These are some of the questions which Mike Reynolds, as Network Rail’s Group Investment Controller, set out to answer, and came up with a management tool to aid robust governance. He will explain some of the challenges and the importance of this work.

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Benefits Management, Network Rail
Benefits Management
Mike Reynolds
Group Investment Controller
Network Rail
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Network Rail
► Responsible for owning, maintaining and enhancing
the UK rail network.
► Driven by safety, performance and cost efficiency.
► Significant challenges to achieve deliverables of
funding settlement.
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Issues as set out in CEO escalation
Issues
Articulation of benefits is not completed in a consistent manner across
the business.
Benefits identified during early programme definition are not always
continually reviewed or maintained.
The recipients of change are not always committed to the benefits
specified
There is challenge around the tracking of intangible benefits
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4. Background
Currently tracking and realising the benefits from investment schemes,
primarily financial but also performance, safety and other qualitative
deliverables is not a transparent activity.
There is no corporate tool for tracking and reporting claimed benefits.
This leads to issues realising returns on investment, ensuring value for
money and directly attributing project successes; or learning from our
mistakes.
Previously the cash benefits have been tracked via look-back reports, close
out reports and pre-budget reductions.
There is an increase focus on returns and our ability to report successful
delivery of scheme objectives, maintain focus on commitments, remove
duplication of claims, justify investment and secure RAB additions within the
spend to save framework.
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…that’s not to say benefits tracking isn’t taking place.
…..…plus others…level crossing safety..etc
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Confidential information from slide removed

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Vision
Greater
Security &
Realisation
Prioritisatio
n
Managed
Risks
Articulated
Benefits
Management
Confidence
Better Benefit
Management
One
Version of
the Truth
Benefit
Culture
Clear
Accountabilities
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What are we setting out to achieve?
Why ?
▬ What is the problem we are trying to address?
▬ What are the benefits of solving the problem?
Qualify &/or Quantify:
▬ Determine the benefits
▬ Identify the business case
Success Criteria
▬ What are the key performance indicators?
▬ What does good look like?
▬ Have we delivered on our commitments?
Confidence Levels:
▬ Likelihood to deliver
▬ Mitigate risk to benefits
▬ Understand current position
Realise:
▬ Business recognises benefit
▬ Ensure embedment
▬ Lessons learnt
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Business and Programme Benefit Objectives
► Assist sponsors with the articulation of benefits in a consistent and useful way
► Senior management, Executive and Board confidence
► Emphasis on benefits-led culture for activities outside core Enhancements & Renewals
► Increased confidence in the benefits case as the programme matures
► Process in place to enforce Benefit Owner sign-off
► Audit trail
► Standardised “proof” of benefits and “contract” between programme and the business
► Improved realisation
► Lessons learnt and optimism bias
► One version of the truth
► Value for Money comparisons and prioritisation
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Identifying Benefits & Incremental Costs Exit Rate
Target Rate
Business Change
Initiatives
Minor Schemes & Investments
Incremental
Costs /
Disruption
Local Improvement Initiatives
Volume of benefit
▬ Generally, whatever the benefit (financial or non-financial) there will be a certain level of expectation
built into current assumptions.
▬ There may also be incremental costs, disruption or risk associated either with the introduction of a
specific initiative or a change of circumstances within the BAU operations.
▬ Understanding as much of this as possible is key to recognising the impact of schemes.
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Identifying Benefits & Incremental Costs Exit Rate
Target Rate
Business Change
Initiatives
Minor Schemes & Investments
Incremental
Costs /
Disruption
Local Improvement Initiatives
Volume of benefit
▬ Challenges include identifying schemes claiming the same benefit or effecting the same business
area, changes to costs and confidence / optimism bias within initiatives.
▬ This exercise will allow us to get a better understanding of the duplicates and a greater confidence of
genuine outputs to be delivered by each scheme.
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Benefits in Investment
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Project & Programme Management
GRIP – Governance for Railway Investment Projects
Investment Authority required throughout the life of the
project
MSP4NR – Managing Successful Programmes (MSP™)
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Benefits Management, Network Rail
The Benefits Circle
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The benefit tool has been built to align with the 4 quadrant model.
Quadrant
4
Quantitative
reduction in costs
1 3
2 4
Internal
benefit
External
benefit
Increases in
productivity
Investments within Network Rail are considered equally on their contribution to
the above groups and alignment to supporting the corporate strategic themes

