Data Management - A Practical Approach To quantifying Benefits

Transcription

1 A Guide to Evidencing the Benefits of Business Process Improvement in Higher Education Heather Lawrence and Dr Nicola J Cairns

2 2 A Guide to Evidencing the Benefits of Business Process Improvement in Higher Education COPYRIGHT University of Strathclyde 2015 Published by: University of Strathclyde Publishing Business Improvement Team McCance Building 16 Richmond Street Glasgow G1 1XQ United Kingdom The material in this guide was developed with funding from the Leadership Foundation for Higher Education under the Innovation and Transformation Fund. The contents do not reflect the policies or the views of the Leadership Foundation. Any part of this guide may be freely reproduced with the appropriate acknowledgement. Images may not be reproduced separately. Permission to translate all or any part of this handbook should be obtained through the: Business Improvement Team University of Strathclyde McCance Building 16 Richmond Street Glasgow G1 1XQ United Kingdom Authors: Heather Lawrence and Dr Nicola J Cairns Cite as: Lawrence, H.; Cairns, N.J. (2015). Best Practice Guide: Evidencing the Benefits of Business Process Improvement in Higher Education. UK: University of Strathclyde. ISBN: A Guide to Evidencing the Benefits of Business Process Improvement in Higher Education

3 3 FOREWORD A Guide to Evidencing the Benefits of Business Process Improvement in Higher Education Universities and specialist colleges have constantly striven to make improvements in the way they operate, the offer made to students, and the outcomes from public investment in research. The recently published report on progress against the Diamond Review sets out the case for how the higher education sector should be seen as both efficient and effective. However, those of us who have a deep interest in business process improvements and efficiencies in the sector are aware that the evidential base for the changes which are happening on a project by project basis in each institution is often fragmentary and incomplete. Most often the narrative of the qualitative improvements offered by change is considered sufficient for a business case to be approved. The best one can hope for is a passing reference to other efficiencies but without any meaningful analysis or data. The reality is that there should be a balance between both qualitative and quantitative reasons for change. And time and resource should be invested in baselining performance and costs, together with mapping the changed position and understanding the gap between the two the benefit. This analysis should contribute to the decision to invest in and implement any proposed change. In a world where questions on efficiency and effectiveness are increasingly being asked, it is important that the higher education sector demonstrates that it can step up to the plate as much as the NHS and other sectors are doing. This guide, together with the associated resources, will help those interested in business process improvement understand how BPI should be managed and how the evidencing of efficiencies, both qualitative and quantitative, can improve outcomes. Stephen Butcher Head of Procurement and Shared Services Higher Education Funding Council for England (HEFCE)

4 4 ACKNOWLEDGEMENTS A Guide to Evidencing the Benefits of Business Process Improvement in Higher Education The research, collaboration and consultation for this project involved the input from many colleagues across the higher education sector and the authors would like to express their sincere gratitude to all who helped to bring this guide to life. We would like to thank The Leadership Foundation, the Higher Education Funding Council for England, and the Innovation and Transformation Fund selection panel for providing the University of Strathclyde with the funding and the opportunity to create this guide for the wider sector. A special thanks to Stephen Butcher whose guidance, enthusiasm and commitment to the project motivated the authors to make the guide the best it could be. His knowledge of, and dedication to, driving efficiencies across the sector and evidencing these efficiencies provided real inspiration throughout. We would also like to thank our Project Mentor John Lakin, Associate of the Leadership Foundation, for his valuable feedback on an early draft of the guide. John also shared essential knowledge of a range of experts across the sector. We extend a special appreciation to several Universities who took the time to review the content and provided constructive feedback in ensuring the guide was fit for purpose and transferable across the sector: Rachel McAssey, Process Improvement Coordinator, The University of Sheffield Pat Browne, Head of Business Improvement, The University of Aberdeen David Melkevik, Lean University Facilitator, Cardiff University Bruce Levitan, Head of Business Improvement, Manchester Metropolitan University Thank you to a number of colleagues across the sector for sharing their experiences and providing valuable case studies for the guide: Stuart Morris, Continuous Improvement Facilitator, University of Lincoln Rachel McAssey, Process Improvement Coordinator, The University of Sheffield Michael Broderick, Change Facilitator, University of Leicester Bruce Levitan, Head of Business Improvement, Manchester Metropolitan University We would also like to thank all those who took the time to respond to our sector survey throughout February and March The feedback was essential in shaping our content and for ensuring the guide is user-friendly and transferable across all institutions. We would like to give a special thanks to our Business Improvement Steering Group who have provided valuable insight and vision in ensuring the guide is applicable across the sector. Thank you to Rosie Niven, Content Editor for the Efficiency Exchange for Universities UK, for supporting the online dissemination of the project throughout its development and generating wider interest in the project across the sector. The support of The Business Improvement Team at University of Strathclyde (John Hogg, Graham Ross, Susan Ali, Kimberley Blackwood and Susan Hillis) has been outstanding and their commitment has been central to ensuring the successful completion of this guide. In particular, a special thank you to Senior Business Improvement Manager John Hogg for his guidance and endless dedication to promoting the guide to the wider sector. A Guide to Evidencing the Benefits of Business Process Improvement in Higher Education

