Part B: Preparing to manage benefits

Preparing to manage benefits makes sure the right conditions are in place from the start, so decisions, governance and delivery all support the intended objectives and outcomes.

There are two important activities when preparing to manage benefits, as shown in Figure B.1.

Understanding objectives (Section 5)

Start by understanding what the work is trying to achieve, and any theory of change assumptions that support it. This helps shape the kind of benefits expected and how benefits planning and management should be framed.

Developing a benefits management framework (Section 6)

Then establish a benefits management framework describing how benefits will be managed through the life cycle. The framework should be tailored to the nature, scale and complexity of the work. It should support the achievement of the intended outcomes and objectives.

It can be tempting to skip or defer preparing for benefits management, but these activities are essential to setting the work up for success.

You may also need to revisit them later. For example:

• programme or project objectives, outcomes and expected benefits might need to change if no viable solution is found
• portfolios may need to review them as part of cyclical planning
• the benefits management framework may need updating as the work evolves

Getting a clear understanding of the objectives and outcomes is the starting point for benefits management. It helps shape what benefits are expected and how they’ll be managed.

Understanding the objectives of a change, and the outcomes it aims to deliver, is the first step in identifying who could benefit and how.

This helps you:

• understand what’s important for successful delivery of the change and why
• consider possible outputs and their impacts
• explore who might benefit and who else might be impacted
• make informed decisions about how to develop and deliver the change

A clear line of sight between objectives, outcomes, outputs and benefits helps you stay focused on what matters and increases the chances of successful delivery.

All change should have an objective and an outcome. The objective is the reason for making the change. The outcome is the real world result you want to achieve.

These should be identified before, or as part of, the work to set up a portfolio, programme or project. They form the foundation for planning and delivery.

To understand objectives, you also need to understand the drivers for change. These are the existing problems or opportunities driving the need or wish to intervene.

In government the drivers, objectives and outcomes are usually identified during policy development and described within a theory of change.

This explains:

• how the intervention is expected to work
• the assumptions behind it
• the evidence supporting those assumptions
• the wider context that may affect delivery

See the Magenta Book for more on theory of change.

If a proposal has been developed using a theory of change, this forms the starting point for understanding the objectives and outcomes. It also helps explain what is expected to lead to those changes, and how this links to outputs and benefits.

The main product from this early work is usually a simple logic map showing the relationship between objectives, outcomes and benefits. More on this is in section 5.6.3.

In a portfolio, the portfolio director is responsible for making sure the objectives and outcomes are clearly defined and that there’s enough information to proceed.

In a programme or project, this responsibility sits with the senior responsible owner.

If the objectives or outcomes are unclear, it’s their job to:

• seek clarification from the sponsoring body or lead stakeholders
• agree how and when more clarity can be achieved

The portfolio, programme or project manager is responsible for documenting the objectives, outcomes, and any supporting assumptions and/or theory of change. They would also work on a theory of change if one has not been provided or if it needs updating.

If appointed, these responsibilities are fulfilled by the benefits manager.

Policy professionals and others who helped develop the policy should also be involved.

This might include the analysts involved in developing the theory of change and its supporting evidence. Their involvement helps to ensure that objectives, outcomes and assumptions are fully understood.

5.6.1 Overview

The key activities are designed to help you explore the reasons for change, what it aims to achieve and what successful delivery might look like in practice.

Simple logic mapping helps you understand how objectives link to outcomes and to potential benefits and outputs. This helps shape the benefits management framework (see Section 6). It also provides the foundation for later work to identify benefits with stakeholders and develop a detailed benefits map (Section 7).

5.6.2 Establishing objectives, drivers and outcomes

5.6.2.1 Clarifying objectives

All proposals for change should have objectives. These should be specific, measurable, achievable, realistic, and time-limited (SMART). They should also be observable, so they can be monitored and evaluated.

Objectives are normally agreed in policy development and should be set out in the portfolio, programme or project brief at initiation. If specific objectives for the work have not been agreed, the portfolio director or senior responsible owner should clarify them as soon as possible with the relevant stakeholders and update the brief accordingly.

It’s important to understand where the work supports higher-level objectives, for example at programme, portfolio, organisation or government level. But these should not be confused with the specific objectives for the work.

It’s also best to avoid the term ‘strategic objective’ which can be confusing: be clear about the type of objective and who set it.

