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El. knyga: Benefits Realization Management: Strategic Value from Portfolios, Programs, and Projects

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(Lloyd's Register Energy, London, United Kingdom)
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Benefits realization management (BRM) is a key part of governance, because it supports the strategic creation of value and provides the correct level of prioritization and executive support to the correct initiatives. Because of its relevance to the governance process, BRM has a strong influence over project success and is a link between strategic planning and strategy execution.

This book guides portfolio, program, and project managers through the process of benefits realization management so they can maximize business value. It discusses why and how programs and projects are expected to enable value creation, and it explains the role of BRM in value creation. The book provides a flexible framework for:





Translating business strategy drivers into expected benefits and explains the subsequent composition of a program and project portfolio that can realize expected benefits Planning the benefits realization expected from programs and projects and then making it happen Keeping programs and projects on track Reviewing and evaluating the benefits achieved or expected against the original baselines and the current expectations.

To help project, program, and portfolio managers on their BRM journey, as well as to support business managers in executing business strategies, the book identifies key organizational responsibilities and roles involved in BRM practices, and it provides a simple reference that can be mapped against any organizational structure. A detailed and comprehensive case study illustrates each phase of the BRM framework as it links business strategy to project work, benefits, and business value. Each chapter ends with a series questions that provide a BRM self-assessment. The book concludes with a set of templates and detailed instructions to ensure successful deployment of BRM.
Preface xi
Overview xiii
Acknowledgments xv
About the Author xvii
Part I Benefits Realization Management and the Creation of Strategic Value to the Business 1(54)
Chapter 1 Introduction
3(14)
1.1 Making the Case: Relevance of Project Benefits for Business
4(9)
1.1.1 High Rates of Project Failure
4(1)
1.1.2 Business Success Depends on Project Success
5(2)
1.1.3 Effective Project Governance Enabling Strategic Success
7(4)
1.1.4 Benefits Realization Management for Success
11(2)
1.2 Guide to the Subsequent
Chapters
13(2)
1.3 End-of-Chapter Review Questions-Chapter 1
15(2)
Chapter 2 Strategy Execution: Translating Corporate Strategy into Program and Project Strategy
17(22)
2.1 Increasing Effectiveness in Strategy Execution
18(13)
2.1.1 Management by Objectives: Setting the Targets
19(1)
2.1.2 Total Quality Control (TQC) and Hoshin Management: Committing the Organization to Deliver Strategies
20(2)
2.1.3 Balanced Scorecard (BSC): Measures That Drive Performance
22(1)
2.1.4 Project Management: A Structured Way for the Implementation of Business Strategies; or, "Doing the Things Right"
23(3)
2.1.5 Program Management: Implementing Business Strategies in a Coordinated Way; or, "Doing Things Right, Then Achieving the Benefits"
26(2)
2.1.6 Project Portfolio Management: Delivering What the Business Needs; or, "Doing the Right Things"
28(2)
2.1.7 Benefits Realization Management: Closing the Value Gap
30(1)
2.1.8 Strategy Execution: A Conglomerate of Processes and Techniques
31(1)
2.2 Strategy Execution: A Journey from Business Strategy to Project Strategy
31(4)
2.2.1 What Does Business Strategy Mean?
32(2)
2.2.2 From Project Management Strategy to Project Strategy: A Much Needed Evolution
34(1)
2.2.3 Different Strategies, Same Final Goals
35(1)
2.3
