Earned Benefit Program Management : Aligning, Realizing, and Sustaining Strategy book cover
1st Edition

Earned Benefit Program Management
Aligning, Realizing, and Sustaining Strategy

ISBN 9781138033122
Published October 5, 2017 by Auerbach Publications
394 Pages 100 B/W Illustrations

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USD $130.00

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Book Description

No one can disagree that benefits are good things. Whether you are responsible for projects, programs, or portfolios, you are increasingly expected to think—and act—in an appropriate benefits-driven way. However:

  • Do you understand that what may be appropriate for a project may be inapplicable for a program?
  • Can you avoid the trap of wishful thinking based on overinflated expectations and underestimated costs?
  • Can you manage your program or portfolio from inception to final delivery in a consistent, benefits-focused way based on a single, coherent model?

This book describes how Earned Benefit Program Management techniques provide an innovative, all-inclusive model and set of tools developed specifically to answer these questions. This model consolidates the key concepts of project, program, and portfolio management and ensures that all program and portfolio management steps are carried out based on a single, signed-off model in a consistent, verifiable manner within a consolidated life cycle. This approach guarantees alignment with strategic goals and constraints through every stage of a program.

Case studies highlight the key features of the approach and provide important lessons and insights for managing programs. Although the ideas and concepts for each topic are fully consistent with existing standards and other published material, they are based on new thinking and go beyond current practice. They provide a set of original and powerful techniques that are applicable to both programs and portfolios in a wide range of business environments.

Table of Contents

1. Defining the Domains
Projects, Programs, and Portfolios
Projects and Operations
Understanding the Roles
Compromise Terminology
Desired Result
Conclusion on Ps, O, and T
Loose Ends
Towards Total Program Management

2. Understanding the Problem
Business and Benefits Management: The Core Concepts
Structure of the Benefits Realization Map
Recap on the Benefits Realization Mapping Technique

3. A Life Cycle for Program Management, Benefits Management, and Business Analysis
Current Life Cycles
Modified Benefits Realization Life Cycle
Close-Up on the Benefits Realization Life Cycle
Integrating Business Analysis and Project Management
Working with the Business Analyst
Case Study: QERTS Merger

4. Building an Integrated Business Model
Business Case Development
Contributions and Allocations
Description of the Benefits Realization Map
The Business Transformation Example
Estimating the Contribution Fractions
Applying the Concepts to the QERTS Example
An Honest Business Case

5. Calculating the Model
Picturing the Contributions
Understanding Allocations
Selecting the Algorithm for Determining the Allocation Fractions
Using the Contribution Values to Calculate the Allocation Fractions
Using the Contribution Shares to Calculate the Allocation Fractions
Calculating the Allocations
Defining a Decision Criterion
Proof that the Fourth Option Satisfies the Criterion

6. Disbenefits and Essential Links
Allowing for Disbenefits
Essential Contributions
Applying the Concept of Essential Links
Creating an Essential Network
Structured Approach for Removing Nodes
Recalculating the Pruned Network

7. Applying the BRM Approach to the QERTS Example
Analyzing Outcomes and Options: The QERTS Example
Revising the Program
Alternative QERTS Example
Including Disbenefits in the QERTS Example

8. A Generalized Approach to Scheduling and Cash Flow
New View
The New Approach: Characterizing the Components
Toward a Simplified Scheduling Model
Extensions to Other Scheduling Methods
Applying the VEST Approach to Programs
Additional Definitions
Applying the VEST to the QERTS Example
Linking Cash-Flow to the Schedule

9. Total Risk and Issue Management
The TRIM Process
Generic versus Specific Risks

10 Resource Capacity Planning
The Challenge
Simple Operations Resourcing Model
Applying the New Model
Implementing the Erlang-Based Approach
Advantages of the Erlang-Based Approach
Planning the Required Organizational Changes
Organizational Change Program

11. Procurement
Background: Innovative Contractor Engagement and the London Underground Bank Station Capacity Upgrade
Tendering Lifecycle

ICE and the Benefits Realization Map (BRM)
Modeling the Value of the Options
The Next Step: Tracking the Work

12. Implementation Tracking—Earned Benefit
The Earned Benefit Approach
The Component–Benefit Matrix
Earned Value
Further Development of the Earned Benefit Calculations
Earned Value and Earned Benefit Case Study
The Earned Benefit System
Earned Value Abbreviations, Parameters, and Indicators
Earned Benefit Abbreviations and Values
Further Analysis of the Garden Services Case
Revisiting Earned Benefit
Applying Earned Benefit for Status Reviews
Communicating the Information
The Benefits of Earned Benefit
Earned Benefit Parameter Tables

13. Business Key Performance Indicators
Setting Key Performance Indicators
Operational KPIs
Agreeing on the Questions
Categories of KPIs
Operational KPIs
Model-Related KPIs
Analyzing the KPIs
Analyzing the Model
Example Based on QERTS Model

14. Stakeholder Analysis
Stakeholder Interest and Power
Mapping the Analysis onto the Model
QERTS Example
From Analysis to Communications

15. Communication—Why, How, and What
Understanding Hierarchies
Addressing Data, Knowledge, Information, and Wisdom
Effective Communications
Information and Communications
The Viable System Approach

Finale. Benefit Mapping the Book
Mapping the Book
The Book’s Strategic Benefits
The Book’s Initiatives
The Book Review Model
Analysis of the Book Review Model

Appendix. Carrying Out the Calculations

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Crispin Piney (known as "Kik") has been involved in the project world since joining the IT Group at CERN, the European Laboratory for Particle Physics, in the 1970s, working on cutting-edge development projects. He later moved to the Digital Equipment Corporation (DEC), initially in England, before relocating to DEC’s European technical centre in the south of France. While he was with DEC, Kik gained a deeper understanding of the importance of methodology, business alignment, and stakeholder relationship management.

After the acquisition of DEC by Compaq, Kik left in 2000 and set up as an independent consultant and trainer in project management. He invested enthusiasm, time, and effort working as a volunteer with the Project Management Institute (PMI®) on the majority of their standardization efforts, from the Organizational Project Development Management Maturity Model (OPM3®) through each the standards for projects, for programs, and for portfolio management (he was listed as a "significant contributor" for the first edition of both the program and the portfolio standards). He also contributed actively to the PMI competency development framework, the lexicon, and the Practice Guide for Scheduling. He is one of the three authors of PMI®’s Practice Guide for Project Risk Management. Kik gained his Project Management Professional (PMP®) certification with PMI prior to leaving DEC. He later became the first person in France to acquire the corresponding certifications for programs (PgMP®) and, when it became available, for portfolios (PfMP®).

He has published a number of articles ranging across all aspects of projects, programs, and portfolios. He has presented at most PMI® EMEA congresses since 2002, as well as at regional events. Additionally, Kik provides training on a wide range of topics in the project management space. He has developed and delivered courses across a broad range of industries including construction, perfumery, information technology, steelworks, aviation, packaging, electronics, and banking. His approach to understanding and expanding the field of knowledge in the area of project, program, and portfolio management is based on the following principles:

  • The need for alignment between all domains in order to ensure consistency
  • The need for clarity and precision in order to avoid misunderstandings
  • The willingness to generalize and expand valid concepts in order to increase their generality and potential value
  • The willingness to reject ideas and beliefs, however well established, that are based on false or doubtful premises, and to discover creative, verifiable alternatives with which to replace them
  • And, finally, the wish to share his enjoyment of the subject and, wherever possible, his sense of fun