5.6.2.2 Clarifying drivers and outcomes

Once objectives are clear, the next step is to understand the drivers for the change and the outcomes expected. These may be covered in the initial brief and/or the theory of change, but they may need to be established from scratch,

It’s essential at this point to test understanding with key stakeholders, both to get a full picture and hear their different perspectives.

Some of these discussions may happen in individual meetings, particularly with senior officials or ministers. Where possible, though, it helps to bring stakeholders together in a workshop to build a shared understanding.

Some key questions to explore in discussions are below.

Policy concept

What will change as a result of this work? What outcomes are expected? Is this based on evidence or assumptions?

Understanding the evidence base helps show if outcomes are realistic or if more work on this is needed

Drivers for change

What are the specific drivers for the change? Have they all been identified?

If not, tools like PESTLE analysis can help explore political, environmental, social, technological, legal and economic factors. These often point to the types of benefits that might result from the change.

Expected contribution of the work

Is the work expected to deliver the full outcome, or contribute to it alongside other activity?

This helps to understand expectations on the scope of the work and the impact needed

Priority of objectives and outcomes

Are some objectives or outcomes more important than others?

This is especially important at portfolio and programme level, or in complex projects with multiple aims.

What is success?

Is there an agreed view on what a successful outcome would be? How far are assumptions backed by supporting evidence?

A clear understanding of success helps determine the critical success factors used later in appraising longlisted options.

5.6.3 Mapping drivers, objectives and outcomes to potential benefits

Once a shared understanding has been reached, it should be documented. This is usually done by creating a logic map that shows the relationships between the drivers for change, objectives and outcomes expected. A simple logic map template is in the benefits management collection.

Mapping of this kind is sometimes completed during policy development and included in the brief. If it has not been done, or if new information has emerged through stakeholder discussions (see 5.6.2), it should be completed at this stage, and the brief updated.

At this stage, a simple left to right logic map is usually enough, showing the link between the policy drivers, objectives and desired outcomes. Sometimes, possible outputs can also be included but normally these are added later once the solution is more clearly defined.

This map helps begin the process of exploring the positive impacts the work could have. It supports early thinking about the types of benefits that might result, and who could benefit from them. This information can also be added to the logic map, as shown in Figure 5.2.

This early mapping is the first step in benefits mapping and at this stage is high level. The work is used in developing the benefits management framework (see Section 6).

The map is then developed and refined as planning progresses and benefits are identified through work with stakeholders (see Section 7).

The purpose of developing and maintaining a benefits management framework is to set out how benefits will be governed and managed throughout the life cycle to achieve the objectives and outcomes.

Managing benefits well requires a systematic approach, consistent processes and clear accountability. This is established and maintained through the benefits management framework. Sometimes this is called a benefits management strategy or approach, but these do not always cover the same ground.

Work to develop the framework means that the approach is thought through and agreed as part of setting up the work.

It also makes sure benefits management is aligned with any wider frameworks for managing benefits at programme, portfolio or organisation level. This means that benefits can be traced across levels of delivery, showing how individual projects and programmes contribute to broader programme, portfolio and organisation objectives.

Once in place, the benefits management framework supports consistent planning, delivery and control. It helps manage benefits realisation and review, including after transition to operations, and supports evaluation throughout.

Ultimately, a clear and well-aligned framework provides a practical guide for everyone involved. It shows what needs to be done, who is accountable, and why benefits management matters.

Work to develop a benefits management framework rarely starts from scratch, particularly if the work is part of a programme or portfolio where practices are already defined. Even so, you’ll need to make sure that the framework meets the needs of the work and discuss arrangements as part of developing the framework.

A benefits management framework should include:

• clear roles for accountability, responsibility, ownership and approval of benefits
• arrangements for identifying, assessing, planning, managing, monitoring, reporting, reviewing and evaluating benefits
• how benefits are to be identified, classified and, wherever possible, measured or quantified
• the data needed to manage and track benefits, including how it will be collected, recorded, stored, and any tools or software used

The framework should reflect the requirements of the Green Book on business case development and investment appraisal. This includes how benefits are identified, classified and valued. It should also follow the guidance in the Magenta Book on evaluation.

Once developed, the framework should be reviewed by the accountable officer, typically the portfolio director or senior responsible owner and approved through the agreed governance process.

After approval, ensure there is a clear record of changes to ensure traceability. See Chapter 23 of The Teal Book on traceability management.

