Benefits

Realisation
Management
Framework
Part 5: Glossary
This document is part of the NSW Government Benefits Realisation
Management Framework. The structure of the Framework is as follows:

Part 1: Principles
Part 2: Process
Part 3: Guidelines
Part 4: Implementation
Part 5: Glossary

Benefits Realisation Management Framework | Part 5: Glossary | 2018 2

Contents

Page

Benefits Realisation
Management Framework 4

1. Glossary 5

2. References 9

2.1 Principal policy documents

and guides 9

2.2 Literature 9

3. Templates 10

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“Benefits Realisation Management Framework” Parts 1-5.

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benefits-realisationmanagement-framework

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© State of New South Wales through Department of Finance,

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Third Edition

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Benefits Realisation Management Framework | Part 5: Glossary 3

| 2018
Benefits Realisation Management Framework

A standard approach for benefits realisation

management for anyone not familiar with the subject
matter, including program directors and managers,
change managers, project managers, business analysts
and program management office (PMO) staff across
NSW Government.

The purpose of the Benefits The Framework:

Realisation Management • is aimed at those who are interested in benefits
Framework is to provide: realisation within NSW Government agencies,
enabling them to adapt and tailor the guidance to
• a framework of best practice principles and their specific needs
concepts drawn from latest experiences and
• must be accessible by strategy groups,
proven practice in setting up and managing
operational business areas and program/ project
programs that is transferable across NSW
teams as well as by individual practitioners and
Government agencies
benefit owners
• a standard approach for benefits realisation
• should help PMO practitioners improve
management for anyone not familiar with the
their decision making and become better at
subject matter.
implementing beneficial change.
• consistent terminology and benefits
categorisation
• introduction and guidance for program sponsors
and business benefit owners.

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1. Glossary

Terminology or Acronym Explanation/Meaning

Baseline Measure A measure of the ‘as-is’ or ‘before’ state, prior to implementing a change to derive a
benefit.

Baseline data is established so that the benefits measurement at a point in time can
be compared to the position prior to delivery of new capabilities or outcomes.

Benefit The measurable improvement resulting from an outcome perceived as an advantage

by one or more stakeholders, which contributed towards one or more organisational
objective(s).

Benefit Classification A benefit classification can be one or many of the following:

• Financial with sub-categories cashable and non-cashable including increased

revenue, cost avoidance, reduced cost or
• non-financial with sub-categories including improved performance, social,
economic and environmental benefits, enhanced user experience.

For more information see Part 3: Guidelines.

Benefit Distribution A matrix mapping the stakeholders to each benefit to understand which
Matrix stakeholders may be advantaged or disadvantaged by the program.

Benefit Map A map linking benefits to the primary investment objectives, outlining the cause and
effect relationships.

Examples include:

• MSP Benefits Map – Managing Successful Programmes (UK)

• The Results Chain TM– DMR Group, John Thorp
• Benefits Dependency Network– Cranfield University.

Benefit Owner The person responsible for the realisation of the benefit.

Benefit Profile A template that contains a description of a single benefit, including all its attributes
and dependencies as well as measures and estimated value.

Benefit Realisation Manager Responsible for facilitating the realisation of benefits, including the profiling,
planning and tracking of benefits across the cluster.

Benefit Realisation The process of organising and managing so that potential benefits arising from
Management (BRM) investment in change, are actually achieved. It is a continuous process running
through the whole project lifecycle and should be the central theme of any change
initiative. Benefits realisation is the end product of the implementation of change
initiatives.

Benefit Plan (BP) A benefits plan defines the benefits of the overall program and the responsibilities
for their realisation, measurement, reporting and evaluating.

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1. Glossary (cont.)

Terminology or Acronym Explanation/Meaning

Benefits Register (BR) A register encompassing all quantitative and qualitative benefits with details on how
each benefit has been determined, the calculation method used, key trigger points
and phasing, target dates for realisation, KPI benchmarks and identification of the
benefit owner and benefit manager. Can also be called a Benefit Tracking Tool.

Benefit Realisation Strategy A benefit realisation strategy identifies, at a high level, how benefits are aligned to
the organisation’s strategy. It describes the end goal and the required direction for
the organisation. It is a used for communicating expectations and assessing the
impact of unexpected changes, both internal and external. A benefits realisation
strategy template is available in Part 5: Glossary.

Benefit Types Benefits are commonly categorised:

• Financial with sub-categories cashable and non-cashable including increased

revenue, cost avoidance, reduced cost or

• non-financial with sub-categories including improved performance, social,

economic and environmental benefits, enhanced user experience.

For more information see Part 3: Guidelines.

Business Change A change which is required to support the implementation of an Enabler e.g. new
governance, training and communications etc.

Cashable benefits Cash realising benefits are changes that will directly reduce an organisation’s budget
either through savings or through additional revenue.

Corporate and Shared The DFSI CSS program is responsible for the consolidation and amalgamation of
Services Reform (CSS) back office services to contemporise administrative processes and systems, reducing
Program the total implementation and operating costs, while improving performance.

Cost Reduction Benefit A cost reduction benefit is a previous cost that no longer applies or is reduced year
over year.

Cost Benefit Analysis An appraisal and evaluation technique that estimates the costs and benefits of a
project or program in monetary terms. See NSW Treasury TPP 17-03 Policy and
Guidelines Paper NSW Government Guide to Cost-Benefit Analysis.

Decreasing Benefit A positive change that is identified as continually progressing down to an expected target.

Dis-benefit A measurable decline resulting from an outcome perceived as negative by one or

more stakeholders, which reduces one or more organisational objective(s).

Discounting Technique to convert future costs or benefits to present values using a discount
rate. See NSW Treasury TPP 17-03 Policy and Guidelines Paper NSW Government
Guide to Cost-Benefit Analysis.

