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Managing Benefits - Foundation Flash Cards > SAMPLE FOUNDATION EXAM > Flashcards

SAMPLE FOUNDATION EXAM Flashcards

1
Q

1 Identify the missing words in the definition of a benefit. The measurable improvement from change, which is perceived as positive by one or more [?], and which contributes to organizational (including strategic) objectives.

a) shareholders
b) users
c) stakeholders
d) customers

A

C

2.2, 2.3.2, 2.4-5

LL1 - Recall the definitions of benefits, benefits management and related terms; and the objectives of benefits management

a) Incorrect. See Rationale C
b) Incorrect. See Rationale C
c) Correct. The definition of a benefit is the measurable improvement from change, which is perceived as positive by one or more stakeholders, and which contributes to organizational (including strategic) objectives. Ref 2.2
d) Incorrect. See Rationale C

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2
Q

2 Which is a practice in the Benefits Management Cycle?

a) Management by exception
b) Start with the end in mind
c) Value management
d) Review

A

D

1.5, 4.2

LL1 - Recall the Benefits Management Model. Specifically the names of the five practices in the Benefits Management Cycle

a) Incorrect. ‘Management by exception’ is a benefits management technique. Ref 1.5
b) Incorrect. ‘Start with the end in mind’ is a principle of benefits management. Ref 1.5
c) Incorrect. Value management is a separate (although mutually supportive) discipline from benefits management. Ref 1.5
d) Correct. Review is one of the five practices in the Benefits Management Cycle. Ref 1.5

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3
Q

3 Which BEST describes the relationship between value management and benefits management?

a) Value management supports benefits management
b) Value and benefits management are mutually supportive disciplines
c) Value and benefits management are independent disciplines
d) Benefits management supports value management

A

B

LL1 - Recall how value management relates to benefits management and the main value management techniques available

a) Incorrect. See Rationale B
b) Correct. Benefits and value management are indeed mutually supportive disciplines. Ref 2.3.1
c) Incorrect. See Rationale B
d) Incorrect. See Rationale B

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4
Q

4 Which key success characteristic of benefits management is evidenced by the use of ‘reference class’ data?

a) Transparent
b) Forward-looking
c) Active
d) Evidence-based

A

D

LL2 - Identify the barriers to efficient and effective benefits management and strategies to overcome them, including the Key Success Characteristics of benefits management

a) Incorrect. Transparent benefits management is based on open and honest forecasting And reporting, with a ‘clear line of sight’ from strategic objectives to benefits forecast and realized. Ref 4.4
b) Incorrect. Forward-looking means that the emphasis is on learning and continuous improvement, rather than backward-looking attribution of blame. Ref 4.4
c) Incorrect. Active means that rather than passive tracking against forecast, the focus is on an active search for benefits via on-going participative stakeholder engagement. Ref 4.4
d) Correct. Evidence-based means that forecasts and practices are driven by evidence about what works rather than assumptions and advocacy. Reference class data is evidence-based. Ref 4.4, 5.3.4

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5
Q

5 Which key function/activity will benefits management coordinate with regarding ‘booking the benefits’?

a) Project and Programme Management
b) Performance Management
c) Commercial and Procurement
d) Investment Appraisal and Portfolio Prioritization

A

B

LL2 - Identify the organizational context within which benefits management operates and the key functions and activities with which it needs to coordinate its activities

a) Incorrect. The main benefits-related areas of common concern with PPM focus on ensuring benefits-led change and delivery as an enabler for benefits realization. Ref Table 4.1
b) Correct. The main benefits-related areas of common concern with Performance Management include ‘booking the benefits’ into the HR and operational performance management systems. Ref Table 4.1
c) Incorrect. The main benefits-related areas of common concern with Commercial and Procurement focus on arrangements for incentivizing suppliers to realize benefits. Ref Table 4.1
d) Incorrect. The main benefits-related areas of common concern with Investment Appraisal and Portfolio Prioritization are to provide a ‘level playing field’ for investment appraisal and portfolio prioritization. Ref Table 4.1

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6
Q

6 Which is one of the seven principles in the Benefits Management Model?

a) One version of the truth
b) Plan
c) Managed across the full business change lifecycle
d) Develop a value culture

A

D

LL1 - Recall the names of the seven principles upon which effective benefits management is based

a) Incorrect. ‘One version of the truth’ is a technique that ensures consistent and reliable reporting. Ref 1.5
b) Incorrect. Plan is one of the five practices in the Benefits Management Cycle. Ref 1.5
c) Incorrect. This is one of the six key success characteristics of effective benefits
management. Ref 1.5
d) Correct. ‘Develop a value culture’ is one of the seven principles in the Benefits
Management Model. Ref 1.5, 3.1

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7
Q

7 Which is NOT a technique that can be used to facilitate the assessment of strategic contribution?

a) Management by exception
b) Root Cause modelling
c) Balanced Scorecard
d) Service Profit Chain

