Benefits Identification, Assessment, Validation and Realisation for Information Technology Projects

1. Benefits Identification,
Assessment, Validation and
Realisation for Information
Technology Projects
Alan McSweeney

2. Objectives
• Discuss approaches to understanding, evaluating and
achieving benefits identification, assessment, validation
and realisation
• Define approach to achieving benefits identification,
assessment, validation and realisation maturity
• Implementing a benefits identification, assessment,
validation and realisation framework
July 1, 2010 2

3. IT and Benefits Realisation and Business Value
• Most organisations focus on the implementation of technology
associated with information technology investments and not on the
realisation of expected business benefits and value
• IT is commonly seen as failing to deliver value for money
• Benefits are not being achieved despite a project being considered a
technical success
• One source of this failure to realise benefits and value is the use of
approaches and methods that focus on improving the supply-side of
IT delivery
• There is a need to engage business managers in such a way as to
enables them to apply their collective knowledge to creating
business benefits and value from IT-facilitated changes
• Realising and assessing business benefits from IT-enabled
investments involves more than simply assessing Total Cost of
Ownership for IT-related projects and managing the IT budget
July 1, 2010 3

4. Disconnect Between IT Investments and Business
Value and Benefits
• 62% of organisations say they find it difficult to calculate
ROI for IT investments
• 45% of organisations say their business value metrics do
not accurately capture the value of IT investments
• 52% of organisations say that business executives are
sceptical of efforts to measure business value of IT
• Only 41% of organisations perform an ROI assessment for
IT budget
• Poor picture of IT investments and disconnect between
expenditure and business benefits
July 1, 2010 4

5. Ensuring Strategic Project Alignment to Projects
Business Strategy
Business Vision and Link Projects to
Goal Business IT Strategy and
Benefits and Delivery
Business Value
Strategy
Business Plan
Managing
the IT
Managing IT Budget
Like a
Business Closing the
Loop Between
Cost and
Demonstrate Value
Achievement of Managing
Business Benefits and
and Business Value Delivering IT
Capability
Managing IT for Realising
and Assessing Value
July 1, 2010 5

6. Benefits Management
• Benefits management is the process of organising and
managing so that the potential and identified benefits
arising from the use of IT are actually achieved
• Need a comprehensive framework to embed business
benefit and business value achievement
• Need to ensure maturity of business value and benefit
identification, assessment, validation and realisation
practices and structures
July 1, 2010 6

7. Benefits of a Structured Approach to Benefits Identification,
Assessment, Validation and Realisation
• Enables organisations to clearly and consistently articulate
IT’s contribution to achievement of business objectives
• Increases confidence in IT’s ability to forecast and achieve
business value from IT investments through consistent and
objective benefits processes including tracking and control
• Addresses management culture required to make
decisions, take corrective actions and communicate results
to increase management confidence in IT’s ability to
deliver
July 1, 2010 7

8. Realising Benefits from IT Investments
• Fundamental principles of realising benefits from IT investments
− Just having information technology does not automatically generate any
business benefits or create business value
− IT projects can generate negative outcomes that must be actively avoided and
IT must work to ensure that positive outcomes are converted to deliver real
business benefits and value
− Benefits and value are not the automatic outcomes of IT projects and must be
actively managed for throughout the life of the solution
− Benefits arise when IT enables people to perform their work more efficiently or
effectively or do new work or enable new ways of working
− Only business managers and users can generate business benefits by making
changes so the business must accept this responsibility and become involved in
projects with an IT components
• These principles must underlie benefits a benefits identification,
assessment, validation and realisation framework
July 1, 2010 8

9. Benefits Identification, Assessment, Validation and
Realisation Framework
Identify Assess
Potential Identified
Benefits and Benefits and
Associated Associated
Value Value
Ensure
Realisation Validate
Benefits and Benefits and
Associated Associated
Value Value
July 1, 2010 9

