Benefit Management Overview
What does the Benefits Realisation Management Framework do and when should it be used?
The Benefits Realisation Management Framework ensures that for an initiative/investment -:
- benefits are clear from the outset and linked to strategic objectives
- there is clear accountability for the realisation of the benefits, not just the delivery of the initiative,
- there is a clear, practical, and focussed process to follow to support the management of benefits covering benefit identification through to managing and reporting benefits, and ending with evaluating the realisation of benefits – a benefits management tool kit is provided
- a roadmap is created based on defined, expected benefits, providing a focus for delivering change
It has been built to specifically address the requirements in strategic investment/change management business cases, but it can be tailored to address the needs for benefits realisation management across the different areas and levels within the University.
Why should the University use Benefits Realisation Management?
- By monitoring both cashable and non-cashable tangible benefits that are directly aligned to a strategic investment, benefits management helps provide clear, objective evidence as to how the investment is performing, informing decision makers as to whether it should continue as is, change or stop.
- It enables lessons to be learned – both from favourable and adverse performance – as it provides a feedback loop into the continuous improvement cycle, informing future similar initiatives
- It provides clear accountability for delivery of the benefits
- It shows how the University’s limited resources are being used to deliver business benefits enabling the achievement of the University’s strategic objectives
- It enables the demonstration of value for money feeding into the OfS Efficiency Return as well as assisting with our engagement with students and staff
- It is management best practice and is a key part of Portfolio, Programme and Project Management
In business cases benefits are identified from the outset and linked to strategic objectives, providing a clear line of sight. Each benefit needs an owner who takes accountability not only for the delivery of the initiative but also for the realisation of the benefits. Benefits need to be measureable so that objective evidence can be obtained to prove their realisation, or not.
Tools in the benefits management toolkit
- At UoE we have created a Benefits Library as a resource for business case owners to use which provides categories of benefits, linked to outcomes and existing measures (so as to not “re-invent the wheel”) as well as to the university’s strategic objectives
- A costing tool and methodology, to ensure costs in business cases are consistent so that options can be compared within business cases, as well as between business cases, providing confidence in cashable benefit baselines and targets. Please contact your Head Of Finance if you need to use this.
- A benefit profile template to capture the key attributes and profile target of the benefit together with the signature of the benefit owner to clearly show who is accountable
- A benefit map to show how outcomes link to intermediate benefits and end benefits
- A benefit register to monitor all the benefits in the university’s change portfolio
- For larger initiatives, a benefits strategy template and benefits plan template
Avoiding an industry of benefits management
For each business case, we are concentrating on the 5 most salient benefits with a clear accountable owner, agreed benefit baseline and targets, using measures already in existence, and profiled over a meaningful period of time. We want benefits management to be focussed and targeted – we don’t want to create an industry of benefits management.
Making benefits targets realistic
Where we feel benefits are being over-stated and where it is appropriate, we will undertake an optimism bias adjustment, and monitor this adjustment as the delivery of the initiative progresses. The same applies to under-stated benefits – where we will apply a pessimism bias adjustment. The benefit targets need to be as realistic as possible.
Helping deliver benefits framework
| Document Name | Description | Template |
| Benefits Realisation Management Framework - Quick Guide | A short overview of the University's Benefit Realisation Management Framework. It is built to specifically address the requirements in Strategic Investment/Change Management business cases, but can be tailored to address the needs for benefits realisation management across the different areas/levels within the University. It covers the principles, the objectives, how it links to the business case process, and governance | Benefits Framework - Quick Guide |
| Benefits Library | This is the starting point for identifying relevant, appropriate ways to measure the benefits identified. It is owned by the Portfolio Benefits Manager and is a live resource. | Benefits Library |
| Benefit Realisation Management Framework | This document is the University of Exeter’s Benefits Realisation Management framework. It is built to specifically address the requirements in Strategic Investment/Change Management business cases, but can be tailored to address the needs for benefits realisation management across the different areas/levels within the University. | Benefits Realisation Management Framework |
| Benefit Realisation Strategy | This should be finalised at the OBC stage of a business case and will cover the scope of the initiative, the organisational context, the approach to measuring benefits including the categories of benefit, and the standards and processes to be used to identify, measure, monitor and evaluate the benefits, when the benefit realisation plan will be produced and how the benefit change process will operate, as well as defining the governance structure and reporting requirements together with and roles and responsibilities | Benefits Realisation Management Strategy TEMPLATE |
| Benefit Realisation Plan | This provides more operational detail on the benefits realisation management than the Benefit Realisation Strategy. It should be finalised at the FBC stage of a business case. It covers identifying benefits and their measures, who the benefit owners are and who the measure owners are, steps to achieve the benefits, resources, budgets and timeframes, risks, assumptions and dependencies; explains how the monitoring process will operate; the plan for Benefit realisation handover to BAU | Benefit Realisation Management Plan Template |
| Benefits Profile | This provides detail at a single benefit level of why, what and how the benefit will be managed and realised. It provides the baseline and target profile, and includes sign off by the benefit owner. | Benefits Profile |
| Benefit Tracker | This is to track and monitor the cashable and/or non cashable tangible benefits | Benefits Realisation Tracker |