A

A

LL2 - Identify what is involved in relation to Principle 1: Align benefits with strategy

a) Correct. ‘Management by exception’ is a technique applied to the Realize practice. It aids management control by focusing attention on variances that exceed tolerance. Ref 3.2.1
b) Incorrect. Root Cause modelling can be used to facilitate the assessment of strategic contribution. Ref 3.2.1
c) Incorrect. The Balanced Scorecard can be used to facilitate the assessment of strategic contribution. Ref 3.2.1
d) Incorrect. The Service Profit Chain is an example of driver-based analysis which can be used to facilitate the assessment of strategic contribution. Ref 3.2.1

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8
Q

8 Which is a technique that supports the Principle: Start with the end in mind?

a) Maturity assessment
b) Cost-benefit analysis
c) Investment Logic Mapping
d) Sensitivity analysis

A

C

LL2 - Identify what is involved in relation to Principle 2: Start with the end in mind

a) Incorrect. Maturity assessment is used to assess practices against recognized good practice standards. Ref 1.5
b) Incorrect. Cost-benefit analysis is used to support options appraisal, investment appraisal, and portfolio prioritization. Ref 1.5
c) Correct. Investment Logic Mapping does support the principle of ‘starting with the end in mind’ as the first step is to identify the problem or opportunity to be exploited. Ref 1.5, 3.3
d) Incorrect. Sensitivity analysis is used in determining the margin of safety before an investment decision changes. Ref 1.5.

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9
Q

9 What is called for in an environment of complexity, uncertainty and ambiguity?

a) Disciplined PPM delivery methods to be abandoned
b) Certainty of full life cycle funding for an initiative
c) Delivery methods to be applied without adaption
d) Incremental development approaches

A

D

LL2 - Identify what is involved in relation to Principle 3: Utilize successful delivery methods

a) Incorrect. An environment of complexity, uncertainty and ambiguity does NOT mean that disciplined delivery methods are no longer applicable. Ref 3.4
b) Incorrect. An environment of complexity, uncertainty and ambiguity calls for incremental rather than one off investment decisions. Ref 3.4
c) Incorrect. An environment of complexity, uncertainty and ambiguity calls for agile, modular and incremental development approaches. It also requires breaking large initiatives down into smaller ones of shorter duration. Ref 3.4
d) Correct. An environment of complexity, uncertainty and ambiguity calls for incremental development approaches. Ref 3.4

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10
Q

10 Which perspective in a standard Balanced Scorecard would include performance on production constraints?

a) Internal business process
b) Customer
c) Financial
d) Learning and growth

A

A

LL2 - Identify what is involved in relation to Principle 4: Integrate benefits with performance management

a) Correct. Performance on production constraints is appropriate to the internal business process perspective which includes measures of how efficient the organization is. Ref 3.5.1
b) Incorrect. The customer perspective focuses on measures of customer perception of the organization. Ref 3.5.1
c) Incorrect. The financial perspective focuses on measures of financial performance. Ref 3.5.1
d) Incorrect. The Learning and growth perspective focuses on measures of employee commitment to the organization. Ref 3.5.1

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11
Q

11 Which statement illustrates a key characteristic of effective governance?

a) An on-going search for additional benefits throughout the business change lifecycle
b) Maintaining separate governance frameworks for individual initiatives and the change portfolio
c) Allowing processes to be ignored at the discretion of the Senior Responsible Owner
d) Initiatives taking ownership for benefits realization

A

A

LL2 - Identify what is involved in relation to Principle 6: Apply effective governance

a) Correct. This illustrates the ‘active’ key characteristic of effective governance. Ref 3.7.4
b) Incorrect. Effective governance includes aligning initiative and portfolio governance. Ref 3.7.2
c) Incorrect. Effective governance includes consistent application without by-passing the agreed processes. Ref 3.7.3
d) Incorrect. Ownership of benefits realization is a business responsibility. Ref 3.7.4

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12
Q

12 Which technique will help MOST in the development of a value culture?

a) Stochastic forecasting
b) Decision conferencing
c) Scenario analysis
d) Cost-benefit analysis

A

B

LL2 - Identify what is involved in relation to Principle 7: Develop a value culture

a) Incorrect. Stochastic forecasting is of relevance to developing accurate and reliable benefits forecasts to inform investment appraisal and portfolio prioritization. Ref 1.5
b) Correct. Decision conferencing can help build senior management commitment which is one of the keys to rapid progress in developing a value culture. Ref 1.5, 3.8
c) Incorrect. Scenario analysis is used in determining the margin of safety before an investment decision changes. Ref 1.5
d) Incorrect. Cost-benefit analysis is used in options analysis, investment appraisal, and portfolio prioritization. Ref 1.5

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13
Q

13 Identify the missing words in the objective of the Identify and Quantify practice.

To lay the basis for informed options analysis, [?], and portfolio prioritization.

a) investment appraisal
b) initiative delivery
c) cost-benefit analysis
d) programme management