5 5 CONTENTS A Guide to Evidencing the Benefits of Business Process Improvement in Higher Education SECTION SETTING THE CONTEXT FOR EVIDENCING BENEFITS IN HIGHER EDUCATION... 7 A 1. Introduction How well are we currently evidencing benefits? Purpose of the Guide Limitations and assumptions What we mean by a benefit Why measure benefits? Cultural challenges across the HE sector How to use the Guide SECTION BEST PRACTICE GUIDE FOR IDENTIFYING AND EVIDENCING BENEFITS B THROUGH A PROJECT LIFE-CYCLE 1. Institutional Preparation a. Key Activities i. Establish governance and management structures ii. Agree priorities and drivers for BPI activity iii. Establish benefits data management approach iv. Establish institutional benefits reporting approach Project Initiation a. Key Activities i. Completion of Project Initiation Proposal ii. Agree projects to be fully scoped b. Supporting Guidance i. Insist on the completion of a Project Initiation Proposal ii. Don t be afraid to say No Project Scoping and Start-up Phase a. Key Activities i. Completion of project proposal document to include benefits ii. Benefits Scoping Workshop iii. Go and see the process in action iv. Introduce data capturing tools v. Agree projects to proceed b. Supporting Guidance i. Overcoming the challenges to capture data ii. Focus on the right benefits iii. Capture Voice of the Customer information Diagnostic Phase a. Key Activities i. Establish a Data Wall for data visualisation ii. Review Measurable Benefits Data Plan with project team iii. Include benefits and data in project reports iv. Communicate the findings from the data at the end of the Diagnostic Phase Heather Lawrence and Dr Nicola J Cairns

6 6 CONTENTS A Guide to Evidencing the Benefits of Business Process Improvement in Higher Education 4b. Supporting Guidance i. Use Impact versus Effort Charts to anticipate benefits Design, Test and Implementation Phase a. Key Activities i. Create Improvement Action Plan ii. Development of Standard Operating Procedures (SOPs) iii. Utilise Measurable Benefits Data Plan and gather trial data iv. Compare trial data with baseline data b. Supporting Guidance i. The importance of trial data ii. Transfer the ownership for evidencing benefits iii. Continue Voice of the Customer activity End of Project Review Phase a. Key Activities i. Continue data gathering after wider implementation ii. Include benefits in end of project reports iii. Share and promote the benefits b. Supporting Guidance i. Who reports the benefits? Sustainment Phase a. Key Activities i. Agree where further benefits could be evidenced ii. Establish performance measures to continue to capture benefit data iii. Celebrate and communicate the benefits across the institution SECTION SUPPORTING TOOLS AND INFORMATION C 1. Overview of potential measurable benefits with key tools Visualising and communicating your benefits Tips for driving behaviours and engagement when evidencing benefits Sector Case Studies a. Postgraduate Taught (PGT) admissions at the University of Strathclyde b. Postgraduate Research (PGR) Suspension of Studies pilot at the University of Leicester c. Patent fee recovery at the University of Strathclyde d. Student Wellbeing Centre s Counselling Service at the University of Lincoln e. Student registration at the University of Strathclyde f. Maternity Leave Notification process at the University of Sheffield g. EQAL Programme at Manchester Metropolitan University (MMU) Glossary and key terms Tools and templates Further information and resources A Guide to Evidencing the Benefits of Business Process Improvement in Higher Education

7 7 Section A Setting the context for evidencing benefits in Higher Education 1. Introduction Delivering efficiency and value for money is an absolute operational priority. All stakeholders rightly expect efficient use of resources and in the current financially austere times investment to maintain excellence in both education and research will often come through such efficiencies. Thus, to meet the demands of competitiveness in the 21st century, universities must work in ever smarter and more innovative ways. 1 Sir Ian Diamond, 2015 Many Higher Education Institutions are applying Business Process Improvement (BPI) techniques across processes that underpin the delivery of teaching and research. These initiatives are helping institutions to work more effectively and efficiently, and are helping to increase operational capacity. This Guide offers a practical approach to quantifying benefits that result from BPI activities, and to assist with the calculation of efficiency savings to support the Diamond Agenda 2, through delivering value for money using the key tools and techniques that are already present in many institutions. It aims to provide institutions with guidance, and adoptable tools to effectively communicate and demonstrate the value of improvements and efficiencies. 2. How well are we currently evidencing benefits? As part of our research for developing this Guide, we distributed a survey to the Higher Education sector to uncover how BPI practitioners are identifying and measuring benefits throughout their projects. Respondents were asked what priorities they consider in order to proceed with a project; how they currently demonstrate BPI project success; what they consider to be a project benefit and how many of these have been successfully measured; and at what stage in a project are benefits identified and then measured. It showed that 88% of respondents 3 reported that they currently identify benefits from their BPI activities. They were provided with seven possible priorities to proceed with a BPI project, which included reasons such as cost only savings and resource availability within the team, and asked to rank them in order of importance. Overall potential benefits and impact was ranked the second most important priority (Figure 1). Yet only 47% of practitioners stated that they use the benefits identified to demonstrate a project s success and only 54% use an established methodology to help them measure those benefits. The integration of BPI techniques in our working practices can contribute to creating a competitive advantage, whilst allowing institutions to respond to the increasing demands from the UK Government, funding bodies, and the market to deliver more. Figure 1 - The importance ranking allocated to BPI project priorities. Overall project benefits was ranked the second most important priority by respondents. 1 Sir Ian Diamond (2015) cited by Universities UK (2015), Efficiency, effectiveness and value for money, Date accessed: 3/7/15 2 Efficiency Exchange (2015), About efficiency and effectiveness in higher education, Date accessed: 3/7/ BPI professionals in HE sector completed the survey to date Heather Lawrence and Dr Nicola J Cairns

