Benefits

Realisation
Management
Framework
Part 4: Implementation
This document is part of the NSW Government Benefits Realisation
Management Framework. The structure of the Framework is as follows:

Part 1: Principles
Part 2: Process
Part 3: Guidelines
Part 4: Implementation
Part 5: Glossary

Benefits Realisation Management Framework | Part 4: Implementation | 2018 2

Contents
Page

Benefits Realisation
Management Framework 4

1. Purpose 5

2. Considerations 6

3. Benefits Realisation
Maturity 7

4. Recommendations 10

5. Appendix A:
NSW Digital Strategy
priorities — self
assessment 15

Copyright

Unless otherwise stated, material on this website is licensed

under a Creative Commons Attribution 3.0 Australia License.

“Benefits Realisation Management Framework” Parts 1-5.

An electronic version of this document is available at
www.nsw.gov.au/customer-service/publications-and-
reports/benefits-realisationmanagement-framework

Terms for use can be found at www.nsw.gov.au/copyright

and the applicable license for use is at
creativecommons.org/licenses/by/3.0/au/legalcode

© State of New South Wales through Department of Finance,

Services and Innovation 2018.

Third Edition

P3M3® is a registered trade mark of AXELOS Limited. Used

under licence from AXELOS Limited. All rights reserved

Managing Benefits, Steve Jenner First edition 2014, Copyright

© APMG – International 2012.

For enquiries or feedback email:

[email protected]
3
Benefits Realisation Management Framework

A standard approach for benefits realisation

management for anyone not familiar with the subject
matter, including program directors and managers,
change managers, project managers, business analysts
and program management office (PMO) staff across
NSW Government.

The purpose of the Benefits The Framework:

Realisation Management • is aimed at those who are interested in benefits
Framework is to provide: realisation within NSW Government agencies,
enabling them to adapt and tailor the guidance to
• a framework of best practice principles and their specific needs
concepts drawn from latest experiences and
• must be accessible by strategy groups,
proven practice in setting up and managing
operational business areas and program/ project
programs that is transferable across NSW
teams as well as by individual practitioners and
Government agencies
benefit owners
• a standard approach for benefits realisation
• should help PMO practitioners improve
management for anyone not familiar with the
their decision making and become better at
subject matter
implementing beneficial change.
• consistent terminology and benefits categorisation
• introduction and guidance for program sponsors
and business benefit owners.

4
1. Purpose

This framework provides guidance on best

practice processes and deliverables, stakeholders
are encouraged to adapt the framework to meet
their needs and workplace. This part provides
information on how to adapt the deliverables and
techniques explained in Part 2, Part 3 and templates
provided in Part 5 to meet stakeholder needs.
Advising on what should be considered before
starting, what analysis will help implementation
plans and recommendations for adapting benefits
management deliverables. The intent is to provide
practical information to:

• help make the benefits analysis in the business

case more robust
• make the process and deliverables more relevant
to stakeholders
• help embed the benefits management planning
and sustain progress towards realisation
• provide information and data to support an
evaluation of the program, either as part of the
evaluation phase or as an independent program
evaluation.

5
2. Considerations

2.1 Questions 2.3 Principles

Benefits management informs investment decisions Before starting to adapt the benefits deliverables,
and establishes plans to realise intended benefits. review the benefits management principles in Part 1:
Before starting to plan, clearly articulate why Principles. The principles provide a foundation and
investment in the program is needed, asking rationale for how to approach and manage benefits,
evaluative questions such as explaining the implications of each principle for a
stakeholder organisation. The principles provide
• What is the problem being addressed by this more context on why the benefits management
program? process is needed and why specific deliverables are
• What are the strategic outcomes of the program? recommended.
• What are the measurable benefits?
• When will we realise the benefits? 2.4 Planning
• Who owns the benefits?
How benefits management deliverables should be
The answers to such questions can be documented adapted and the timeframe will be influenced by the
in the benefits realisation management strategy with organisation’s:
the supporting plans documented in the benefits
plan. For more evaluative questions review the NSW • maturity of the benefit management practice
Government Program Evaluation Guidelines, and • digital capability and software available
think about what questions an evaluator would ask • governance requirements, including management
about the program. and reporting information needs
• size, complexity, priority and risk of the program
2.2 Critical success factors • resources, both program and ongoing resources
• senior management sponsorship.
Before starting, consider the critical success factors
that need to be in place for benefits management
to be effective (refer to Figure 1). For more
information, see Part 3: Guidelines on the challenges
typically encountered in benefits management
practice and the risks that may arise from poor
forecasting or program delivery issues.

