created new best practice for clinical delivery
Outcomes identified as part of the Program Outcomes that will be designated as benefits of the program
Figure 4 - Managing Outcomes for Business Change
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This process of understanding the outcomes and benefits should be integral to the development of the Initial Business Case (refer to Treasury Business Case Guidelines TPP08-5 and TAM planning processes). The identification and articulation of the benefits provides the benefits side of the business case, including the rationale and objectives of the program. Understanding the benefits and development of the Initial Business Case should go hand-in-hand. 2.3.1 Steps The following steps should be undertaken in the Understand phase: Obtain business context of the benefits: Determine business drivers what is the business problem we are trying to solve?; Define the scope and objectives of the program; Define business benefits anticipated to flow from the change outcomes; Identify which benefits are considered strategic and align these with the Agency's Results and Services Plan; Identify any potential risks associated with the achievement of the benefits; and Analyse change and benefits impacts on key stakeholders. Identifying and agreeing the outcomes/benefits: Define the target business environment required to realise benefits, then; Identify the change initiatives required to successfully execute the initiative; Map the outcomes and benefits to the initiatives; Define the intermediate and final outcomes required to realise the benefits; and Ensure sponsorship buy-in and ownership of benefits.
For ideas on potential benefits split by category please see Appendix B
2.3.2
Tips Use workshops to engage with stakeholders. This will get everyone on the same page in terms of scope of the program, how the business change will occur, and how the benefits will be realised. Be careful of interdependencies with other programs and claiming the same benefits. Clear understanding and definition of benefits will mitigate this risk. Negative benefits should be considered. There may be outcomes that are a negative consequence of the program. These need to be managed. Ensure resources with appropriate change management skills are available as business cases often lack adequate provision for these roles.
Please note the following suggestions:
2.3.3
Techniques
Common techniques for completing the Understand phase are: Listing Benefits; Three Column Analysis; Benefits Pathway; and Value Mapping.
For more information on these techniques please see Appendix A
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2.4
Plan Phase
The next step is to plan benefits realisation for the program. The Benefits Realisation Plan (BRP) documents in detail the intermediate and final outcomes/benefits identified during the Understand phase. This is performed in parallel with the development of the business case, and is a major contributor to the business case compilation. The BRP is an important document as it specifies the size, timeframe, metrics, ownership and responsibility for each proposed benefit. These details are crucial in ensuring successful benefits realisation. 2.4.1 Steps The following steps should be undertaken in the Plan phase: Establish Benefits Realisation Governance: Establish the Benefits Realisation Governance Framework that will apply to the program. This establishes who will be responsible for benefits realisation, the governance structures, processes, resources, information needs, etc. Populate the Benefits Realisation Plan Determine which benefits will be measured and specify these in the Preliminary Business Case. This will define success for the program; Confirm the strategic link between the benefits identified and the Results and Services Plan (RSP); Identify a business owner for each benefit; Identify the baseline and target Key Performance Indicator (KPI)/measure for each benefit; Identify and confirm timeframes and milestones for achievement of each benefit; Define benefit realisation activities to be executed by the business; Define risk mitigation strategies; Consolidate and document the above into the BRP and obtain program sponsor/owner approval; and Communicate to and engage stakeholders on the expected benefits of the program. Inform the Business Case Develop business case benefits based on the BRP.
For more detailed information on creating a Benefits Realisation Plan please refer to Appendix
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2.4.2 Tips
Please note the following suggestions: Meet with front line staff to ascertain baseline metrics and level of buy in; Delineate between the risks to the program benefits and project delivery; All outcomes should be measurable. Measures for benefits can be either financial or non-financial; Measure only selected outcomes. Focus on identifying the key outcomes that will clearly define success for the program in terms of benefits; Be careful not to have too many measures. Select the key markers of success; Select measures that will indicate success of this program specifically. For example, overall user satisfaction will be influenced by many initiatives and can be too broad a measure. Selecting specific questions from user satisfaction survey results will be more relevant. Always look for existing measures for benefits. An agency may have an existing scorecard and performance reporting that identifies existing measures; Include anecdotal informal indicators for success, they usually make great headlines; and Consider proxy measures which will be closely linked to the outcome or benefit being measured, especially if it simplifies the measurement task.
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2.5
Realise Phase
The Realise phase takes the temperature" of how successfully the program outcomes are being achieved. A Benefits Register (BR) is the tool used to record and keep track of realising benefits set out in the plan. The Realise phase continues over the entire life cycle of the program, and beyond ICT project closure. Strategic benefits are usually realised well beyond the program delivery life cycle. Benefits realisation process and governance continues beyond completion of program delivery. The program does not really end until the benefits have been realised. 2.5.1 Steps Once the Benefits Realisation Plan has been agreed the following steps in the Realise phase should be undertaken: Establish the Benefits Register: Establish the benefits tracking regime and mechanisms outlined in the BPR; Register all outcomes/benefits selected for measurement during the Plan phase into the Benefits Register populating the agreed key information; and Ensure all business benefits owners have signed off their allocated outcomes / benefits. Update the Benefits Register: Identify from the Register the frequency and dates for measurement of outcomes/benefits; Facilitate the benefits realisation review sessions with outcome/benefits owners and other stakeholders. Identify and address issues that may be inhibiting the realisation of benefits; and Collect, collate and record the actual measurements for the benefits in the Benefits Register. Update the Benefits deliverables: Validate that the outcomes/benefits are still valid and achievable; Consider program progress and external factors that may impact the program and its outcomes with the appropriate stakeholders; Assess if there are outcomes/benefits that need to be deleted; Capture emerging benefits of the program. Identify, describe and justify why they might be included as part of benefits realisation for the program; and Update the Benefits Realisation Plan and Benefits Register with all changes identified and agreed with the stakeholders.
