Organizations almost invariably do a poor job with Benefits Realization.
The Sponsor fails to take accountability for benefits after the project delivers, there's a failure to effectively plan for and agree on measurements of success, or underinvestment in organizational change management to ensure successful transition into BAU.
Learn how to use Systems Thinking to overcome these common problems.
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A Systems Thinking Approach to Benefits Realization Planning
1. • Sponsor fails to take accountability
for benefits after project delivers.
• Failure to effectively plan for and
agree on measurements of success.
• Underestimation of organizational
change management to ensure
successful transition into BAU.
Organizations almost invariably do
a poor job with Benefits Realization
Systems Thinking in IT
2. 1. How do the outcomes of the
project interact with each other?
2. How do the outcomes of the
project change over time?
3. What can be done to sustain
the benefits after the project
has delivered?
What questions can be asked to
obviate these common problems?
2
4. Website and eServices resurrection project:
A Case Study
Context
• A services company must uplift its
website addressing: look and feel,
navigation, information architecture
and aging portfolio of eServices.
• A website project is launched and
objectives, scope and outcomes
are defined.
4
10. Increase Online Payments has a
positive effect on Increase Visitors
/ Traffic and vice versa
+
+
2
Increase
online
payments
Increase
visitors / traffic
new and
existing
10
14. 1. How do the outcomes of the
project interact with each other?
2. How do the outcomes of the
project change over time?
3. What can be done to sustain
the benefits after the project
has delivered?
Using a Systems Thinking approach
the first question was answered
in a the primary to secondary
relationship (or cause and effect)
14
15. Death
Spiral
How do the outcomes of the
project change over time?
The threat is Death Spiral it
happens when the limit of
benefit 1 or 2 is reached or
exceeded.
What starts out as a virtuous
loop eventually kills the party.
It’s just a question of time and
it’s not necessarily a bad thing,
the project will have delivered
long ago (warning it’s a myopic
view).
But getting back to our opening
challenges, we need a way to
sustain the benefits…
Benefit 2
Benefit 1
Limit
15
16. 1. How do the outcomes of your
project interact with each other?
2. How do the outcomes of your
project change over time?
3. What can be done to sustain the
benefits after the project has
delivered?
Using a Systems Thinking approach
the second question was answered
in a primary to secondary relationship
with a limit over a period of time
16
17. Manage
bounce rate
/ drop-offs
Increase
satisfaction
/ confidence
levels
Increase
online
payments
Maintain
Website
Look
and-Feel
Maintain
Information
Architecture
Offer New
/ Improved
eServices
Reduce
phone calls
to Service
Centre
+
+
+
Manage
Website /
Services
Increase
uptake of
eServices
+
+
Reduce
manual
payments
+
+
+
17
Sustaining Benefits
+
+
Increase
visitors / traffic
new and
existing
This model employs a strategy
of maintaining and managing
in overcoming death spirals
and waning benefits over time
18. What are the implications
of sustaining benefits?
• The Project Manager must hand-over
a long-term strategy or roadmap for
business development of the asset.
• The Sponsor of the project must accept
the strategy and the accountability for
overseeing its fulfilment.
• Key Performance Indicators and
measurements of future success
must be applied in accordance
with the strategy.
• Continual improvement such Deming’s
Plan, Do, Check, Act must be used to
keep on top of the roadmap.
• A thorough understanding of the website
and eServices history should be acquired.
18
19. 1. How do the outcomes of your
project interact with each other?
2. How do the outcomes of your
project change over time?
3. What can be done to sustain the
benefits after the project has
delivered?
Using a Systems Thinking approach
we answered the third question with
a strategy to maintain and manage
the outcomes into BAU and beyond
19
20. 20
What changed? Instead of taking the
myopic view of not seeing past the
project closing report, a Systems
Thinking approach was used to model
and simulate the benefits well past
service transition and into BAU.
21. 21
• The Sponsor would be more likely
to take accountability for benefits
after the project delivers.
• More effective planning and modeling
of measurements of success well into
the future.
• Facilitation of a smooth and successful
transition into BAU.
• No Ajax required
Conclusions
Systems Thinking in IT Visit http://vanwood.net/blog