The framework should be maintained and kept under review throughout the life of the work. This includes responding to feedback from its use and adapting to any changes in context or scope. For portfolios, this also includes preparing for the next planning cycle.

The portfolio director, in a portfolio, or the senior responsible owner, in a programme or project, owns the benefits management framework. They should be involved in developing it and approve the final version before it becomes part of the governance and management framework for the work.

They should also approve any later changes to the framework, and its closure.

The portfolio, programme or project manager, as appropriate, is accountable for developing and managing the benefits management framework. They may lead this work or delegate it to

• a dedicated benefits manager, if one is in place
• another team member responsible for benefits management

Other members of the team often help develop the framework and review it to ensure it meets the needs of the work. Specialist input may also be needed, for instance from economists or other specialist analysts on the approach to modelling and evaluation.

6.6.1 Overview

Developing a benefits management framework means setting out what and who is involved in benefits management through the life cycle of the work. The framework should be clear and concise, and should fit within the wider governance and management framework.

Start by understanding the organisational context for benefits management. Agree the approach, roles and responsibilities based on the nature, scale, complexity, and life cycle of the work, and where it sits in the organisation.

This forms the basis for drafting the framework.

Once the framework is final, it should be approved and saved as the baseline version. Track changes clearly so that updates can be reviewed and audited. Review the framework at agreed points during the life cycle of the work.

You should develop the framework early in the work, even if not all details are known. It’s fine to start with a basic version and update it as more information becomes available. What matters is having a clear structure in place to support benefits management from the start.

6.6.2 Identify organisational frameworks and tools

Check if there are any frameworks, tools or templates that could be helpful or should be used. It’s important to understand the wider context and make sure your approach supports benefits management at portfolio, organisation level and government level.

Using an existing framework or template can save time and help you think through what’s needed. A simple benefits management framework can be found in the benefits management toolkit. But don’t just copy and paste. The framework should be tailored to the specific needs of the work and show clear thinking behind it.

6.6.3 Agree the approach to benefits management

It’s helpful to agree the approach to benefits management early on. This provides an opportunity to consider what arrangements are needed, and how best to manage them. For example:

• a new rail scheme might require an extensive public consultation exercise and specialist expertise to identify, value and track benefits, managed by the benefits team through external contracts
• an internal digital transformation programme might need an iterative approach to benefits identification and realisation, with ongoing involvement of users and business change specialists, co-ordinated by the benefits manager

Agreeing the approach is often done through a benefits management workshop, going through the different areas to be covered in the framework. The discussion also helps people understand what benefits management will involve, so they can feed it into wider planning.

6.6.4 Agree roles and responsibilities for benefits management

Alongside agreeing the approach, discuss and agree roles and responsibilities for benefits management. These are described in Section 2.

Information on roles and responsibilities is usually set out in a RACI matrix, which shows who is responsible, accountable, consulted or informed, as shown in Figure 6.1. The matrix should be included in the benefits management framework.

Try to agree the names of the people carrying out each role as early as possible. Add these to the framework or list them separately. Keep this information up to date to maintain a clear view of responsibilities and avoid gaps.

Benefits owners are usually agreed later and recorded separately.

Benefits management roles should also be included in the wider governance and management framework for the work.

6.6.5 Draft the benefits management framework

Drafting the framework is usually an iterative process. You can often work on different sections in parallel.

Follow a clear and logical structure. This should usually reflect the sequence of benefits activities through the life cycle of the work. The framework should cover the following areas.

6.6.5.1 Context

Start the framework by describing the context for benefits management. This should cover:

• the nature, scale and complexity of the work, and where it sits in the organisation, for example, a portfolio, programme or standalone project
• what this means for the approach to benefits management, including any frameworks, tools, templates or software that must or could be used
• any other factors that may affect how benefits management is carried out
• how long the framework is expected to be in use, and when it should be reviewed

6.6.5.2 Objectives, outcomes and potential benefits

The framework should briefly summarise the main objectives and intended outcomes of the work. It should also outline the potential benefits that may be realised as a result.

This is often shown using a logic map. Update this as your understanding of benefits develops during planning.

For more on objectives and outcomes, see Section 5.

6.6.5.3 Identifying benefits

The framework should describe how a list of potential benefits is to be developed during feasibility or discovery. This should involve potential beneficiaries and other stakeholders. It should link to the stakeholder map, which should also be part of the governance and management framework.