10. Effective Benefits Identification, Assessment,
Validation and Realisation Within the IT Function
Structures,
IT Leadership and processes and ability Total Cost of Budget
to make decisions to Benefits from IT
Governance Ownership projects are Management
review and adjust
benefits realisation important to budget
plans Definition of creation and
organisation’s strategic management
objectives as basis for
IT demand
Ability to
Definition of Benefits evaluate
organisation’s Identification, benefits of
strategic Funding and
Strategic Planning
objectives as
Assessment, opportunities Financing
Validation and is important to
basis for IT decisions on IT
demand Realisation
funding
Practices to support the
organisation in assessing and
monitoring the risk
Capabilities to throughout the IT function
develop and Making effective
update benefits portfolio planning
Programmme and realisation plan and prioritisation Portfolio Planning
Project for programmes Risk Management decisions requires and Prioritisation
Management benefits valuation and Management
and projects
July 1, 2010 10

11. Achieving Benefits
• To increase the likelihood of success from IT investments,
organisations must identify the different causes of benefits before
developing any project implementation plan
• Types of IT projects with very different approaches to benefits
management
− Fixing or improving something that exists
• Resolve problem
• Improve integration
− Implementing a new initiative
• New system
• New processes
• Need to focus on the changes needed to achieve results and take full
advantage of new facilities offered rather than on IT features
• Effective change management is crucial to achieving benefits
July 1, 2010 11

12. Achieving Benefits – Some Questions to Ask
• Why is there a need to improve?
• What improvements are needed? What improvements are possible or achievable?
Have the improvements been agreed by all stakeholders?
• What benefits will be realised by each stakeholder if the business objectives are
achieved? How can each benefit be measured?
• Who owns each of the benefits and will be accountable for its delivery?
• What business changes are needed to achieve each benefit? Have the explicit links
between each benefits and required business changes been identified?
• Who will be responsible for ensuring the business changes are made successfully?
• How and when can the changes be made? Who will make the changes? Does the
business have the ability and capacity to make the changes?
July 1, 2010 12

13. Benefits Dependency Network
• Benefits Dependency Network (BDN) is an approach to linking:
− Information Technology Enablers, Changes and New Capabilities – enabling
technologies and functions and facilities needed to support the realisation of
the identified benefits and to allow the necessary changes to be undertaken
− Business Changes – business activities and new ways of working that are
required to ensure that the desired benefits are realised
− Enabling Changes - prerequisites for achieving the business changes or that are
essential to bring the new system into effective operation
− Business Objectives - high level priorities in relation to the drivers, outcomes
and improvements to be delivered on completion of the project
− Business Benefits - outcomes of a change that are deemed to be positive by a
stakeholder and that are valuable to the organisation and are measureable
− Stakeholders - individuals or groups who will benefit from the project and are
either affected by or directly involved in making the changes needed to realise
the benefits
July 1, 2010 13

14. Types of Changes
• Business Changes - Permanent changes to working
practices, processes, procedures, interactions and
relationships that will cause the benefits to be delivered
− Generally need new IT system to be in place
− May require enabling changes to be implemented
• Enabling Changes - Typically one-time changes that are
pre-requisites for making the business changes or are
necessary to bring the new system into effective operation
− Can be made in advance of system implementation
− Training
− Processes redesign
− New work practices
− Changes to job roles and responsibilities
July 1, 2010 14

15. Benefits Dependency Network
Provide for
Require Allow Enable Delivery of
Information
Technology
Enablers, Enabling Business Business Business
Changes and Changes Changes Benefits Objectives
New
Capabilities
• BDN provides a framework for explicitly linking the overall investment objectives
and the requisite benefits with the business changes which are necessary to
deliver those benefits and the essential IT functionality to both drive and enable
these changes to be made.
• BDN forms part of the benefits realisation plan
• Helps keep the focus on benefits realisation during the program execution
• Allows variations of the project or program to be assessed for their impact on
benefits realisation
July 1, 2010 15