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2.5.2
Key Realisation Information
The Benefits Register should contain the following key information: Outcome/Benefit name Outcome/Benefit description Measurement metric how progress will be tracked Measurement source where the measurement information will come from Current baseline measurement including date taken Targeted measure expected result Target measure date day the expected result is to be realised Outcome/Benefit owner First tracking date day tracking of the outcome/benefit began Last review date day the status was last reviewed Next review date Status commentary comments regarding the latest review including any actions taken Action to be taken
For an example Benefits Register template, please refer to Appendix D
2.5.3
Tips
Please note the following suggestions: Ensure all measurement and review activities are undertaken on a formalised basis, with regular formal meetings established. To effectively understand benefit realisation progress and future realisation activities required, face to face conversations are important to gain a shared understanding of the current situation and actions required. Capture any anecdotal benefits that arise from stakeholder discussions. Anecdotal items tend to be personal experiences of users, and therefore add considerable credibility to the success of a program. Consider formalising anecdotal benefits in the benefits processes (where practicable). Recognise that benefits are dynamic and can change during the lifecycle of a program. Be alert for outcomes/benefits that need to be deleted if they are no longer relevant/achievable, consider the impact on the business case and update if required. Incorporate any new emerging benefits, consider the impact on the business case and update if required.
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2.6
Report Phase
The final phase in Benefits Realisation is reporting of achievement against target. The monitoring, reporting and escalation of actual vs. targeted performance is undertaken by the benefits reporting function. It informs progress and corrective actions required. Benefits Reporting is conducted when benefits start to be realised and measured. It is a continuous process that commences as soon as business change starts to be delivered. The focus early in the program life will be on reporting progress in achieving intermediary outcomes of the program e.g. new capabilities successfully delivered, change outcomes achieved, etc. In the post implementation phase, reporting should continue beyond program closure. The focus is on the achievement of the desired business and strategic benefits, which are often realised after the program has closed. 2.6.1 Steps The key steps in reporting outcomes/benefits are as follows: Analyse the benefits: Support and conduct measurement activities; Record results in the Benefits Register against baseline and targets; Analyse the Benefits Register and extract exception data. Make observations as to progress in realising benefits; Assess benefits realisation effectiveness; Seek explanation for deviation from targets. Discuss and collect suggested corrective actions with program manager and outcome/benefits owners. Corrective actions may involve further investment in the program and will need to be formally approved; and Compile and document lessons and actions taken. Report the results Promptly escalate significant variations and suggested corrective actions with stakeholders; Obtain approval of corrective action; and Submit regular reports to stakeholders as per agreed schedule Ensure corrective actions are implemented. Throughout the process, review the benefits realisation plan, benefits register and business case and update if required. 2.6.2 Tips Significant corrective actions may involve significant changes in the program scope and budget. Formal approval is required for any changes to program scope and budget.
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2.6.3 Reporting Implications for Whole-of-Government Programs
These Guidelines are intended to apply equally to agency, cluster and/or whole-ofgovernment programs. Whole-of-government programs include: Large ICT enabled business change programs; and Reform programs. Whole-of-Government programs need to understand, plan, realise and report benefits at agency and aggregated whole-of-government levels. Having a consistent approach to the benefits realisation will enable government to have: A common understanding of the outcomes/benefits to be delivered; and Reporting in a standard format. Central agencies will have the opportunity to inform agencies of their reporting requirements based on the consistent approach in these Guidelines. 2.6.4 Reporting Contents The figure below provides an example of benefits reporting in a Balanced Scorecard format. This is one way of reporting the benefits, however the specific format of the report will depend on the specific program, agency requirements and alignment to Whole-ofGovernment guidelines.
Financial
(is the cost/value of CS function managed appropriately?)
Customer Service
(are we meeting our customers needs?)
CS spend as % of companys revenue CS operating budget as a % of revenue CS capital budget as % of revenue Adherence to Fiscal Plan/Budget
% satisfied customers Avg. # of inbound calls per service desk analyst per month Avg. % first service desk call contact resolution % strategic project begun without predefined, compelling business cases
Internal Processes
(are our processes effective, efficient, and well controlled?)
Development, Employee
(are we increasing our capabilities, focusing on key value-added areas and supporting growth?) CS employee turnover % of internal CS employees % of CS budget devoted to internal employees Training days per CS employee per year CS spend on new IT investments vs. ongoing ops and maintenance
% Projects Complete on Time/Budget Defect rate Tickets/change requests handled/period % of enterprise process defects due to CS
Figure 5 - Example Report using Balanced Scorecard Format
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An extract from the Benefits Register is shown in the figure below. Commentary on benefits including observations, variations and corrective actions and lessons learnt support reporting.
Benefits Report
Project Name: Version: Outcome ID
ex - 101 xyz project 0.01
Reporting Period: Prepared by: Variance Current Explanation Action
Outcome Description
This is an example outcome.
Measure Name
Total Cost of Operations
-10,000
High level of staff sick days this period
provide vaccination facility
# or reams of paper consumed
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Figure 6 - Example Report using Benefits Register Extract
The figure below is an example of the outcomes/benefits set out in a dashboard format, showing level of achievement.