8 Section A 8 Setting the context for evidencing benefits in Higher Education If the overall benefits are a high priority for proceeding with a project and are actively identified by the majority of practitioners, then we must ask ourselves why they are not consistently used to demonstrate a project s success? The survey also uncovered that few practitioners have successfully measured the full range of benefits they have identified (Figure 2). This indicates there are challenges to evidencing some benefits or sourcing the appropriate data to demonstrate them. Furthermore, while practitioners identify benefits in the scoping and start up project phases, significantly less baseline data is captured in these early stages compared to the design and trial phases. In fact, most data gathering and measurement activity occurs post-project implementation. This suggests that efficiency savings or other improvement metrics cannot be accurately evidenced due to limited data gathering activities up front and baseline information being captured too late. The lack of data provided ahead of the project starting or within the diagnostic phase also highlights the risk of missing opportunities for improvement. 3. Purpose of the Guide This Guide describes a range of activities that institutions can utilise in order to maximise their opportunities for evidencing benefits of BPI. It outlines how to quantify benefits throughout a typical project life-cycle for process redesign/process modelling activities and demonstrates how to gather, record, and communicate the information to allow for more accurate reporting of the success and impact of projects. It will also help to provide insight into where institutional action is required, particularly for initiatives where expected benefits are not being realised. It is intended that by working consistently using the tools provided in the Guide, we will achieve greater engagement from the sector to carry out BPI activities as a result of increased measurement and evidencing of demonstrable benefits, and drive cultural change in the identification and recording of efficiency savings and income generation. The Guide demonstrates how to maximise the identification of benefits and efficiencies through early planning activities and by implementing a structure to evidencing benefits throughout the project life-cycle and across the institution. This will maximise your resources by avoiding additional work post-project and will enable reporting on clear, quantifiable project outcomes. This Guide outlines a good practice approach to evidencing benefits at the time of publication, therefore, it is intended to be a dynamic document and it is envisaged that the sector will work collaboratively in the future to share learning in order to further enhance the content. Figure 2 - A comparison of the benefits BPI practitioners have considered with the benefits they have been able to successfully measure. These findings indicate that the sector needs to improve the way benefits are evidenced. This Guide aims to inform project planning and decision making through the early identification of potential benefits and implementation of a clear, measurable data gathering plan to ensure quantifiable benefits are fully realised and used to demonstrate project success. A Guide to Evidencing the Benefits of Business Process Improvement in Higher Education

9 9 Section A Setting the context for evidencing benefits in Higher Education 4. Limitations and assumptions 5. What we mean by a benefit This Guide is aimed at BPI practitioners within Higher Education who have a basic knowledge of Lean methodologies and BPI practices. This includes individuals or teams who have worked alongside BPI practitioners on business improvement initiatives within their institutions and want to continue to identify further opportunities for improvement in their own business areas. This Guide does not detail how to carry out BPI activities, or how to manage a project as it is assumed that each institution will have its own project management methodology. It is also recognised that institutions will have varying resources for carrying out business improvement initiatives. The Guide does not replace existing data capturing, reporting or benefits realisation methodologies that institutions may currently use (see Further Information and Resources). Rather it provides a practical and easily adaptable method to positively drive the behaviours of an institution, embed benefits identification in a project, gather the data that is essential to demonstrate those benefits, and trigger activities throughout the project to ensure that benefits become fully realised. There are many definitions of a benefit with the most common outlining that a benefit is An outcome of change which is perceived as positive by a stakeholder 4 Whilst this is a useful high-level way to think about benefits, it doesn t consider how to evidence a positive outcome. A benefit should establish a clear direction of improvement, recognised by all stakeholders, through the use of data to demonstrate the positive change between two time points. It is important to not lose sight of the intended change or improvement from carrying out a BPI initiative and this can be evidenced by exploring the measurable benefits. For the purposes of this Guide, we have focused on benefits that can be measured. (See Section C for an Overview of potential measurable benefits ) 4 Bradley, Gerard (2006), Benefits Realisation Management: A practical guide to achieving benefits through change. Gower Publishing Heather Lawrence and Dr Nicola J Cairns