16. Benefits Dependency Network
Means to Ways to Achieve Changes Results of Changes
Achieve
Changes
Information
Technology
Enablers, Enabling Business Business Business
Changes and Changes Changes Benefits Objectives
New
Capabilities
July 1, 2010 16

17. Benefits Dependency Network
Understand Why the Business Will Use the Information Technology System
What What the Why the
What Users What
Information Business Business
Do With Information
Technology Gains From Uses The
Information Technology
Capabilities Information Information
Technology Capabilities
and Features Technology Technology
Capabilities Achieve
Offer Capabilities Capabilities
Understand What Information Technology System is Needed to Deliver on Requirements
What What the
Information What the What the What the
Business
Technology Business Has Business Business
Needs to
Capabilities to Do Needs To See Wants
Provide
Are Required
July 1, 2010 17

18. Benefits Dependency Network
• Shows the link from the solution, through business activities,
outcomes and benefits to the organisation's overall drivers
• Used to confirm that the solution being introduced will actually
provide the results you are seeking
• Any function within the proposed solution that is not linked to a
benefit is potentially of doubtful value
• Functions with many link or links to key benefits can be identified
and given extra attention
• BDN is a complex approach that requires benefit identification,
assessment, validation and realisation maturity within the
organisation
• Imposes a rigour on the organisation in analysing benefits from
projects
July 1, 2010 18

19. Constructing a Benefits Dependency Network
• Create registers for:
− Business Objectives
− Business Changes
− Business Benefits
− Information Technology Capabilities
− Enabling Changes
− Stakeholders
• Define, validate and create linkages
July 1, 2010 19

20. Constructing a Benefits Dependency Network
IT Business
Enabling Business Business
Capability Objective
Change 1 Change 1 Benefit 1
1 1
IT Business
Enabling Business Business
Capability Objective
Change 2 Change 2 Benefit 2
2 2
IT Business
Enabling Business Business
Capability Objective
Change 3 Change 3 Benefit 3
3 3
IT Business
Enabling Business Business
Capability Objective
Change 4 Change 4 Benefit 4
4 4
IT Business
Enabling Business Business
Capability Objective
Change 5 Change 5 Benefit 5
5 5
July 1, 2010 20

21. Key Building Blocks of Benefits Identification,
Assessment, Validation and Realisation Framework
Establishing a common language for business value and benefits
between IT and the business
Using objective, consistent and accepted benefits and value
Benefits Planning evaluation methods
Enabling better investment decisions through robust business cases
and comparable data across programmes and projects
Tracking benefits between baseline / forecast and post-deployment to
ensure that benefits are delivered proves the value IT investments
deliver to the bottom line
Benefits Process Adopting objective and reliable value measurement methods and
validated data to ensure consistent reporting across all investments to
demonstrate that IT can enable the delivery of business value
Embedding benefits management and realisation processes in wider
management and decision-making processes
Benefits Culture Engaging with stakeholders to improve management confidence in
the ability of IT enables investments to deliver measurable business
value
July 1, 2010 21

22. Structure of a Comprehensive Benefits Identification,
Assessment, Validation and Realisation Framework and
Associated Organisational Skills
Benefits Identification,
Assessment, Validation
and Realisation
Framework
Benefits Planning Benefits Process Benefits Culture
Establishing a Business Establishing a Benefits Implementing and Using
Value Language Forecasting Capability Standard Benefits Process
Creating Benefits Establishing a Benefits Using Business Value Data
Templates and Guidance Realisation Capability in Decision Making
Business Value Tracking
and Reporting
July 1, 2010 22

