Investment realisation is the fourth and final phase in an investment’s lifecycle. The purpose of the investment realisation phase is to ascertain what else needs to be done to optimise levels of customer service and levels of asset performance over time, and to capture information to improve the planning and delivery of future investments.
Investment realisation involves reviewing the actual performance of the investment against expectations. This includes reviewing benefits, the performance of assets and the investment portfolio, in relation to current and emerging needs.
Agencies are required to regularly report on their investments, via Quarterly Investment Reporting (QIR). QIR provides Ministers and Cabinet with visibility over investments throughout their lifecycle, including during the investment realisation phase.
During investment realisation, agencies should continue to track investments post-delivery on an annual basis for a period of up to 12 quarters (three years). Agencies will be asked to provide a qualitative assessment of financial and non-financial benefits relative to original business casing.
Agencies need to capture lessons from the investment, which can be made available for agency and system-wide reviews to support continuous learning and improvement, and better investment decision-making in the future.
Business-as-usual operations
The new capability, asset or business change is now part of everyday business. Normal monitoring and reporting of business performance should apply to the new capability, asset or business change.
Benefits management, realisation and reporting
Agencies have a responsibility to report on the benefits or outcomes from an investment to their Minister. Benefits management planning forms part of the Management Case. Benefit realisation reporting should be appropriate to the scale of the investment.
Agencies should report the benefits and outcomes expected from the investment:
- Did the investment deliver the stated benefits and outcomes?
- Have the benefits and outcomes been delivered in the agreed timeframe?
- Is the investment optimised to realise full public value?
Managing Benefits from Projects and Programmes
This guidance document sets out, at a high level, an approach to benefits management that is compatible with the Better Business Case guidance and the way investments are generally undertaken in the New Zealand public service. This benefits guidance can also be applied to investments in the wider public and private sectors.
Gateway Review 5: Operational and Benefits Realisation Review
High-risk investments (as per the moderated Risk Profile Assessment) need to complete Gateway Review 5 (Operational and Benefits Realisation Review).
The Operational and Benefits Realisation Review focuses on contract management, operational performance, asset management and delivery of benefits after an investment’s transition into service. It confirms that business changes are operating smoothly and that the desired benefits of the investment are being achieved.
Cabinet expects that the report will be published to a wider audience on the Public Sector Intranet (PSI).