10 Section A 10 Setting the context for evidencing benefits in Higher Education 6. Why measure benefits? 6. Why Measure Benefits? Some of the Some reasons of the for evidencing reasons for the evidencing success of BPI the initiatives success are of BPI outlined initiatives below: are outlined below: Drive Cultural Change Drive behaviours to measure data and ensure improvement efforts are focused on the agreed priorities Encourage proactive behaviours in the identification and measuring of baseline data which uncover further opportunities for improvement, or positively changes the focus of the project Provide evidence or justification to explore improvement opportunities in similar processes within an institution or in the wider sector Create a transparent culture of improvement by communicating success and sharing best practice Recognise, celebrate and reward success at an individual or team level Improvement Planning and Prioritisation Demonstrating Efficiencies and Success Sustainment of Improvements Support the business case for improvements and project selection by evaluating the clearly anticipated measurable benefits Enable institutions to learn lessons from improvement initiatives that have been successful, and those that have not delivered as expected Indicate the likely success of any planned changes and demonstrate what has been achieved through ongoing measurement Assist with the evidencing of efficiency savings and value for money across the sector that feed into returns such as: HEFCE, Scottish Funding Council, Efficient Government Return, Universities Scotland Efficiencies Taskforce, and Universities UK Identify direct and indirect increase to revenue Provide a basis to develop ongoing performance measures to ensure sustainability of the new way of working Provide a new performance baseline from which further improvements can be measured. A Guide to Evidencing the Benefits of Business Process Improvement in Higher Education

11 11 Section A Setting the context for evidencing benefits in Higher Education 7. Cultural challenges across the HE sector It is recognised that there are challenges in gathering and sharing data within institutions, particularly when the data uncovers inefficient or ineffective ways of working and is therefore perceived to be negative. Nevertheless, there are bold ambitions for the sector in generating greater efficiencies and doing more with less. As a result, being open and transparent around the gathering of data and identification of benefits is absolutely essential: What we need to do is to jointly sign up to looking for areas of best practice, where there are opportunities to make efficiencies. And we need to be prepared to communicate them in a way where one can identify the sum of those savings and to demonstrate where other savings are being made. Sir Ian Diamond, The identification of benefits and their ongoing measurement must always be viewed as shared tasks that will enhance the ability to measure the impact of the project, and allow all those involved to feel a greater sense of achievement when demonstrating the improvements. We all play a key part, regardless of role, in changing the culture around data transparency. Many of the activities provided in this Guide are targeted at alleviating concerns and anxiety around evidencing business improvement, by making benefits part of the language up front, gaining agreement from the project team and key stakeholders on the importance of data gathering, and clearly identifying what can be achieved by evidencing the successes. In this way, a positive perception of benefits and data gathering is established. 5 Sir Ian Diamond (2015), The Conversation: Universities need to get better at telling the public how we are saving money, Date accessed: 3/7/15 Heather Lawrence and Dr Nicola J Cairns

12 Section A 12 Setting the context for evidencing benefits in Higher Education 8. How to use the Guide 8. How to use the Guide This Guide can be used continuously throughout a project or alternatively as an occasional reference tool. The key activities are organised by project phase to help you locate the This Guide can be used continuously throughout a project or alternatively as an occasional reference tool. The key information activities you are organised need quickly: by project phase to help you locate the information you need quickly: Institutional Preparation Preparatory work required to agree priorities for undertaking BPI activities and ensure consistency of approach when measuring benefits Project Initiation Introduction of key activities to gather high level baseline data to inform decision making ahead of project selection and scoping activity Project Scoping and Start-up Detailed project scoping activities to gather and capture the necessary baseline data against which future improvements can be measured. This informs whether projects should proceed. Diagnostic Key activities once a project is underway to maximise data collation and the buy-in of key stakeholders Design, Trial and Implementation Essential activities that enhance the measurement of post-improvement data and ongoing buy-in for evidencing the success of the project End of Project Focused on the sign-off of benefits captured so far, those that have not been realised and the ongoing responsibilities for further benefits realisation Sustainment Ongoing benefits realisation and the identification of further opportunities for improvement Within each project Within phase each project you will phase find further you will detail find on further following: detail on the following: The key activities The to be key carried activities out at to this be carried stage out at this stage Guidance on how to overcome potential challenges faced at this stage Supporting tools Guidance and templates on how for to maximising overcome data potential collection challenges and management faced at this stage 15 A Guide to Evidencing the Benefits of Business Process Improvement in Higher Education

