Unit V

Chapter 1: Benefits Realization and its Governance

Figure. BRM Framework

Introduction to Benefits Realization Management (BRM):
- BRM: A structured approach to ensure that projects and programs deliver the intended benefits and
align with organizational strategic goals.
- Purpose: Aligns project outcomes with business strategy, maximize value, and ensures sustained
benefits post-implementation.
1. Organizational Governance and Strategic Context - BRM Strategy:
- Purpose: Sets the stage for BRM by aligning benefits realization with the organization's strategic
goals.
- Key Activities:
- Establish strategic goals and objectives.
- Develop a BRM strategy aligned with these goals.
- Ensure governance structures support BRM processes.
2. Identify Benefits:
- Purpose: Recognizes potential benefits early in the project lifecycle.
- Key Activities:
- Conduct a benefits identification workshop.
- Engage stakeholders to capture expected benefits.
 - Document potential benefits in a benefits register.
- Prioritize benefits based on strategic alignment and value.
3. Execute Benefits Realization:
- Purpose: Manages the realization of benefits through project execution.
- Key Activities:
- Integrate BRM into project management plans.
- Monitor and track benefits realization during project execution.
- Adjust project plans to optimize benefits delivery.
- Communicate progress to stakeholders.
4. Sustain Benefits:
- Purpose: Ensures ongoing value and benefits management post-implementation.
- Key Activities:
- Develop a benefits sustainment plan.
- Assign responsibilities for ongoing benefits management.
- Regularly review and update the benefits realization plan.
- Conduct post-implementation reviews to ensure benefits are sustained.
5. Portfolio Management Cycle Output Optimization:
- Purpose: Monitors, measures, evaluates, and reports benefits based on the BRM plan.
- Key Activities:
- Implement performance metrics and KPIs to measure benefits.
- Conduct regular evaluations to assess benefits realization.
- Report findings to senior management and stakeholders.
- Use feedback to optimize future projects and BRM strategies.
Detailed Breakdown of Each Stage:
1. Organizational Governance and Strategic Context - BRM Strategy:
- Strategic Alignment: Ensures projects are selected and prioritized based on their potential to
deliver strategic benefits.
- Governance Structures: Establishes clear roles, responsibilities, and processes to support BRM.
- Communication: Promotes understanding and commitment to BRM across the organization.
2. Identify Benefits:
- Early Identification: Recognizes potential benefits at the project inception phase.
- Stakeholder Engagement: Involves key stakeholders to ensure a comprehensive understanding of
expected benefits.
 - Documentation: Maintains a benefits register to track and manage identified benefits.
3. Execute Benefits Realization:
- Integration with Project Management: Ensures benefits realization activities are embedded in
project management processes.
- Monitoring and Tracking: Continuously tracks progress towards benefits realization.
- Optimization: Adjusts project plans and activities to maximize benefits delivery.
4. Sustain Benefits:
- Sustainment Plan: Outlines activities and responsibilities for managing benefits post-
implementation.
- Review and Update: Regularly review the sustainment plan to ensure continued relevance and
effectiveness.
- Post-Implementation Review: Conducts reviews to confirm that benefits are being realized and
sustained.
5. Portfolio Management Cycle Output Optimization:
- Performance Metrics: Defines and monitors KPIs to measure benefits realization.
- Regular Evaluations: Conducts evaluations to assess the effectiveness of benefits realization
activities.
- Reporting and Feedback: Provides regular reports to stakeholders and uses feedback to improve
BRM practices.
Chapter 2: Managing resources (people, process, technology), to realize benefits from
Private/Public Cloud IT service
Introduction to Cloud IT Services:
- Private Cloud: Exclusive cloud infrastructure for a single organization, offering greater control and
security.
- Public Cloud: Shared cloud infrastructure provided by third-party vendors, offering scalability and
cost efficiency.
- Hybrid Cloud: Combines private and public clouds to leverage the benefits of both.
Figure. People, Process, Technology
Managing People:
1. Skill Development and Training:
- Objective: Equip staff with necessary cloud skills.
- Actions:
- Identify skill gaps through assessments.
- Provide training programs and certifications (e.g., AWS, Azure, Google Cloud).
- Encourage continuous learning and professional development.
2. Change Management:
- Objective: Smooth transition to cloud services.
- Actions:
- Communicate the benefits and impact of cloud adoption.
- Involve employees in the transition process.
- Provide support and resources to ease the change.
3. Collaboration and Team Dynamics:
- Objective: Foster effective teamwork in a cloud environment.
- Actions:
- Utilize collaborative tools (e.g., Slack, Microsoft Teams).
- Promote cross-functional teams to enhance innovation.
- Implement regular team meetings and updates.
Managing Processes:
1. Cloud Governance:
- Objective: Ensure compliance, security, and efficient use of cloud resources.
- Actions:
- Develop a cloud governance framework.
