Part D: Closing benefits management

An organised approach to closing benefits management is important. It makes sure that:

• benefits management activities are properly completed
• benefits are realised as far as they can be
• information on benefits and benefits management is captured, shared and stored appropriately

Above all, work to close benefits management provides a clear account of what benefits have been realised from the work and any lessons for the future.

Closing benefits management involves two main activities, shown in Figure D.1 and covered in the rest of Part D:

• closing individual benefits (Section 12)
• closing the benefits management framework (Section 13)

In a portfolio

Benefits management in a portfolio is usually cyclical. As individual benefits are delivered by programmes and projects, the position on benefits across the portfolio is reviewed. New objectives and outcomes can then be set for the next cycle of work.

The benefits management framework should also be reviewed and updated at this point and the previous version closed and stored.

In a programme or project

Benefits management in programmes and projects is progressive, designed to achieve one or more specific objectives. Individual benefits are usually delivered over time, sometimes well after the work has been completed and closed. Each benefit is closed once it has been realised.

The benefits management framework stays in place to support benefits realisation, including in operations. When it is no longer needed, it is closed.

Closing benefits once they’ve been realised helps make sure the position is properly recorded and that monitoring only continues for as long as it’s needed.

A clear process for closing benefits supports efficient benefits management. It helps:

• confirm when a benefit has been delivered
• record why and when it was closed
• maintain traceability and accountability
• stop monitoring and reporting activities when they’re no longer needed

There should be an agreed process for closing benefits, including who approves closure. This should be set out in the benefits management framework.

You should also plan how and when benefits will be closed. Closure criteria can be shared across different benefits or tailored to each one. The criteria should be recorded in the benefit profile.

When a benefit is ready to be closed:

• the benefit owner and benefits manager should review the evidence against the agreed criteria
• any lessons learned should be captured
• the benefit owner should record the actual benefit realised and recommend closure in the benefit profile
• the benefits manager should seek any further approvals needed and record the decision in the benefits register
• lessons learned should be added to the lessons register

Once all benefits have been closed, the benefits management framework should be closed (see Section 13).

The benefit owner is normally accountable, at this point, for realising and reporting on the relevant benefit. They are also accountable for deciding, with the benefits manager, when to close the benefit.

The benefits manager, or the manager in the sponsoring body overseeing benefits management in operations, is responsible for ensuring that benefits are closed in the right way. They agree with the benefit owner when to close an individual benefit.

Business change managers can also be involved in providing evidence on the adoption and maturity of business change as part of benefits realisation, to support decisions to close a benefit,

Analysts are often closely involved in work to review and evaluate benefits realisation in line with the evaluation plan and should be consulted on any proposal to close a benefit. This is essential to ensure that the necessary data has been generated to support evaluation before a benefit is formally closed.

The portfolio director, senior responsible owner or agreed business owner, for example the relevant operations director, should always be informed when a benefit is to be closed and may need to be consulted, depending on the closure process agreed.

The process for closing individual benefits should also set out if others should also be consulted, for example key stakeholders.

12.6.1 Overview

Closing a benefit is the final step in managing it. The timing depends on the nature of the benefit. Some are realised early in delivery, while others continue long after the work has moved to operations.

A benefit should only be closed when the benefits manager and benefit owner agree it has been realised and no longer needs to be monitored. A benefit is not closed just because the work to implement the change is complete. Some benefits need to be tracked throughout the life of the solution, sometimes even through to disposal.

In portfolios and many programmes, benefits are closed on a rolling basis. Benefits management continues until all benefits are closed or, in a portfolio, until a new delivery cycle begins and the framework is refreshed.

Benefits closure is sometimes overlooked, especially when benefits are realised long after the work has moved into operations. But it’s a vital part of good benefits management. It helps ensure that:

• benefits realisation and review activities are completed properly
• information on realisation and closure is recorded accurately
• evidence is captured to support evaluation
• lessons are shared to improve future benefits management

Agree a clear process and defined responsibilities for closing benefits after handover to operations. If there are multiple benefits, it can help to set up a regular review cycle (for example, quarterly or annually), to support closure, lessons learned and reporting.

12.6.2 Confirm the criteria for closing benefits

Closure criteria should be agreed during benefits planning and recorded in each benefit profile. These criteria can be shared across multiple benefits or tailored to individual ones.

Examples of closure criteria can be that:

• the benefit has been fully realised and further monitoring is unlikely to add value
• the benefit has been partly realised over a set period and is unlikely to increase further, for example because the activity generating it has ended
• the benefit is being realised on an ongoing basis and will be monitored through operational performance reporting

Consult the evaluation team when setting closure criteria. This helps make sure the evidence needed for evaluation is available before the benefit is closed.