Figure 7 - Example Report using Outcomes Dashboard Format
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Benefits Realisation Guideline 2.7 Roles and Responsibilities in Benefits Realisation
A RACI (Responsible, Accountable, Consulted, Informed) table is used to define the roles involved and their level of accountability or participation in an activity. The table below has been used to define the activities across the understanding, plan, realise and report phases, the relevant roles and whether they are: Responsible: this role is responsible for achieving the result of the activity; Accountable: this role will be held accountable for the result of the activity; Consulted: this role will be consulted during or in order to agree the result for that activity; or Informed: this role will be informed of progress and/or the outcome of the activity.
Benefits Realisation Phase
High level Activity / Step
Program Sponsor
Program Manager
Outcome/ Benefits Owner
Benefits Realisation Manager
Program Mgt Office
Understand Obtain Business Context Identify and Agree Outcomes/Benefits Define and Agree Program Scope and Objectives Define Business Changes Required to Enable Benefits Inform Business Case Development Plan Establish Benefits Realisation Governance Populate Benefits Realisation Plan Inform Business Case Refinement Obtain BRP Sign Off Realise Establish Benefits Register
A A
R R
R R
C C
I I
C C A
C C I
I I I
R R R
A A C
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Benefits Realisation Phase
High level Activity / Step
Program Sponsor
Program Manager
Outcome/ Benefits Owner
Benefits Realisation Manager
Program Mgt Office
Execute Benefit Realisation Activities Establish Benefit Measurement Update Benefits Register Update Benefits Realisation Deliverables Obtain Benefit Deliverables Sign Off Report Measure Benefits Analyse Benefit Realisation Report Benefit Realisation Decide Corrective Action Implement Corrective Action Update Benefit Deliverables
A A
C C
R C
R R
I C
A A A A
I C C C
I R C C
R R R R
C I C C
A A I
R R I
C C I
C C R
I I A
Table 2 - RACI Table for Key Benefit Realisation Activities
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3 Case Study 1 - Government Licensing Service

Program Description Implementation of the Government Licensing Service (GLS) at the NSW Department of Industry and Investment, formerly Department of Primary Industries (DPI), was undertaken to improve the service of issuing fishing licences, while increasing the financial efficiency of the Agency. Historically, licensing was not available online and licences were issued as one off (fixed term) paper licences without the option of renewal. The introduction of the GLS resulted in the introduction of plastic card fishing licences, with ability to renew at the time of expiry. The program was completed over a five month period commencing in September 2008. Agency Approach GLS is a whole of government program spanning many different agencies. DPI had already been identified as a candidate for a GLS implementation and as such a number of the benefits attributed to GLS were applicable to DPI. DPI worked closely with the GLS team to submit a "Scoping Document and Process Improvement Plan", a summarised business case that asked individual agencies to analyse their fit relative to the generic GLS functions and expected benefits. This document included the following sections: GLS features and benefits relevant for DPI; Identification of process improvement for DPI and comparison to GLS estimates; Impact on service delivery, licensing process costs, licensing fee structure and revenue; Implementation constraints and risks, together with mitigation strategies; KPIs that will form benchmarks to measure achievement of the program objectives; Communications plan to gain internal and external stakeholder endorsement; Issues relating to resources and skills required for implementation; and Project plan, including work streams, milestones and responsibilities. Once the plan was accepted, it then formed the primary document for governance of the GLS implementation at DPI. This plan was then actioned under the supervision of the GLS Programs governance body. In order, the structure was as follows: Program Board - The highest decision making group, provided strategic guidance for the program and adjudicated issues not resolved by the Program Executive Council. Program Executive Council - Operational guidance and decision making. Assisted with achieving program objectives as efficiently as possible. Agency Steering Committee - Agency level decision making. Provided direction for achieving overall objectives and reported to the council on progress, risks and issues. User Group - Managed common business processes and their requirements across the agencies. Responsible for user acceptance testing. Project Team - Managed change initiatives within the Agency. Escalated project risks and issues.
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Benefits Realisation Benefits were measured at program commencement, completion and one year following completion. The Benefits Register was used to track program achievements against objectives. This process was performed twice during the project implementation and continued post completion. Results were reported to and actioned by the Governance Body. GLS implementation was highly successful with benefits realised across three areas: 1. Financial Increased revenue by 15% in the first year Maintained recurrent costs at 10% of revenues collected Leveraged existing printing capability for plastic licences 2. Environmental Increased revenues collected were used to increase recreational fishing stocks Decreased equipment power usage by 80% through sharing across agencies Decreased required storage and paper usage by switching from paper to plastic 3. Social Created 24/7 access to licensing services online Decreased training and compliance costs through online access for Fisheries Officers Implemented plastic cards which are more practical than paper in wet pockets Created licence renewal capability, rather than replacing on expiry Lessons Learnt Governance Early establishment of agency governance and project team is essential; Nominate a single point of day-to-day accountability (project leader) and primary point of contact for interdependent programs to avoid conflicting decisions; and Document and agree a detailed project plan and submit it to the appropriate governing body. Include resource requirements and dependencies, accounting for specific agency factors e.g. seasonal peaks. Process Training of agency staff should occur as the scope is confirmed. More training should be undertaken prior to user acceptance testing; Allocate sufficient resources early on for data cleansing and mapping/conversion since this has significant impact on business process and the information available; Maintain a single issues list and ensure all matters are closed out; and Actively participate in any post implementation review process. Change Management Prepare a Change Management Plan to transform business processes, undertake legislative change and improve forms/correspondence; Maintain regular communication with business users and customers; Reuse/adapt resources from other agencies e.g. training materials; and Account for initial drop in productivity due to tighter controls and user acceptance.
