Preparing For Change Flashcards
(77 cards)
1
Q
What is included within a Procurement Strategy
A
should outline the process for acquiring goods and services, and for managing them afterwards.
- a make-or-buy decision.
- choosing suppliers, which involves:
- developing a selection process.
- identifying if you need a single supplier, integrated suppliers, or multiple suppliers.
- creating a negotiation plan. - deciding on the type of contractual relationship you need.
2
Q
What is the benefit of a procurement strategy?
A
- helps ensure that budgets aren’t exceeded. 2. that the investment delivers the returns or benefits you were hoping for.
- it aligns with the organisation’s overall strategy.
- outline the process for acquiring goods and services.
- managing them afterwards -e.g. in contract.
3
Q
What factors are considered then deciding whether to produce in house or procure an external supplier
A
Specifications: clear on the details to ensure you get the right product or service.
Capacity, speed, and availability: resources, how quickly you can deliver, and if you can maintain a steady supply.
Quality: Sometimes external suppliers can offer better quality because they specialise in that area.
Stakeholder engagement: This means talking to everyone involved - both inside and outside of the company. Getting input from all relevant stakeholders can provide valuable insights and help you make more informed decisions.
4
Q
Detail the steps when procuring a supplier
A
- Research the market: defining what you need and suppliers required. A single supplier simpler/consistent, multiple suppliers offer flexibility, integrated suppliers can work together.
- Pre-qualify suppliers: Check out the potential suppliers’ capabilities, financial stability, and references to ensure they can reliably meet your needs. E.g. finances reduce risk of insolvency.
- Invitation to Tender (ITT): Send detailed requests to potential suppliers, outlining what you need and inviting them to submit their bids.
- Respond to queries from bidders: Answer any questions from potential suppliers to make sure they understand your requirements fully.
- Receive and evaluate bids: Consider the submitted bids to see which ones offer the best value and meet your organisation’s needs.
- Award the contract: Choose the best supplier and formally award the contract to them. Negotiate the terms of the contract before coming to a final agreement. Also provide feedback to losing bidders and allow time for appeals to take place if necessary. (10-day stand still)
- Enter contract and contract administration: Finalise the details and manage the relationship to make sure everything runs smoothly, and the suppliers deliver as promised.
5
Q
What are the three techniques used to aid negotiations with suppliers.
A
- Best Alternative to a Negotiation Agreement
- Zone of Possible Agreement
- Win-win approach
6
Q
What are the steps when procuring a supplier
A
- Market Engagement/ Research.
- Pre-Qualifications Check.
- ITT
- Respond to Bidder Queries.
- Review & Evaluate Bids.
- Award contract.
- Enter into Contract & Conduct Contract Administration.
7
Q
Describe BATNA
A
Best Alternative to a Negotiated Agreement (BATNA)
- Backup plan if negotiations don’t work out and beneficial to both parties.
- clear understanding of your BATNA before entering negotiations - provides safety net to assess whether deal is worth pursuing.
- Strong BATNA gives you leverage and confidence during negotiations.
- Conduct thorough research and explore several different alternative suppliers or options.
- Understanding your BATNA, you can make informed decisions about whether to accept an offer or walk away from negotiations.
Note: collaborative style of negotiation, both parties may reveal their BATNA.
8
Q
Describe ZOPA
A
Zone of Possible Agreement (ZOPA)
- where both parties’ minimum acceptable outcomes overlap
- Negotiations can happen anywhere within this zone, so identifying it is crucial for reaching a deal that works for everyone
- negotiation sweet spot where a mutually beneficial agreement
- requires an understanding of both your own and the supplier’s priorities, constraints, and objectives
- E.g. collaborative negotiation, both sides reveal their BATNA, so ZOPA is then known. By understanding ZOPA, you can focus efforts on reaching agreements that satisfy both parties’ needs. However, in a competitive style of negotiation, ZOPA is not known.
9
Q
Describe a Win-win approach
A
- about collaboration and finding a solution that benefits both parties.
- requires good communication and problem-solving skills, as well as a foundation of trust between both sides.
- relies on good communication, active listening, and a deep level of empathy
- try and work to understand the underlying needs and concerns of the other party, so that you can work together to find creative solutions that meet both of your needs and objectives.
- This collaborative mindset can lead to more sustainable agreements and stronger partnerships over time
10
Q
what are the stages of a process of negotiation
A
(PDA R)
Plan - identify your desired goals
Discussion - proper negotiation, making proposals and bargaining.
