Oxford Major Programmes Ltd.

“Benefits for Whom?”

Benedict Pinches

Hard and SoftDrag picture to placeholder or click icon to addQuantitative Qualitative

Financial Non-Financial

Cash flow

User fees

Customer SatisfactionSafety

Dignity

Well-being

Tax revenue

Competitiveness

Sellable data

Brand equity

Pride

Legacy

Direct

Indirect

P Chapman et al, Authoritative Literature Review into the Benefits of Health ICT Investments

‘Literature Review into the Benefits of Health ICT Investments’ (DoH)

1,242 articles for Health ICT1,810 articles for Government ICT investments

5,576 articles for Major Programmes

196 articles for Health ICT167 articles for Government ICT investments

1,064 articles for Major Programmes

128 articles for Health ICT126 articles for Government ICT investments

147 articles for Major Programmes

82 articles for Health ICT57 articles for Government ICT investments

65 articles for Major Programmes

Initial re

sults

Title sc

reen

Abstract

screen

Fully

relevant

P Chapman et al, Authoritative Literature Review into the Benefits of Health ICT Investments

‘Determining and Delivering the Benefits of Major Projects’ (MPA, 29 April 2015) How is benefits realisation currently being performed?What knowledge for projects from one sector can be valuable to projects from other sectors?Is there something ‘special’ about major projects?Where does UK stand?What is the relationship between good sponsorship and benefits?How can stakeholder be aligned around benefits?

MPA, The Value of Major Projects

‘Benefits’ Definition from the Office of Government Commerce:

The measurement of an outcome, or part of an outcome

An end benefit is a direct contribution to a strategic objective

Describes an advantage accruing from the outcome

Answers the question of what a project delivers: why is this required?

outcome

output

output

output

outcome

output

Benefit

OGC, Managing Successful Programmes

What Do We Measure?

Benefit Categories

economic social environmental

learning

How Can We Measure?Evaluation Method Description Use

Transaction costs Uses segmentation methods to calculate use and benefits to different user groups

Quick and easy way to estimate potential cost savings from the introduction of eGovernment

Net present value A straightforward method that examines monetary values and measures tangible benefits

Relatively straightforward; use when cash flows are private and benefits tangible

Cost benefit analysis A flexible method that measures tangible and intangible benefits and assesses these against net total cost

Good consideration of all benefits, but can be expensive and time consuming

Cost effectiveness analysis Focuses on achieving specific goals in relation to marginal costs

Good for considering incremental benefits against specific goals

Portfolio analysis A complex method that quantifies aggregate risks relative to expected returns for a portfolio of initiatives

Good for consideration of risk, just use a consistent approach across a portfolio

Value assessment A complex method that captures and measures benefits unaccounted for in traditional ‘Return on Investment’ (RoI) calculations

Used by several governments to consider performance against all policy goals

P Foley & X Alfonso, eGovernment and the Transformation Agenda

When Do We Measure?Drag picture to placeholder or click icon to add

Project Output

Business Change

Intermediate Benefit

End Benefit

Strategic Objective

Chain of benefits from output to objective

OGC, Managing Successful Programmes

Buyers

Builders

Users

PM Team

lawyers

special interest groupsGovernment

Regulators

audit

financial beneficiaries

negative stakeholders

PR

designersarchitects

consultants

technicians

general public

operators

support

Builder/Buyer/User Groups

A leading architect has won a competition organised by local university to build a railway bridge connecting the finance area of a capital city with a large housing development recently constructed the other side of a river.

What benefits might you consider defining and how would you measure them?

D Gray et al, Gamestorming

The Affect Heuristic“The psychologist Paul Slovic has proposed an affect heuristic in which people let their likes and dislikes determine their beliefs about the world. Your political preference determines the arguments that you find compelling. If you like the current health policy, you believe its benefits are substantial and its costs more manageable than the costs of alternatives.”D Kahneman, Thinking Fast and Slow G Morgan, Imaginization

Experts rule?

“Risk does not exist ‘out there’, independent of our minds and culture, waiting to be measured. Human beings have invented the concept of ‘risk’ to help them understand and cope with the dangers and uncertainties of life. Although these dangers are real, there is no such things as ‘real risk’ or ‘objective risk’.”

Activity or Technology

League of Women Voters

College Students

Experts

Nuclear power 1 1 20

Motor vehicles 2 5 1

Handguns 3 2 4

Smoking 4 3 2

Motorcycles 5 6 6

Alcohol 6 7 3

Police work 8 8 17

Surgery 10 11 5

Mountaineering

15 22 29

Swimming 19 30 10

Preservatives 25 12 14

P Slovic, Perception of Risk

Major Projects

Unanticipated Benefits

Disbenefits

How Can We Compare?

Function

Cost

Quality

Form

Safety

Whole-life

Environmental

Societal

1980 1990 2000 2010

Academic Findings

Lack of construct clarity

Insufficient empirical depth

Normative models

Case studies

Lower rated journals

No reference class

P Chapman et al, Authoritative Literature Review into the Benefits of Health ICT Investments

Future Trends fault line

P Chapman et al, Authoritative Literature Review into the Benefits of Health ICT Investments

The Importance of Vision

“Leaders are Dealers in Hope”

Benedict PinchesFounder and DirectorOxford Major ProgrammesPhone: +44 (0) 7956 677 483Email: ben.pinches@oxmp.coTwitter: @oxmpWeb: www.oxmp.coFacebook: http://on.fb.me/PzavIu

Bibliography

P Chapman et al, Authoritative Literature Review into the Benefits of Health ICT Investments

Major Projects Association, The Value of Major Projects

OGC, Managing Successful Programmes

P Foley & X Alfonso, eGovernment and the Transformation Agenda

D Gray et al, Gamestorming

D Kahnehman, Thinking Fast and Slow

G Morgan, Imaginization

P Slovic, Perception of Risk

P Tetlock, Expert Political Judgement: How Good is it? How Can We Know?

CBI, Building Trust, Making the Case for Infrastructure

B Flyvbjerg, What You Should Know About Megaprojects and Why

A King & I Crewe, The Blunders of our Governments