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Benefits Management, Network Rail
Benefit principles
► All investments must state a benefit from at least one category above.
► Benefits should be directly attributable to the proposal (not wider programme or
subsequently enabled project).
► Sponsor, Deliverer and benefit recipient (Client) are all required to endorse facts
and statements made in the investment proposal.
► Accountability for the delivery of the benefits sits with the Sponsor in line with the
Clienting guidelines.
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At the point of requesting authority:

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Investment Systems
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Tools
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The Benefits Reforecasting tool
Purpose:
i) current view of the programme’s Benefits Case as the programme matures
ii) build up of detail and breakdown for the completion of the Benefits Profile and handover to the Benefit Owner
Contents: Data required for articulating the programme benefits case, for obtaining Benefit Owner approval , in building the Benefit
Profile and for portfolio aggregation and analysis.
Responsibilities: The Benefits Lead for the programme is responsible for completing the tool. The Programme Sponsor is
ultimately accountable for the benefits case.
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The NR Benefits Realisation Lifecycle
1. Articulate Business Case
An initial business case is outlined in Investment Papers for investment schemes offering ROI
2. The Benefits Reforecasting tool:
i) current view of the programme’s Benefits Case as the programme matures
ii) build up of detail and breakdown for the completion of the Benefits Profile and handover to the Benefit Owner
3. Benefit Profile - sets out exactly what the benefit is, any further actions necessary for realisation and the dates for
realisation.
4. Benefits Realisation - confirmation and evidence of realisation as baselined in the Benefit Profile.
d
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Accessing Information
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Benefits Management, Network Rail
Accessing Information
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23. Financial and Non-Financial benefits
Articulation
► Financial benefits are defined in the Benefits Principles and consist of cost savings, increased income or
non-cashable process efficiencies or productivity.
► Non-financial benefits will utilise the Framework currently being put in place which will allow projects and
programmes to articulate benefits cases in standardised terms e.g. categorisation in terms of benefit type
(and metric where possible).
Realisation
► Financial benefits will utilise budget reductions/increased income and variance analysis to observe
realisation.
► Non-financial benefits will rely on the Benefit Owner to confirm the realisation of benefits.
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Health
Track Failures
Structure Failures
Earthworks Failures
Signalling WSFs
Level Crossings (Road Vehicles)
SPADs
Objects On The line
Buffer Stop Collisions
Irregular Working
FWI
SAFETY
Close Call Incidents
Level Crossings (Pedestrian)
Suicides
Route Crime & Trespass
Employee Health & Wellbeing
Environmental Incidents
Carbon Emissions
Construction Waste
Stations
E&P
Telecoms
Regulaor Enforcement Avoidance
Reputational
Train Accident Risk Workforce Public Safety Environment Other
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CEO escalation
CEO Escalation What’s the solution?
Articulation of benefits is not completed in a
consistent manner across the business.
Corporate Benefits Principles are being rolled out and
programmes will use a standardised methodology and
reporting tool so aggregation and a corporate view of
the total benefits can be maintained and improved
benefits cases will be seen.
Benefits identified during early programme
definition are not always continually reviewed or
maintained.
The Reforecasting Tool will allow a current benefits
case to be maintained and will allow the addition of
detail such as the programme, and benefits case,
maturity and confidence.
The recipients of change are not always
committed to the benefits specified
Benefit Owner approval and sign up are a necessary
stage in the benefits lifecycle and we will be in a
position to carry out exception reporting.
The tool will require endorsement via MOSS workflow
to baseline a forecast position.
There is challenge around the tracking of
intangible benefits
The establishment of a non-financial benefits
framework will define benefits ownership and
accountability post programme delivery.
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Benefits Management, Network Rail
Thank you.
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