2 years, 11 months ago

Benefits Realisation

Link: http://theknowledgeeconomy.blog/2018/05/17/benefits-realisation/

Effective change within an organisation is undertaken to realise a defined benefit. It is imperative the benefit, whether positive or negative, be understood before implementing change. The benefit should also progress the organisation’s defined business strategy.

A Benefits Realisation Process involves the full life-cycle of defining, planning , measuring and realising the benefit associated with a specific change.

  • Align to Strategy: A potential change will be considered to progress if it aligns with the strategic direction of the organisation.
  • Identify Benefits: The benefits that the change will elicit are to be documented. These benefits can include but not be limited to financial, cultural and compliance aspects. As well as the positive benefits it is essential to have some understanding of the impact of ‘flow on’ consequences. These can influence a decision to proceed. Any assumption made should also be captured.
  • Identify Measures: Identified benefits are to be both quantifiable and measurable. They should also be weighted so as to allow for potential prioritisation of results. It is important to know what is more important when there are competing measures.
  • Measure Baseline: A benefit needs to be assessed against the ‘do nothing’ option. Without this measure it is impossible to quantify the impact of change.
  • Make Change: Implement the change only if the defined benefits prove to be worthwhile.
  • Remeasure and Assess: Remeasure the outcome of the change and validate (or otherwise) the benefit defined and the assumptions made. The measurement should be applied to any unintended consequences.

The results of the assessment will indicate the success or otherwise of the change. The results should be used to improve the Benefits Realisation Process as it is applied to future potential changes.