13 13 Section B A Guide for Identifying and Evidencing Benefits through a Project Life-cycle Section B. Supporting tools and templates for maximising data collection and management Best Practice Guide for Identifying and Evidencing Benefits through a Project Life-cycle 1. Institutional Preparation 2. Project Initiation 3. Project Scoping and Start- up 4. Diagnostic 5. Design, Test & Implement 6. End of Project 7. Sustainment 1. Institutional Preparation 1. Institutional Preparation Figure 3 provides an overview of the key activities and associated tools that need to be Figure 3 provides an overview of the key activities and incorporated within the Institutional Preparation phase. The activities included in this section associated tools that need to be incorporated within the Institutional will Preparation enable you phase. to The establish activities the included BPI priorities in and drivers for the institution, as well as a this section will enable you to establish the BPI priorities robust data management approach to evidence and report benefits from a project level and drivers for the institution, as well as a robust data management through approach to an to evidence institutional and level. report benefits from a project level through to an institutional level. Institutional Preparation Activity: Establish governance and management structures Activity: Agree priorities and drivers for BPI activity Activity: Establish benefits data management approach Figure 3 - Key Activities and Tools for Institutional Preparation Tools: - Central Electronic Storage - Central Costing Reference Tool - Manual Data Capturing Templates - Benefits Calculation Spreadsheet - Benefits Realisation Spreadsheet - Benefits Reporting Figure 3 - Key Activities and Tools for Institutional Preparation Written by Heather Lawrence and Dr Nicola Cairns 16

14 Section B 14 A Guide for Identifying and Evidencing Benefits through a Project Life-cycle 1a. Key Activities i. Establish governance and management structures Prioritising BPI projects requires an appropriate level of governance and management oversight so that the resources available are focused on the right initiatives. A BPI Project Board should be established with a remit to regularly review initial project proposals and to assess if active projects are still on track to deliver the intended benefits. There needs to be a process in place to make informed decisions about whether to proceed with a BPI project, and to iteratively assess and help secure the ongoing investment of resources in active projects. These decisions must be informed with clear data that demonstrate the baseline or the improvements. There may be competing interests and the board must have the ability and decision making framework within which to say No to a project if the potential benefits are minimal, do not deliver a return on investment, or are unlikely to be realised. The establishment of a project board with regular review meetings creates a clear and transparent approach that can lead to the creation of an informed prioritisation list of initiatives that can be focused on when resources become available. If your institution already has a clear project governance structure in place, then consider how the selection and decision making processes for BPI projects can be incorporated. ii. Agree priorities and drivers for BPI activity It is recommended that the priorities for selecting BPI projects are agreed and understood, at a team or institutional level, and as part of annual or business planning discussions. This will allow you to manage the expectations of management, make more informed decisions at the project selection stage, and more appropriately allocate your resources across projects. For example, you may prioritise projects where the benefits to the student experience and reputation of the institution greatly outweigh the efficiency savings that are likely to be realised. Alternatively, you may prioritise projects that are likely to generate significant efficiencies, or have the potential to increase revenues. These priorities will be different for each institution, but some common priorities that could help inform your discussions are: Improved student / staff experience Creating capacity for growth / efficiency savings Direct impact to the strategic objectives of the institution Potential to improve institutional rankings Potential to raise profile of BPI across the institution Direct cost savings Increased institutional income Increased business continuity Reduce likeliness of risk to the institution A Guide to Evidencing the Benefits of Business Process Improvement in Higher Education

15 15 Section B A Guide for Identifying and Evidencing Benefits through a Project Life-cycle e likeliness of risk to the institution stablish Benefits Data Management Approach iii. Establish benefits data management approach Benefits Data Management Approach Central Costing Reference Tool Central Electronic Data Storage Combine and Analyse Data Captured on Benefits Calculation Spreadsheet Record and track benefits on Benefits Realisation Spreadsheet Benefits Reporting Manual Data Capturing Templates Repeat cycle for future data measurement to demonstrate improvement Figure 4 - Benefits Data Management Approach Figure 4 - Benefits Data Management Approach Create central location for storage of data It is good data management to establish a central depository where all appropriate practitioners can access and store benefit data throughout a project s lifetime and to evidence the project s findings over a longer term. The depository should be located on your institution s secure server which will be automatically backed up. This can be scaled down to a project level if you are working within one department or business area. The data management tools outlined in Figure 4 should be saved in the central location. Create Central Costing Reference Tool To ensure the consistency of benefits calculations across your projects, standard salary and costing information should be used. You may need to liaise with central Finance and Procurement Services to collate these costings. This information should be provided within the Central Costing Reference Tool for ease of calculating savings and reviewed regularly to include any changes to salaries and costs. Typical information should include: Current salary grades (including overheads) that provide both daily and hourly rates Printing Costs: Average cost per copy for black and white printing Average cost per copy for colour printing Cost per page of paper Printer/rental/maintenance costs Average shredding/removal costs per page Average storage costs per square foot Postage costs e central location for storage of data We recommend that you work out the savings or increase for your projects to an annual sum as it will support the data management to establish a central depository where all annual appropriate efficiencies return for your institution. It is also ers can access and store benefit data throughout a project s lifetime useful if and the Costing to Reference Tool contains example costing calculations to ensure that everyone is calculating the project s findings over a longer term. The depository should be the located benefits on in the same way. i.e.: ution s secure server which will be automatically backed up. This can be scaled project level if you are working within one department or business area. The agement tools outlined in Figure 4 should be saved in the central location. e Central Costing Reference Tool the consistency of benefits calculations across your projects, standard salary g information should be used. You may need to liaise with central Finance and ent Services to collate these costings. This information should be provided 18 Heather Lawrence and Dr Nicola J Cairns