Characteristics Critical Success Factors

Stakeholder • Senior management leadership and commitment

buy-in • Active stakeholder participation
• Operational ownership of benefits

Management of • BRM profiles, plans and tracking registers up-to-date

information • Data is available from digital services by default
• Alignment with business forecasting/budgeting and actual performance
• Alignment with project/program management and evaluation systems

Embedded BRM • Alignment of benefits to strategic objectives

• Governing bodies maintain a benefits management focus
• Monitoring and evaluation processes embedded into organisation
• Integration with program, change management and program evaluation

Figure 1 – Critical Success Factors

6
3. Benefits Management Maturity

3.1 Assessing benefits 3.2 Assessment models

management practice There are several ways to assess benefit
management capability. The method selected will
Benefits management helps stakeholder
be influenced by the scope of the assessment
organisations to define and manage the value they
and senior management commitment to funding
anticipate gaining from an investment. Benefits
an assessment. So hence there are a range of
management maturity is the capability of the
assessment tools referenced below including:
organisation to:
• P3M3® Portfolio, Program, Project Management
• identify and define potential outcomes and
Maturity Model
strategically aligned objectives and benefits
• Managing Benefits Health-check Assessment
• develop a benefits plan, including classifying,
valuing benefits data collection, target setting, • Digital Service Standard (Australian)
establishing governance and benefit owners • NSW Digital Strategy – Digital standard
• set up ongoing monitoring and reporting that
meet stakeholders’ needs P3M3® Portfolio, Program, Project Management
• evaluate whether the program achieved its Maturity Model
intended outcomes. The P3M3® Maturity Model provides a publicly
• assess the capability to manage benefits before available set of independent benchmarks against
starting to implement. Such an assessment which a portfolio, program or project can be
will inform: assessed. The P3M3® focuses on seven perspectives
that exist across the three areas and assessed at five
–– how to collaborate with stakeholders and
maturity levels. The perspectives group together
whether any capacity building is required
one or more processes, they include:
–– how to capture data and available metrics
–– whether weaknesses in benefits management 1. Organisational governance
can be remedied by activities in a benefits 2. Management control
plan or whether capability needs to build up 3. Benefits management
as part of a long-term improvement plan
4. Risk management
–– potential risks to the program or benefit
5. Stakeholder management
realisation and provide an early chance to
address any weaknesses or mitigate any risks 6. Finance management
before they happen. 7. Resource management

When planning a P3M3® assessment, an organisation

An initial assessment can be followed up with
may choose to review only one perspective (for
regular assessments to help sustain progress,
example benefits management) or group together
by monitoring plans to address any identified
one or more processes of the seven perspectives
weaknesses. Also, the assessment findings
to gain a better understanding of their overall
and progress against plans will provide useful
effectiveness. For benefits management, the
information and data for the evaluation phase or if
attributes of the five maturity levels are reproduced
required, an independent program evaluation.
in the table below.

For an initial assessment of benefits management

maturity, compare how the attributes defined at
each of the five P3M3® maturity levels match with
the capability of the program, or if applicable
portfolio/organisation or project. This will indicate
the current maturity level for benefits management.

*Copyright © AXELOS Limited 2016. Used under permission of AXELOS Limited. All rights reserved.

7
3. Benefits Management Maturity (cont.)

Benefits Management Maturity Assessment Model P3M3™*

Maturity Portfolio Program Project

Level 1: There is a recognition that Where benefits management Where benefits management
Awareness initiatives may exist within the approaches exist, they have approaches exist, they have
of process organisational and divisional been developed in isolation by been developed in isolation
portfolio to enable the individual programs by individual projects
achievement of benefits for
the organisation

Level 2: The development of the Benefits management Benefits management

Repeatable investment cycle is increasing is recognised as a key is recognised as a key
process the awareness and importance component for program component for project
of identifying benefits and success, with localised success, with localised
subsequently tracking approaches in place approaches in place for
their achievement groups of projects

Level 3: There is a centrally managed Program consistently deploy Projects consistently establish
Defined process framework used for defining benefits management benefits management
and tracking the delivery of to define and track their to define and track their
portfolio-level benefits across realisation from the delivery realisation from the delivery
the business operations of operational capability to of operational capability to a
align with a centrally defined centrally defined approach
approach

