Value realised
The ATM Working Group agreed to a Treasury initiative to address the issue of a significant number of communities living on low incomes and in socially deprived areas that had no access to cash machines, or only machines that charged a fee for withdrawals.
With the value of initiative re-framed in terms of benefits gained rather than products delivered, the governance group could now manage the project for value gained in terms of positive social impacts, competitive advantage, and other, wider stakeholder interests, as well as any additional revenue benefit they might achieve.
Engagement focus
The structure of the project was originally framed as a ‘mandatory’ project. It was seen as the installation of a number of cash machines in various locations around the country by a given deadline – and all to be done with a view to keeping the costs as low as possible. The project was regarded as a ‘drain’ on the investment options of the bank. The role of governance was thus focused on the technical aspects of delivery, and the constraints: the costs, schedule and management of the roll-out.
Approach to solution
CITI became involved through an initial workshop with the technical team, and offered some challenge to the assumptions underlying the existing project brief. This led to wider engagement of other parts of the business, culminating in agreement on broad terms of reference for the project that transformed it from being a mandatory technical task into one that maximised the value to the bank.
The project was restructured to take a more holistic approach that brought value to the bank by maximising the goodwill created, minimising potential negative impacts, facilitating local community engagement and leveraging positive feedback from the UK Treasury for their contribution to the initiative.
This involved a broadening of the remit to include non-technical work streams around stakeholder engagement and PR, and the management of non-technical risks related to local disruption or resistance.
Lessons learned
Classifying projects as ‘mandatory’ often causes organisations to lose benefits and opportunities go unnoticed. Badging something as mandatory should be a last resort – not a simple route to project authorisation. Once labelled as mandatory the project should be managed for minimum cost (there is after all no benefit) and reduces the sponsor’s involvement to the monitoring of constraints.
Models / tools used
Project Mission Model, a framework for engaging technical and business people in constructive discussion of project’s terms of reference
Value proposition
You can read more about the strategies used during this engagement here:
PAshton
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