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4 Case Study 2 Electronic Medical Records

Program Description The objective of the program was to replace traditional paper medical records with an electronic record throughout all major hospitals in NSW. Though this was a complex and significant program, NSW Health anticipated numerous long term benefits including patient safety, efficient use of resources and better access to services. The business case went through a number of submissions for funding over an eight year period. The final business case matched strategic health priorities in Emergency Departments and Operating Theatres together with a concurrent program addressing clinical redesign practices in these areas. The implementation approach was phased to take into account funding limitations and the change management required for over 70,000 clinicians. eMR (Electronic Medical Records) captures information generated by clinicians in Emergency Departments, Operating Theatres and electronic orders for tests and associated results. It brings together patient clinical data from disparate information systems within a hospital (e.g. emergency, pathology, radiology, pharmacy and dietary) with other clinical data (e.g. diagnosis, allergies, alerts, clinical history, etc) to assist Clinicians to make informed decisions about managing a patients care. It is linked to information sources that are evidence based to provide a powerful clinical decision support tool. It includes a series of built-in ordering rules, protocols, prompts and alerts that provide a standard clinical work flow for patient care and treatment, including: Electronic test ordering and integration to Pathology and Radiology; Decision support during the ordering process to provide key clinical information; Duplicate orders checking; Electronic results, abnormal results and verification process; Emergency department electronic documentation and patient tracking; Operating Theatre scheduling and electronic documentation; Clinical assessments on admission including past and present medical history; Discharge referrals and electronic notification to GPs; Reminders when key data has been omitted; The ability to share records across hospitals in the same area; and Reporting facilities that support clinical audit, resource management, research and development, education and training. Agency Approach In order to ensure that the eMR system was implemented consistently and that all benefits were effectively tracked and managed, NSW Health developed the eMR Generic Benefits Realisation Framework (the Framework). The Framework was customised by each AHS to suit their individual needs and process reform efforts. Whilst the business case articulated the strategic benefits of a complete eMR implementation, the revision to the business case divided the Program into phases. As a result, it was necessary to develop a more detailed measurement plan with a focus on the intermediate benefits. Early in the life of the business case, a Benefits Pathway was used to highlight these intermediate benefits (refer to Appendix A for details on these techniques).
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By associating accountabilities with initiatives and activities, the Benefits Pathway ensured that each stakeholder was unambiguously aware of their contribution to the achievement of the outcomes. The model was a graphical representation of these initiatives, activities, paths risks, and desired outcomes. A short version was developed for project teams and communication purposes. This summarised on one page the key business problems, critical business change and what has to be stopped in order for the benefits to be achieved. Lessons Learnt Business Case Long delays in funding resulted in turnover of key staff and sponsors, as a result engagement of new sponsors and validation of benefits was critical; The business case recognised the significant business change for clinicians in using a computer to document rather than the convenience of paper and provided funding for organisational change management as part of the solution; Phasing of the program over a number of years (possibly 10 years) requires that the vision and expectations of each phase is properly managed. This mitigates the risk that clinicians expect that the current phase will deliver everything; While the business case provided high level benefit targets it was necessary to adjust the benefit expectation to local conditions, for example reflecting the different environments of rural hospitals versus metropolitan hospitals; Divide benefits into timeframes. Some of the benefits such as better decisions take time to realise due to the development of new reports and skills in extracting data; and A number of the benefits were being impacted by other projects. Benefits Pathways and similar techniques help identify those contributions. During Implementation For benefits to be accepted and realistic, all hospitals were engaged to measure and report on the benefits at a local level; A lack of information in existing systems required benefits data to be collected manually. Photographs were also used to bring the realisation process to life; Satisfaction surveys used for qualitative measures uncovered new problems and potentials benefits; Whats in it for me (WIIFM) was used in conversations with stakeholders to explore potential value. It keeps the vision alive and provides a practical picture of the future; Listening and observing on the ground provides real opportunities to spot new benefits; and Sharing stories of quick wins and improvements on the baseline is a great way to build and maintain support for the program. Post Implementation Evidence was used with several external stakeholders to help them understand in practical terms the benefits realised, here simplicity was important; Transition to Business as Usual (BAU) and ownership of on-going process improvement is critical. Typically the steering committee will retire after go-live. A governance body that maintains continuity between programs is the best way to manage this; and Important to reserve funds and resources for post implementation User Groups to implement initiatives and the change required to realise the benefits.
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5 Appendix A Articulating Benefits and Understanding how they are Delivered

5.1 What is a Benefit?
A benefit is a business outcome that delivers value to the organisation. Benefits include both financial (e.g. decreased cost of service) and non-financial (e.g. increased user satisfaction with agency services). An ICT enabled investment aims to deliver capabilities that can be exploited to enable business outcomes. Benefits deliver value to the agency when they contribute to achieving their strategic goals and objectives.
5.2
Types of Outcomes and Benefits
For ICT enabled investments, the expected business benefits should be assessed. Outcomes will broadly fit into: Citizen benefits, usually represented from a social perspective, including: Improved Service Delivery; Decreased cost to citizens (time and effort; price of service); Increased Business and Work opportunities (improved processes; reduced cost of servicing); Increased community skills and knowledge (intuitive; easy to find information); or More open government (policy familiarity; more transparency). Agency and whole of government benefits, are usually represented with a strong financial perspective, including: Decreased costs; or Increased revenues. Refer to Appendix B for illustrative outcomes, benefits and measures.