Agreement - reached an agreement between parties and you’ll complete a final summary of what has been agreed.
Review - involves circulating documentation to get the buy-in, follow it up with a signed contract for the item you’re negotiating.
11
Q
What are the different types of contract?
A
SS PP - Single, Sequential, Parallel & Prime
- Single contract/ Comprehensive: simplest type of contract, where you buy goods or services from one supplier. This involves holding one contractual relationship. E.g. One product, one contract, one output.
- Sequential contracts: a chain reaction. One activity depends on the completion of the one before it. This involves holding multiple contractual relationships. E.g. Construction base build and fit our contract.
- Parallel contracts: you buy similar goods or services from multiple suppliers at the same time. This involves holding multiple contractual relationships. E.g. A designer for a product and the product being constructed.
- Prime / Sub-Contract contracts: one main supplier who subcontracts work to others. This involves holding one contractual relationship e.g. Construction with a PD.
12
Q
Positive and Negative of a Single/Comprehensive Contract
A
Advantage: one supplier doing all the work for you. No need to worry about managing multiple suppliers, the single supplier does everything.
Disadvantage: the cost is likely to be higher because of this. Increased risk if you have one supplier doing all of the work, and they are unable to finish, as might happen if your supplier were to go out of business.
13
Q
Positive and Negative of a Sequential Contract
A
Advantage: different specialists performing the work which requires their expertise, and this work is completed sequentially based on priority and dependencies.
Disadvantage: typically costs more, and need to actively manage the handover from one task to the next in order to coordinate work efficiently.
14
Q
Positive and Negative of a Parallel Contract
A
Advantage: better performance and cost control because you can plan which contracts should be running at the same time to optimise the build for the project.
Disadvantage: increased project management overhead in terms of coordinating and managing the greater complexity from overlapping work.
15
Q
Positive and Negative of a Prime/ Sub-Contracting Contract
A
Advantage: supplier can bring in specialist knowledge as they need it on your behalf, and if they need additional resources, they can bring that in as well.
Disadvantage: less oversight and awareness of the quality of the work being completed by the subcontract. There are also possible issues in terms of ethics and compliance, as it’s hard to know if the subcontracts are working as you want them to.
16
Q
Positive and Negative of Partnering Contract
A
Advantage: two organisations working for mutual benefit. It allows each partner to bring to bear the skills and expertise they offer to generate something of value for all.
Disadvantage: If costs go over initial budget estimates, you need to have a means of agreeing how that cost should be absorbed across all partners.
17
Q
What are the four most common payment methods
A
- Time and materials/unit price
- Cost plus fee
- Target cost/price
- Fixed price
18
Q
Describe Time and materials/unit price payment method along with pros & cons
A
(T&M) or unit price method, payment is made based on the actual time and materials used for the project. This is common in projects where the scope is not fully defined at the outset.
Pros:
Flexibility: Allows for adjustments as the project evolves.
Transparency: The business can see exactly what it’s paying for.
Cons:
Potential for budget overruns: If not carefully managed, costs can escalate.
Requires close monitoring: Both parties need to closely track time and materials to avoid disputes.
19
Q
Describe Cost Plus Fee payment method along with pros & cons
A
the client pays the actual cost of the work, plus an additional fee that covers the supplier’s overhead and profit. The fee can be a percentage of the costs (cost plus percentage) or a fixed amount (cost plus fixed fee).
Pros:
Quick start: Work can begin without a fully detailed project scope.
Fair compensation: The supplier is assured of covering their costs plus a profit margin.
Cons:
Risk of cost escalation: The client company might face higher costs if the project scope expands or becomes more complex.
Less incentive for efficiency: Since costs are covered, the supplier may not be as motivated to control expenses.
20
Q
Describe Target cost/price method along with pros & cons
A
the client and supplier agree on a target cost upfront. Both parties share the risk and potential savings based on their ability to meet or beat this target.
Pros:
Encourages collaboration: Both sides have a vested interest in working together efficiently.
Shared risk: Both parties share the financial risk, incentivising cost control.
Cons:
Requires strong partnership: Success depends on a high level of trust and communication.
Complexity: Establishing and managing target costs can be complex.
21
Q
Describe Fixed Price method along with pros & cons
A
sets a predetermined price for the project based on a well-defined scope of work. The supplier is responsible for any cost overruns.