Double Counting Is a term used to describe the situation where the same benefit cannot be claimed
by two or more stakeholders (i.e. no double counting).

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1. Glossary (cont.)

Terminology or Acronym Explanation/Meaning

Effectiveness An outcome type where the degree to which benefit(s) are achieved and the extent
to which targeted problems are resolved. Effectiveness is determined without
reference to costs and means doing the right or targeted activity.

Efficiency An outcome type where benefit(s) are achieved and results in doing an activity
faster or with less effort.

Enabler An enabler is something that can be developed/built/acquired normally from

outside the environment in which it will be embedded and where the benefits will be
realised. Examples include a new IT system and business process.

End Benefit An ultimate benefit of a program or project.

EPMO Enterprise program management office.

Evaluation A rigorous, systematic and objective process to assess the effectiveness, efficiency,
appropriateness and sustainability of programs. See NSW Government Program
Evaluation Guidelines.

Financial Benefit A benefit type with a positive change which is contributed by one or many measures
and is quantified with tangible financial measures.

Governance Structure The organisation and processes needed to govern a program or project.

Gross Benefit A result or value where the cost of delivering the capability or the new ‘to-be’
process (the so-called dis-benefit) is not taken from the gross (financial) benefit
value.

Intermediate Benefit Benefits which will occur between the implementation of early changes and the
realisation of the end benefits (also referred to as enabling benefits).

Internal Rate of Return (IRR) The annual percentage return (forecast or actual) from an initiative, at which
the present value of the total cash inflows equals the present value of the total
cash outflows. See NSW Treasury TPP 17-03 Policy and Guidelines Paper NSW
Government Guide to Cost-Benefit Analysis.

Key Performance Indicators Quantitative or qualitative variable that provides a reliable way to measure intended
(KPIs) changes. Performance indicators are used to observe progress and to measure
actual results as compared to expected results.

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1. Glossary (cont.)

Terminology or Acronym Explanation/Meaning

Measure A measure is the agreed performance indicator used to contribute to the

achievement of a benefit. A measure is calculated from one or many metrics.

Net Benefit A result or value where the cost of delivering the capability or the new ‘to­be’
process is taken from the gross or total (financial) benefit value.

Non-cashable benefits Non-cashable benefits are changes that will result in an organisational efficiency
but not necessarily a budget reduction. These may address long terms problems,
including saving money in the future, or avoiding future procurement costs.

Non-financial Benefit A benefit type that can be categorised as those quantified in non-financial terms or in
qualitative terms. Examples include client satisfaction and loss of reputation.

NVP Net Present Value: the value of future cash flows (inflows less outflows) discounted
at the relevant cost of capital. See NSW Treasury TPP 17-03 Policy and Guidelines
Paper NSW Government Guide to Cost-Benefit Analysis.

One-Off Benefit A benefit that is achieved only once and is not recurrent or repeating.

Optimised Benefits Benefits which have been maximised in a balanced manner i.e. obtaining best
returns on overall investment given the desired outcomes of the project/program.

Outcome A result or effect that is caused by or attributable to the project or program.

Outcome Based Budgeting Budget technique that demonstrates a clear linkage between allocated funding and
the intended program outcomes.

Program Sponsor The person who owns the business case and therefore is accountable for realising
the benefits (usually Deputy-Secretary or Secretary level).

Risk An uncertain event or set of events that, should it occur, will have an effect on the
achievement of objectives.

Strategic Goals Describe how an organisation wishes to change in order to evolve and grow.

Target A target is the agreed, approved ‘to-be’ result or value that is expected to be
achieved as a result of the project deliverables.

Target Measure A measure which, when achieved, will demonstrate that the benefit has been
realised. To determine the target measure, a baseline measure has to be taken.

Three-Column Analysis The three-column analysis involves brainstorming answers with relevant stakeholders
to understand and agree on the current business problem, what has to change (and
what must be stopped) and the benefits.

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2. References
2.1 Principal policy documents and guides
NSW Treasury
• Business Case Guidelines
• Guide to Cost Benefit Analysis

NSW Department of Finance, Services and Innovation

• Government Digital Strategy
• ICT Assurance Framework

Infrastructure NSW
• Infrastructure Investor Assurance Framework

NSW Department of Premier & Cabinet

• Program Evaluation Guidelines

2.2 Literature
• Benefit Realisation Management (second edition): A Practical Guide to Achieving Benefits Through Change
– Gerald Bradley, Gower Publishing Ltd, UK 2010
• Managing Benefits – Steve Jenner, APMG, UK 2014
• Managing Successful Programmes – APMG, UK 2018
• Managing Successful Projects with Prince2– Axelos, UK 2017
• Portfolio, Programme and Project Management Maturity Model (P3M3®) – Axelos, UK 2018
• Audit Office New South Wales Why large public sector projects sometimes fail
Retrieved 04 December 2018 from https://www.audit.nsw.gov.au/news/news-archive/2013/paper---why-
large-public-sector-projects-sometimes-fail last updated 20 September 2013

BRM Framework
www.finance.nsw.gov.au/publications_and_resources/benefits_realisation_management_framework

Commonwealth Government of Australia

www.dta.gov.au/standard/
• Digital Service Standard

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3. Templates

Below is a list of templates that are referenced in the four key phases of
the NSW Government Benefits Realisation Management Framework.

Phase Template

Understand • Benefits realisation strategy

• Three-column analysis
• Benefits map
• Benefits distribution matrix

Plan • Benefits plan

• Benefits profiles
• Benefits register

These templates are available on the DFSI website:

www.finance.nsw.gov.au/publication-and-resources/benefits-realisation-management-framework

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