16 Section B o Average cost per copy for colour printing o Cost per page of paper o 16 Printer/rental/maintenance costs Average shredding/removal costs per page < BACK TO CONTENTS Average > storage costs per square foot Postage costs A Guide for Identifying and Evidencing Benefits through a Project Life-cycle We recommend that you work out the savings for your projects to an annual sum as it will support the annual efficiencies return for your institution. It is also useful if the document contains example costing calculations to ensure that everyone is calculating the benefits in the same way. i.e.: EXAMPLE: Reduced printing of 50,000 pages per year Printing Costs: per black and white copy x 50,000 pages = 300 saved per year Cost of Paper: cost of paper per page x 50,000 pages = 200 saved per year Removal Costs: 1 sack = 4000 pages therefore: 50,000 pages / 4000 per sack = 12.5 sacks x 2.50 per sack = saved per year Total Saving = EXAMPLE: Staff capacity savings of 500 hours per year A saving of 500 hours per year for a Grade 5 employee x 11 per hour = 5,500 saved per year Often, staff capacity or staff efficiency savings are not direct cash savings, therefore, consider how the realisation of these types of benefits can result in wider benefits to the business area. 19 A Guide to Evidencing the Benefits of Business Process Improvement in Higher Education

17 17 Section B A Guide for Identifying and Evidencing Benefits through a Project Life-cycle Create manual data management templates for capturing data As part of a data management approach, the raw data collection used to calculate the benefits needs to be recorded and centrally stored. Manual data capturing templates are available in Section C to capture process times, lead times and quality issues. Manual data should be scanned to create an electronic file. Create data management template for combining and analysing data gathered To enable analysis of the data captured to calculate the baseline, the raw data should be collated within a Benefits Calculation Spreadsheet. This is particularly useful when calculating average processing and lead times for an activity. An example has been provided of how to condense the raw data and present the calculations in order to validate the benefits in the future and ensure that the same approach to data measurement is implemented when repeating the data capture post-improvements. By analysing the baseline and post-improvement data in the Benefits Calculation Spreadsheet, efficiency savings can be evidenced. As a starting point we have provided a simple Benefits Realisation Spreadsheet that suggests the basic - but essential - information required to evidence benefits. The Central Costing Reference Tool, Manual Data Capturing Templates, and the Benefits Calculation Spreadsheet inform the Benefits Realisation spreadsheet. An alternative data management tool is also available from Jisc (see Section C. Supporting Tools and Information). iv. Establish institutional benefits reporting approach Benefits reporting information will be essential for the BPI Project Board to assess whether projects are on track to deliver the intended benefits, and to have an oversight of all expected and realised benefits across the institution. It will also ensure the consistency and accuracy of reporting for tracking progress of BPI initiatives throughout the project life-cycle and beyond. Create data management tool to store and track benefits To have a complete overview of your measurable benefits at any time, it is essential to develop a data management tool to enable your team to record and track the information. The purpose of the data management tool is to record the important benefit data that has been captured during a project, demonstrate the efficiency calculations and analysis, validate the project findings, and enable largescale reporting or auditing of BPI activities. It can be as straightforward as a spreadsheet or involve more detailed data management plans and custom designed databases. Heather Lawrence and Dr Nicola J Cairns

18 Section B 2. Project Initiation 18 A Guide for Identifying and Evidencing Benefits through a Project Life-cycle 1. Institutional Preparation 2. Project Initiation 3. Project Scoping and Start- up 4. Diagnostic 5. Design, Test & Implement 6. End of Project 7. Sustainment Figure 5 provides an overview of the key activities and associated tools that need to be incorporated within the Project Initiation phase. This stage of the project assumes that a colleague or a key stakeholder has raised an idea of a potential BPI project. The activities 2. Project Initiation 2.a Key Activities included in this section will enable you to evaluate proposed projects and make informed Figure 5 provides an overview of the key activities and associated decisions tools that to need proceed to be based incorporated on the within high the level benefits identified and in line with BPI project Project Initiation board priorities. phase. This stage of the project assumes that a colleague or a key stakeholder has raised an idea of a potential BPI project. The activities included in this section will enable 2a. you Key to evaluate Activities proposed projects and make informed decisions to proceed based on the high level benefits identified and in line with BPI Project Board priorities. Project Initiation Activity: Completion of Project Initiation Proposal Activity: Agreeing projects to proceed and selecting Project Lead and Project Sponsor Figure 5 - Key Activities and Tools for Project Initiation Tool: Project Initiation Proposal Figure 5 - Key Activities and Tools for Project Initiation A Guide to Evidencing the Benefits of Business Process Improvement in Higher Education 21