Pros:
Budget certainty: The client knows the total cost upfront, which is easier for financial planning.
Incentive for efficiency: The supplier is motivated to complete the project within budget to maximise profit.
Cons:
Limited flexibility: Any changes to the scope can be costly and require renegotiation.
Higher initial cost: The price might be higher to account for potential risks endured by the supplier.
22
Q
What are the two factors that should be considered when determining a project’s procurement strategy?
A
Make or buy decision
Use of single, integrated, or multiple suppliers
Conditions and forms of contract
Methods of supplier reimbursement
Types of contractual relationships
Supplier selection process
23
Q
List two different methods of supplier reimbursement you could select for a defined scope of work.
A
Fixed price
Target cost / Target price
Cost plus fee / Cost plus
Price per quantity
Lump sum
24
Q
What are the three main types of reviews?
A
- Decision Gates
- Benefit Reviews
- Audits
25
How are decision gates different for a linear and iterative LC
For linear or traditional projects, decision gates occur at the end of each phase/stage. These stages are sequential and depend on the completion of previous phases, like moving from design to development.
For iterative or agile projects, decision gates happen at the end of each iteration. Iterations are shorter cycles of development, allowing for frequent reassessment and adjustments.
26
What is covered in a Decision Gate Review?
1. Achieved to date: incl evaluating completed tasks, deliverables, and milestones.
2. Identify risks or issues and discuss potential impact.
3. Reassess the project’s context, method such as PESTLE.
4. ensure aligned with original objectives and business case.
5. decision on next steps. E.g. if not viable
27
Benefits of Decision Gate Reviews
1. stakeholders engaged - aware of status, provide necessary support.
2. project sponsor, as chair of the project’s steering group, is accountable for the decision to continue or not.
3. Clear communication is encouraged.
4. Ensures expectation alignment, with a joint understanding of the project’s progress.
5. manage and mitigate risks, by regular review progress and identify issues early on.
28
What is covered for a benefit review
1. has the project delivered the business benefits that were outlined in the original business case. looking at measurable outcomes (KPIs) see if targets achieved or missed.
2. compare actual benefits with expected benefits, identify discrepancies.
3. determine discrepancy reasons and identify Lessons.
4. suggest actions or adjustments that might help the project achieve its intended benefits, e.g. additional training, improving processes, or further investments.
5. report any findings and insights gained from the benefit review.
collect feedback from stakeholders who are impacted by the project’s outcomes.
29
Benefits of a Benefit Review
1. determine whether the project has successfully delivered its intended benefits.
2. provide opportunities to tweak and enhance the outcomes by identifying where improvements can be made, increasing chances of successful outcomes.
3. informs future decision-making, refine strategies, and optimise approaches for subsequent projects.
4. encourage a culture of responsibility and transparency by holding the project team and stakeholders accountable.
30
Detail two scenarios when Audits occur
Regular schedule : planned at specific intervals throughout a project’s life cycle, e.g. quarterly or annual basis.
Issue-triggered : initiated when a particular issue or concern rears. E.g. unexpected risk or requested by senior stakeholders.
31
Benefits of a Audit
- ensures all project activities are going according to plan, and any laws and regulations are being followed.
- confirms following its governance and quality management plans, project on track.
- help catch any deviations that might otherwise go unnoticed
32
What typically is included within the audit process
Ensures;
1. follows processes and procedures outlined in PMP
2. complies with any relevant laws, regulations, and standards.
3. objective assessment to reassure stakeholders, project is being effectively managed.
4. share findings in transparent way with all stakeholders.
5. assess how project team is managing and mitigating risks, examine how resilient to potential issues.
6. identify any gaps or weaknesses in the project’s execution and provide improvement.
7. highlight best practices and successful strategies that can be applied.
33
What should you report on?
(PPEAR)
1. Progress against the schedule
2. Project spend (i.e., actual spending vs. planned spending)
3. Earned value
4. Audit findings and non-conformance
5. Risk and issues
34
Detail of PPEAR Reporting
Progress against the schedule: progress compared to planned timeline, ID & rectify if behind.
Project spend (i.e., actual vs. planned spending) : avoid budget overruns, might need to re-evaluate spending or additional resources / investments required.
Earned value : measure value of the work completed against the project’s budget and schedule. Combines cost performance and schedule performance = good value for the money and time spent on the project.