5.3
Understanding Outcomes and Benefits, and how they are derived
Understanding what and where the outcomes and benefits are can be ascertained by several means. Suggestions include: Interviews/workshops with stakeholders to obtain expectations; Reviewing other ideas papers/value assessments/business cases undertaken by the agency and beyond; and Ascertaining best practice.
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Workshops are a technique to draw key stakeholders together to discuss and validate the answers to the following questions. The answers form the basis for understanding outcomes and benefits and in turn, the benefits planning: Why are we doing the program? What are the business drivers? What are we going to get out of it? What are the strategic outcomes of the program? What are the measurable benefits? When do we obtain the benefits? Who owns the outcomes? Who is the Outcome Owner and do they accept it? Who is accountable for delivering benefits? What is the mechanism that is required to achieve benefits? To articulate the benefits for an ICT enabled investment, this Guideline recommends using the techniques detailed below. These 3 techniques represent escalating levels of sophistication and detail. The technique selected will depend on the time, resources and availability of information. 5.3.1 Technique 1: Listing Benefits This is the traditional approach to identifying expected benefits from an investment, usually listing benefits by stakeholders. An example: Stakeholders / Others
Citizens
Benefits
Increased accessibility 24/7 Simplification of the process Significantly reduced time to process transactions
Agency
Resource savings when dealing with a growing market with peak load periods Increased data integrity Increased quality of reporting Created a technical base to further expand online services
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5.3.2
Technique 2: Three Column Analysis and Benefits Pathway
Another simple technique is the three column analysis. The analysis involves brainstorming answers to each of the four sections below and putting them into lists. A benefits pathway can be developed to graphically help facilitate the benefits understanding in one page. It should provide a representation of how the current business problems should be changed to achieve the desired benefits.
This technique is used by NSW Health to understand the contribution of changes needed to be made to the desired benefits (outcomes). This ensures a discussion with relevant stakeholders to understand and agree the current business problem, what has to change (and what must be stopped) and the benefits.
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The figure below sets out a Benefits Pathway for a NSW Health change program.
Figure 8 - Example Benefits Pathway
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5.3.3 Technique 3: Value Map Similar to the Benefits Pathway approach, the Value Map is a graphical technique that helps represent how benefits will be realised. It draws the link between the initiatives (or projects) and the capabilities they deliver, use of that capability to change the way business is done, and contribution to strategic outcomes (or benefits). The purpose and technique of the Value Map is similar to the Office of Government Commerces Benefits Maps, and Cranfields Benefits Dependency Models. A Value Map has 4 elements (initiative, assumption, outcome and contribution), together becoming a clear way to represent the full scope of effort of an investment and specifically how the benefits will be realised. Outcomes An outcome is a change of state resulting from the contribution of initiatives and/or other outcomes. It includes intermediate outcomes, such as the delivery of a capability and final outcomes such as contribution to strategic objectives. In a Value Map, the circle represents an outcome, and is described to support measurement e.g. Increased patient safety. Intermediate outcomes are capabilities created or change impacts achieved and they demonstrate the path to realise benefits. They articulate the specific changes and outcomes required to achieve the objectives of the investment, dispelling miracle thinking. The figure below sets out a simplified Value Map.
Initiatives Projects of the Program Capability Outcomes
Created new behaviours with staff to drive clinical docucmentation
Intermediate Outcomes
End Outcomes
Implement new clinician roles and responsibilities
Business Change Outcomes
Desired Business Outcomes
Strategic Outcomes
Implement Patient Admin software and necessary hardware
Created enabling technology for clinical Documentation
Increased Multidiscipline team information sharing and communications. Decreased use of paper records
Increased information based clinical decision making. Decreased variations in clinical practice
Increased patient safety (Decreased adverse events)
Develop and implement new clinical processes, policies
Created new best practice for clinical delivery
Legend for a Value Map

I-1
Initiative
Assumption that clinicians will use the new processes
O-33
Outcome
A-3
Assumption Contribution
Figure 9 - Simplified Value Map
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Initiatives An initiative is the component project within a program where the money is invested to deliver or support the implementation of a new capability. An initiative is represented by a square. The label describes the action e.g. Implement new forecasting system or Deliver training to employees. Contribution A contribution is the role or part one component of a Value Map plays in the realisation of another. A contribution is represented as an arrow between initiatives and outcomes. Outcomes can also contribute to other outcomes. Assumption An assumption is an indication of uncertainty we have about a component in a Value Map. An assumption is represented in the model as a hexagon. Assumptions represent risks that must be either managed (or mitigated, e.g. by developing another initiative). Developing a Value Map Tips for the development of a Value Map: The benefit of developing a Value Map is the conversations that it will facilitate and the clarity of logic that it forces. Development of the Value Map is where the benefit of the technique is derived; therefore it needs to be produced in consultation with key stakeholders. Use workshop techniques (including the 3 column analysis described above) to facilitate discussion and obtain agreement with the stakeholders who will have knowledge of the outcomes, initiatives and assumptions surrounding the program. Develop a straw man Value Map for validation with key stakeholders. Use the graphical image as an artefact to have a conversation. Use the Value Map as the focus with stakeholders to ensure: o All the stakeholders understand the scope, contribution and outcomes; o All the risks/assumptions are out in the open; o All the necessary initiatives have been identified; and o All the aspects of people, process, organisation, technology, citizens, partners and suppliers have been considered. All are necessary to deliver business benefits.