- Define policies for data management, security, and access control.
- Implement monitoring and auditing mechanisms.
2. Service Management:
- Objective: Optimize cloud service delivery and performance.
- Actions:
- Adopt ITIL (Information Technology Infrastructure Library) practices.
- Establish service level agreements (SLAs) with cloud providers.
 - Continuously monitor and improve service performance.
3. Cost Management:
- Objective: Control and optimize cloud expenditure.
- Actions:
- Implement cost tracking and management tools (e.g., AWS Cost Explorer, Azure Cost
Management).
- Use automated scaling to manage resource utilization.
- Review and optimize cloud resource allocation regularly.
Managing Technology:
1. Infrastructure Management:
- Objective: Ensure reliable and scalable cloud infrastructure.
- Actions:
- Select appropriate cloud providers based on business needs.
- Design and implement robust cloud architecture.
- Utilize infrastructure as code (IaC) for efficient management (e.g., Terraform, CloudFormation).
2. Security and Compliance:
- Objective: Protect data and ensure regulatory compliance.
- Actions:
- Implement strong security measures (e.g., encryption, multi-factor authentication).
- Regularly update and patch systems to prevent vulnerabilities.
- Conduct compliance audits and assessments.
3. Automation and Optimization:
- Objective: Enhance efficiency and reduce manual tasks.
- Actions:
- Utilize automation tools for deployment, monitoring, and management (e.g., Jenkins, Ansible).
- Implement continuous integration/continuous deployment (CI/CD) pipelines.
- Optimize cloud resource usage with auto-scaling and load balancing.
Benefits Realization:
1. Enhanced Agility and Scalability:
- Impact: Quickly respond to changing business needs and scale resources as required.
- Actions:
- Leverage cloud-native services to enhance agility.
- Use auto-scaling to manage workloads dynamically.
2. Cost Efficiency:
- Impact: Reduce capital expenditure and optimize operational costs.
- Actions:
- Utilize pay-as-you-go pricing models.
- Regularly review and optimize cloud spending.
3. Innovation and Competitive Advantage:
- Impact: Accelerate innovation and maintain a competitive edge.
- Actions:
- Foster a culture of experimentation and innovation.
- Leverage advanced cloud services (e.g., AI, ML, big data analytics) to drive business value.
Chapter 3: Gartner's 5 pillars of benefit realization
Introduction to Gartner's 5 Pillars of Benefit Realization:
- Benefit Realization: The process of ensuring that the outcomes of a project or program are achieved
and deliver the intended value.
- Gartner's 5 Pillars: A framework to guide organizations in effectively managing and realizing
benefits from their initiatives.
1. Governance:
- Purpose: Establishes a structured framework to oversee and guide benefit realization.
- Key Elements:
- Accountability: Define roles and responsibilities for benefit realization.
- Policies and Procedures: Implement clear policies and procedures to support benefit realization
activities.
- Decision-Making: Establish governance bodies (e.g., steering committees) to make informed
decisions regarding benefits.
2. Value Definition:
- Purpose: Clearly defines the expected value and benefits of an initiative.
- Key Elements:
- Benefit Identification: Identify potential benefits early in the project lifecycle.
- Value Proposition: Develop a compelling value proposition that aligns with strategic goals.
- Benefit Quantification: Quantify benefits in measurable terms (e.g., financial, operational,
strategic).
3. Value Realization:
- Purpose: Focuses on the processes and activities required to achieve the defined benefits.
- Key Elements:
 - Integration: Integrate benefit realization activities into project and program management
processes.
- Monitoring and Tracking: Continuously monitor and track progress towards achieving benefits.
- Adjustments: Make necessary adjustments to project plans and activities to optimize benefit
realization.
4. Metrics and Reporting:
- Purpose: Establishes a system to measure, track, and report on benefit realization.
- Key Elements:
- Key Performance Indicators (KPIs): Define KPIs to measure the achievement of benefits.
- Reporting Framework: Develop a reporting framework to regularly communicate progress to
stakeholders.
- Feedback Mechanisms: Implement feedback mechanisms to capture insights and inform future
initiatives.
5. Culture and Change Management:
- Purpose: Cultivates a culture that supports benefit realization and manages the change associated
with new initiatives.
- Key Elements:
- Change Management: Implement change management strategies to support the transition and
adoption of new initiatives.
- Stakeholder Engagement: Engage stakeholders at all levels to ensure buy-in and commitment to
benefit realization.
- Continuous Improvement: Foster a culture of continuous improvement to sustain benefit
realization over time.
Detailed Breakdown of Each Pillar:
1. Governance:
- Structured Oversight: Establish governance structures to provide oversight and guide benefit
realization.
- Clear Accountability: Define clear roles and responsibilities to ensure accountability for achieving
benefits.
- Informed Decision-Making: Use governance bodies to make informed decisions and address
challenges promptly.