Audit findings and the number of non-conformances : project audits results where the project isn’t meeting required standards or regulations. Acts as an external check, to make sure everything’s being done right, helps you identify issues early on.
Risks and issues: Identifying and reporting things that could go wrong, as well as any current issues that are currently being faced, will help you manage problems more effectively.
35
Name Five of the main formats for reports:
1. Written reports - in-depth view
2. Visual presentations - visually engaging, digestible
3. Dashboard reports - real-time snapshot of performance
4. Verbal briefings - allows interaction & discussion
5. Infographics and summary documents - condensed information, good for busy stakeholders
36
what is the role of data and information in decision-making
Status reporting: Record of progress is essential. Data on time, cost quality against PMP goals.
Project estimation: past project data provides realistic schedules and cost estimates.
Risk identification: Identifying early on is key, learning from similar problems in previous projects, and develop proactive solutions.
Availability of information: ensure relevant information is available at decision points like gate reviews, to support decision making.
Knowledge and information management: schedule quality assurance and quality control activities, look at what worked well in past projects and maximise effectiveness.
37
Reasons for re-planning (6)
1. Requirements not met
2. Dissatisfaction in the project team - team feeling unmotivated or dissatisfied, impacting productivity & quality.
3. Problem with supply chains and contractors
4. Budget estimates
5. New and changing risks
6. Poor stakeholder communication - Re-planning could include establishing more effective communication/ frequency of updates.
38
What are three questions that should be answered ahead of a decision gate?
What has been achieved?
What is required for the next stage?
What are the key decisions to be made?
Is the business case still viable?
39
What are two benefits of decision gates?
Structured decision making
More effective risk management
Supports resource allocation
Ensures continued alignment with business objectives
Supports stakeholder engagement
Checks quality of deliverables delivered so far
Checks that the project is on track / that progress is as planned
40
State two reasons why you may need to re-plan the activities on your project following a project review.
New risks have been identified/existing risks have changed
Project is not performing/scope is not being delivered on schedule/deliverables not being delivered to required quality
Motivation/satisfaction of project team members is low
Satisfaction of stakeholders is low/communication with stakeholders is poor
Poor performance of suppliers/contractors
Resource availability has changed
Budget is not on track/costs or cash flow are above original forecasts
41
What areas in a project does assurance provide benefit to
The governance board - boosts confidence
Stakeholder engagement - enhances
Decision making and change management - supports & informs
Risk assessments - improves accuracy
Likelihood of project success - increases to meet objectives
Accountability and transparency - creates a culture of
Competencies and skills of the project management team - build long term
42
What creates a stable foundation for project success
Governance - structure and oversight needed to keep the project aligned with its strategic objectives.
Risk management - identifying, analysing, and mitigating potential issues that could derail the project
Assurance - review process agreed upon by the project sponsor and key stakeholders to ensure everything is progressing as it should.
43
How does assurance, governance, and risk management work together?
Assurance provides:
Feedback loops: generated on governance and risk management processes are working. Used to refine and improve processes.
Accountability and transparency: governance, creating accountability and transparency. Stakeholders can see clear, objective reports on project, which builds trust and confidence.
Informed decision-making: accurate and objective insights into both governance and risk management, can make more informed choices. Better strategic decisions and more effective management of resources.
Proactive issue resolution: governance, and risk management work together identify and address proactively. Collaborative approach helps prevent minor issues from escalating into major problems.
Alignment with objectives: project aligned with its strategic objectives. Ensures actions taken is in line with the project's goals and that any deviations are quickly corrected.
44
What practical steps you can take to help strengthen the relationship between assurance, governance, and risk management?
1. Schedule regular reviews and audits to assess compliance with governance policies and the effectiveness of risk management strategies.
2. Develop integrated reporting mechanisms that combine insights from assurance activities with governance and risk management data.
3. Engage stakeholders in the assurance process to ensure their perspectives and concerns are addressed.
4. Provide training for the project team on the importance of governance, risk management, and assurance, and how they work together to support project success.
5. Use feedback from assurance activities to continuously improve governance and risk management practices.
45
What are assurance activities
Controls - management system with clear policies, procedures, processes, and standards.
Compliance - follow the rules. This includes ongoing monitoring, regular checks, and audits.
Independent reviews - conducted by internal audit teams, external auditors, objective look at the control systems in place.