23. Benefits Identification, Assessment, Validation and
Realisation Organisational Skills
Establishing a Business Value Adopting a business benefits metrics as common language of describing
business value between business and IT to consistently capture business benefit
Language is important for alignment of objectives
Creating and then using standard templates to ensure consistent and objective
Creating Benefits Templates and benefits evaluation and measurement is important to allow comparison of
Guidance investments in prioritisation decisions and organisation-wide consistent value
reporting
Establishing a Benefits Forecasting Establishing a capability to support benefits forecasts with reliable business
value data including a capacity for calculation of intangibles and benefit risks is
Capability important in the benefits planning process
Establishing a Benefits Realisation Establishing a capability to identify benefits dependencies and assign clear
accountabilities for value realisation, measurement and reporting is important
Capability in the benefits planning process
Business Value Tracking and Establishing a capability to measure benefits over lifecycle of investment,
review results and adjust if required within dynamic of business environment is
Reporting important in the benefits planning process
Implementing and Using Standard Implementing and embedding the use of a standard benefits realisation process
and uses benefits realisation data in other processes, e.g. budgeting and
Benefits Process portfolio management is important for achieving a sustainable benefits culture
Using Business Value Data in Ensuring the use of business value results in investment decision making and
ensuring investment decisions are based on solid business cases is important for
Decision Making achieving a sustainable benefits culture
July 1, 2010 23

24. What Does Benefits Identification, Assessment,
Validation and Realisation Maturity Look Like?
• Using consistent set of business benefit metrics and templates to
both develop effective business cases that can be compared for
risk/value/cost decision making
• Creating and using a common value language, metrics and guidance
for business case and realisation plan development and execution
• Be able to create and execute benefit realisation plans, from which
delivered value can be tracked, measured and reported on
• Implementing benefits identification, assessment, validation and
realisation across the organisation
• Leveraging performance results and reporting feedback to maintain
consistency, reduce risk and drive overall realised business value
• Provide a business value function that can help drive best practice,
readiness and consolidate and report both business and benefit
realisation maturity investment results, to help embed benefit
realisation as part of normal business operations
July 1, 2010 24

25. Benefits Management Maturity Levels
5 Optimising
4 Advanced
3 Intermediate Increasing
Business
Value
2 Basic
1 Ad Hoc
July 1, 2010 25

26. What Does Benefits Identification, Assessment,
Validation and Realisation Maturity Levels
Level 1 Level 2 Level 3 Level 4 Level 5
Business value vocabulary and
Isolated and sparse Business value Business value language Business value
language pro-actively
Establishing a Business use of business value language agree but in linked to business unit language are aligned
enhanced to maintain
Value Language language limited use goals to enterprise goals
alignment to extended
Benefits strategic objectives.
Planning Business case
Business case Templates pro-actively
Creating Benefits Ad hoc use of business templates are aligned
No templates or templates/ guidance enhanced to maintain
Templates and Guidance case templates/ to enterprise goals and
guidance in use used in IT and business alignment to extended
guidance are now mandatory for
units enterprise strategic objectives#
enterprise investments
Organisation ensures Benefits management
No benefits Linking IT to business IT and business
Establishing a Benefits formal benefits training used and adopted across
forecasting capability benefits is limited alignment is reinforced
Forecasting Capability and use of value the extended enterprise
with formal training
assessment,
No consistent Organisation ensures Business cases and
Limited informal IT and business
Benefits Establishing a Benefits encouragement for formal benefits training stakeholders optimise value
training and isolated alignment is reinforced
value focus nor and tracking and from investments and
Process Realisation Capability
training provided
adoption with formal training
reporting of realised experience from investment
value reviews
Basic business cases Investment decisions are Defined business value Business cases and
Business Value Tracking with no real value functionally driven to guidance, templates and investment reviews Very high confidence in
and Reporting secure budgets support decision- benefits process and results
tracking or reporting processes
making and delivery of from senior management
stakeholder benefits
Few consistent Templates used for
measures available investment Organisation has an Defined processes Defined processes with
Implementing and Using clear ability to adapt and
for investment value assessment with improving capability in across business and IT
Standard Benefits Process extend
assessment or quality inconsistent benefits planning domains
Benefits checks application Business value
Culture Limited tracking of validated by Business value claims
Using Business Value Data Limited benefits from benefits and project stakeholders with are consistently Collaboration with
in Decision Making benefits realisation reporting and investments, assessed validated and extended enterprise
assessment communications on financial and non forecasting allowing
July 1, 2010 financial performance ease of comparison 26