2. Value Definition:
- Early Identification: Identify potential benefits at the outset of the initiative.
- Strategic Alignment: Ensure the value proposition aligns with the organization's strategic goals.
- Measurable Benefits: Quantify benefits to facilitate tracking and reporting.
3. Value Realization:
 - Integrated Processes: Incorporate benefit realization into project and program management
processes.
- Continuous Monitoring: Regularly monitor and track progress to ensure benefits are being
realized.
- Adaptive Planning: Adjust plans and activities to optimize benefit realization.
4. Metrics and Reporting:
- Define KPIs: Establish KPIs to measure the success of benefit realization.
- Regular Reporting: Develop a reporting framework to inform stakeholders of progress.
- Feedback Loop: Use feedback to improve benefit realization practices and inform future
initiatives.
5. Culture and Change Management:
- Change Strategies: Implement strategies to manage the change associated with new initiatives.
- Engage Stakeholders: Involve stakeholders to ensure their support and commitment.
- Continuous Improvement: Promote a culture that supports ongoing improvement and sustains
benefit realization.
Gartner's 5 Pillars of Benefit Realization provides a comprehensive framework to guide organizations
in achieving and sustaining the benefits of their initiatives. By focusing on governance, value
definition, value realization, metrics and reporting, and culture and change management,
organizations can ensure that their projects deliver the intended value and contribute to strategic goals.
Chapter 4: IT governance as a service in measuring the delivery of IT Strategy from Cloud IT
Services using Sarbannes Oxley (CobiT) and other commonly used approaches
Introduction to IT Governance:
- IT Governance: Framework ensuring that IT investments support business goals.
- Governance as a Service: Cloud-based delivery model providing governance capabilities to
organizations.
- Relevance: Critical for measuring and ensuring the delivery of IT strategy, especially in regulated
environments.
Key Governance Frameworks and Approaches:
1. Sarbanes-Oxley Act (SOX):
- Purpose: Ensure accuracy and reliability in corporate disclosures.
- Relevance to IT: Requires stringent controls over IT systems that handle financial data.
- Key Requirements:
- Section 302: Corporate responsibility for financial reports.
- Section 404: Management assessment of internal controls over financial reporting.
2. COBIT (Control Objectives for Information and Related Technologies):
- Purpose: Provide a comprehensive framework for managing and governing enterprise IT.
 - Key Components:
- Framework: High-level framework for IT governance and management.
- Process Model: Detailed model with 40 governance and management processes.
- Management Guidelines: Tools for managing and optimizing IT processes.
3. Other Common Approaches:
- ITIL (Information Technology Infrastructure Library):
- Focus: IT service management (ITSM).
- Relevance: Ensures IT services align with business needs.
- ISO/IEC 27001:
- Focus: Information security management systems (ISMS).
- Relevance: Ensures security of data in cloud services.
- NIST (National Institute of Standards and Technology):
- Focus: Cybersecurity framework.
- Relevance: Provides guidelines for managing and reducing cybersecurity risks.
IT Governance as a Service in Cloud IT Services:
1. Integration with Cloud Services:
- Automated Compliance Monitoring:
- Cloud platforms offer tools to automate compliance monitoring (e.g., AWS Config, Azure
Policy).
- Audit and Reporting:
- Cloud services provide audit logs and reporting features to support compliance audits (e.g., AWS
CloudTrail, Azure Monitor).
2. Governance Capabilities:
- Policy Enforcement:
- Enforce policies across cloud environments using governance tools (e.g., AWS Organizations,
Azure Management Groups).
- Access Control:
- Implement role-based access control (RBAC) and multi-factor authentication (MFA) to secure
cloud resources.
- Risk Management:
- Use risk management frameworks to identify, assess, and mitigate risks associated with cloud IT
services.
Measuring the Delivery of IT Strategy:
1. Alignment with Business Goals:
- Strategic Planning:
- Ensure IT strategy aligns with overall business strategy.
- Performance Metrics:
- Define and measure key performance indicators (KPIs) to track the success of IT initiatives.
2. Compliance and Audit:
- Regular Audits:
- Conduct regular audits to ensure compliance with SOX, COBIT, and other relevant frameworks.
- Continuous Monitoring:
- Implement continuous monitoring to detect and address compliance issues in real time.
3. Risk and Security Management:
- Risk Assessments:
- Perform regular risk assessments to identify potential threats to IT systems.
- Security Controls:
- Implement robust security controls to protect sensitive data and maintain compliance.
4. Resource Optimization:
- Cost Management:
- Monitor and optimize cloud spending to ensure efficient use of resources.
- Scalability:
- Utilize cloud capabilities to scale resources up or down based on demand.
High Technology for Private Banking and Asset Management
Chapter 5: Cloud Software for Private Banking
Computer programs needed for private banking are in demand in the cloud for customer relationship
management (CRM). Examples are

