Benefits Management – a fool’s errand?
Business Analysts Meeting, 15th July 2009
Stephen [email protected]
Change programmes - the rationale
“The fundamental reason for beginning a programme is torealise the benefits through change.”Office for Government Commerce (OGC), ‘Managing Successful Programmes’
“It is only possible to be sure that change has worked if we can measure the delivery of the benefits it is supposed to bring.”UK Cabinet Office, ‘Successful IT: Modernising Government in Action’
But the track record is not good in the public sector…
“Implementation of IT systems has resulted in delay, confusion and inconvenience to the citizen and, in many cases poor value for money to the taxpayer.”
Public Accounts Committee
“30-40% of systems to support business change delivery no benefits whatsoever.”
Office of Government Commerce
4
Or in the private sector…
“project success appears to equate to achieving an acceptable level of failure or minimising lost benefits.”
KPMG
“Most large capital investments come in late and over budget, never living up to expectations. More than 70% of new manufacturing plants in North America, for example, close within their first decade of operation. Approximately three-quarters of mergers and acquisitions never pay-off…And efforts to enter new markets fare no better”
Lovallo and Kahneman
5
and ‘horror’ stories abound…
• The London Dome - visitors down by 5-6 million.• Eurostar - passenger forecast in yr1 of full operations 15.9m, actual 2.9m.• Bangkok skytrain – demand 2.5 times over-estimated.• Humber Bridge – traffic 25% overestimated in yr1 of full operation.• Sydney Opera House.• Olympics - Montreal, Athens, London?
And empirical research concludes…
“There is a demonstrated, systemic tendency for project appraisers to be overly optimistic. This is a worldwide phenomenon that affects both the private and public sectors…appraisers tend to overstate benefits, and underestimate timings and costs.” HM Treasury
Forecasts are “highly, systematically and significantly misleading (inflated). The result is large benefit shortfalls”.
Flyvbjerg
“Delusional optimism: we overemphasise projects’ potential benefits and underestimate likely costs, spinning success scenarios while ignoring the possibility of mistakes.” Lovallo and Kahneman
Four explanations…
1. The technical explanation
2. The psychological explanation – cognitive biases
3. The economic explanation
4. The political explanation – “Strategic misrepresentation”?
Delusion or Deception?
“the planned, systematic, deliberate misstatement of costs and benefits to get projects approved.” In short, “that is lying”. Flyvbjerg et al
“Figures don’t lie, but liars can figure”
Sharpe and Keelin
38% of respondents in one survey openly admitted to overstating benefits to get funding. Ward
9
Why is this important?
1. If we don’t know the value to be derived from our investments, we can’t make best use of the funds at our disposal – the ‘good’ lose out to the ‘bad’ but well presented proposals.
2. All investments have an opportunity cost in terms of other potential investments that are delayed or foregone.
3. If we don’t know where the value is we cannot manage it and potential value just drifts away.
4. It’s taxpayers’ and shareholders’ money – we need to demonstrate a sound investment justification and a commitment to realising all potential forms of value.
The 3 Benefit Challenges
1. Ensuring benefits claimed are robust and realisable.
2. Planning for all potential forms of value created.
3. Realising benefits and creating value – exploiting the capability created.
Capturing all forms of value
Moving beyond hurdle rates of return to ask – have all potential forms of value been identified?
