Outputs Capabilities Outcomes Benefits A guide to a complete conversation with your key stakeholders to better understand the objectives of your project. By Julie Grabb B Math, PMP, Prince2

On time, on budget, on scope So What? Eric Reis – Author of “The Lean Startup” “What’s the point in being on time and on budget when no one wants, needs or understands what is being delivered?” Read: MY RESPONSE In David Barrett’s latest blog titled “I try to Avoid Hiring PMPs” the person in the gym suggests that PM’s these days are too focused on being on time and on budget.  While I agree to a certain extent, there is another side to this story. The reason the PM is so focused on time & budget is because that is what the decision makers and Sponsor are focused on.  The PM is often TOLD “here is what you are to build” without any context as to what business outcomes/changes this so called thing is mean to enable and context as to the strategic decision making that has led to the need for this project. Until PM’s are brought into the conversations earlier, or enabled to ask the questions around why are we doing this project, how does it fit into the broader organization and what business changes are we meant to enable, the ON TIME ON BUDGET mentality is unlikely to change. The PM is one cog in the wheel when it comes to making projects successful. When the organization focuses on only time and $, then don’t be surprised when the PM does to.

What questions do you ask once you have been assigned as a PM?

How about asking …. Why are we doing this project? What are the objectives of this project? Discuss your current projects with your neighbours. Share 1 with the class. Ask the group – for your current projects to you know? Capture some of the key highlights on the board…. ( To build….. - to fix….. 10 15 min + debrief on board

How about asking ….WHY? Reasons PROJECT Benefits CURRENT STATE Existing problem to fix Opportunity to take advantage of Mitigate future business risk Legislative compliance ....... PROJECT Benefits FUTURE STATE Less operating costs Increased volume More customers -...... When you are assigned as the project manager on a new project, one of the first questions to ask is What are the objectives of this project? Or why are we doing this project? Not that you want to challenge what the project is trying to accomplish, but rather to gather a better understanding of what you are being asked to do and what the project is all about. The answer to the WHY question, should NOT BE to BUILD something.

How about asking ….objectives? Reasons PROJECT Benefits OBJECTIVES ARE ABOUT THE FUTURE ... To change some aspect of the way we do business ... To enable the organization to generate benefits When you are assigned as the project manager on a new project, one of the first questions to ask is What are the objectives of this project? Or why are we doing this project? Not that you want to challenge what the project is trying to accomplish, but rather to gather a better understanding of what you are being asked to do and what the project is all about. The objective of the project should NOT BE to BUILD something.

Outputs Outcomes Benefits Definitions Term Definition Example Output Specialized product / deliverable New sales system Capability A set of project outputs required to deliver an outcome New Sales System + Training Programs + Documentation + Trained Trainers Outcome Business changes that occur when the output is used Sales orders are processed more quickly and with fewer errors Benefit Measurable improvement resulting from an outcome Costs are reduced by 10%, sale orders +15%, revenue +10%

Outputs Outcomes Benefits also cause Project outputs Organizational changes Side-effects and consequences Dis-benefits enable realize further realize helps achieve one or more Outcomes Corporate objectives Benefits trigger Result in Capabilities build Tangible or intangible artefact produced, constructed or created as a result of a planned Activity Result of change, normally affecting real-world behaviour or circumstances Measurable improvement arising from an outcome perceived as an advantage by one or more stakeholders and contributes to one or more organisational objectives Slide builds – do normal speech on this Copyright © AXELOS Limited 2014. All rights reserved. Managing Successful Programmes s d s

Organizational Context Benefits s Corporate Objectives achieved creates forms mandate developed into defines the e realizes delivers Project outputs Capabilities Outcomes Programme vision blueprint transitions to Organizational Context Where do our projects fit in? Copyright © AXELOS Limited 2014. All rights reserved. Material is reproduced under licence from AXELOS

from Current to Future State… Reasons PROJECT Benefits Pre-transition Transition Post Transition user communities start to use the “NEW” capabilities to establish the business outcomes initial measurement of benefits & identifying lessons that need to be learned removing the “OLD” - ongoing benefits measurement - done in the user communities - typically not part of the project When you are assigned as the project manager on a new project, one of the first questions to ask is What are the objectives of this project? Or why are we doing this project? Not that you want to challenge what the project is trying to accomplish, but rather to gather a better understanding of what you are being asked to do and what the project is all about. Talk about phasing/staging of transition, it isn’t only at the end of the projec With your neighbours, discuss what kinds of work happen in pre-transition.

from Current to Future State… Pre-transition Transition Post Transition PRE-TRANSITION project deliverables are created planning for transition establishing training programs, initial training & train the trainer data conversion new /revised job descriptions documentation internal and external marketing regarding the changes establishing mechanisms to measure benefits ... When you are assigned as the project manager on a new project, one of the first questions to ask is What are the objectives of this project? Or why are we doing this project? Not that you want to challenge what the project is trying to accomplish, but rather to gather a better understanding of what you are being asked to do and what the project is all about.

from Current to Future State… Pre-transition Transition Post Transition Stage 1 – PILOT – by location, by functionality, by structure Stage 2 – Apply lessons from Stage 1, expand usage...... Stage 3 – expand usage...... When you are assigned as the project manager on a new project, one of the first questions to ask is What are the objectives of this project? Or why are we doing this project? Not that you want to challenge what the project is trying to accomplish, but rather to gather a better understanding of what you are being asked to do and what the project is all about.

How is this information used: Benefits: Business Case Project Charter Stakeholder Analysis Scope, WBS, WBS Dictionary Include items relating to establishing baselines and measuring of benefits Work to establish pilot delivery Subset of features Subset of the user community Interim measurement of benefits Rework of the intended solution and future delivery Schedule Staged/phased delivery of features / benefits NOTE: Most benefit realization will occur after the project has closed and the outputs have transitioned in to day to day use.

Benefits Distribution Matrix Fig 7.5 Benefits distribution matrix of stakeholders (example) Copyright © AXELOS Limited 2014. All rights reserved. Material is reproduced under licence from AXELOS .

How is this information used: Outcomes: Business Requirements Stakeholder analysis Scope, WBS, WBS Dictionary Include items relating to transitioning the outputs Training Marketing Awareness Documentation Schedule Establish phase/stages for transition of outputs into day to day use. Success criteria for the project. Completion criteria for the project.

How is this information used: Outputs: Scope Statement, In/Out of scope WBS, WBS Dictionary Building a Schedule: Activities to build, check, approve Identify required skill sets Estimating Dependencies

Benefits Map Figure 7.7 Benefits map: new HR system example Retrained managers New HR IT system New Recruitment process Project output Capability Outcomes Benefit t Corporate objective Delays for applicants reduced Applications Processed faster Better staff retention f Increased productivity Higher staff morale Increased HR staff efficiency i e n Reduced personnel costs Fewer HR staff Fewer vacancies Lower Recruitment costs Benefits Map Improved continuity Figure 7.7 Benefits map: new HR system example Copyright © AXELOS Limited 2014. All rights reserved. Material is reproduced under licence from AXELOS .

The Project Manager’s Question Kit by Julie Grabb PDF Download Available at www.juliegrabb.com

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