Stakeholder feedback - highlight areas that need improvement.
Continuous training - team is well-versed in the latest best practices, standards, and tools.
Scenario planning - to prepare for potential future risks.
Metrics and reporting - clear metrics and regular reporting mechanisms to track project progress and risk management effectiveness.
46
An assurance plan must meet the following criteria
Independence and objectivity
Targeting major risks
Clear accountability
Coordinated timing
Clear reporting and issue resolution
47
Who is responsible for implementing the Assurance plan
PM
Implementing the assurance plan and integrating it into the overall project management framework
48
What is the role of the Project Sponsor in assurance
Providing high-level oversight and support for the assurance activities and ensuring that the assurance plan aligns with the strategic goals of the project
Engaging in key decision-making processes, particularly when it comes to addressing significant risks or issues identified through assurance activities
Ensuring that adequate resources are allocated for effective assurance activities
49
What is the role of the Project Manager in assurance
Implementing the assurance plan and integrating it into the overall project management framework
Coordinating assurance activities and ensuring that they are carried out at the appropriate times and do not disrupt the project’s workflow
Reporting on assurance findings to stakeholders, highlighting any issues and outlining steps to address them
50
What is the role of the Risk Manager in assurance
Identifying and analysing risks that could impact the project
Developing and implementing strategies to mitigate identified risks
Continuously monitoring the risk landscape and updating the risk management plan as necessary
51
What is the role of the Quality Assurance Team in assurance
Ensuring that the project adheres to defined quality standards and procedures
Conducting regular quality checks and audits to identify any deviations from the set standards
Providing feedback to the project team, recommending improvements to maintain high-quality outputs
52
What is the role of the Internal Auditors in assurance
Conducting independent reviews of the project’s processes and controls
Evaluating the effectiveness of the project’s governance, risk management, and control processes
Reporting their findings to the project sponsor and other key stakeholders, providing an objective assessment of the project’s health
53
What is the role of the External Auditors in assurance
Conducting independent evaluations of the project
Providing an objective perspective, often bringing in industry best practices and standards
Checking for compliance with external regulations and standards, ensuring the project meets all necessary requirements
54
What is the role of the PMO in assurance
Providing central coordination for assurance activities across multiple projects within an organisation
Offering support and guidance on best practices for assurance, governance, and risk management
Monitoring the overall performance of assurance activities, ensuring consistency and effectiveness
55
What is the role of the Independent peer reviewers in assurance
Reviewing the project and providing objective feedback based on their expertise and experience
Benchmarking the project against similar projects or industry standards
Offering recommendations for improvement, often identifying blind spots that the internal team might miss
56
What are four benefits of carrying out assurance activities and one reason why you might choose to have assurance carried out by an external company?
- objective view of how the project is performing
- reassurance/confidence to stakeholders that the project is performing/on track
- support effective decision-making
- make sure that change control/risk management/quality management/(other project governance activities) are being carried out appropriately
- increases the probability of a project being successful/meeting its objectives
make sure that the assurance is fully independent/not influenced by the project team/not influenced by organisational concerns
57
Describe two roles that may commission an audit and give a reason for each.
The project sponsor may commission an audit to ensure compliance with project standards.
The portfolio level may commission an audit to protect the reputation of the organisation.
58
What is change impact analysis and what can it help you to determine.
Change impact analysis is a method of analysing the scope and scale of the change to the new business-as-usual state.
It helps you to understand the organisational impacts on people, performance, processes, systems, and culture.
Physical or process impacts on the wider system
Feelings about the change
Knowledge gaps or skills needs to be addressed
59
What are are four steps you need to take to conduct a change impact analysis
(DIED)
1. Define the change, its purpose, objectives, scope, and timeline.
2. Identify organisational areas such as people, performance, processes, systems, culture, and individual stakeholders that will be impacted.
3. Evaluate the level of impact that the change will have on each area.
4. Develop an action plan to address the impacts of the change, which should be aligned with a common and shared vision and communicated regularly throughout the project.
Conducting a change impact analysis will support you to plan and communicate change effectively, by identifying the potential issues and highlighting the resources required.
60
What are the three key strategies to remember when you’re planning how and when to communicate with your stakeholders:
Early engagement: engage the relevant stakeholders early via Stakeholder mapping - identify those impacted by or interested in the transition process.