Foundation Social
EffectivenessEfficiencyPolitical
Categories of Value
RCM Consequence 8
LIBRA
NSPIS C&P
Provides accurate information earlier
Ensures quicker resulting cases & conformance to CJS standards
Facilitates better case preparation
Speeds up communications with CPS
Delivers consistent charge wording
Supports a more effective timely prosecutional review
08.1 Prosecution discontinue case /
withdraw
08.2 Defendant pleas to alternative
offence
08.3 Defendant changes to a guilt
plea
08.11 Witness does not give evidence
08.12 Ruling against
Prosecution on evidence
admissability
08.13 Inappropriate charging
08.14 Insufficient evidence
08.15 Ineffective review
08.16 Not in public interest
08.21 Inappropriate charging
08.22 Ineffective review
C08.Cases cracked late
SR02(PSA 01) To reduce crime and the fear of crime
SR02(PSA 02) Narrowing the justice gap by increasing the number of
crimes where the offender is brought to justice (NJG)
SR02(PSA 03) Increase level of public confidence
Supports work of WCU (NWNJ) which prevents witness not giving
evidence COMPASS
Live Projects
Qualify
Investigate
Commit
Project Y
Project Z
Project J
Project P
Project N
Project B
Project M
Project K
Project X
Project L
Project H
Project F
Project O
Project Q
Project A
Project E
Project D
Project C
Cross department
Cross CJS
Intra CJO
Opportunity domain
Identify
Live Projects
Qualify
Investigate
Commit
Project Y
Project Z
Project J
Project P
Project N
Project B
Project M
Project K
Project X
Project L
Project H
Project F
Project O
Project Q
Project A
Project E
Project D
Project C
Cross department
Cross CJS
Intra CJO
Opportunity domain
Identify
1 Re-engineer Project Selection & Development
1 Re-engineer Project Selection & Development
6 Improved collaboration
with stakeholders
6 Improved collaboration
with stakeholders
2 Develop Community-based
solution
2 Develop Community-based
solution
3 Deploy maintenance
strategy
3 Deploy maintenance
strategy
5 Human Resources organisation development
5 Human Resources organisation development
4 Oregon Transportation
Initiative
4 Oregon Transportation
Initiative
10 Better skilled
& equipped people
10 Better skilled
& equipped people
11 More effective leadership
11 More effective leadership
8 Higher quality solutions
8 Higher quality
solutions
8 More effective public investment
8 More effective public investment
2 Improved total transportation experience
2 Improved total transportation experience
1 Improved community liveability
1 Improved community liveability
3 Enhanced economic opportunity
3 Enhanced economic opportunity
3 Transportation balanced with other liveability
factors
3 Transportation balanced with
other liveability factors
7
8
9
6
8
2
8
9
2 CommunityPrepared to
adapt behaviour
2 CommunityPrepared to
adapt behaviour
1 Balanced with growth, revenue base & needs
1 Balanced with growth, revenue base & needs
4 More integrated state direction
4 More integrated state direction7 Reduced time
for service delivery
7 Reduced time for service delivery3 4
5 Established state point of view
5 Established state point of view
9
1
2
6 8
43
3
4
2
4
1
0
Value
Going beyond forecast to creating value
• Managing benefits from a portfolio perspective.
• Continuous Participative Engagement.
• Learning from experience.
From optimism in planning and pessimism in implementation to realism in planning and enthusiasm in
implementation
But – the problem starts with the business case so…
1. Spend more time doing your homework.
2. Be clear about the benefits you are buying.
3. Triangulate and Validate benefit estimates.
4. Appraise ‘Attractiveness’ in the context of ‘Achievability’.
5. Use stage/phase ‘Gates with teeth’.
6. Independent review.
7. Maintaining a ‘Clear line of Sight’.
The Solutions:1. Spend more time doing your homework
“It’s the Business Case, stupid”
Failing projects don’t have brilliant business cases
The Solutions: 2. Understand the benefits you are buying
Beware ‘Strategic alignment’ as an investment justification,
“Our CEO defines ‘strategic projects’ as expensive projects without a Business case.”
Corporate Executive Board paper
Strategic Contribution Analysis
Vision Strategies Metrics
To change public services so they
more often meet the needs of people and businesses, rather than the needs of
government, and by doing so reduce the
frustration and stress of accessing them.
The result will be services that are
better for the customer, better for front line staff and
better for the taxpayer (Service Transformation
Agreement, October 2007).
Service Transformation Programme – High Level Strategy Map
Learning from citizens and businesses – Customer Insight, Customer Journey
Mapping, Customer Satisfaction Measurement
Grouping services in ways that are meaningful to the customer e.g. Tell Us Once, Directgov and Businesslink.gov
Rationalising services for efficiency and service improvement – online
(Directgov and Businesslink.gov), phone (contact centre accreditation);
face to face and helplines
Making better use of customer information public sector already holds:a. Strategic level – Home Office lead on
Identity mgt and MoJ on information sharing
b. Tactical level – Tell Us Once
Linking local and central government
Engaging front line staff
Government will monitor the customer experience through journey mapping and customer satisfaction tracking
mechanisms at the front line (STA Oct 07)
Key progress measures 1 - Reduction in the amount of avoidable contact. To achieve a 50% reduction by 31.3.11.
