Proposed Benefits Realization Process March 2012 Why Track

Proposed Benefits Realization Process March 2012

Why Track Project Benefits? • Demonstrates the value of IT and keeps IT aligned to our customers’ needs. Tracking Benefits will help us define: – What is the role of IT as it translates to Business Value? – What metrics support IT initiatives to drive business? – Are we providing what the business requires to run their business? • As a result of the IT Finance audit in September 2010 we are required to implement a benefits realization process. SPE Confidential 2 2/12/2022

Realities of Project Benefits • Benefits do not just happen. They don’t just automatically appear when a new technology is delivered. A benefits stream flows and evolves over time as people learn to use it. • Benefits rarely happen according to plan. A forecast of benefits to support the business case is just an early estimate. It is unlikely to turn out as expected. • Benefits realization is a continuous process of envisioning results, implementing, checking intermediate results and adjusting the path leading from investments to business results. • Tracking benefits realization is difficult. Support the early development of the business case and review the benefits early and often. SPE Confidential 3 2/12/2022

Projects with Benefits Tracked this year COMPLETED • IBM Hosting Project - Uli Brechbuehl, Project Manager • ACD Phone System - Jamie Petersen, Project Manager • Gold Migration – Scott Kardon, Project Manager IN PROGRESS • SPIRIT Migration – Jitesh Patel SPE Confidential 4 2/12/2022

Lessons Learned • Project CBA must identify measurable benefits that specifically relate to the project’s goals and objectives • Not all benefits are achievable within the same time frame • A baseline must be identified at the start of the project ( what report is used and what is the current baseline) • Hard Benefits ( Cost Reduction) are the easiest to measure • Soft Benefits are difficult to measure • Project Benefits need to be mapped to the requirements of the project to ensure the benefits are achievable within the solution being developed • Identify missed benefits early on and “ course correct” if possible • People must be named accountable for ensuring benefits are achieved ( and they must know and accept this accountability) 5 2/12/2022

Process for Tracking Project Benefits Step Deliverable Owner 1. Cost Benefit Analysis CBA Project Manager / IT Finance 2. Document Benefits, owner and metrics in the Project charter Project Charter Project Manager 3. Map Requirements to the Benefits Requirements Mapping to Benefits PMO 4. Go Live announcement Project Manager 5. Evaluate Benefits Tracking Worksheet IT Finance 6 2/12/2022

Steps 1 & 2: Document Benefits and Owner • Incorporate into the CBA a Benefits Tracking Sheet • Incorporate the Benefits Tracking into the Project Charter which is signed at the Greenlight. Project Managers will need to ensure that the owner of each benefit is “on board”. • There must be measurable benefits that specifically relate to the organization’s goals and objectives • People must agree to these benefits being monitored over time, with appropriate adjustments made when necessary Benefit Accountable Person Metric Timeframe 7 Linked to what Requirement Report source 2/12/2022

Step 3: Map the Requirements to the Benefits • When the Requirements are agreed upon the PMO will work with the Project Manager to map the requirements to the benefits. • Throughout the project the PMO will work with the Project Manager to ensure that scope changes do not impact the benefits plan, or if they do work with IT Finance to “course correct” 8 2/12/2022

Step 4: Go Live • Confirm the Benefits Realization Time Frame, reports and metrics • Track and report on realized benefits • Document lessons learned from each project • Adjust Benefits Tracking Process as needed to support the business’ needs 9 2/12/2022

Next Steps • Validate methodology and review pilot projects with Senior Management (Ron Mc. Nair, Curtis Crider, Steve Andujar) • Select next project for review • Modify CBA and Charter to include responsible party and tracking measures • Develop a training curriculum to train project managers on how to attain benefits, gain agreement , etc. • Communicate changes across IT 10 2/12/2022