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The figure below sets out a sample Value Map for an Agencys Supply Chain Management ICT Enabled Change Investment.
Figure 10 - Sample Value Map
Department of Services, Technology & Administration
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6 Appendix B - Potential Benefits Listed by Category

6.1 Increased Effectiveness
Community Expectation for Improved Service It may be possible to quantify benefits in terms of time saved. If so, quantitative performance indicators and measures must be defined to demonstrate that benefits have been achieved. Benchmarking may be undertaken to achieve this, otherwise, it will be necessary to define qualitative indicators that can be assessed through methods such as customer satisfaction surveys. Wider Range of Services An investment in ICT to support a wider range of services must demonstrate that there is a demand for the additional services. It must identify how the service will contribute to the achievement of Government outcomes, and benefit the community in general. An additional tangible benefit to the agency may be in terms of cost avoidance. Tailored Services An agency providing direct service to the public may propose an ICT investment to enable it to provide a better, customer-focused service through tailoring its service delivery. Benefits would need to be related to Government outcomes, the Results and Services Plan and community benefits to the agency. Geographic Access to Services As extended hours of operation and maintaining remote location operations with traditional methods are expensive, an investment in an ICT solution may be efficient and effective. A key benefit is increased community services at an affordable cost. The cost avoided in providing equivalent services through traditional means is a valid tangible benefit that can and must be quantified. This can include delivering increased services with the same number of resources, in which case the service improvements should be defined. New Legislation or Regulations Introduced ICT investments are, at times, driven by new legislation or changes to existing legislation or regulations. Even though the development of systems may be seen as a mandatory result of the Government policy, it will still be necessary to identify the benefits associated with the use of ICT. This will ensure that the most appropriate and cost-effective solution is selected and that there are performance measures available against which the success of the implementation can be measured. The benefits can include decreased cost of service or increased service delivery with existing resources and budget. Equity of Access Policies For ICT investments which are intended to address equity of access issues it will be necessary to align them with current Government policies and desired program outcomes. As there may be limited overall benefit to the agency from such investments, it will be necessary to develop performance indicators related to the section of the community intended to benefit from the implementation of the system.
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6.2
Increased Efficiency
Decreased Real Operating Budget A reduction in annual operating budget may drive an agency to reduce the number of staff, close or otherwise limit service locations or alter the process by which services are delivered. An investment in ICT may allow these reductions to be achieved without a commensurate loss of service quality. The benefits from this are direct and realised through the ability to sustain budget reductions whilst maintaining an acceptable service level. Current operating costs (and performance indicators) need to be documented, as well as revised operating costs to show savings. Competition for Resources Competition for scarce resources may mean that an agency has to invest in systems which reduce the resources required to continue to operate one or more business processes. The benefit here is reduced operating costs in the business processes. This needs to be demonstrated by documenting current operating costs and performance indicators and predicted future operating costs and performance indicators. The realisation of the benefit is measured through reduced operating costs and/or maintained or improved performance indicators in the operational area supported by the system. Demand Growing Faster Than Resources If demand for a service is growing faster than the available resources to support the service it may be necessary to invest in ICT to allow greater levels of service delivery within constrained resources. The benefit in this instance is basically one of avoided cost. The investment in ICT is less than the avoided cost of making an alternative investment in other less effective technologies and / or greater staff numbers. The benefits can also include increased service delivery with existing resources and budget. Changes in Technology Price/Performance In order to identify the benefits of replacing equipment, it is necessary to document all costs of current equipment, costs of proposed equipment and the savings to be derived. Then it will be necessary to demonstrate how these savings will be realised. For example, will the savings be realised as a reduced recurrent budget, by repaying a loan for the original investment, or by increasing capacity to support extra services within the current budget.
6.3
Enabling
Infrastructure to Support Multiple Projects An agency may need to invest in a replacement or major upgrade of its ICT infrastructure. There may not be a single project or business initiative which can be identified as the source of benefits to justify the investment. However, there could be a series of projects, related to specific business initiatives, which are relying on the development of the infrastructure to proceed. In this case there must be a clear strategic and business need for the ICT investment. The Asset Strategy and Total Asset Management Plan must also support the proposal. The benefits must be drawn from the specific business programs that will rely on the investment. Support for Business Process Re-engineering The benefits from Business Process Reengineering (BPR) are significant and generally include order of magnitude cost reductions. The identification of the tangible benefits should be clearly documented in terms of staff savings, operational cost reductions or other quantifiable performance measures.
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Benefits Realisation Guideline 6.4 Survival
Breakdown of Hardware or Software Supporting Core Business Services There must be a very good case made to support the argument that the systems are crucial to continued operation and that breakdown is imminent if it has not already occurred. Replacement of such systems must also be consistent with the Asset Strategy and Total Asset Management Plan. In the case where breakdowns have occurred, a tangible benefit may arise from the minimisation of costs associated with operating alternate procedures (e.g., running systems on a commercial bureau at commercial rates) or repairs and ongoing maintenance costs. Loss of Support for Hardware/Software on Which Core Business Processes Rely The benefit of investing in changes of an ICT system in this instance is a reduction in business risk. Tangible benefits may be identified in terms of the possible costs associated with business disruption. These benefits will need to be appropriately adjusted to account for the probability of particular failure scenarios occurring, including any notice in writing from suppliers, vendors or maintenance providers, and the cost of disruption to service delivery.