(STA Oct 07).
Key progress measure 2 - Building better online services – citizen and
business e-services content migrated to Directgov and Businesslink.gov. More than 95% of websites to have migrated
by 31.3.11. (STA Oct 07)
Efficiency savings – the value in recording the level of savings achieved by departments is recognised, and the
CO will track these as this STA is delivered. (STA Oct 07).
Face-to-Face – The LGDC will develop a progress measure reflecting the
FOSS approach for later inclusion in this Agreement. (STA Oct 07)
The Solutions: 2. Understand the benefits you are buying
Beware staff time savings – they are
vouchers
18
Non-cashable efficiency benefits?
“We were survivors, dwellers forever in the cracks of the vast organisational chart. Disperse us, downsize us, squash us, transfer us, and we will reassemble someday, somewhere, to once again build new layers of redundancy, waste, and glaring irrelevance.”
Lerner
The Solutions: 3. Triangulate and Validate
• Use Reference class forecasting.
• Validate the benefits with the recipients – before investment.
• Establish effective accountability for benefits realisation & ‘book’ them.
The Solutions:4. Appraise ‘Attractiveness’ in the
context of ‘Achievability’
The Solutions: 5. ‘Gates with teeth’
• Challenge and Support.
• Based on joint planning for success.
• Concludes with a formal re-commitment to benefits realisation.
The Solutions: 6. Independent review
“humans not only are prone to make biased predictions, we’re also damnably overconfident about our predictions and slow to change them in the face of new evidence. In fact, these problems of bias and overconfidence become more severe the more complicated the prediction.”
Ayers
The Solutions: 6. Independent review
Ayers suggests an, “‘Advocatus Diaboli’… whose job it is to poke holes in pet projects. These professional “No” men could be an antidote to overconfidence bias.”
Davidson Frame proposes the use of “murder boards” to pull a proposal apart to, “make sure that arguments in support of project ideas do not have built into them the seeds of their own destruction.”
Steve Jenner - I suggest a ‘fool’ to ask the questions others don’t dare to ask and identify those, ‘assumptions that masquerade as facts’.
The Solutions:7. A Clear line of sight
• Investment Appraisal report
• Benefits Scorecard
• Portfolio Analysis • Proving Model report
SR2004 CSR07 10 Year TotalQuality of
Benefit Forecast
Scale of Benefits Forecast
Quality ofRealisation
PlanningLikelihood ofRealisation
ConfidenceVictims and Witnesses
OBTJ Enforcement Re-offending Q1 03/04 - Q4 05/06 2006/07 2007/08
NSPIS Custody & Case Prep 79.08 199.82 348.06 AMBER AMBER AMBER AMBER Realised Plan Actual
PentiP - 5.08 14.06 GREEN GREEN AMBER AMBER Efficiency Cashable - - 0.39 0.71
COMPASS CMS (50%) 10.95 20.79 52.74 GREEN AMBER GREEN AMBER HD=1 Efficiency Opportunity 4.95 2.69 26.136 50.59 NWNJ IT tool (WMS) 5.70 9.66 25.02 GREEN GREEN GREEN AMBER D=2 HD=1 NK=1 HD=1 Effectiveness 0.26 0.24 0.94 1.12
SOCA 0.61 1.21 3.43 GREEN GREEN GREEN GREEN M=1 Total 5.21 2.93 - 27.473 52.42