Include a clear process for involving stakeholders, identifying potential benefits and developing the benefits map. Make sure this links to evaluation plans to avoid repeated or unnecessary consultation and to show how plans join up.

Tailoring the approach to the life cycle

The approach to identifying benefits should take account of the life cycle agreed for the work.

In a programme or portfolio, benefits are often identified iteratively, starting at project or work package level and building up to a broader view.

Some benefits, especially wider programme or portfolio benefits, might only be identified top-down or by taking a holistic view.

Thinking this through early helps ensure important benefits are not missed.

Classifying benefits

The framework should explain how benefits are to be classified. This should normally follow the approach set out in The Green Book and is explained in Section 7. You may also need to include other categories specific to the work, for example if some benefits are critical dependencies or enablers for other activity.

This analysis is usually shown in a matrix, which then forms the basis for the benefits register.

Setting up the benefits register

The framework should describe:

• what information is to be captured in the benefits register
• the format to be used
• any existing tools or templates to be used

For more on identifying and classifying benefits, see Section 7.

6.6.5.4 Valuing benefits

The framework should explain how benefits are to be valued, and how any modelling will be validated and assured. This should reflect the nature, scale and complexity of the work, and the types of benefit identified. It should also explain how this information feeds into appraisal and evaluation.

Valuing a benefit usually needs more detail to understand its impact and timing. The framework should set out what information is needed, typically captured in a benefits profile. Use existing tools or templates where possible and explain the format to be used.

Some sectors or organisations have specific methods for valuing certain types of benefit. The Green Book and Magenta Book provide more guidance on this.

For more on valuing benefits, see Section 8.

6.6.5.5 Planning and realising benefits

The framework should set out how benefits are to be planned and managed through to realisation.

The approach needs to be tailored to the relevant life cycle and the consequent timelines for planning and realisation, approvals and assurance, as appropriate. This is the basis for developing the benefits realisation plan.

For more on planning and managing benefits realisation, see Sections 9 and 10.

6.6.5.6 Tracking and reporting benefits

The framework should explain how benefits are to be tracked and reported. This provides an opportunity to think through what is needed from the outset and the basis for developing the benefits tracker and other reports.

This section of the benefits management framework should describe:

• at high level, what benefits information is to be tracked and reported, and to whom
• the tools to be used for benefits tracking and reporting, using existing tools or templates wherever possible
• the triggers for starting to track and report benefits, which might be during delivery or following transition of part or all of the solution into operations
• the data standards to be followed in collecting, analysing and reporting data
• the handling of variances to the targets or milestones in the benefits realisation plan, including any tolerances or confidence levels to be considered in analysing or reporting the data.
• the roles responsible for collecting, analysing and reporting data

The framework should briefly set out how data on benefits will be collected, validated, recorded, and stored. This includes specifying any software or tools to be used. The approach should link to the relevant data management and storage section in the wider governance and management framework.

For more on tracking and reporting, see Sections 9 and 10. For further detail. see also Chapter 18: Reporting and Chapter 24: Information and data management in The Teal Book.

6.6.5.7 Reviewing benefits

The framework should also describe how and when benefits are to be reviewed and how this contributes to evaluation. This should link to the arrangements for evaluation established for the work and supports development of the evaluation plan.

For more on reviewing benefits, see Section 11.

6.6.5.8 Closing benefits and the benefits management framework

The framework should set out arrangements for closing individual benefits, including the process for agreeing closure and who should be involved.

It should also set out arrangements for closing the benefits management framework, once all benefits have been closed.

For more on this, see Sections 12 and 13.

6.6.5.9 Roles and responsibilities

The list of roles and responsibilities should be included in the benefits management framework, typically as a RACI matrix included as an annex (see 6.6.4 above).

6.6.6 Secure approval and baseline the benefits management framework

The benefits management framework should be reviewed and approved by the portfolio director or senior responsible owner. Additional approval may also be needed from the relevant portfolio, programme or project board.

The framework should then be baselined, with any subsequent changes approved and managed under version control to ensure traceability.

6.6.7 Review and update the benefits management framework

Arrangements for periodic review of the benefits management framework should be agreed and documented in the framework document.

In a portfolio, this is typically on a cyclical basis, alongside the review of benefits, to feed into the next planning cycle.
In a project or programme, the framework should usually be reviewed as part of preparing for the next stage gate, or if the work changes significantly, for example requiring a reset.