19 19 Section B A Guide for Identifying and Evidencing Benefits through a Project Life-cycle i. Completion of Project Initiation Proposal ii. Agree projects to be fully scoped When a colleague or stakeholder identifies a possible BPI project, this should trigger the request to develop a Project Initiation Proposal. The proposal should include enough detail for the BPI Project Board to evaluate the project based on the proposed benefits and it s alignment with institutional strategic BPI priorities. Therefore, the Provision of High Level Baseline Data should be included as a mandatory section. The Project Initiator should know enough about the process in question and the intended change to gather high level baseline data that demonstrates the scale of the process and that justifies the need for improvement. At this stage, remaining focused on the aspect of the process that requires attention is important in order to limit the baseline data. Some examples of high level baseline data include: Student experience survey results Quantity of activity Current conversion activity i.e. number of applications against number of enrolments Process and lead times Audit results Research income in a subject area The Project Initiator should consider the benefits to be gained from the project. The Measurable Benefits guide in Section C can help to support this activity. The Project Initiation Proposal template should be stored in an accessible location on the institution s shared server so that ideas can be put forward by anyone across the institution. Once the BPI Project Board has met to review the Project Initiation Proposals and has agreed that a proposal should be scoped in more depth, it is then important for the Board to agree the most suitable colleagues for leading on the project within the institution to ensure maximum impact. The Project Manager is essential for ensuring that benefits identification and realisation is at the heart of the BPI initiative, therefore the expectations of this role must be clearly understood by whoever takes on the responsibility for the project. The Project Sponsor is crucial for generating engagement and support from key stakeholders who are essential to the success of the project. As such, when agreeing a Project Sponsor, it is necessary to establish the importance of this role in supporting the identification of benefits and encouraging data gathering activities. 2b. Supporting Guidance i. Insist on the completion of a Project Initiation Proposal It is the responsibility of the Project Initiator to present his or her case and provide the information. In order not to waste valuable resources, it is important to wait until the Initiator has made their case and the BPI Project Board agrees that it is a worthwhile undertaking. Avoid getting involved in the detail until there is an initial agreement to scope the project further. This approach ensures process owners and stakeholders understand the importance of assessing their process and collating data at the first point of contact. ii. Don t be afraid to say No All too often, projects are carried out that have little in the way of measurable improvements or impacts. The BPI Project Board, or appropriate decision makers, must not be afraid to reject a project that is unlikely to achieve measurable results that are essential to the ongoing success of the institution. Heather Lawrence and Dr Nicola J Cairns

20 24 Section B 20 A Guide for Identifying and Evidencing Benefits through a Project Life-cycle 3. Project Scoping and Start-up Phase 1. Institutional Preparation 2. Project Initiation 3. Project Scoping and Start- up 4. Diagnostic 5. Design, Test & Implement 6. End of Project 7. Sustainment The Project Scoping and Start-up phase assumes that a project has been selected based on 3. Project Scoping and Start-up Phase the potential benefits that could be achieved. This is one of the most important stages of the project and allows you to more fully understand the breadth of improvements and the The Project Scoping and Start-up phase assumes that Figure 6 provides an overview of the key activities a project has potential been selected benefits based through on the greater potential baseline data gathering and associated activities. tools that need to be incorporated benefits that could be achieved. This is one of the most within the Project Scoping and Start-up phase. These important stages of the project and allows you to more fully activities will enable you to follow up on the high 3a. Key Activities understand the breadth of improvements and the potential level benefits identification completed in the Project benefits through Figure greater 6 provides baseline an data overview gathering of the activities. key activities Initiation and associated phase, through tools fuller that benefits need to scoping be and planning, observation of the process in more detail, incorporated within the Project Scoping and Start-up and phase. increased These capture activities of baseline will enable data. you to follow up on the high level benefits identification completed in the Project Initiation phase, through fuller benefits scoping and planning, observation of the process in more detail, and increased capture of baseline data. 3a. Key Activities Project Scoping and Start- Up Activity: Completion of Project Proposal to include benefits Tools: - Measurable Benefits Data Plan - Project Plan to include benefits activity Activity: Benefits Scoping Workshop Tool: Benefits Exploration Map Activity: Go and see the process in action Tools: Activity: Introduce Data Capturing Tools Figure 6 - Key Activities and Tools for Project Scoping - Manual and Start-up Data Capturing Templates Figure 6 - Key Activities and Tools for Project Scoping and Start-Up A Guide to Evidencing the Benefits of Business Process Improvement in Higher Education