Chapter Summary: Strategy Execution: Translating Corporate Strategy into Program and Project Strategy
35(1)
2.4 End-of-Chapter Review Questions
36(3)
Chapter 3 Project Success and Creation of Value to the Business
39(16)
3.1 Multiple Dimensions of Project Success
40(6)
3.1.1 Defining Project Success
40(1)
3.1.2 Success Based on Project Management Performance
41(1)
3.1.3 Success in Creating Value for the Business
42(2)
3.1.4 Different Approaches, Criteria, and Perceptions of Success
44(1)
3.1.5 Project Success Criteria from a Strategic Perspective
45(1)
3.2 Delivering Value through Project Management
46(6)
3.2.1 Execution of Business Strategies through the Most Valuable Projects
46(1)
3.2.2 What Value Do Businesses Need?
47(3)
3.2.3 Project Benefits Deliver the Value That Businesses Need
50(1)
3.2.4 How Benefits Realization Management Can Support Project Success
50(2)
3.3
Chapter Summary: Project Success and Creation of Value to the Business
52(1)
3.4 End-of-Chapter Review Questions
53(2)
Part II Enterprise Benefits Realization Management (eBRM) 55(112)
Chapter 4 Establishing the Environment for Benefit Realization
57(34)
4.1 Introduction: Developing and Aligning Strategies
59(2)
4.1.1 Planning the Route for Strategy Execution: A Hierarchy of Strategies
59(2)
4.1.2 Small, Medium, or Large, Projects Are All About Strategy Execution
61(1)
4.1.3 Investment Criteria: How to Select What Is Valuable
61(1)
4.2 Creating or Enhancing the Environment for Effective Benefits Realization Management
61(11)
4.2.1 Implementing Benefits Realization Management Practices or Enhancing Maturity in Benefits Realization Management
62(6)
4.2.2 Developing an Enterprise Benefits Realization Strategy (eBRS)
68(4)
4.3 Key Roles and Responsibilities for Benefits Realization Management
72(9)
4.3.1 Benefits Realization Governance Roles
73(5)
4.3.2 Program and Project Management Roles
78(2)
4.3.3 Benefits Ownership Roles
80(1)
4.4 Case Study: Benefits Realization Management at ProjectEng Civil Engineering Services Ltd.
81(7)
4.4.1 Organization Profile
83(2)
4.4.2 Planning the Enhancement of Benefits Realization Management Maturity
85(1)
4.4.3 Developing a Benefits Realization Management Framework
86(1)
4.4.4 Developing an Enterprise Benefits Realization Strategy (Step 1)
87(1)
4.5
Chapter Summary: Establishing the Environment for Benefits Realization
88(2)
4.6 End-of-Chapter Review Questions
90(1)
Chapter 5 Planning Benefits
91(42)
5.1 Introduction: Composing Portfolios of Initiatives
91(1)
5.2 Translating Business Strategy Drivers into Expected Benefits
92(19)
5.2.1 Identifying Benefits
93(2)
5.2.2 Mapping Benefits
95(6)
5.2.3 Creating Benefits Matrixes
101(2)
5.2.4 Classifying Benefits
103(3)
5.2.5 Setting Benefits Measures and Targets
106(3)
5.2.6 Defining Benefits Ownership
109(1)
5.2.7 Creating Benefit Profiles
109(2)
5.3 Composing a Project Portfolio to Realize the Expected Benefits
111(13)
5.3.1 Identifying Projects
112(1)
5.3.2 Defining Programs and Projects
112(1)
5.3.3 Classifying Projects
113(5)
5.3.4 Appraising Projects
118(4)
5.3.5 Selecting and Prioritizing Projects
122(2)
5.4 Case Study: Enterprise Benefits Planning
124(6)
5.4.1 Finalizing the Enterprise Benefits Realization Strategy (Step 2)
126(2)
5.4.2 Composing the Project Portfolio
128(1)
5.4.3 Creating a Benefit Profile
128(2)
5.5
Chapter Summary: Planning Benefits
130(1)
5.6 End-of-Chapter Review Questions
131(2)
Chapter 6 Realizing Benefits
133(18)
6.1 Introduction: Delivering Outputs, Business Changes, and Outcomes to Realize Benefits
134(1)
6.2 Planning Benefits Realization
134(6)
6.2.1 Developing a Program-Level Benefits Realization Strategy
135(2)
6.2.2 Developing a Project-Level Benefits Realization Strategy
137(1)
6.2.3 Planning the Management of Benefit Risks
137(3)
6.2.4 Planning Benefits Stakeholder Engagement
140(1)
6.3 Enabling the Realization of Strategic Benefits
140(6)
6.3.1 Change Control
140(2)
6.3.2 Project Closeout
142(2)
6.3.3 Managing Transition
144(2)
