Benefits Management Policy introduction
Purpose
The Benefits Management Policy (BMP) defines how benefits must be managed for digital and ICT-enabled investments.
The Policy:
- ensures that agencies understand the requirements to successfully deliver the outcomes that Australians need
- enables effective oversight and reporting of investment outcomes across the Government’s digital and ICT investment portfolio.
Applicability
The Australian Government has endorsed the application of the BMP for digital and ICT proposals coming forward for Cabinet consideration under the Digital and ICT Investment Oversight Framework.
Unless formally excepted, the Investment Oversight Framework (IOF) applies to all Government digital and ICT-enabled investments that meet the following definition and eligibility criteria.
Digital investment definition
A digital and ICT-enabled investment is an investment which uses technology as the primary lever for achieving expected outcomes and benefits. This includes investments which are:
- transforming the way people and businesses interact with the Australian Government
- improving the efficiency and effectiveness of Australian Government operations, including through automation.
Digital investment eligibility criteria
The IOF applies where digital and ICT investment:
- is brought forward by a non-corporate Commonwealth entity and, where specifically requested by the Minister responsible for the Digital Transformation Agency, a Corporate Commonwealth entity
- involves digital or ICT costs
- is being brought forward for government consideration as a new policy proposal.
Authority
The Digital Transformation Agency (DTA) has final decision rights in determining whether an investment meets the definition of a digital or ICT investment. If you are unsure whether your investment meets this definition or wish to seek an exemption from the process, you must contact: investment@dta.gov.au
Other whole-of-government requirements
Digital and ICT-enabled proposals brought forward for Government consideration are required to meet a range of minimum requirements across several policy areas.
The BMP has been designed to be fully cognisant of these other requirements. This means that as agencies work to meet the BMP policy requirements, they are encouraged to reuse and refer to artefacts and planning documents they have already prepared.
Global learnings and experience
Evidence shows that the best way to ensure successful delivery is by setting up projects correctly in the first place. The most common causes of failure are well rehearsed: lack of clear objectives, insufficient resources, and over-ambitious cost and schedule, among others. All these mistakes impact on the level and amount of benefit that can be realised and can be avoided if tackled in a project’s early stages.
Policy objectives
The Policy enables the identification, measurement, planning, and realisation of investment benefits through a structured approach that provides program sponsors and Government with confidence that digital and ICT-enabled investments will achieve their intended objectives.
The objective of the Policy is to provide Government with a better understanding of how digital and ICT-enabled investments are performing and confidence that projects remain on track and contribute to strategic goals by:
- Embedding standardisation and consistency of benefits management practices across the digital and ICT portfolio (the portfolio) through processes, tools, templates, and terminology.
- Defining a standard classification structure that demonstrates contribution towards strategic objectives and drives alignment between investment benefits and broader strategies and policies.
- Providing clear guidance (e.g. tools, templates, and processes) and expectations for agencies, including expectations for benefits articulation and measurement in the prioritisation, contestability, and assurance states of the IOF.
- Enabling the DTA to provide Government with a complete picture of expected and realised benefits across the portfolio, enabling more informed
investment decisions, including to help address whole-of-government capability gaps.
Future iterations
The Policy currently includes eight core benefits management best practice statements that support agencies in the delivery of investment outcomes and the realisation of investment objectives.
Future Policy iterations will further integrate benefits management across all states of the IOF and will likely include more detailed processes, guidelines, templates, a classification structure, and reporting requirements.
Policy background
From 1 July 2021, the Digital Transformation Agency has whole-of-government responsibility for managing strategic coordination and oversight functions for digital and ICT investments, including during the delivery phase.
In delivering its mandate, the DTA is required to provide Ministers, the Secretaries’ Digital and Data Committee and other key stakeholders with confidence that digital and ICT investments are strategically aligned, will achieve their investment objectives, and deliver optimal value for Government, citizens, and businesses.
To learn more about the DTA’s broader digital and ICT investment oversight role visit the Digital and ICT Investment Oversight Framework.
Global learnings and experience
What I’ve noticed from the most successful organisations is the application of a consistent portfolio-wide benefits framework or categorisation that links benefits to strategy; a focus on the key benefits from each project or program; and a really disciplined approach to managing projects and programs as investments
Global learnings and experience
Benefits are not just another dimension of project and programme management (PPM) – rather, they are the rationale for the investment of taxpayers’ and shareholders’ funds in change initiatives. As such, benefits should be the driver behind all change initiatives from initiation through to, and indeed beyond, integration into business as usual (BAU).
Policy statements
The BMP comprises eight policy statements that define successful benefits management practice.
The policy statements are informed by the experience and research of globally recognised leaders, Australian federal, state and territory government agencies, and the DTA.
Digital and ICT-enabled investments must meet all four criteria set out in the Standard.
8 policy statements
- Benefits are aligned to strategic objectives.
- Agencies that deliver projects adopt a benefits-led culture and approach to change.
- Benefit dependencies are explicitly understood and recorded.
- Benefits are measurable and evidence based.
- Benefits are integrated into a project’s governance approach.
- Benefits are integrated into performance management.
- Benefits are owned by business units and not by the project.
- Benefits management activities are integrated into project management activities.