A

A

LL1 - Recall the objective and scope of the Identify and Quantify practice

a) Correct. The objective of the Identify and Quantify practice is to lay the basis for informed options analysis, investment appraisal, and portfolio prioritization. Ref 5.1
b) Incorrect. Effective delivery is an enabler for benefits realization. The objective of the Identify and Quantify practice is to lay the basis for informed options analysis, investment appraisal, and portfolio prioritization. Ref 5.1
c) Incorrect. Cost benefit analysis is a technique used as part of options analysis, investment appraisal and portfolio prioritization. The objective of the Identify and Quantify practice is to lay the basis for informed options analysis, investment appraisal, and portfolio prioritization. Ref 5.1
d) Incorrect. Programme management is a delivery vehicle. The objective of the Identify and Quantify practice is to lay the basis for informed options analysis, investment appraisal, and portfolio prioritization. Ref 5.1

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14
Q

14 Which technique can assist in identifying strategic drivers?

a) SWOT analysis
b) Cost-benefit analysis
c) Monte Carlo simulation
d) Booking the benefits

A

A

LL2 - Identify what is involved in identifying strategic drivers, investment objectives and benefits using benefits discovery workshops

a) Correct. SWOT analysis can be used to identify the strategic drivers for change initiatives. Ref 5.2.1
b) Incorrect. Cost-benefit analysis is an approach to investment appraisal. Ref 1.5, 6.3
c) Incorrect. Monte Carlo simulation is a technique used in developing accurate and reliable benefits forecasts. Ref 1.5
d) Incorrect. ‘Booking the benefits’ is a technique used in aligning benefits with the HR and operational performance management systems. Ref 1.5

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15
Q

15 Which type of benefits map shows how outputs combine to create capabilities which transition into outcomes, which enable benefits realization?

a) Benefits Dependency Network
b) Results Chain™
c) MSP® Benefits Map
d) Benefits Logic Map

A

C

LL2 - Identify what is involved in identifying benefits using benefits mapping

a) Incorrect. The Benefits Dependency Network shows the enabling and business changes on which benefits realization is dependent. Ref 5.2.2.3
b) Incorrect. The Results Chain shows outcomes, initiatives, contributions, and
assumptions. Ref 5.2.2.2
c) Correct. The MSP Benefits Map shows how project outputs combine to create capabilities which transition into outcomes which in turn enable benefits realization. Ref 5.2.2.1
d) Incorrect. The Benefits Logic Map shows how intermediate and end benefits meet the investment objectives. Ref 5.2.2.4

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16
Q

16 What does customer insight bring to the initiative design process?

a) Ears of the customer
b) Needs of the customer
c) Wants of the customer
d) Voice of the customer

A

D

LL2 - Identify what is involved in identifying benefits using customer insight

a) Incorrect. Customer insight seeks to bring the ‘voice of the customer’ NOT the ‘ears of the customer’ into the design process. Ref 5.2.3
b) Incorrect. Customer insight seeks to bring the ‘voice of the customer’ NOT the ‘needs of the customer’ into the design process. Ref 5.2.3
c) Incorrect. Customer insight seeks to bring the ‘voice of the customer’ NOT the ‘wants of the customer’ into the design process. Ref 5.2.3
d) Correct. Customer insight seeks to bring the ‘voice of the customer’ into the design process. Ref 5.2.3

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17
Q

17 Which cognitive bias is addressed by ‘reference class’ forecasting?

a) Sunk cost effect
b) Status quo bias
c) The Planning fallacy
d) Mental accounting

A

C

LL2 - Identify what is involved in quantifying/forecasting benefits, specifically the main problems faced in developing reliable benefits forecasts

a) Incorrect. The sunk cost effect illustrates how managers fail to ignore committed costs when making decisions to continue to invest in initiatives. Ref Appendix D
b) Incorrect. The status quo bias refers to the failure to adopt more effective practices even when it is apparent that current practices are not working. Ref Appendix D
c) Correct. The planning fallacy is based on the assumption that everything goes according to plan. Basing forecasts on reference class data helps addresses such over-optimistic assumptions. Ref 5.3.4, Appendix D
d) Incorrect. Mental accounting refers to the failure to treat investment funds as fungible. Ref Appendix D

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18
Q

18 What practice ensures resources are allocated to change initiatives that individually and collectively represent best value for money?

a) Plan
b) Value and Appraise
c) Realize
d) Review

A

B

LL1 - Recall the objective and scope of the Value and Appraise practice

a) Incorrect. The objectives of the Plan practice are to ensure accountability and transparency for the realization of identified benefits; the changes on which they are dependent; mitigation of dis-benefits; and identification and leveraging of emergent benefits. Ref 7.1
b) Correct. The objective of the Value and Appraise practice is to ensure resources are allocated to change initiatives that individually and collectively represent best value for money. Ref 6.1
c) Incorrect. The objective of the Realize practice is to optimize benefits realization by actively managing planned benefits through to their realization; capturing and leveraging emergent benefits; and minimizing and mitigating any dis-benefits. Ref 8.1
d) Incorrect. The objectives of the Review practice are to ensure and assure that benefits are achievable and represent VFM; appropriate arrangements have been made for monitoring, management and evaluation; benefits realization is being effectively managed; and lessons are learned. Ref 9.1

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19
Q

19 Confidence in the realization of which type of benefit can be enhanced by the use of conversion

ratios?