21 21 Section B A Guide for Identifying and Evidencing Benefits through a Project Life-cycle i. Completion of project proposal document to include benefits The project proposal is a key document for ensuring that all key stakeholders are aware of the purpose of the project, for outlining key roles and responsibilities and for gaining commitment to measure benefits. It is recognised there are a range of project proposal templates to complement different project management approaches, however, the following additional sections are important to document the agreement to measure benefits and the time commitment required to do so: Measurable Benefits Data Plan This will allow you to understand who has the data, how the data will be gathered and when the data will be provided. This is an extremely useful document that can be utilised throughout the project life-cycle to share the responsibility to collate information and drive the project team s behaviours on evidencing benefits. A template for the Measurable Benefits Data Plan is provided in Section C. It should also outline key information that should be provided prior to full project approval. Build benefits time into your project plan It is important to build sufficient time into your overall project plan so that the identified benefits are fully realised. A weekly review of the Measurable Benefits Data Plan with the project team will focus attention on where there are gaps in the necessary information and drive behaviours to gather the outstanding data. ii. Benefits Scoping Workshop It is important not to be isolated in your thinking when considering benefits, but to be open and transparent with all key stakeholders. It is essential for project participants to understand the advantages of identifying and measuring benefits in order to gain their support in gathering the necessary data. At this stage a short benefits scoping workshop should be arranged with the key stakeholders and project team to explore all the possible benefits that could result from undertaking the project. The Project Initiation Proposal should be used to initially stimulate the discussions, using the Benefits Exploration Map as a key tool. A template for the Benefits Exploration Map is provided in Section C. The Measureable Benefits Guide in Section C can also be used in the benefits scoping workshop. The benefits scoping workshop introduces the language of benefits to the wider stakeholder groups and project team as early as possible in the project life-cycle. It might be useful to use an impartial facilitator who can freely ask questions and encourage participants to think more broadly. A useful approach for keeping the workshop within the allocated time is to use a silent post-it exercise to allow all participants to contribute. The benefits identified in the workshop should be used to create a bespoke Benefits Exploration Map which is circulated to all stakeholders who contributed and should ideally be displayed on the project room wall for the duration of the project. The measurable benefits from the Benefits Exploration Map should also be used to inform your Measurable Benefits Data Plan. There may be many benefits identified at this stage, therefore it might be necessary to prioritise the benefits that are to be measured. Throughout the project life-cycle, the identified benefits will allow you to assess if you have achieved what you set out do, and to inform future projects under consideration. Heather Lawrence and Dr Nicola J Cairns

22 Section B 22 A Guide for Identifying and Evidencing Benefits through a Project Life-cycle iii. Go and see the process in action It is extremely valuable for the Project Manager to spend at least one day observing the process prior to obtaining full agreement to proceed with the project; however this will be dependent on the size and scale of the project. This activity is an important part of the project management preparation. Spending time with the staff that carry out key tasks in the process will allow you to gain a better understanding of the process and inform your own thinking on the potential project benefits. You can then use this experience to facilitate the Benefits Scoping Workshop and organise targeted baseline data gathering to capture any quality issues, errors or rework that you observed. It is an important approach that is actively encouraged throughout the project to ensure that the required information is being provided and errors in gathering data are avoided. iv. Introduce data capturing tools The gathering of baseline data at this stage greatly enhances the activities within the Diagnostic phase and can save a significant amount of time later in the project if this information is captured as early as possible. The Benefits Exploration Map and the benefits scoping workshop are the ideal activities to generate enthusiasm from the project team to gather the necessary baseline data. There are a variety of tools that are useful for capturing manual data. (See Section C for an Overview of potential measurable benefits ) 3b. Supporting Guidance i. Overcoming the challenges to capture data It is recognised that there are challenges in gathering and sharing data within institutions, whether that is resistance to collaborating, difficulty locating who has the data, or having to gather the information manually. Yet in order to clearly demonstrate project success, the data to evidence benefits must be provided. For this reason, being transparent about the gathering of data and communicating the importance of identifying benefits is essential to generate positive perceptions of this work, and motivate stakeholders to provide what is needed. The benefits scoping workshop, Benefits Exploration Map and the Measurable Benefits Data Plan, utilised from this early stage in the project, are the tools required to achieve this stakeholder engagement and provide the information to evidence successes. When it is not possible to obtain accurate data or reports from the systems available, these limitations should become evident at the benefits scoping workshop. The Measurable Benefits Data Plan should then be used to indicate where manually measured data can be captured and where estimated data may have to be used. Encourage the monitoring of a small sample of data, again using the tools described above, as typically, measured data provides a greater understanding of the process than relying on estimates. Section C provides a variety of useful tools to gather manual data. v. Agree projects to proceed Once the Project Proposal has been completed and the scoping activities are complete, the BPI Project Board should review the Project Proposals and evaluate whether a project should proceed, based on the likeliness to deliver the anticipated benefits. It is crucial that the data gathered and the benefits are used to inform these decisions to ensure that projects are selected based on the BPI priorities of the institution. The BPI Project Board will then have an ongoing role to review reports to assess if projects are still on track to deliver the intended benefits, and to continually assess the ongoing investment of resources in active projects. A Guide to Evidencing the Benefits of Business Process Improvement in Higher Education