Libra application (includes benefits jointly delivered with 3a) 18.15 81.70 154.31 GREEN RED AMBER AMBER M=1 NK=1
OASys 79.52 93.18 239.12 GREEN GREEN GREEN GREEN MC=2Q1 03/04 - Q4
05/06 2006/07 2007/08
NOMIS (70%) 5.06 50.00 162.33 GREEN GREEN GREEN GREEN MC=1 HD=1 Realised Plan Actual
ViSOR 0.93 2.21 6.08 GREEN GREEN GREEN GREEN Efficiency Cashable - - - -
CJSE Release 1a (NSPIS-CMS) 1.63 9.76 17.88 GREEN GREEN GREEN AMBER Efficiency Opportunity 31.40 8.88 35.50 39.04
CJSE Release 1b (NSPIS - Libra) 0.87 19.08 37.29 AMBER GREEN AMBER AMBER Effectiveness 0.13 0.39 1.56 2.83
XHIBIT/CJSE Release 2a&b (XHIBIT Portal) 9.29 7.11 21.15 AMBER RED GREEN AMBER M=1 D=1 M=1 Total 31.53 9.27 - 37.06 41.87
PROGRESS 1.88 12.02 26.04 GREEN GREEN GREEN GREEN M=4 HD=1 D=2
Secure Email/Emailing Securely 1.49 1.90 4.78 AMBER RED AMBER AMBER D=2
Q1 03/04 - Q4 05/06 2006/07 2007/08
CJSE Release 3a 0.00 0.01 0.02 AMBER AMBER AMBER Realised Plan Actual
CJSE Release 3b 1.10 2.13 6.07 GREEN AMBER AMBER Efficiency Cashable - 0.70 17.45
COMPASS infrastructure (50%) 85.95 95.79 252.74 see COMPASS CMS Efficiency Opportunity 2.59 0.53 2.67 1.70
Libra enabled 30.17 34.26 95.54 see LIBRA application Effectiveness - 0.34 2.54 4.42
NOMIS infrastructure (30%) 2.17 21.43 69.57 see NOMIS application Total 2.59 0.87 - 5.91 23.57
OMNI infrastructure 1.03 3.11 6.48 OMNI cost effectiveness - 9.36 36.37
LINK enabled 8.68 11.79 28.49 Q1 03/04 - Q4
05/06 2006/07 2007/08
Shared Access 5.85 7.80 24.05 D=2 Realised Plan Actual
Equip direct 16.50 16.50 55.00 Efficiency Cashable - - - - Equip enabled 41.41 149.10 311.00 Efficiency Opportunity 26.77 5.68 22.70 24.36
CEI 9.78 21.43 45.54 D=9 M=1 HD=3 D=5 M=1 HD=11 D=3 M=1 D=5 M=1 NK=1 D=1 M=1 Effectiveness 12.40 5.26 21.06 21.21 Economic/Social Value Benefits 15.61 113.53 291.21 Total 39.17 10.94 - 43.76 45.57
433.41 999.74 2,334.36
1274.65 KEY
250.18 Q1 03/04 - Q4
05/06 2006/07 2007/08
12.90% 2003/04 2003-05 2003-06 2003-07 2003-08
Benefits as % of Cost Realised Plan Actual
57.09 90.37 142.59 183.78 202.01 Efficiency Cashable -
0.53 1.63 5.21 32.69 85.10 Efficiency Opportunity 0.11 0.05 0.21 0.37
- - - - Effectiveness -
0.53 1.63 5.21 32.69 85.10 42% Total 0.11 0.05 - 0.21 0.37
111.21 194.71 269.22 408.09 519.61
5.50 15.38 39.29 83.26 129.20
- 8.55 10.12 19.22 49.96 Q3 05/06 Q4 05/06
5.50 23.93 49.40 102.47 179.16 34% No. % No. %
25.05 58.82 97.87 132.70 170.63 6 6% 2 2%
- 2.05 31.53 68.59 110.46 26 27% 35 36%
- 2.05 31.53 68.59 110.46 65% 13 13% 19 20%
154.55 283.61 426.40 512.40 585.28 52 54% 41 42%
- 0.30 2.59 8.50 32.07 3.23 8.43 18.80 32.10 47.28 3.23 8.73 21.39 40.60 79.35 14%
3Ring Fence costs from 2003-06 and Delivery Plan RF budget from 2006-08. Full benefits by recipient used. Corrections includes YJB.
RAG
1
2
3
Summary of Key Mitigating Actions
1. Settlement Letter Conditions/Hurdle rates 2. Root Cause Model 3. Social Value Research 4. Analysis of benefits enabled by CJS IT funded infrastructure
1. Quarterly Benefits Integrity Check 2. Benefits Eligibility Framework
Risk Description
2006/07 Q1
Difficulty with tracking/measure.