a) Cashable Financial
b) Cost avoidance
c) Efficiency time savings
d) Economic

A

C

LL2 – Identify what is involved in valuing financial benefits, efficiency improvements and non financial benefits

a) Incorrect. Confidence in realization of cashable financial benefits is enhanced by agreeing them with the recipient and ‘booking the benefits’. Ref 6.2.2.1.
b) Incorrect. Cost avoidance benefits are treated by reducing budgets or by excluding them as they represent the costs associated with the next best alternative foregone. Ref 6.2.2.1
c) Correct. Efficiency time savings represent potential benefits. Confidence in their realization is aided by the application of conversion ratios to determine how much potential benefit can be converted to realized benefit. Ref 6.2.2.2
d) Incorrect. Economic benefits represent the monetary value assigned to non-financial benefits. Ref Section 6.3.1, Glossary

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20
Q

20 Which metric is calculated as the average annual profit divided by the average investment cost?

a) Payback
b) Net present value
c) Internal rate of return
d) Accounting rate of return

A

D

LL2 – Identify what is involved in undertaking cost-benefit analysis

a) Incorrect. Payback is the period of time before the cash inflows from an investment exceed the accumulated cash outflows. Ref 6.3.1, Glossary
b) Incorrect. NPV is the value of future net cash flows discounted at the relevant cost of capital. Ref 6.3.1, Glossary
c) Incorrect. IRR is the annual percentage return from an initiative where the present value of the total cash inflows equals the present value of the total cash outflows. Ref 6.3.1, Glossary
d) Correct. The accounting rate of return is the average annual accounting profit divided by the average investment cost. Ref 6.3.1, Glossary

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21
Q

21 Which is NOT a real option?

a) The ability to increase production should demand justify it
b) The option to buy a share at a set value on a defined date
c) The option to upgrade to a new technology platform
d) The ability to delay investment until demand has been confirmed

A

B

LL2 – Identify what is involved in undertaking real options analysis

a) Incorrect. ‘Expand’ is an example of a real option. Ref 6.3.2
b) Correct. A call option is a financial option. Ref 6.3.2
c) Incorrect. ‘Upgrade’ is an example of a real option. Ref 6.3.2
d) Incorrect. ‘Defer’ or ‘delay’ is an example of a real option. Ref 6.3.2

22
Q

22 What approach to investment appraisal is particularly suited to mandatory initiatives?

a) Cost-benefit analysis
b) Real options analysis
c) Multi-criteria analysis
d) Cost-effectiveness analysis

A

D

LL2 – Identify what is involved in undertaking cost-effectiveness analysis

a) Incorrect. Cost-benefit analysis is appropriate where benefits and costs can be valued in monetary terms. Ref Section 6.3.1
b) Incorrect. Real options analysis is appropriate to conditions of uncertainty where decisions can change as new information becomes available. Ref 6.3.2
c) Incorrect. Multi-criteria analysis addresses the problem of inaccuracies in forecasting and valuing benefits. Mandatory initiatives can be appraised using multi-criteria analysis but the primary approach is via cost-effectiveness analysis. Ref 6.3.4
d) Correct. The benefits of mandatory initiatives can be difficult to quantify and so cost effectiveness analysis is particularly suited. Ref 6.3.3.1

23
Q

23 Which form of analysis appraises potential investments in terms of their attractiveness and achievability?

a) Cost-effectiveness analysis
b) Real options analysis
c) Cost-benefit analysis
d) Multi-criteria analysis

A

D

LL2 – Identify what is involved in undertaking multi-criteria analysis

a) Incorrect. Cost-effectiveness analysis compares the net present cost of the various options. Ref 6.3.3
b) Incorrect. Real option analysis considers the value of flexibility. Ref 6.3.2
c) Incorrect. Cost-benefit analysis appraises the costs and benefits of initiatives or options. Ref 6.3.1
d) Multi-criteria analysis considers initiatives or options from more than one perspective and typically under the headings of attractiveness and achievability. Ref 6.3.4

24
Q

24 The objective of what practice includes ensuring accountability and transparency for the realization of identified benefits?

a) Realize
b) Value and Appraise
c) Plan
d) Review

A

C

LL1 – Recall the objectives and scope of the Plan practice

a) Incorrect. The objective of the Realize practice is to optimize benefits realization by actively managing planned benefits through to their realization; capturing and leveraging emergent benefits; and minimizing and mitigating any dis-benefits. Ref 8.1
b) Incorrect. The objective of the Value and Appraise practice is to ensure resources are allocated to those change initiatives that individually and collectively represent best value for money. Ref 6.1
c) Correct. The objectives of the Plan practice include ensuring accountability and transparency for the realization of identified benefits. Ref 7.1
d) Incorrect. The objectives of the Review practice are to ensure and assure that benefits are achievable and represent VFM; appropriate arrangements have been made for monitoring, management and evaluation; benefits realization is being effectively managed; and lessons are learned. Ref 9.1

25
Q

25 Which technique seeks to ensure all potential benefits are identified?

a) Champion-challenger model
b) Multi-criteria analysis
c) Dog that didn’t bark test
d) Booking the benefits