27. Improving Benefits Identification, Assessment,
Validation and Realisation Maturity
What to Do
Set up standard business Set up system to analyse
Implement control system
realisation plan and simulate business value
to constantly measure
Set up common business effects of it projects
business benefits over
benefit metrics Create alignment process
project lifetime
for business realisation plan Install process to
Set up standard business with all stakeholders and continuously review and
Define project adjustment
case template and business objectives update bar process
process
consistent benefits
valuation process Measure business benefits Exploit benefits realisation
Implement IT business
metrics pre- and post- data to improve other IT
value reporting system
implementation capabilities
1 Ad Hoc 2 Basic 3 Intermediate 4 Advanced 5 Optimising
Allows proactive
Allows adjustments of IT adjustment of IT
Ensures accountability for investments with changing investments based on
Allows alignment of business benefits realisation business or IT situation business needs or new
business and it objectives on IT and business capabilities available
with performance criteria stakeholders Increases overall confidence
in business benefits Allows detection of
Enables like-for-like Demonstrates business measurement business benefits
comparison of competing benefits delivered and
investment decisions enabled from IT Allows reliable reporting of Creates basis for business
investments IT’s business value value indicated
contribution to the business improvements of other
processes
What Are the Benefits
July 1, 2010 27

28. Types of Project
• Fixing or improving something that exists
− Resolve problem
− Remove constraint
− Improve integration
• Implementing a new initiative
− New system
− New processes
• Each types of IT projects has a different approach to
benefits management
July 1, 2010 28

29. Project – Fix an Existing Problem
Identify the combinations of IT facilities,
2 business changes and enabling that can Define the improvement targets
contribute to achieving each of the and potential business benefits
benefits 1
Means to Ways to Achieve Changes Results of Changes
Achieve
Changes
2 1
Information
Technology
Enablers, Enabling Business Business Business
Changes and Changes Changes Benefits Objectives
New
Capabilities
3
Design and agree on solution that combines the
3 most cost effective and low risk mix of IT and
business changes to achieve the key benefits
July 1, 2010 29

30. Project – Implement a New Solution
Define IT solution
3 that enable the Describe the new ways of
changes 2 working and the benefits
1 Create an overall vision
these will deliver for the new solution
Means to Ways to Achieve Changes Results of Changes
Achieve 3 2 1
Changes
Information
Technology
Enablers, Enabling Business Business Business
Changes and Changes Changes Benefits Objectives
New
Capabilities
4
Assess the feasibility of making each of the
changes and of achieving each of the benefits
July 1, 2010 30

31. Business Case and Benefits Management
• An appropriate business case is needed to support a decision to make an
investment in a project, programme or change
• Preparing the business case so it can be presented for agreement requires a clear
understanding of the proposition in terms of scope, objectives, options,
implementation and investment and return
• Purpose of a business case is to capture the reason and justification for initiating a
project
• Business cases should be appropriate to the size and scope of the project as well
as the needs of the organisation
• Key elements of any business case should be the background of the project, the
expected business benefits, the options considered (with reasons for rejecting or
carrying forward each option, including the option of doing nothing with the costs
and risks of inactivity), the expected costs of the project, the tangible savings, a
gap analysis and the assumptions and expected risks
• Business case represents the apex of an analysis, design and planning exercise
July 1, 2010 31

32. Business Case Generation Process
• Confirm scope and requirements outputs
and scheduled Solution
• Identify, analyse and document business, Implementation
functional, technical and implementation Options and
requirements and analyse existing Selection
processes and systems impacted by the Scope Definition and
proposed investment Agreement
• Design a logical solution to meet the
defined and agreed requirements Implementation
Plan Roadmap
• Analyse the options for implementing the
solution – package acquisition and Requirements
customisation, existing system upgrade, Analysis, Definition
system development
and Agreement
• Create a realistic plan to implement the Financial Analysis
solution, incorporating resource
requirements and constraints and includes
risk, assumptions and dependencies Solution
Architecture
• Quantified the full costs to implement and Specification and
operate the solution and identify the Design
tangible savings Business
Case
July 1, 2010 32