Benefits Rating
Prog
RAG of Benefits in SR2004 Benefits Realisation Plans
2006/07 Q1
YJB Benefits Realisation Plan
Direct Benefits
2006/07 Q1
HMCS Benefits Realisation Plan
2006/07 Q1
Inf
rast
ruct
ure
Scale of CJS IT benefits forecast
1. Process Modelling 2. CJO Benefit Realisation Plans approved by OB and BWG 3. Project Benefit Realisation Plans approved by BWG CJSIT benefits realisation
Total 10 year CJS IT Application benefits Ring Fence only
CJS IT Application NPV Ring Fence only
CJS IT Application IRR Ring Fence only Cost Benefit Analysis3
Quality of CJS IT benefits forecast
Risk Register - CJS IT Benefits Management
CJS IT BENEFITS SCORECARD June 2006
This table shows the full CJS IT Programme benefits picture, including ring fence benefits and benefits enabled by the ring fence infrastructure (£m)
Appl
icat
ions
CJS IT Benefits Realisation Plans
CJS IT Projects
Forecast Benefit Values Self assessment of RAG status Police Benefits Realisation Plan
TOTAL BENEFITS
Total CPS RF Cost/Budget
Direct & Enabled Benefits
Total CPS Benefits
Total Corrections RF Cost/Budget
Direct Benefits
Enabled Benefits
Total Corrections Benefits
Total Police RF Cost/Budget
Enabled Benefits
Total Police Benefits
Total HMCS Benefits
Total HMCS RF Cost/Budget
Direct BenefitsEnabled Benefits
Forecast
2. Independent Scores assessed by Proving Services
Benefit on track/ahead of schedule
Benefit not yet due for realisation
Benefit behind schedule
NOTE: Benefits shown only include quantified, validated benefits but other enabled benefits have been identified
and will be included as further work is undertaken
Forecast
Forecast
Forecast
Forecast
CPS Benefits Realisation Plan
2006/07 Q1
NOMS Benefits Realisation Plan
1. Based on BRP submissions & agreed with Strand Board leads, this shows the number of benefits to the Strands in terms of value (ie. mission critical, highly desirable etc)
MC = Mission Critical, HD = Highly Desirable, D = Desirable, M = Minimal, NK = Not Known
Strand Board Alignment1
Relative Contribution to
Strategic Drivers2
Benefits to the CJS and Society
Home CJO, 76%
x-CJS, 9% Social Value, 16%
Home CJO x-CJS Social Value
Benefits By Type
Efficiency Opportunity
61%
Efficiency Cashable
9%
Effectiveness30%
Efficiency Cashable Efficiency Opportunity Effectiveness
ATTRACTIVENESS ANALYSIS ECONOMIC ANALYSIS* NPV (£M) IRR (%) PAY BACK PERIOD
(YEARS) EXCLUDING OPTIMISM BIAS
INCLUDING OPTIMISM BIAS
CONFIRMATION THAT THE ABOVE FIGURES ARE COMPLIANT WITH BENEFITS ELIGIBILITY FRAMEWORK (BEF) Yes No
CONFIRMED BY: COMMENTS:
BENEFITS ANALYSIS OVER 10 YEAR PROJECT LIFE CYCLE (£M) STATE 10 YEAR PERIOD COVERED OR PROJECT LIFE SPAN IF LESS THEN 10 YEARS: RECIPIENT EFFICIENCY –
CASHABLE EFFICIENCY –
OPPORTUNITY
VALUE
EFFECTIVENESS - CASHABLE
EFFECTIVENESS –
OPPORTUNITY
VALUE CJO: Police CJO: CPS CJO: DCA CJO: NOMS CJO: YJB CROSS CJS: BEYOND THE
CJS(SPECIFY):
TOTALS:
INC
LUD
ED
IN
BR
P
AG
RE
ED
IN
PR
INC
IPLE
N
OT
YE
T A
GR
EE
D
SOURCE OF CONFIRMATION OR PROPOSED
ACTIONS & TIMESCALES TO ENSURE
BENEFITS ARE INCLUDED IN BENEFITS
REALISATION PLAN BENEFITS INCLUDED IN THE POLICE
BENEFITS REALISATION PLAN (BRP) OR AGREED IN PRINCIPLE BY THE
POLICE BENEFITS REALISATION
LEAD(BRL)
BENEFITS INCLUDED IN THE CPS
BRP OR AGREED IN PRINCIPLE BY
