Benefits Realisation - a 3 point estimate
Convincing senior leadership that a change program is worthwhile is sometimes as difficult to accomplish as the program is itself.
For leadership, it’s all about ROI - a return on investment (of money, time and people). Business cases for change are all about demonstrating the ROI. And quite rightly so.
In an environment where data and information is in abundance, this is easy enough, though it could take some time depending on how accessible and well organised that data and information is.
The challenge is how one can demonstrate ROI in environments where critical data and information is absent and calculating ROI is not always possible. This is not as uncommon as you might imagine.
The problem is, that senior leadership are reluctant to make the decision to embark on costly change programs, unless they can demonstrate the benefits of that change to the business.
Whilst there is an aspect of taking a “leap of faith” when it comes to effecting change that is so new that it has never been attempted before, but even so, as consultants, we do need to be able to find a way to demonstrate real benefits for the investment in that change.
This is where a combination of industry expertise, knowledge and wisdom is applied to an extrapolation of how that expertise can subjectively predict possible outcomes. In the absence of data, this is the best way in which potential benefits can be conveyed.
Because these benefits are potential and not guaranteed; not even truly exact in the way data based predictions can have a degree of accuracy to them, the 3-point Estimate is a way for us (and our senior leaders) to demonstrate a range of possible outcomes and benefits.
The 3-point Estimate is one in which the following estimates are given:
- The best case scenario
- The worst case scenario
- The most likely scenario.
If industry expertise is from the same vertical market or industry sector, even sub-sector as the client’s organisation, then the subjective extrapolation of these scenarios will have more credibility. However, even if the expertise, knowledge and wisdom comes from an external sector source, it is still possible to deliver confidence in the 3-Point Estimate scenarios, when they are backed up by logical, detailed and sound rationale.
REMIS have employed this method on a number of occasions, with success. That success comes from the fact that we possess expertise in a broad range of disciplines, sector experience and have the capability for rational thought, application of logical and critical thinking and we provide an assurance function.
The 3-Point Estimate scenarios are designed to help leaders make decisions. But that is not all that REMIS do. We also run assurance on a go decision for a change program and ensure that we are caretaking the path that the decision follows.
We truly believe that no decision is a bad decision if the path to the outcome is always monitored, risks and issues along are managed and the direction of that decision is always steered to the desired outcome. If we can do that, then leaders need not fear that they cannot make decisions, even when there is insufficient data and information to support it.