Realize Value Phase The chapter on the Realize Value phase describes the steps that must be taken to ensure targeted business benefits are realized. While these steps are all listed in this chapter, they are meant to be carried out during the earlier phases. These will tie the revision to a focused effort on accomplishing the clear and justifiable goals set in the beginning of the project. For this Discussion, research news articles and give an example in which a BPM project failed to provide the expected benefits due to skipping one or more of these steps. 1. Describe the situation. 2. Assess which of the steps listed in the chapter appear not to have been carried out properly. 3. Were there clear metrics and justifiable goals in this project? Why were these goals not achieved? Steps Listed in Digital Book: Step 1: Communications 434 Communicating the benefits is crucial throughout all phases of the BPM initiative and hence all steps of benefits realization as business benefits are the reason why initiatives are started in the first place. As mentioned before benefits are a key benchmark throughout the initiative to determine which ideas, requirements or aspects should be in-scope and which should be ruled out-of- scope. Communication ensures that participants in the workshops and other activities feel that they know where the project is heading and are involved and being listened to. It is important that benefits communication considers all key aspects of the communication activities, especially if people are impacted, by, for example, reduction in employee numbers; changes to KPIs and bonuses of employees; and impacts on profitability levels. It is important to communicate quick wins as soon as possible as this provides belief and generates momentum. Don't wait until the project is completed to communicate positive outcomes and benefits. Step 2: Benefits management framework (Enablement phase) As indicated earlier, this step (step 3: Process Architecture of the Enablement phase in Chapter 14) is about establishing a benefits management structure for the organization to approach, target, measure and realize project business benefits, and it should be incorporated into the process architecture. This step is where not only the benefits management structure is created, but also the organization's standards and templates are established and communicated throughout the organization as part of the Target Operating Model and the Process Architecture. These standards and templates should include, but not be limited to, the following: how the organization identifies benefits and links them to the organization strategy; how the organization defines and measures benefits; benefit roles, responsibilities and ownership; benefit planning proceduresmilestone/benefits network matrices, delivery, assessment and review points, dependencies, risks, business impacts; the determination of what, when and by whom; guidelines on how to take advantage of opportunities for unplanned benefits; identification of any dis-benefits; identification of who is responsible for baselining and how, and who signs off on the baseline; a benefits register formatWhat is the benefit? How much it is worth? Who is accountable for the delivery or realization of the benefit(s)? When will it be delivered timeframe? Where will it impact on the business? Regular benefit management meetings should be established to ensure there is a continual focus on the management and realization of the organizational benefits associated with the various business cases used to justify BPM activities. These meetings will also assist in the creation and maintenance of a benefits-focused project culture. Decisions need to be made as to who should attend, how often the meetings will be held, and a standard agenda established, which should include: lessons learned benefits realized (Is it enough? Is there more?) benefits not realizedwhy? Adjust plans/mitigation and remediation strategies. Step 3: Identify potential benefits and enter in benefits register (Launch pad phase) The initial business case will have been delivered as part of the Launch pad phase (step 5.6: Analyze business processes. and step 6: Agree and plan the handover/takeover with the business, in Chapter 15), and will have identified the likely initial benefits associated with the project. The benefits will be further identified and confirmed as the BPM activity progresses through subsequent phases of the 7FE Framework. The benefits register must be used to record, for each identified and defined benefit, the following information: a description of the benefit to be achieved; the person responsible for realizing the benefit (benefit owner); a description of the current situation or performance of the business process; the current cost or performance measure of the business process; the target cost or performance measure of the business process after the planned change; the target date for the benefit to be realized; the trigger or event that will cause the benefit to be realized; the type of contribution to the business; process impacted; the assessed value of the benefit or saving; dependencies and assumptions; potential risks and barriers; comments about the assessed value of the benefit or saving; the organization strategy and objectives supported by the benefit; how this benefit will contribute to the achievement of the strategic objective (for example, effectiveness in the billing process will reduce revenue leakage and increase earnings before income tax (EBIT) Benefit owners are crucial in ensuring that benefits are realized, as the accountability rests with them. Benefits owners are: responsible for the realization of the specified benefit; responsible to manage and deliver the benefits, changes and measures; kept informed about any changes to the BPM activity or business settings that will impact the benefit realization, including changes affecting the assumption, dependencies, potential risks and barriers; able to influence the outcomes given their position; typically a (senior) manager in the area affected by the BPM activity with authority, credibility and influence with the employees and stakeholders and who understands process; accountable to the project sponsor and steering committee for achieving the benefits. The BPM activity sponsor is: responsible for the achievement of the overall benefits; responsible for managing the BPM activity and benefits in such a way that the benefits are maximized and support the business in the best possible way; consulted and/or requested to make decisions that impact the BPM activity and benefits; able to influence the organization, BPM activity and benefits given their position; typically an executive with a passion for process; accountable to the steering committee