A

C

LL2 – Identify what is involved in validating the benefits

a) Incorrect. This technique seeks to engage stakeholders in the development of benefits management practices. Ref 1.5
b) Incorrect. This technique views identified costs and benefits from more than one perspective. Ref 1.5, 6.3.4
c) Correct. This technique asks whether all potential benefits have been identified. Ref 1.5, 7.3
d) Incorrect. This technique seeks to ensure identified benefits are realized by aligning their realization with the performance management system. Ref 1.5, 7.3

26
Q

26 Which is NOT an example of one of the four generic investment objectives?

a) Regulatory compliance
b) Increase sales income
c) Utilize spare capacity
d) Reduce expenditure

A

C

LL2 – Identify what is involved in prioritizing the benefits

a) Incorrect. ‘Meet a legal or regulatory requirement, or maintain BAU’ is one of the four generic investment objectives. Ref 7.4
b) Incorrect. ‘Increase sales turnover/income’ is one of the four generic investment objectives. Ref 7.4
c) Correct. Utilize spare capacity is NOT one of the 4 generic investment objectives. Utilizing spare capacity could be designed to help reduce costs or improve sales income. Ref 7.4
d) Incorrect. ‘Save costs’ is one of the four generic investment objectives. Ref 7.4

27
Q

27 Which is undertaken during pre-transition?

a) Operating a help desk function
b) Shutting down an old system
c) Assessing readiness for change
d) Recording lessons learned

A

C

LL2 – Identify what is involved in managing pre-transition activity

a) Incorrect. This would occur as part of ‘Operationalize support functions’ which occurs during the managing transition phase. Ref 8.3.1
b) Incorrect. This would occur as part of ‘remove access to legacy systems’ during the post-transition phase. Ref 8.3.2
c) Correct. Assessing readiness for change occurs as part of managing pre-transition activity. Ref 7.5
d) Incorrect. Recording lessons learned occurs as part of ‘review transition’ during the post transition phase. Ref 8.3.2

28
Q

28 Which type of measure provides an early warning where things may not be going according to plan?

a) Lagging
b) Leading
c) Proxy
d) Qualitative

A

B

LL2 – Identify what is involved in selecting appropriate benefit measures

a) Incorrect. Lagging measures are those that ‘lag’ the change and reflect the impact of something that has already occurred. Leading measures provide an early warning where things may not be going according to plan. Ref 7.6.3
b) Correct. Leading measures provide an early warning where things may not be going according to plan. Ref 7.6.3
c) Incorrect. Proxy measures are where a measurement of one physical quantity is used as an indicator of the value of another. Ref 7.6.3
d) Incorrect. Qualitative measures are measures expressed in descriptive terms for example, satisfaction ratings. Ref 7.6.3

29
Q

29 Which type of benefit is opportunity management specifically concerned with?

a) Financial
b) Unplanned
c) Non-financial
d) Planned

A

B

LL2 – Identify what is involved in managing benefit threats and opportunities

a) Incorrect. Financial benefits are those where there is a direct (cashable) impact on cash inflows (revenue generated) or outflows (costs saved). They can be planned or unplanned (emergent) – opportunity management focuses on the latter. Ref 7.7.2
b) Correct. Opportunity management is focused on capturing and leveraging emergent or unplanned benefits. Ref 7.7.2
c) Incorrect. Non-financial benefits are those that are quantified in non-financial terms. They can be planned or unplanned (emergent) – opportunity management focuses on the latter. Ref 7.7.2
d) Incorrect. Opportunity management is focused on capturing and leveraging
unplanned/emergent rather than planned benefits. Ref 7.7.2

30
Q

30 According to Ward and Daniel, what is the name given to stakeholders receiving a high level of

benefits with a low level of change required?

a) Collaborators
b) Accommodators
c) Resistors
d) Compromisors

A

A

LL2 – Identify what is involved in planning effective stakeholder engagement

a) Correct. ‘Collaborators’ are those receiving a high level of benefits with a low level of change required. Ref 7.8
b) Incorrect. ‘Accommodators’ are those receiving a low level of benefits with a low level of change required. Ref 7.8
c) Incorrect. ‘Resistors’ are those receiving a low level of benefits with a high level of change required. Ref 7.8
d) Incorrect. ‘Compromisors’ are those receiving a high level of benefits with a high level of change required. Ref 7.8

31
Q

31 Which case in the Business Case contains an appraisal of the alternative means of realizing

the required benefits?

a) Economic
b) Financial
c) Management
d) Commercial

A

A

LL2 – Identify the main initiative-level benefits management documentation, including the Business Case, and their typical contents

a) Correct. The Economic case includes the options analysis. Ref Table 7.7
b) Incorrect. The Financial case focuses on whether the initiative is affordable. Ref Table 7.7
c) Incorrect. The Management case focuses on whether the initiative is achievable. Ref Table 7.7
d) Incorrect. The Commercial case focuses on whether the initiative is commercially viable. Ref 7.7

32
Q

32 What role is responsible for developing the Benefits Management Strategy?

a) Programme Manager
b) Benefits Manager
c) Senior Responsible Owner
d) Business Change Manager

