Project & Program Management
Once you've decided on a business initiative, projects will get you there
Independently of whether projects and programs are done using Agile or Waterfall in your organisation, implementing value delivery and benefits management processes can help you change the organisation's focus from the iron triangle ("cost", "time" and "on specification") to delivery of real business value - measurable and quantified in such form that it can be managed like anything else.
This is not to say that "time", "cost" and "on specification" aren't important elements and we obviously still need to track them, make budgets, evaluate spendings, do planning and have our criteria for quality in place.
But time and cost are the wrong measuring points for evaluating on project success as these are merely inputs to the project process - and not outputs.
Measuring projects by their inputs and not by their outputs is just wrong, and we are changing that by giving increased focus to benefits management and business value delivery management.
For the governance part, value delivery management is key to success.
To have clear processes on how to perform project change management/scope management from a business value perspective is critical, and the fact that it is almost never done is one of the contributors to the loss of business value in projects identified in international studies. These studies, done by BCG and TOP, show that this element alone counts for around 5% loss (see figure below), but based on our experience we believe the number is actually higher.
Surely scope changes to projects should be prioritized according to the business value they deliver to the final product - but mostly they are not. This means that once value delivery and benefit management have been implemented in your organisation, you will be ahead of competition saving at least 5 % of business value loss on your projects.
For de-scoping value delivery management is key.
Imagine you are the project manager and has been tasked to cut budget or finish earlier and therefore you need to descope.
You identify 2 options or candidates for descoping, you know how much cost and time is associated with each of the 3 options and each of the 2 options will bring you within target.
But what is time and cost if you don't know if option 1 will heavily impact the business value of the whole business initiative while option 2 is a freebie in comparison?
Usually this aspect isn't known to the organisationand input for decision making isn't based on facts but merely on impressions, gut feelings, guesswork, technical analysis (because this we usually do well), or who from the organisation is most passionate about advocating for the option that impacts his or her area the least.
The implementation value delivery and benefits management in itself is not a big or disruptive change at all as it can be tailored to your organisation's needs, capabilities and current situation.
Value Delivery Management will play in along the other methodologies you use and will help improve the way business outcomes are delivered and maximize the value you get from them.
It is independent any other tools or methodologies you use, e.g. waterfall, agile, etc.
Implementation is easy and following the structured method will actually shorten the period and reduce the effort that is normally spent on the analysis and production of the business case, task identification, estimation and planning, and at the same time make these far more precise.
Performing this analysis for normal, small to medium sized projects usually takes around 1 week where 3 workshops are held: ½ day outcome workshop, ½ day benefit workshop and ½ day change activity workshop. The time in between the workshops is spent processing the input from each workshop so it is ready and can serve as input for the next one.
Our staff are senior project managers with years of experience managing business critical projects for companies and organisations like Maersk, UN, Nordea, Damco, NETS, VP, Experian and several other private and public organisations.
They have played key roles in agile transformations, project governance improvements, project rescue operations, project audits and evaluations, and have advised top management on what to do to improve project delivery, and improve project success rates.
We are able to help you and your organisation on this and more:
If you're interested in hearing more about our approach to project and program management and how we are able to assist you, give us a call or email us using the form below.