33. Elements of Business Case
Business need and its contribution to the organisation's business strategy
Strategic Fit Key benefits to be realised
Critical success factors and how they will be measured
Cost/benefit analysis of realistic options for meeting the business need
Options Evaluation and
Statement of possible soft benefits that cannot be quantified in financial terms
Identification
Identify preferred option and any trade-offs
Proposed sourcing option with reasons
Procurement and Key features of proposed commercial arrangements
Implementation
Procurement approach/strategy with supporting details
Statement of available funding and details of projected whole-life cost of project
Whole-Life Costs (acquisition and operation), including all relevant costs
Expected financial benefits
Plan for achieving the desired outcome with key milestones and dependencies
Contingency plans
Plan for Achievement Risks identified and mitigation plan
External supplier plans
Resources, skills and experience required
July 1, 2010 33

34. Implementing Benefits Identification, Assessment,
Validation and Realisation
• Key requirements
− Ability to get lifetime costs right
− Ability to define benefits correctly and effectively
− Ability to manage the benefits management process
− Ability to increase and sustain benefits management maturity
• Use existing methodologies and frameworks to implement key
requirements quickly
− ITIM
− Benefits Dependency Network
− ValIT
− Organisational change and commitment
• Create customised integrated approach to suit the needs of your
organisation
• Adapt and simplify as required – take the best and most suitable
elements
July 1, 2010 34

35. Ability to Get Lifetime Costs Right
• Key requirement – no point in having effective benefits
management framework if project costs are not accurate
and realistic
• Use ITIM methodology – strong focus on cost management
July 1, 2010 35

36. Characteristics of Credible Cost Estimates
• Clear identification of requirements of the ultimate deliverable
• Broad participation in preparing estimates
• Availability of valid data for performing estimates – historical,
experience, benchmarks
• Standardised and comprehensive estimate structure that includes all
possible sources of cost
• Provision for uncertainties – include known costs explicitly and allow
for unknown costs
• Recognition of inflation
• Recognition of excluded costs
• Independent review of estimates for completeness and realism
• Revision of estimates for significant changes in requirements
July 1, 2010 36

37. Challenges of Developing Good Cost Estimates
• Requires detailed, stable, agreed requirements
• Agreed assumptions
• Access to detailed documentation and historical data for
comparison
• Trained and experienced analysts
• Risk and uncertainty analysis
• Identification of a range of confidence levels
• Adequate contingency and management reserves
July 1, 2010 37

38. Reasons for Good and Bad Cost Estimates
Ineffe
and U ctive Risk
Effect ncer
i ve
Unce Risk and Unfa Analy tainty
r ta Techn miliar s is
Ident
ificat Analy inty First- ology or
s is
Rang ion of a Time
Use
Probl
em
Confi e of De Acces s Getting
dence
Level Docu tailed s to D
m ata Unre
s and H entation Unre
Proje asonable
Adeq
ua istor Train Unre alistic or ct Bas
Conti
ngen te Data ical e
Exper d and
liable
Data Unre elin e
Mana cy an ien
geme d Detai
led, S Analy ced Assumalistic
Reser nt sts No o ption
ves Agree table, Comp r Limited s Overo
Requ d ariso ptimi
ireme Agr Avail n Data sm
n ts
Assum eed able New
ption Pr ocess
s e s Untra
Proje Inexp ined and
ct Ins er ie
t abilit
y Comp Analy nced
le sts
or Te x Project
chnol Unre
ogy alistic
Savin Project
gs
• Lost of reasons for and causes of inaccurate cost estimates
July 1, 2010 38