Strategic alignment of goals and understanding of the future state: Planning collaboratively with stakeholders develops a shared vision - organisational strategic impact, benefits, and goals.
Communicating benefits: create a common understanding, by designating a benefits champion, who would support in communicating expected benefits to stakeholders throughout the project and preparing them for the transition process.
also:
- agreeing a benefits management plan.
- mitigating conflict.
- transfer of risk.
61
When do you engage your stakeholder on the transition plan
- start to engage your stakeholders in your transition plan as early in the process as you can.
- The life cycle you use can potentially impact transition planning.
- In linear life cycles, transition planning should be a continuous activity throughout. The final desired state or project output is only available during the transition (final) phase of the project. Monitor the progress and alignment of your deliverables against your stakeholders’ expectations through assurance and governance procedures, at regular review points.
- Iterative life cycles provide opportunity to build stakeholder buy-in on an ongoing basis. These opportunities could be in the form of collaborative input to a design, or ideas from business-as-usual about the implementation schedule.
62
How does knowledge transfer work?
Knowledge transfer is often implemented progressively
1. Skills are launched - what is this?
2. Users experiment and try out the new skills - I've tried it.
3. Then, users practise using the skills - I use it sometimes.
4. Finally, the new ways of working are embedded - Its how we do it here.
63
What do you need to hand over in a handover?
- acceptance of all relevant documentation (including information related to the deliverables, including guarantees and warrantees).
- acceptance certificates signed by the sponsor. This is an agreement between two parties that states the tasks that need to be completed and the criteria that must be met to get final approval at the end of the project
- transfer of responsibility for the deliverables from the project team to the sponsor or users.
- formal transfer of ownership.
e.g. O&Ms, registers, survey info etc.
64
When would you recommend that change impact analysis is undertaken and what are the benefits of doing this?
As soon as a change is proposed or considered
When external factors necessitate a change
Before implementing new technology or processes
Benefits of change impact analysis:
Provides a comprehensive understanding of the potential effects of the change
Identifies potential risks and challenges early on
Helps in assessing the impact on project timeline, costs, and quality
Supports informed decision-making and strategic planning
Ensures that the change aligns with project goals and adds value
65
What steps could a project manager take to agree a transition plan with stakeholders?
Initiate communication:
Set up meetings to present and discuss the transition plan with all relevant stakeholders.
Engage in active listening:
Pay close attention to stakeholders' feedback, concerns, and suggestions.
Ensure every stakeholder feels heard and their input valued.
Negotiate and compromise:
Work through differences to find acceptable compromises that align with the project's objectives.
Strive for solutions that address stakeholder concerns while maintaining project integrity.
Formalise agreements:
Update the transition plan to reflect any changes agreed upon during discussions.
Obtain formal sign-off from stakeholders to confirm their agreement and commitment to the plan.
66
What are three key outcomes that you aim to achieve when transitioning a project, and what are two potential consequences if the transition is poorly managed?
Knowledge transfer
Continuous improvement
Lessons learnt
Formal acceptance by the business
Transfer of responsibility / ownership
Reduced benefits
Delays to timescales
Increased costs
Increased demand for resources
Loss of reputation
Disengagement of stakeholders
Loss of sponsor confidence
Reduces chance of project success.
Misaligned requirements meaning outputs aren’t fit for purpose
67
What is the optimal time in the project life cycle to engage with stakeholders regarding the transition plan and why?
Early engagement in the project/early in the life cycle
To build/ensure stakeholder buy-in and support for the project
To reduce the risks of stakeholders not adopting the project outputs
To make sure stakeholders’ expectations are clear in what the project is going to deliver
To be clear what will be expected from stakeholders in the transition
68
What can you achieve by effectively managing your benefits
1. stakeholders agree the benefits at an early stage to create a clear understanding of why you’re doing the project.
2. establish a link between the benefits and the strategic objectives of the organisation, which makes sure your project remains viable
3. detail clear ownership of benefits and the accountability for their management.
4. provide a focus for project delivery
5. understand threats to the realisation of your benefits and take steps to reduce them
69
You can measure and manage your benefits using a benefits management plan, detail the five key steps of this:
1. Identification - identified to manage them and show return on investment
2. Definition - define how the benefits will be managed through transition into operational use and R&R involved.
3. Planning - capturing baseline measurements, agreeing targets, and setting the timeline and milestones for realising benefits and their dependencies on project outputs.