Level 4: The benefits realisation The program’s benefits The project’s benefits
Managed management process is well management approach management approach
process established, measurable and is integrated with the is integrated with the
is integrated into how the organisation’s performance organisation’s performance
organisation managed itself management and uses the management and uses
measurement and analysis measurement and analysis
of performance to verify of performance to verify and
and refine the program’s refine project effectiveness
effectiveness across the across the organisation
organisation

Level 5: Benefits realisation is The program’s benefits The project’s benefits

Optimised maximised to provide the management is embedded management is embedded
process greatest return (in terms of within the organisational within the organisational
strategic contribution and change and performance change and performance
efficiency) from the management approach, management approach,
investment made focusing on outcomes to focusing on outcomes to
achieve the strategic aims and achieve the strategic aims and
objectives of the organisation, objectives of the organisation,
with continual improvement with continual improvement
across the organisation across the organisation

If the initial assessment indicates a low level of maturity, see the recommendations section for actions
that could improve benefits management practice at program and project level.

8
3. Benefits Management Maturity (cont.)

Managing Benefits Health-check Assessment 1. Customer experience, recognising the user is at

An alternative approach is the Managing Benefits the centre of business and designing solutions
Health-check Assessment which uses a survey that put the user first, with services that are digital
to evaluate stakeholder perceptions of benefits by default, integrated, seamless and accessible
management practices within their organisation. 2. Data, designing policies, services and all strategic
The example survey provided in Managing Benefits decisions around data insights, where possible.
Health-check Assessment asks stakeholders to score With robust data management, digital and
10 statements on benefits management. The survey accessible datasets and sharing government held
can be easily adapted for different organisations, is datasets for collaborative use
scalable and can be repeated to monitor progress 3. Digital on the inside including:
over time. Stakeholders can easily quantify their
• simplifying and streamlining government
own scores.
business processes
The survey findings can review different stakeholder • eliminating duplication
groups or focus on specific areas, enabling • shifting away from manual, paper-based
stakeholders to consider what actions are required activities to automated, digitally enabled ways
to address any problem areas. The survey findings of working
could also inform how stakeholders are to be
• implementing full automation wherever relevant
engaged. For low scores see the recommendations
below for actions that could improve benefits Before implementing the Benefits Management
management practice at program and project level. Framework, a quick assessment of how an
organisation aligns to the NSW Government Digital
Digital Service Standard Strategy will help inform decisions on identifying
As an organisation’s digital capability directs benefits, developing a benefits plan, establishing
new investment in services as well as benefits monitoring and reporting and evaluating the program.
management practice, it is recommended that the
The sample survey in Appendix A (page 14) asks
digital capability of an organisation be assessed.
stakeholders to rate how their organisation aligns
The Digital Service Standard provides guidance and
to each of the NSW Government Digital Strategy
assessment services for Commonwealth (Federal)
priorities. Their answers can be rated as follows:
government agencies making new investments in
information and transactional services. The guiding Always = 3 | Usually = 2 | Occasionally = 1 | Never = 0
principles that inform digital service design should
be reviewed to provide more context on how to Stakeholders can easily quantify their scores to
design the service. When measuring benefits on provide a total score or average score for each
digital services, the Digital Service Standard listed priority category. The survey could be tailored
four Key Performance Indicators that should be for different stakeholder groups or for different
used – refer to Part 3: Guidelines. investment requirements or benefits management
practice. Enabling stakeholders to consider how
All services within the scope of the Digital Service to build benefits management into digital service
Standard can be assessed against the standard. design and measure a return on investment or
Assessors help services to meet the Standard and identify what actions are required to address
provide assurance that the criteria has been met. any problem areas with benefits management
The Digital Service Standard has been adapted from practice. The survey findings could also be used to
the UK Government’s Digital by Default Service benchmark assessments across NSW clusters.
Standard under the Open Government Licence v3.0.
For scores less than 28, review the recommendations
NSW Digital Strategy in Section 4 below to identify possible improvements.
For scores less than 20, also review the
Within NSW, digital service design and investment
considerations on critical success factors above.
should be aligned with the priorities of the NSW
For more information, see Part 3: Guidelines on
Government Digital Strategy. The strategy sets out
the challenges typically encountered in benefits
the following three priorities for how to approach
management practice and the risks that may arise
the design and delivery of next-level, user-centric
from poor forecasting or program delivery issues.
public policy and services, with underpinning
Also see Part 1: Principles for the principles that
digital standards:
underpin the recommendations in the table below.

