Benefits Management Guide

Submissions seeking government investment valued at $10 million or greater require a high-level monitoring and evaluation plan. This may be under a monitoring and evaluation framework or a benefits management framework scaled to the size, risk, and priority of the initiative.

Agencies should choose whether to use a monitoring and evaluation framework or benefits management framework based on the type of initiative and agency practices. 

• A benefits management framework is a good choice where there are predefined measures of success that can be easily tracked, and where continuous monitoring and adjustment is likely to improve delivery. This is common for digital initiatives, where there are evolving technologies and changing business needs.
• A monitoring and evaluation framework is suitable for initiatives that have benefits that are difficult to quantify or measure. Data may need to be collected, stored, or analysed for different cohorts. For example, when establishing a control group as a counterfactual for comparison including for experimental or quasi-experimental evaluations.
   

Benefits management can inform but is not a substitute for evaluation.

Benefits management aims to maximise the likelihood of an initiative achieving its intended outcomes and benefits. On the other hand, evaluation is an independent process used to assess an initiative’s efficiency and effectiveness.

See appendix 3 in the Benefits Management Guide for more information.

Benefits management works best when applied early to help define a problem and identify options that align with NSW outcomes. During development of a business case it supports refinement and comparison of options, and establishment of a monitoring and evaluation approach. Following investment decision, it tracks performance and is used to inform evaluation.

This Guide replaces the 2018 Benefits Realisation Management Framework from the former Department of Finance, Services and Innovation. The new Guide establishes the role of benefits management in the NSW Government Investment Framework. 

Structure of Guide

• Simplified structure, including: 
  • consolidation of guidance into one document
  • introduction of 9 steps practitioners can follow through investment appraisal, implementation, and delivery
  • integration with business case development and cost benefit analysis to remove duplication. 
• Removes duplicative practices including benefits realisation strategy, 3 column analysis, benefits map, benefit distribution matrix, benefits profile, lessons learnt report and business case variation report.
• Integration of the use of logic models and new guidance on benefits maturity assessment.

When benefits management should be used

• Clarifies when benefits management should be used compared to monitoring and evaluation.  
• Clarifies that benefits management can be used to inform, but is not a substitute for evaluation under the Evaluation Guidelines (TPG22-22).
• Establishes a role for benefits management as evidence to support carry forwards or parameter and technical adjustments.

New templates

• Benefits register.
• Benefits management plan. 
• Benefits report.