THE CPS BRL
BENEFITS INCLUDED IN THE DCA
BRP OR AGREED IN PRINCIPLE BY
THE DCA BRL
BENEFITS INCLUDED IN THE NOMS
BRP OR AGREED IN PRINCIPLE BY
THE NOMS BRL
BENEFITS INCLUDED IN THE YJB
BRP OR AGREED IN PRINCIPLE BY
THE YJB BRL
ACHIEVABILITY ANALYSIS
PROVING SERVICES ACHIEVABILITY SCORE BREAKDOWN
CONCEPT CASE (COMPLETE AS APPROPRIATE)
Stakeholder Analysis (Achievability)Indication Achievability
Complexity Analysis
Score
Achievability Total
BUSINESS CASE (COMPLETE AS APPROPRIATE)
Complexity AnalysisProcesses & Capability
Ownership & AccountabilityClarity & Perception
Score
Achievability Total
Benefits Realisation Management
Stakeholders Analysis
ASSESSMENT OF DEGREE OF BUSINESS CHANGE REQUIRED TO REALISE BENEFITS RECIPIENT BRL ASSESSMENT COMMENTS
HIG
H
ME
DIU
M
L
OW
N
/A
Police CPS DCA NOMS YJB Others [specify]
PROVING MODEL ASSESSMENT
DATE OF CURRENT ASSESSMENT:
ACHIEVABILITY SCORE:
PROGRESS SINCE LAST
ACHIEVABILITY ASSESSMENT:
(1) TOTAL PROJECT COSTS YEAR RESOURCE
(£M) CAPITAL
(£M) TOTAL (£M)
TOTAL
(2) RESOURCE/CAPITAL CURRENTLY ALLOCATED FROM
THE RING FENCE (3) OTHER FUNDING SOURCES
YEAR RESOURCE
(£M) CAPITAL
(£M) TOTAL (£M)
RESOURCE
(£M) CAPITAL
(£M) TOTAL (£M)
TOTAL
RESOURCE/CAPITAL GAP (1-(2+3)) RESOURCE/CAPITAL REQUIRED FROM
THE RING FENCE YEAR RESOURCE
(£M) CAPITAL
(£M) TOTAL (£M)
RESOURCE
(£M) CAPITAL
(£M) TOTAL (£M)
TOTAL
FUNDING – OTHER ISSUES AVAILABILITY CONFIRMED? FUNDING AVAILABLE TO REALISE BUSINESS CHANGE? Yes
No BY: DATE
CONFIRMATION THAT OVERSPENDS WILL BE MET BY DEPARTMENTAL BASELINES
Yes No
BY: DATE
RECYCLING OF COST SAVINGS YEAR LEGACY SYSTEM
SAVINGS SAVINGS
RECYCLED? AMOUNT BY WHICH THE RING FENCE
REQUEST CAN BE REDUCED TOTAL
• Recipient Organisation Benefits Realisation Report
• Contributor project benefits report
RecipientCost Avoidance
Self Assessment Cashable Opportunity Cashable Opportunity £ %
Crown Courts 12.700 35.620 0.000 25.920 0.000 74.240 6.7%
Quality of Benefits Forecast Other CJOs 0.000 117.820 0.000 52.760 0.000 170.580 15.3%
Scale of Benefits Forecast Cross CJS 0.000 0.000 0.000 173.710 0.000 173.710 15.6%
Quality of Realisation Planning Outside CJS 0.000 0.000 0.000 694.860 0.000 694.860 62.4%
Likelihood of Realisation Total £ 12.700 153.440 0.000 947.250 0.000 1113.390 100.0%
Benefits Realised this financial year £m Last report Now
Monetary Value of Benefits Realised YTD 0.01 NPV £m* 154.301 -
4.1
0.0%
Variance -4.09
Performance £ M
From 1 month after Go-live at each court centre
Reduced waiting time claim valuesBenefit not yet due for realisation10 Reduction in solicitor waiting - 12.7 Efficiency cashable
PSA Targets 2, 3 and 5
Crown Court
Following rollout to all prisons in a CJA
Benefit not yet due for realisation9 NOMS Benefits - 36.9 Effectiveness opportunity
PSA Target 5
NOMS
Benefit ahead of or in line with plan10
Benefit ahead of or in line with plan
No of bail forms sent and time taken
9
3 months after go live in a CJ Area
No of enquiries made to CCBenefit ahead of or in line with plan
No of daily/warned lists sent and time taken
8 Police Benefits - 115.52 Efficiency opportunity
PSA Target 5
Police
3 months after go live in a CJ Area
Number of enquiries made to CCBenefit ahead of or in line with plan
No of daily lists faxed/time taken.