A

A

LL2 – Identify the main initiative-level benefits management roles and their respective responsibilities

a) Correct. The Programme Manager is responsible for developing the Benefits
Management Strategy. Ref 4.5, Appendix C
b) Incorrect. The Benefits Manager as a member of the Programme Office will support the Programme Manager in developing the BMS but it is the Programme Manager who is responsible for developing it. Ref 4.5, Appendix C
c) Incorrect. The SRO will approve the BMS. However responsibility for its production lies with the Programme Manager. Ref 4.5, Appendix C
d) Incorrect. The BCM will review the BMS but responsibility for its production lies with the Programme Manager. Ref Appendix C

33
Q

33 The objectives of what practice include capturing and leveraging emergent benefits?

a) Plan
b) Value and Appraise
c) Identify and Quantify
d) Realize

A

D

LL1 – Recall the objective and scope of the Realize practice

a) Incorrect. The objectives of the Plan practice are to ensure accountability and transparency for the realization of identified benefits; the changes on which they are dependent; mitigation of dis-benefits; and identification and leveraging of emergent benefits. Ref 7.1
b) Incorrect. The objective of the Value and Appraise practice is to ensure resources are allocated to change initiatives that individually and collectively represent best value for money. Ref 6.1
c) Incorrect. The objective of the Identify and Quantify practice is to lay the basis for informed options analysis, investment appraisal and portfolio prioritization; and the management of benefits realization in due course. Ref 5.1
d) Correct. The objectives of the Realize practice include capturing and leveraging emergent benefits. Ref 8.1

34
Q

34 Which role is responsible for monitoring benefits realization after transition?

a) Senior Responsible Owner
b) Business Change Manager
c) Programme Manager
d) Programme Office

A

B

LL2 – Identify what is involved in transition management

a) Incorrect. See Rationale B
b) Correct. The BCM is responsible for monitoring benefits realization post transition and after initiative closure. Ref 8.3.2, Appendix C Table C.2
c) Incorrect. See Rationale B
d) Incorrect. See Rationale B

35
Q

35 Which is NOT an appropriate format for benefits realization reporting?

a) Recording status on the benefits map
b) Graphical formats
c) Dashboard reporting
d) Reporting on an itemized scale

A

D

LL2 – Identify what is involved in tracking and reporting benefits realization and taking corrective action

a) Incorrect. The Benefits Map is an appropriate format for benefits reporting via the use of RAG ratings for enabling and business changes. Ref 8.4.3.1
b) Incorrect. Graphical formats focusing on the most important benefits are an appropriate format for benefits realization reporting. Ref 8.4.3.1
c) Incorrect. Dashboard reports are an appropriate format for benefits realization reporting. Ref 8.4.3.1
d) Correct. Reporting on a normalized rather than an itemized scale is an appropriate format for benefits realization reporting. Ref 8.4.3.1

36
Q

36 What type of conversation is designed to produce a specific action and result?

a) Conversation for performance
b) Conversation for understanding
c) Conversation for closure
d) Initiative conversation

A

A

LL2 – Identify what is involved in achieving behavioural change by winning hearts as well as minds

a) Correct. ‘Conversations for performance’ are those produced by a network of requests and promises spoken to produce a specific action and result. Ref 8.5.2
b) Incorrect. ‘Conversations for understanding’ are those in which people seek to
understand the drivers and evidence for the initiative conversations. Ref 8.5.2
c) Incorrect. ‘Conversations for closure’ are characterized by the use of assertions, expressives and declarations to bring closure to the change. This allows people to move on. Ref 8.5.2
d) Incorrect. ‘Initiative conversations’ create a call to action via an assertion, a request, a promise or a declaration. Ref 8.5.2

37
Q

37 What does the objective of the Review practice include?

a) Managing planned benefits through to their realization
b) Ensuring and assuring lessons are learned
c) Ensuring accountability and transparency for the realization of identified benefits
d) Ensuring resource allocation represents the optimum use of limited funds

A

B

LL1 – Recall the objectives and scope of the Review practice

a) Incorrect. This is part of the objective of the Realize practice. Ref 8.1
b) Correct. This is part of the objective of the Review practice. Ref 9.1
c) Incorrect. This is part of the objective of the Plan practice. Ref 7.1
d) Incorrect. This is the objective of the Value and Appraise practice. Ref 6.1

38
Q

38 What independent review is undertaken to confirm the case for investment at an early point in the business change lifecycle?

a) Phase Gate
b) Pre-Mortem
c) Start Gate
d) Business Case

A

C

LL2 – Identify what is involved in reviews at start up, specifically start gate and pre-mortems

a) Incorrect - Phase Gates are independent but they are applied to ‘in flight’ initiatives to confirm the continued investment justification. Ref 9.2, 9.4
b) Incorrect. Pre-Mortems are undertaken early in the business change lifecycle but are undertaken by the initiative. Ref 9.2, 9.3.2
c) Correct. Start Gate is an independent early stage review to ensure that the transition from strategy/policy to formally established change initiative is justified. Ref 9.2, 9.3.1
d) Incorrect. The Business Case is the document that provides the justification for an initiative. Ref Glossary