9
4. Recommendations

4.1 Assessment recommendations

The findings from the assessment analysis It is recommended that
can inform which areas need to improve when
implementing the framework for a digital a pragmatic approach
government. It is recommended that a pragmatic
approach to implementing the framework is taken, to implementing a
with each organisation deciding which benefits
management maturity level would be optimal framework is taken
for its needs at a given time. Every organisation
does not need to achieve a high level of benefits
management maturity.

4.2 Recommendations for each

phase
The following table outlines the processes
and deliverables for each phase explained in
Part 2: Process and Part 3: Guidelines, giving
recommendations on what should be considered
at each phase, if the stakeholder organisation has a
low level of benefits maturity or digital capability. It
would be useful to read the table alongside Part 3:
Guidelines and the templates in Part 5: Glossary.

10
4. Recommendations (cont.)

Phase 1: Understand

Process Considerations (for organisations with lower

• Articulate the vision/ levels of maturity and capability)
objectives/key principles
• Identify key stakeholders
Identify benefits

• Identify benefits
• explain to stakeholders benefit management principles
collaboratively with
and terms before developing benefit deliverables. To help
stakeholders
stakeholders understand what a benefit means to them.

• Map the outcomes and

• Identify benefits with stakeholders using techniques such as
benefits with stakeholders
3 column analysis

• Develop a benefits
• to enable stakeholders to understand how the program
realisation strategy
objectives align with strategic goals

• Obtain sponsorship buy in

Map benefits
and ownership of benefits
• develop a benefits map that shows a clear line of sight between
program need, activity and the intended benefits. This will help
stakeholders to understand how the program objectives align
Deliverables with strategic goals
• use simpler mapping techniques or develop a high-level map
• Benefits Realisation
with stakeholders
Strategy
• consider using benefit mapping software only to inform
• 3 Column Analysis
stakeholders. In practice it can be difficult to use software in a
• First draft benefits map workshop
• Benefits Distribution Matrix
Develop benefit realisation strategy
• think evaluatively on why the program is needed, review
questions and template

Obtain sponsorship buy-in

• agree on benefits owners
• it is essential that the impact of the program on different
stakeholders be understood. A simple tool is the benefits
distribution matrix in Part 3

11
4. Recommendations (cont.)

Phase 2: Plan

Considerations (for organisations with lower

Process levels of maturity and capability)
• Classify benefits
Classify benefits
• Identify benefit measures
• classify benefits into structured categories to help stakeholders
• Value benefits
prioritise benefits, see Part 3 for recommended classification of
• Create benefits register financial and non-financial benefits.
• Develop benefits profiles
Identify benefit measures
• Establish governance
• limit the number of measurable benefits, ideally 6–10
• Confirm benefit ownership
• choose measures that will give an early indication of progress
• Develop benefits plan
• choose measures with existing data sources
• Inform business case
• agree measures that will show intended intermediate and end benefits
• obtain baseline measures for each chosen benefit
• obtain sign-off of benefit forecasts and baselines using a
Deliverables benefits profile
• Benefits plan • align benefits with measures for strategic objectives
• Benefits profiles • use the KPIs in Digital Service Standard measuring digital
(included in plan) services see Part 3, at a minimum should measure
• Benefits register or benefit –– user satisfaction
tracking tool –– digital take-up
–– completion rate
–– cost per transaction

• consider how the digital data could be used to, provide more
certainty on cost and benefit estimates
• consider how user satisfaction, digital take-up, completion rates
could improve understanding on stakeholders impact or user
needs, or service performance

Value benefits
• value benefits using standard discount rate and sensitivity
analysis in NSW Government Guide to CBA,
• use data to inform value for money analysis,
• if a portfolio prioritisation is not established develop a criteria for
prioritising financial benefits such as calculation method aligns
with NSW Government Guide to CBA or high confidence levels in
realising benefit, documenting all assumptions

Benefits register
• use at minimum, the benefits register to record and monitor
data, see template.
• adapt the benefit register template to the organisational style if useful,
• If digital capability is more mature, determine which software
or service design is appropriate for collecting, managing and
analysing data

Benefits plan
• align activities in benefit plans with defined program stages or
other business processes or frameworks.
• integrate benefit profiles, benefit register and benefit map into
benefits plan, to maintain version control

12
4. Recommendations (cont.)