12.6.3 Review and decide whether to close the benefit

The benefits owner and benefits manager should review the benefit against the agreed criteria and decide whether it’s ready to be closed. They should also consider any lessons learned.

If the benefit meets the criteria, or if there’s a valid reason to close it early (such as the work being terminated and the benefit cannot be realised), the benefit owner should record the recommendation to close in the benefit profile.

The benefits manager should then seek any further approvals required, following the process set out in the benefits management framework.

12.6.4 Record the decision and data

Once the decision to close a benefit is made, record it in both the benefit profile and the benefits register. This should include:

• the actual benefit realised
• the reason for closure
• the date and who made the decision

The benefits manager should also make sure any lessons are added to the lessons register.
Keep closed benefits on the register. This supports traceability (see Chapter 23) and helps with future evaluation and audit.

12.6.5 Communicate the decision and outcome, and close any related activities

Share the decision to close the benefit with everyone involved in related activities. This includes the portfolio director or senior responsible owner and the relevant governance board.

Wrap up any remaining realisation or monitoring activities. Share information about the benefits delivered and recognise the work of those involved. Make sure any lessons learned are also shared.

Work to close the benefits management framework ensures that benefits management activities are completed or merged into operations, and the final position on benefits is recorded, shared and stored for future use.

It’s important to have a clear end point for benefits management activities. Otherwise, they can linger on when they are no longer needed or fade away without being properly closed down.

A clear process for closing the benefits management framework makes sure that:

• activities end at the right point
• people are told that they have ended
• information is fully captured.

The final benefits management summary is particularly important as it records the story of the benefits achieved and any lessons learned for the future.

The benefits management framework should set out what needs to be in place before it can be closed. This depends on the kind of work involved and how benefits are realised, For example:

• where benefits are realised quickly during or after implementation, the framework could say that all benefits should be realised and closed before the framework itself is closed
• where benefits management activities have ended but operational benefits need tracking over a longer period, tracking and reporting could be moved to operational management, and the benefits management framework closed

Once the requirements are in place, the key activities are to:

• close down any remaining benefits management activities, where these are not embedded in operations
• ensure benefits data is up to date
• produce and share a summary report and capture any lessons learnt
• close and store the benefits register and the benefits management framework

The portfolio director, senior responsible owner or agreed business owner is accountable for deciding when to conclude benefits management and close the framework. They should approve the final benefits summary.

The benefits manager, or the manager overseeing benefits in operations, as agreed, is responsible for recommending closure of the benefits management framework when the conditions have been met. The relevant manager is also responsible for the closure activities.

Analysts involved in evaluation should be consulted in deciding when benefits management activities can end or move fully into operations. They should also be involved in work to update and summarise benefits data, in line with the evaluation plan, and should agree the final summary.

Other stakeholders may need to be consulted. These should be set out in the framework.

13.6.1 Check benefits management is complete

First, check the criteria for closing benefits management. These should be set out in the benefits management framework. This normally includes checking with benefits owners and other stakeholders that:

• benefits management activities are fully completed or are embedded in operations, as agreed in the framework
• benefits are closed, or their realisation is being managed as part of operations, as agreed in the framework
• evaluation needs have been or are being met, in line with the evaluation plan

The benefits manager or other manager overseeing benefits should consult with the relevant senior officer, for example the portfolio director, senior responsible owner or operations director, on whether the time is right to close benefits management.

13.6.2 Record and share the final position on benefits realised

Once the decision to close benefits management has been taken in principle, the next step is to make sure the benefits register is up-to-date and provides a full picture of the benefits achieved. It should also say where, for example, benefits or negative impacts continue to be realised, for example in operations.

The benefits manager or other agreed manager should produce a summary report setting out:

• the decision to close benefits management, and the reasons for it
• the benefits achieved, using the categories in the business case, and how these compare with the projections agreed at investment approval
• any differences and the reasons for them
• • any negative impacts and how these have been minimised or managed
• any lessons to share for the future

The summary should be approved by the accountable senior officer, for example the portfolio director, senior responsible owner or operational director.

It should then be shared with benefits owners and other key stakeholders as set out in the benefits management framework. Data for projects in the Government Major Projects Portfolio should also be shared with the National Infrastructure and Service Transformation Authority.

Any lessons identified should also be included in the lessons register for the work or, where it has already been closed, added as an annex.

13.6.3 Close the benefits register and benefits management framework

The benefits register and benefits management framework can then be formally closed and stored with other information relating to the work. Store the benefits summary with them, either separately or as an annex.

Where benefits realisation continues as part of operations, the benefits register and benefits management framework should be dated, closed and stored with the benefits summary. New versions of the framework and register can then be opened for operational use, carrying forward information as necessary to ensure continuity in operations and for evaluation.

Make sure all data and documents are retained in line with your organisation’s information retention policy.