39. Sources of Risk and Uncertainty in Estimating Costs
• Lack of understanding of the project requirements
• Shortcomings of human language and differing
interpretations of meaning of project
• Behaviour of parties involved in the cost estimation
process
• Haste
• Deception
• Poor cost estimating and pricing practices
July 1, 2010 39

40. Ability to Define Benefits Correctly and Effectively
• Use an approach such as Benefits Dependency Network
July 1, 2010 40

41. Ability to Manage the Benefits Management Process
• Use elements of ValIT framework
− IT-enabled investments are managed as a portfolio
− IT-enabled investments include the full scope of activities that are needed to
achieve business value
− IT-enabled investments will be managed through their full life cycle
− Value delivery practices recognises that there are different categories of
investments that will be evaluated and managed differently
− Value delivery practices define and monitor key metrics to enable quick
response to any changes or deviations
− Value delivery practices engage all stakeholders and assign appropriate
accountability for the delivery of capabilities and the realisation of business
benefits
− Value delivery practices are continually monitored, evaluated and improved
July 1, 2010 41

42. Val IT Processes and Management Practices
Framework ValIT
VG – Value Governance PM – Portfolio Management IM – Investment Management
VG1 - Ensure Informed and Committed PM1 - Maintain Human Resource IM1 - Develop a High-Level Definition of
Leadership Inventory Investment Opportunity
IM2 - Develop Initial Programme
VG2 - Define and Implement Processes PM2 - Identify Resource Requirements
Concept Business Case
IM3 - Develop Clear Understanding of
VG3 - Define Roles and Responsibilities PM3 - Perform Gap Analysis
Candidate Programmes
VG4 - Ensure Appropriate and Accepted
PM4 - Develop Resourcing Plan IM4 - Perform Alternatives Analysis
Accountability
PM5 - Monitor Resource Requirements
VG5 - Define Information Requirements IM5 - Develop Programme Plan
and Utilisation
VG6 - Establish Reporting Requirements PM6 - Establish Investment Threshold IM6 - Develop Benefits Realisation Plan
VG7 - Establish Organisational PM7 - Evaluate Initial Programme IM7 - Identify Full Lifecycle Costs and
Structures Concept Business Case Benefits
PM8 - Evaluate and Assign Relative IM8 - Develop Detailed Programme
VG8 - Establish Strategic Direction
Score to Programme Business Case Business Case
IM9 - Assign Clear Accountability and
VG9 - Define Investment Categories PM9 - Create Overall Portfolio View
Ownership
PM10 - Make and Communicate IM10 - Initiate, Plan and Launch the
VG10 - Determine Target Portfolio Mix
Investment Decision Programme
VG11 - Define Evaluation Criteria by PM11 - Stagegate (and Fund) Selected
IM11 - Manage Programme
Category Programmes
PM12 - Optimise Portfolio Performance IM12 – Manage and track Benefits
PM13 - Reprioritise Portfolio IM13 - Update Business Case
PM14 - Monitor and Report on Portfolio IM14 - Monitor and Report on
Performance Programme Performance
IM15 - Retire Programme
July 1, 2010 42

43. Summary
• IT is commonly seen as failing to deliver value for money
• Benefits and value must be actively managed for
• Realising and assessing business benefits from IT-enabled investments involves
more than simply assessing Total Cost of Ownership for IT-related projects and
managing the IT budget
• Key requirements
− Ability to get lifetime costs right
− Ability to define benefits correctly and effectively
− Ability to manage the benefits management process
− Ability to increase and sustain benefits management maturity
• Use existing methodologies and frameworks to implement key requirements
quickly
− ITIM
− Benefits Dependency Network
− ValIT
− Organisational change and commitment
• Effective benefits management enables organisations to clearly and consistently
articulate IT’s contribution to achievement of business objectives
July 1, 2010 43

44. More Information
Alan McSweeney
alan@alanmcsweeney.com
July 1, 2010 44