39
Q

39 Which OGC Gateway™ review is an ex-post evaluation of benefits realization?

a) Gateway 3
b) Gateway 4
c) Gateway 1
d) Gateway 5

A

D

LL2 – Identify what is involved in ‘in flight’ benefits reviews, stage/phase gate reviews, portfolio level reviews and Gateway reviews

a) Incorrect. Gateway 3 concerns the investment decision. Ref 9.6
b) Incorrect. Gateway 4 concerns readiness for service. Ref 9.6
c) Incorrect. Gateway 1 concerns business justification. Ref 9.6
d) Correct. Gateway 5 includes review of benefits realization. Ref 9.6

40
Q

40 What is post-implementation review an example of?

a) Ex ante appraisal
b) Ex post evaluation
c) Ex ante evaluation
d) Ex post appraisal

A

B

LL2 – Identify what is involved in post-implementation and post-investment reviews

a) Incorrect. Post-implementation review is undertaken ex post and is an evaluation rather than an appraisal. Ref 2.3.2, 9.5
b) Correct. Post-implementation review is an ex post evaluation. Ref 2.3.2, 9.5
c) Incorrect. Post-implementation review is an evaluation but it is undertaken after implementation (ex post) rather than at start up (ex ante). Ref 2.3.2, 9.5
d) Incorrect. Post-implementation review is undertaken ex post but it is an evaluation rather than an appraisal. Ref 2.3.2, 9.5

41
Q

41 Identify the missing words in the sentence.

Portfolio-based benefits management ensures: the best use of available resources and that the contribution to operational performance and [?] is optimized.

a) performance measures
b) strategic objectives
c) tactical outcomes
d) business as usual

A

B

LL1 – Recall the objectives and scope of portfolio-based benefits management including the names of the seven key elements in portfolio-based benefits management

a) Incorrect. The objective of portfolio-based benefits management is to optimize the contribution to operational performance and strategic objectives rather than performance measures. Ref 10.2
b) Correct. The objective of portfolio-based benefits management is to optimize contribution to operational performance and strategic objectives. Ref 10.2
c) Incorrect. The objective of portfolio-based benefits management is to optimize the contribution to operational performance and strategic objectives rather than tactical outcomes. Ref 10.2
d) Incorrect. The objective of portfolio-based benefits management is to optimize the contribution to operational performance and strategic objectives rather than BAU. Ref 10.2

42
Q

42 Which feature of an appropriate benefits categorization system is illustrated by dual dimension categorization?

a) Mutually exclusive
b) Wide applicability
c) Fully inclusive
d) Self checking

A

D

LL2 – Identify what is involved with element 1: Benefits eligibility rules, including a consistent approach to benefits categorization and features of an appropriate benefits categorization system

a) Incorrect. ‘Mutually exclusive’ refers to categories being sufficiently different. This minimizes confusion as to the best category for individual benefits. Ref 10.3.1
b) Incorrect. ‘Wide applicability’ means the categorization should apply to all types of initiative facilitating comparisons between investments and over time. Ref 10.3.1
c) Incorrect. ‘Fully inclusive’ means the system should be flexible enough to accommodate all relevant benefits. Ref 10.3.1
d) Correct. The ‘self-checking’ feature is illustrated by dual dimension categorization. Ref 10.3.1.1

43
Q

43 What is over-optimism in forecasting benefits an example of?

a) Aggregated risk
b) Logical dependency
c) Logistical dependency
d) Generic risk

A

D

LL2 – Identify what is involved with element 2: Portfolio-level Benefits Realization Planning including consideration of portfolio-level benefits threats, dependencies and opportunities

a) Incorrect. Aggregated risk refers to the overall level of risk to the portfolio when risks are viewed as a whole rather than individually. Ref 10.3.2.1, Glossary
b) Incorrect. A logical dependency is where progress on one initiative is dependent on a deliverable from another initiative. Ref 10.3.2.1
c) Incorrect. A logistical dependency is where more than one initiative requires access to a limited resource at the same time. Ref 10.3.2.1
d) Correct. Generic risks are those that apply across the portfolio. For example over-optimism in forecasting resulting in sub-optimal investment decisions and non-realization of anticipated benefits. Ref 10.3.2.1

44
Q

44 Which document describes the arrangements for managing benefits after closure of a specific change initiative?

a) Benefits Management Strategy
b) Benefits Management Framework
c) Benefits Profile
d) Benefits Realization Plan

A

A

LL2 – Identify what is involved with element 4: Effective arrangements to manage benefits post initiative closure

a) Correct. The Benefits Management Strategy should specify how the benefits from an initiative will be managed post-initiative completion. Ref 10.3.4, Appendix B
b) Incorrect. The Benefits Management Framework includes the governance arrangements that will apply across the portfolio of change initiatives. Ref 10.3.4, Appendix B
c) Incorrect. The Benefits Profile is the document that identifies the key details associated with each benefit rather than the initiative as a whole. Ref 4.5, Appendix B
d) Incorrect. The Benefits Realization Plan is the baseline used to track realization of benefits at individual initiative or portfolio level. Ref 4.5, 10.3.7.1, Appendix B

45
Q

45 Which is NOT a technique used in facilitating effective monitoring of benefits realization at a portfolio-level?

a) One version of the truth
b) Clear line of sight
c) Management by exception
d) The Delphi technique