6.5
Research and Development
Emerging Technology The benefit deriving from an investment in emerging technology would need to take into account the potential benefits from adoption of the technology, the risks involved with early adoption and the costs related to delayed adoption. The benefits must still be consistent with and support the ICT Strategic Plan and strategic and business objectives and Results and Services Plan outcomes. Benefits need to be measured in terms of the business benefits (not technology outcomes). Community Expectations There may be community expectations that services will be delivered via new technologies similar to private sector services. Where pressure is exerted to adopt advanced ICT solutions in the public sector, it may be appropriate to undertake a pilot project. The pilot may be used to prove the concept, develop appropriate relationships with suppliers, and develop the expertise required for wider adoption. The benefits need to be treated in the same way as for piloting an emerging technology. Changing Operational Environment As technology evolves, an agency may find itself in a situation where it wishes to explore the benefits of moving from an older technology with a limited horizon to a newer, more stable technology. The agency, however, may be unwilling to commit to the change without first trialling the new environment on a minor application. It may not be possible to justify the costs associated with the move to the new environment solely on the benefits derived from the minor application. In these circumstances it may be possible to justify the investment on the basis of the Research and Development aspects of the pilot project. This would need to be clearly stated in terms of the goals of the program and/or project and the business benefits delivered.
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7 Appendix C Template Benefits Realisation Plan
Benefits Realisation Plan

For
<Program Name>
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Document Ownership Information
Document Owner Document Preparation Document Confidentiality
Document Name and Version Control (Circulated versions only)

Document Name & Location Version Date Author Changes Included
Distribution List
Name Title, Department
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Document Purpose For the <Insert Program Name> program, this document has two purposes: 1. To define the governance framework that will provide oversight for the whole benefits realisation life cycle; and 2. The plan to deliver the identified and agreed benefits The approach to Benefits Realisation outlined in this Plan is based on the following fundamentals: Benefits are net positive changes in outcomes. The program aims to deliver a number of outcomes (desired changes in state; being either intermediary or strategic outcomes) a number of which are identified as being the benefits to the organisation. ICT is an enabler for business benefits. ICT provides technology capabilities, but is insufficient by itself to deliver business benefits. Technology enables changes to the way people work, with new processes and new ways, and this needs to be managed as a program of business change. Benefits are not automatic. Benefits realisation is beyond project management, and requires active monitoring of the delivery of projects, the effectiveness of change and the achievement of outcomes. Change management must be integrated. Benefits can not be delivered without business change. So there must be a strong linkage between change management and benefits realisation. Benefits are long term. Benefits will flow over a period of time as people learn to use the new technology and systems and integrate it into business processes. Benefits realisation is a long-term process extending beyond the life of component projects. Benefits will change. Benefits rarely occur as planned and the organisation has to establish a process for actively monitoring the benefits and actively managing the realisation of benefits, continuous process over the life of a program. Benefits Realisation requires governance. The benefits realisation process will inform the program business case and program plan, and this needs to be synchronised. Benefits processes must be linked with program governance. Defining the Benefits Realisation Governance Framework For benefits realisation to be successful there must be established and maintained foundational governance structures, processes and responsibilities to ensure that the benefits will be managed though the whole life cycle of investment. This foundational benefits realisation governance must be developed with a practical eye as to the size of the investment (both its spend and potential benefits), and the capability of the agencys business sponsor and staff to effectively manage the benefits realisation process.
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Purpose and Objective of the Benefits Realisation Plan The Benefits Realisation Plan (BRP) is used to define the benefits of the overall program of work and responsibilities for their realisation, measurement and reporting. The objective of the Benefits Realisation Plan is to ensure those involved in the implementation (and a wider audience as required) have: A common understanding of the expected strategic outcomes of the program; Identified the key implementation outcomes and secondary/intermediate outcomes, who will be accountable for the outcomes benefits and how they will be measured; Record which initiatives will be required to ensure the delivery of the expected outcomes, who will be accountable for their implementation and their completion timeframe; Captured the detail of the overall program outcomes that can be referenced and broken into more detail in the individual project business cases; and Identified key assumptions and risks around the delivery of the expected outcomes, the strategies that will be implemented to mitigate them and who will be accountable to implement those strategies. The Benefits Realisation Plan includes high level information about the proposed types of benefits applicable for the key outcomes and where possible, it will also include detailed metrics, including targets, baselines and timelines for the benefits to be measured. A diagrammatic view of the linkages and delivery of the outcomes from the successful implementation of the program is documented using the Value Map approach. Appendix A contains the Value Map for <Insert Program>, that has been prepared through broad stakeholder consultation and input. A Benefit Register is contained in a separate document. This is brief documentation for each outcome on the Value Map. Where applicable, the benefit metric information will be recorded, but for the majority of outcomes that will not be tracked as part of the Benefit Realisation Plan, this is just a brief summary of the outcome. Roles and Responsibilities for Benefits Realisation: Identify who will be Accountable for the Benefits Realisation for this program. Identify who will be Responsible for managing and undertaking the realisation of the benefits from this program. Structure within which Benefits Realisation will be managed: Identify and briefly explain the governance structure within which the Benefits Realisation function will reside (e.g. PMO, other governance bodies). Benefits Realisation Processes to be used: Identify the specific benefits realisation monitoring processes that will be used for this program. Confirm at what aspects of the program life cycle these processes will be applied e.g. updating the business case periodically.
