The Realization of Project Benefits
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1 The Realization of Project Benefits RL Information Consulting LLC June 26, 2002 Presented By: Rick Leopoldi People Process Technology
2 Realization of IT Benefits Slide - 2 People Process Technology Problem Definition Cost of IT $ Return on IT Investment Cost of Technology Time
3 Realization of IT Benefits Slide - 3 People Process Technology Increasing $ Spent on IT Problem Scope! Expertise, Processes, Technology, Integration Results Do Not Meet Expectations! Measurable Metrics Undefined! User Needs Oftentimes Not Met! Project Scope Changeable! Loose Alignment to Business Requirement Project Commitment, Responsibility, and Accountability Unclear
4 Realization of IT Benefits Slide - 4 People Process Technology Problem Impact What is the Impact to the Business? What is the Cost to the Business? What is the Value to the Business? Fundamentally A Business Problem
5 Realization of IT Benefits Slide - 5 People Process Technology Project Priorities Measure/Manage Projects Ensure Value to Business Problem Challenges Align Project Scope/Deliverables To Meet Business and User Expectations Maximize Successes and Minimize Failures Lower Cost and Increase Effectiveness For IT and Business
6 Realization of IT Benefits Slide - 6 People Process Technology What Could Be Done? More Effective Alignment of Business to IT Employ Project Management Best Practices Increased ROI Efforts Better Hardware/Software Technologies Better IT Service Management All Good But, Not Sufficient
7 Realization of IT Benefits Slide - 7 People Process Technology A New Approach New Managed Business Process is Needed Focus on Direct/Indirect Costs and Benefits! Priorities! Deliverables! Objectives and Scope! Manage to Business Benefits Value to the Business is Critical Business Model Must be Continuous
8 Realization of IT Benefits Slide - 8 People Process Technology Focus on Business Value Total Costs and Benefits Analysis Assessment of Risk Scope/Deliverables Managed Identify Business Value-Add Identify All Tasks Clear Responsibility and Accountability Aligned to Business/User Requirements
9 Realization of IT Benefits Slide - 9 People Process Technology Approach Fundamentals People, Process, Technology, Organization, and Integration Perspectives Projects Managed by Deliverables Projects Managed to Business Metrics Continuous Business/User Reviews to Ensure Alignment Projects Integrated into Business Programs, Organizational Initiatives
10 Realization of IT Benefits Slide - 10 People Process Technology Approach Scope Resource and Expertise Availability Best Practice Processes for Project and IT Service Management Appropriate Quantity and Level of Technology Organization Focus (Beyond Project) Integration Alignment of IT Within Business/Organization
11 Realization of IT Benefits Slide - 11 People Process Technology Manage by Deliverables Focus On Outcomes Continuous Cognitive Process: What Must Be Done to Achieve This Result? Value Provided by Deliverables to the Business Measured by Business Metrics Managed by Best Practices Integrated into Business Programs then Organization Initiatives
12 Realization of IT Benefits Slide - 12 People Process Technology Manage to Metrics Are Projects Aligned to Business Programs and Organization Initiatives? Are Projects Integrated into the Business and Organization to Ensure Benefit? Are Projects Being Done Effectively and Efficiently? Are Real Benefits Resulting from Projects? Continuous Assessment Cycle Metrics
13 Realization of IT Benefits Slide - 13 People Process Technology Manage for Benefits Management of Change to Realize Benefits Value, Benefits, and Alignment for Business and Organization Accountability/Measurement Business/Organization Metrics Assessment Cycle Risk Assessment to Ensure Benefits
14 Realization of IT Benefits Slide - 14 People Process Technology Critical Focus Areas Cooperation: Alignment Commitment: Benefits Focus Communication: Accountability Coordination: Managing Changes Projects Within Business Programs Within Organization Initiatives Throughout Organization, Business, IT
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