7 CPS Benefits - 2.3 Efficiency opportunity
PSA Target 5
CPS
From 1 month after Go-live at each court centre
Backlog countBenefit ahead of or in line with plan
Number of disposals
6 Crown Court Efficiency benefits - 35.61 Efficiency opportunity
PSA Targets 2, 3 and 5
Crown Court
From 3 months after Go-live at each court centre
Number of disposalsBenefit ahead of or in line with plan5 Court time saving (Same day delays) - 5.98 Effectiveness opportunity
PSA Targets 2, 3 and 5
Crown Court
From 6 months after Go-live at each court centre
Percentage of ineffective hearingsBenefit not yet due for realisation4 Court time saving ( Ineffective Hearings)
Assumption of improvement of 1-10% 31.78 Effectiveness opportunity
PSA Targets 1, 2, 3 and 5 Crown Court, Police, CPS, Probation
From Go-live at each court centre
No. of adjournments as a result of no PSRBenefit ahead of or in line with plan3 Court time saving (PSR adjournments)
Improvement from 15% to 3.4% 4.06 Effectiveness opportunity
PSA Targets 2, 3 and 5
Crown Court
To start 6 months after completion in a CJ Area
Time from CC result to PNC update
2 Reduction in the cost of crime
PNC update down to 3 days 694.86 Effectiveness opportunity
PSA Targets 1 and 3
UK economy
To start 6 months after completion in a CJ Area
Time from CC result to PNC updateBenefit realisation behind Plan
Realisation Ramp Up Key Measures/Indicators of Benefit
Benefits Realisation
Status
1 Reduction in the cost of crime
PNC update down to 3 days 173.71 Effectiveness opportunity
PSA Target 5
CJS
94.2
*NPV discounted at 3.5%
Project Life Cycle Benefits Profile (Top 5-10 benefits over 10 years)
Benefit Description
Impact
Benefit Category Strategic AlignmentMain Recipient
Name(s) of recipient agreed with
Q4 Assessment
Q4 forecast for Q1
Forecast in latest published Delivery Plan YTD IRR %
Approved by SRO:
Benefit not yet due for realisation
CJS IT BENEFITS PROGRESS REPORT - QUARTER 4 2004-05 FOR CJS EXCHANGE XHIBIT PORTAL
10 Year Analysis
Efficiency £ M Effectiveness Total
Q3 Assessment
Q3 Forecast for Q4
Cumulative Cost and Benefit Forecast 2003-2013
-
200
400
600
800
1,000
1,200
Year
£'m
Cumulative Benefits Cumulative Costs
And remember…
1. Spend more time doing your homework - be clear about what benefits you are buying.
2. Look beyond the hurdle rate of return.3. Use stage/phase gates with formal re-commitment to
benefits realisation. 4. Joint accountability - planning for success, with a
forward looking perspective.5. Track performance and use it to inform investment
appraisals. 6. Use summary documentation – size is the enemy of
understanding.7. Ensure there is a clear line of sight from strategic
intent through to benefits realisation.8. Manage benefits from a portfolio perspective.9. Be realistic in planning and optimistic in
implementation and….
10. Be ‘wise enough to play the fool’
Available from www.academic-publishing.org