A

D

LL2 – Identify what is involved with element 5: Tracking and reporting benefits realization at a portfolio level

a) Incorrect. ‘One version of the truth’ can be used to facilitate effective monitoring of benefits realization. This is achieved by ensuring data is derived from an agreed source and to an agreed schedule. Ref 10.3.5
b) Incorrect. ‘Clear line of sight’ reporting can be used to facilitate effective monitoring of benefits realization. This is achieved by linking benefits reporting at initiative level to the portfolio view. Ref 10.3.5
c) Incorrect. ‘Management by exception’ can be used to facilitate effective monitoring of benefits realization. This is because only variances that exceed a pre-set control limit for benefits forecast and realization) are flagged for management attention. Ref 10.3.5
d) Correct. The ‘Delphi’ technique is used in generating more accurate forecasts. Ref 1.5

46
Q

46 Which document contains guidance on benefits mapping to be applied across the change portfolio?

a) Benefits Management Framework
b) Benefits Management Strategy
c) Benefits Realization Plan
d) Portfolio Dashboard Report

A

A

LL2 – Identify the purpose and typical contents of the main portfolio-level documentation

a) Correct. The Benefits Management Framework contains guidance on benefits management practices including benefits mapping to be applied across the change
portfolio. Ref Appendix B
b) Incorrect. The Benefits Management Strategy contains guidance on benefits mapping but only applies to that initiative. Ref Appendix B
c) Incorrect. The Benefits Realization Plan provides a baseline against which to assess the benefits actually realized. Ref 10.3.7.1
d) Incorrect. The Portfolio Dashboard Report provides an overview of progress against plan including benefits realization. Ref 10.3.7.1

47
Q

47 Which portfolio role or body documents proposed changes to the benefits categorization system?

a) Portfolio Investment Committee
b) Portfolio Benefits Manager
c) Portfolio Delivery Committee
d) Portfolio Director

A

B

LL2 – Identify the responsibilities of the main portfolio management roles in relation to benefits management

a) Incorrect. The Portfolio Investment Committee approves changes to the Portfolio Benefits Management Framework. Ref Appendix C
b) Correct. The Portfolio Benefits Manager writes and maintains the organization’s Portfolio Benefits Management Framework including the benefits eligibility and categorization rules. Ref Appendix C
c) Incorrect. The Portfolio Delivery Committee ensures that all initiatives comply with the requirements specified in the Benefits Management Framework. Ref Appendix C
d) Incorrect. The Portfolio Director ensures that the benefits management practices are documented in a Portfolio Benefits Management Framework. However the actual amendments will be made by the Portfolio Benefits Manager. Ref Appendix C

48
Q

48 Which is one of the three broad approaches to implementing benefits management?

a) Project
b) Management by exception
c) Plan
d) Incremental

A

D

LL1 - Recall the three broad approaches to implementing benefits management

a) Incorrect. This is a vehicle for initiative delivery. However sustaining progress is aided where implementation of benefits management is managed as a business and behavioural change programme. Ref 11.3.2
b) Incorrect. This is a technique to aid effective benefits monitoring. Ref 1.5, 8.4.3.3
c) Incorrect. This is one of the five practices in the Benefits Management Cycle. Ref 1.5
d) Correct. This is one of the three broad approaches to implementing benefits
management. Ref Table 11.1

49
Q

49 In which circumstances will an incremental approach to implementation of benefits management be MOST appropriate?

a) A stable environment
b) Very few senior managers see the case for change
c) Where strategy is emergent
d) Where strategic objectives are set top down

A

C

LL2 – Identify when each approach to implementation is most relevant, the advantages of planned approaches to implementation, and the first ten steps in implementing benefits management

a) Incorrect. In a stable environment, the ‘big bang’ approach is most appropriate. Ref 11.2
b) Incorrect. The ‘opportunistic’ approach is most appropriate where little senior
management commitment to benefits management currently exists. Ref 11.2
c) Correct. Where strategy is emergent, the ‘incremental’ approach is most appropriate. Ref 11.2
d) Incorrect. Where strategy is set top down, the ‘big bang’ approach is most appropriate. Ref 11.2

50
Q

50 Effective on-going stakeholder engagement in the development of benefits management is aided by which technique?

a) Delphi technique
b) Champion-Challenger model
c) Willingness to pay
d) Pareto rule

A

B

LL2 – Identify the factors to consider in sustaining progress. Specifically on-going stakeholder engagement in the development of benefits management including application of the ‘Champion-Challenger’ model

a) Incorrect. The ‘Delphi’ technique is used in developing accurate and reliable benefits forecasts. Ref 1.5
b) Correct. Effective on-going stakeholder engagement in the development of benefits management is aided by the ‘Champion-Challenger’ model. Ref 1.5, 11.3.3
c) Incorrect. ‘Willingness to pay’ is used to assign monetary values to non-financial benefits. Ref 1.5
d) Incorrect. The Pareto rule is used in prioritizing benefits. Ref 1.5

Managing Benefits - Foundation Flash Cards (6 decks)

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