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Resources and budget identified to undertake Benefits Realisation Identify the (named) resources who will undertake the benefits realisation activities for this program. Confirm these resources have sufficient time to complete the tasks and have the capability to undertake the tasks. Are there other types of resources needed? Confirm there is sufficient budget for these resources to undertake the tasks. Assumptions, Issues and Constraints Describe the assumptions, known issues and constraints associated with the realisation of the benefits. Benefits Delivery Plan This plan outlines for each key outcome (considered a benefit) of the program: Baseline and target measurements to be achieved for each outcome (the benefit); A description of how each benefit will be measured; The expected delivery schedule for each benefit; An overview of the monitoring capabilities required to measure each specified benefit, along with details explaining how each capability will be delivered; An explanation of the risks that may threaten the achievement of each benefit and how the threat will be handled. This section presents the documentation for each of the key outcomes and the metrics that may be used for measuring their success. Where appropriate, other outcomes from the Value Map, not deemed essential to measure, will be incorporated into a key outcome as an additional metric and labelled using both outcomes numbers. It is not expected that all metrics will be measured, baselined and tracked. The summary of the outcomes in this BRP below sets out the outcomes that are recommended for tracking. Please note the first draft of the BRP will not have some sections completed. These will be completed as part of the Benefits Realisation Process. Complete this section for each key outcome and benefit identified.
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[Key Outcome / Benefit #1 Insert Benefit Name Here] Outcome Summary Objective: Organisational Goal: Description: Outcome Category: Incl. in Business Case? Outcome Name Organisational Goal/Metric this benefit contributes to A Brief description of the outcome (benefit) to be achieved. As per the Value Map legend for type/colours of the outcomes. Select from: Yes / No Will the outcome be documented in the business case? Select from: Yes / No / Unsure Tracked Status? Will the outcome be measured and tracked? The result of the metric assessment will be included in the business case. Select from: Financial / Non-Financial / Milestone Financial: Can be translated into dollars, but may not be reflected in the current balance sheet. Non-Financial: Provides a view of successful Financial Status: delivery of an outcome, but is not translated into financial metrics, e.g. customer satisfaction. This will also cover defined intermediate outcomes. Benefit Type: Milestone: An outcome that will be reflected in the program plan. Select from: Lasting / Increasing / Once-Off Lasting benefit: A benefit that is achieved early and continues, e.g., software maintenance fee no longer required Increasing benefit: A benefit that develops further over time, e.g., customer adoption of new capabilities. Once-Off Benefit: A benefit that only occurs once, e.g. a one off cost saving or milestone.
Continuity Status:
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Measurement Detail and Capabilities

# Measurement Description Baseline Measure The current state Target Measure The target state Target Start Date Start measure when?
Frequency
Target Finish Date Finish measure when?
Description of measurement
How often?
Outcome Realisation Capability and Measurability

Realisation: Major activities required to finalise and formalise the realisation of the outcome. This will be documented as part of the Benefit Realisation process. Specific tasks and infrastructure required to quantify and measure the metrics for this outcome. Other outcomes and/or other projects that are linked to this outcome.
Measurability: Dependencies:
Roles and Responsibilities

Responsibility Outcome Owner Measurement of Outcome Reporting of Outcome Other Name Title and Business Unit
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Monitoring Capabilities: Outline the capabilities required, addressing the following: What needs to be developed to get the measurement information? Who will develop and implement the monitoring capability and how will it be developed and implemented (is this represented as a task in any of the projects/initiatives within the program)? What (if any) cost is involved in providing the monitoring capability? What actions need to be taken on a regular basis to provide the information? Who will be responsible for these actions? Risks What factors could threaten the achievement of this outcome or benefit? Under what circumstances could these factors arise? What will be done to mitigate these risks? Notes Include dependencies and other notes here. Delete this section if not required.
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8 Appendix D Template Benefits Register

Attached below is a template Benefits Register. This tool will need to be tailored to the particular program and benefits to be tracked. Please see section 2.5.1 for detailed steps on how to complete this template.
GCIO Benefits Register.xls
Completion of the Benefits Plan in the Benefits Register template will automatically generate the following Benefits Report.
Benefits Report
Project Name: Version: Outcome ID
ex - 101 xyz project 0.01
Reporting Period: Prepared by: Variance Current Explanation Action
Outcome Description
This is an example outcome.
Measure Name
Total Cost of Operations
-10,000
High level of staff sick days this period
provide vaccination facility
# or reams of paper consumed
25
Figure 11 - Report generated by completion of Benefits Register
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9 Appendix E Suggested Further Reading

Bartlett, John , Managing Programs of Business Change, Project Manager Today Publications 1998, 3rd edition John Ward and Elizabeth Daniel, Benefits Management Delivering Value from IS and IT Investments Cranfield, 2006 Murphy, Tony Achieving Business Value from Technology Gartner 2002 Managing Successful Programs: Office of Government Commerce, UK web site. Thorp, John, The Information Paradox - Realizing the Business Benefits of Information Technology, McGraw-Hill 1998, Revised 2003. The book can be downloaded from http://www.fujitsu.com/ca/en/news/publications/books/ip.html
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NSW Department of Finance and Services ICT Policy Branch McKell Building 2-24 Rawson Place Sydney NSW 2000 T: 02 9372 8877 F: 02 9372 8640 TTY: 1300 301 181 www.services.nsw.gov.au

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Thursday, June 30, 2011