Phase 3: Manage and Report

Process Considerations (for organisations

• Operationalise the benefits register or with lower levels of maturity and
benefits tracking tool capability)
• Agree final targets with benefit owners
• Monitor program progress Benefit report
• Review progress against business • digital capability will inform data content format of
case/baseline reports and how reports are prepared
• Update benefits plan, benefit register or • use at minimum, the benefits register to report, see
tracking tool template. Consider if the template should be adapted
to the organisational style
• Establish reporting on progress
• ensure that the content of the benefits report provide
• Handover benefits reporting and
a transparent overview of benefits realisation for easy
measurements to BAU team
comparison between the business case forecast and
current progress
• review measures and activities on a formalised basis as
Deliverables part of a regular governance meeting
• if digital capability is more mature establish a benefit
• First benefits report tracking tool to collect, manage and analyse data
• Updated benefits plan digitally. See Digital Service Standard for guidance on
• Updated benefits register the Performance Dashboards.

Phase 4: Evaluate

Process Considerations (for organisations

• Clarify the purpose and scope of the with lower levels of maturity and
evaluation phase capability)
• Review the benefits deliverables
• prepare for evaluation phase by maintaining document
• Conduct post-implementation review to versions on appropriate data storage and information
inform corrective action sharing software
• Capture lessons learnt to inform • review requirements of NSW Government Program
continuous improvement Evaluation Guidelines to prepare evidence base for an
• Report the results independent evaluation if required
• obtain information on what worked well for other
programs within the organisation
• obtain organisational templates for learned Lesson
Deliverables reports or business case variation reports.
• Updated benefits report
• Updated benefits register
• Business case variation report
• Lessons learned report

13
4. Recommendations (cont.)

4.3 Governance recommendations 4.4 Documentation

Governance is key to implementing benefits recommendations
management, as benefits need to be owned by
The terminology, language and style of an
appropriate sponsors and managers from within the
organisation should be used when adapting the
organisation. To support active program sponsorship
benefits management processes and templates.
at the senior leadership and executive level:
Using familiar terminology and language will
• develop a program vision statement, to be provide consistent communication across program
promoted by senior leadership, to assist with the and business areas. Also, it will help to accelerate
transformational change required to realise the adoption and ensure continued use of the
program benefits. framework.
• review the underlining principles of benefits
realisation management outlined in Part 1:
Process and how these principles support each
phase of benefits management in the governance
section of Part 3: Guidelines
• use benefits management deliverables to clearly
articulate the program outcomes and intended
benefits
• when possible, manage, report and approve
benefit deliverables within existing governance
meetings, noting that the size, complexity,
priority and risk of a program and its benefits will
affect the level of governance required to control
its delivery and benefit realisation
• when possible, integrate benefits management
processes with other business processes or
NSW Government frameworks used within the
organisation
• use the ‘RACI’ (Responsible, Accountable,
Consulted Informed) in Part 3: Guidelines
to review and agree on responsibilities for
managing and realising benefits
• use the key roles and responsibilities table in Part
3: Guidelines to help with defining and agreeing
on the roles involved for each phase of benefits
management and their level of accountability
• adapt the organisation standard role descriptions
to include responsibilities for benefits
management. For smaller projects, avoid recruiting
to the position description as some functions may
be performed by staff already in place.

14
Appendix A: NSW Digital Strategy
priorities — self assessment
Always = 3 | Usually = 2 | Occasionally = 1 | Never = 0

Maturity Always Usually Occasionally Never

Customer experience

1. Services are digital by default

2. Services based on identified customer needs and digital capability

3. Collaboration across the sector to design seamless and

integrated services, using common standards and platforms
where appropriate

4. Services are accessible and easy to use for all customers and
provide for differing levels of digital literacy

Data

5. All investment decisions, policies and service delivery models

are informed by data insights

6. Data is open, collected and shared in a digital format

wherever possible.

7. Agencies open their data in a format that can be readily used

8. Data is published in real time where possible.

9. Visualisation and mapping tools ensure accessible and

actionable insights from data

10. Customer data is protected in accordance with NSW privacy law

Digital on the inside

11. Government processes are designed around the needs of users

12. Processes are streamlined within clusters to eliminate

duplication, and whole of government platforms are used to
increase efficiency

13. Job tasks which are routine, repetitive, structured and rules
based are fully automated (where appropriate) to free up time
for higher-value tasks

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