6.4 Making Benefits Happen
146(1)
6.5 Case Study: Enterprise Benefits Realization
147(2)
6.5.1 Developing a Program-Level Benefits Realization Strategy
147(1)
6.5.2 Realizing Benefits
148(1)
6.5.3 Handing Over Benefits
148(1)
6.6
Chapter Summary: Realizing Benefits
149(1)
6.7 End-of-Chapter Review Questions
150(1)
Chapter 7 Reviewing and Evaluating Benefits
151(16)
7.1 Introduction: Managing the Ongoing Portfolio of Initiatives
152(1)
7.2 Keeping Programs and Projects on Track
152(3)
7.2.1 Performing Periodic Program and Project Reviews
152(1)
7.2.2 Ensuring Stakeholder Awareness, Alignment, Support, and Engagement
153(1)
7.2.3 Reviewing the Alignment between the Project Portfolio and the Business Strategy
154(1)
7.3 Reviewing and Evaluating Benefits
155(8)
7.3.1 Verifying Actual Realization against Plan
156(5)
7.3.2 Verifying Consistency with Business Strategy
161(1)
7.3.3 Informing Stakeholders about Progress and Deliveries
161(1)
7.3.4 Evaluating the Effectiveness of Benefits Realization Management and Identifying Lessons Learned
161(2)
7.3.5 Identifying Potential for Achieving Further Benefits
163(1)
7.4 Case Study: Enterprise Benefits Review and Evaluation
163(2)
7.4.1 Controlling Benefits Realization
164(1)
7.4.2 Performing Benefits Realization Health Checks
164(1)
7.5
Chapter Summary: Reviewing and Evaluating Benefits
165(1)
7.6 End-of-Chapter Review Questions
166(1)
Part III Appendices 167(100)
Appendix A: Answers to End-of-Chapter Questions
169(8)
Appendix B: Recommended Further Reading
177(4)
Appendix C: Case Study: Worked Examples
181(24)
Appendix D: Enterprise Benefits Realization Management Toolkit: Blank Templates
205(24)
Appendix E: Enterprise Benefits Realization Management Toolkit: How to Use Guidance
229(32)
Appendix F: List of Acronyms
261(2)
Appendix G: List of Figures
263(2)
Appendix H: List of Tables
265(2)
References 267(8)
Index 275
Carlos Eduardo Martins Serra is a certified PMP and Prince2 Practitioner. He holds a masters degree with merit in program and project management from the University of Warwick (United Kingdom), a postgraduate specialization certificate in project management from the Federal University of Rio de Janeiro (UFRJ) (Brazil), and a bachelors degree in engineering from the Federal Center of Technological Education (CEFET-RJ) (Brazil).

He has been working since 1999 in project management environments across various market sectors, countries and roles in small and local businesses, as well as very large and global businesses. His work has focused on both national and global project, program and portfolio management roles, as well as on PMO roles. These roles have involved developing, implementing and executing project management processes and influencing project, program and portfolio managers, project sponsors and business managers around methodology, governance, and reporting. He has relevant energy sector experience from having worked for Ampla, Exxon Mobil, Petrobras, Venture Information Management, Lloyd's Register Energy and Gazprom Marketing and Trading. In addition to his professional experience in the PM field, he is actively committed to the development of project, program and portfolio management knowledge by frequently supervising or even taking active roles in research projects and by being an active member of the Project Management Institute (PMI) and of the British Association for Project Management (APM). He has written numerous academic articles, reports and white papers and he has won academic and professional awards. A specialist reviewer in the areas of governance and project management best practices for the International Journal of Project Management, he has designed and delivered project management and quality management course modules, lectures, and presentations for MBA programs, conferences, and training events, as well as companies' internal training programs.
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