4. Tracking - throughout the project deployment phase helps to inform when changes are needed to the scope or timescale.
5. Realisation - Realisation of benefits comes when the project outputs are embedded and the operation changes for the better.
70
Detail the six stages of the benefits management life cycle
1. Identify and quantify
Identify and involve stakeholders in the benefits and change process
Align benefits to strategic objectives
Identify relationships between benefits
2. Value and appraise
Produce an outline business case
Establish baseline measurements
Establish realistic benefit targets
Undertake analysis to understand stakeholder interests and concerns
3. Plan
Describe benefits and relate changes
Establish responsibility for benefits realisation
Categorise and structure benefits in terms of the type of change needed
Establish change success criteria
4. Realise
Monitor, track, and report benefits realisation
Optimise changes for maximum benefits realisation
Evaluate realised benefits
5. Review results
Identify additional benefits
Identify the benefits possible through business changes
Identify the benefits possible from further investment
6. Review
Assess Benefits Management Capability development
Identify how to improve the benefits management process
71
What are three key ways you can ensure that benefits link to strategic objectives:
The business case - contribution of benefits will aim to achieve the operational, organisational, or business strategy.
Benefits mapping -All project benefits should be strategically aligned to investment decisions, as all projects are designed to bring benefits to an investing organisation
Benefits identification and measurement - involves identifying and agreeing the benefits and how they will be measured, monitored, and managed over the course of the project.
72
How can benefits be communicated to stakeholders
1. workshops, in-house roadshows, meetings, AGMs.
2. emails, intranet updates, and organisational communication tools like Yammer, MS Teams, etc.
3. reports (one off, monthly, quarterly).
73
There are five steps in the benefits management process. Explain the purpose of each of the five steps.
Identification:
If benefits are not identified, they cannot be managed
Ensure the project is worthwhile and justified by identifying benefits
Definition:
Make sure the benefits are clearly understood
Allows the project manager to identify what benefits are realistic
Defines how the benefits will be measured/tracked
Defines roles and responsibilities for benefits
Planning:
Captures baseline measurements and agree targets
Sets the timeline for delivering the benefits
Allows impact of any changes in the project on benefits to be assessed
Tracking:
Helps to identify if any changes are needed in the project to ensure outputs still deliver benefits
Realisation:
Makes sure business embeds/realises the benefits
Long-term management may be needed as benefits often realised post-project
Makes sure business doesn’t fall back on ‘old way of doing things’ and accepts changes
74
What must the project manager consider when communicating benefits to stakeholders? Describe two.
Benefits are quantifiable and measurable improvements resulting from completion of deliverables that are accepted, utilised, and perceived as positive by stakeholders.
End benefits will be known following transition into use, therefore these need to be communicated to stakeholders by the project sponsor.
It is important that benefits and ways in which these will be measured, monitored, and managed throughout the project are agreed with stakeholders early on.
Stakeholders should be consulted to understand how benefits should be attributed within the investment appraisal and business case and how these should be mapped to organisational strategic drivers.
Reporting on the achievement of intermediate benefits will demonstrate progress towards the end benefits.
Benefits reviews can be held following transition to demonstrate to stakeholders how the benefits identified within the business case have been achieved.
Audits facilitate an independent review of how the project or programme has achieved the intended benefits. This independent assessment of compliance can give confidence to stakeholders on the strength of the alignment of benefits achieved with the original business case objectives.
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1. Benefits realisation is the final phase of the project life cycle, and its main focus is on financial reporting.
2. Benefits baselines need to be established as soon as project outputs are delivered.
3. The cost of measuring a benefit should be considered as part of the benefits management process.
4. Benefits mapping is a technique used to link project deliverables to specific benefits.
5. Benefits tracking and adjustment should only occur during the project's execution phase.
6. A Benefits Realisation Plan outlines the actions required to ensure benefits are achieved post-project completion.
3, 4 & 6
(The cost of measuring a benefit should be considered as part of the benefits management process; benefits mapping is a technique used to link project deliverables to specific benefits; and a Benefits Realisation Plan outlines the actions required to ensure benefits are achieved post-project completion).
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What is the primary purpose of project reviews in assessing the status and ongoing viability of a project?
To gather information for decision making and communicate actions to stakeholders
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Complete the sentence: 'A key reason for entering into a joint venture with a supplier is [...]'.
To develop a longer term collaborative relationship and deliver mutual benefits