◾ product catalog, enabling one to manage catalogs of products and services and access pricing
information.

◾ asset management, permitting one to track the different financial products customers have
purchased; and

◾ data quality management, which ensures that customer, product, and pricing data are available,
valid, and free of duplicates.
In the CRM domain alone, the private banker can find a wealth of programming products to serve his
or her requirements, particularly routines valuable in sales automation; for instance,

◾ workflow programs that help in customizing sales and marketing documents

◾ collateral management, which provides a valuable repository for the most recent versions of sales
and marketing information

◾ list management, assisting the private banker in customer leads, contact information, and business
handling; and

◾ marketing analytics, which permits studying the impact of marketing campaigns, determining those
activities generating the most revenue, and measuring the results of marketing spending.
Software, however, is only a high-power tool. The key ingredient is personality traits. If the personal
banker does not have the personality, training, and drive to gain the customer’s confidence, and if he
or she is bothered by the customer’s visits and queries, then no matter how rich the OnDemand
software is, it would not close the gap. As Demosthenes, the ancient Greek orator, said over 2,300
years ago, in business what counts is confidence, and confidence is built by:

◾ a person’s personality characteristics

◾ quality of service, where OnDemand software helps; and

◾ skill as well as attention to detail and risk management.

Core Cloud Software Solutions for Private Banking:

1. Portfolio Management Systems:
- Cloud-Based Portfolio Management: Manage client portfolios, monitor performance, and execute
trades in real-time.
- Analytics and Reporting: Provide detailed performance reports and insights to clients.
2. Data Analytics Platforms:
- Big Data Analytics: Analyze large datasets to identify trends, risks, and opportunities.
- Predictive Analytics: Use AI and ML algorithms to predict market movements and optimize
investment strategies.
3. Cybersecurity Solutions:
- Cloud Security Services: Implement multi-layered security measures including encryption,
firewalls, and intrusion detection systems.
- Identity and Access Management (IAM): Ensure secure access to systems and data through robust
IAM protocols.
4. Regulatory Compliance Tools:
 - Automated Reporting: Use cloud software to automatically generate and submit regulatory reports.
- Compliance Monitoring: Continuously monitor and ensure adherence to financial regulations and
standards.
Chapter 6: Leadership is based on Fundamentals
In business and industry, there are two types of leadership. The one is so-called charismatic
leadership, which is full of promises and lots of glitz and glamour, as well as the ability to sustain
them over time (quite often through smoke and mirrors). Luck helps, but this is only one of the inputs.
The other type is leadership based on fundamentals. The person who follows it puts in place the
firmest policies, ensuring that these are customer-friendly. This person leads by example, which he or
she takes to the people and says, “This is me and my company. This is who we are, and this is what
we stand for. I can tell you what we are doing, and I can prove that it upholds investor value and that
it is effective.”
Speaking from personal experience, the best bankers are those basing themselves and their careers on
fundamentals. They take risks, but they know and understand the risks they take, putting limits to
them and watching them carefully. Those people’s behavior is best explained through two pieces of
advice. They come from George Moore, a former chairman and CEO of Citibank, who, when in the
late 1960s he chose Walter Wriston as his successor, and gave him the following advice:

◾ On growth policies: “Be brave to scare Chase,* but not so brave to scare me.”

◾ On facing challenges and coping with them: “If we do not have troubles, we would not have any
high-priced people around to solve them.”
This is one of the best examples of the change brought about by the cloud and its positive aftereffects.
Online software, which is ready for use, is a great help in promoting leadership based on
fundamentals. Lee Iacocca’s business philosophy was that all business operations can be reduced to
three words:

◾ people,

◾ products, and

◾ profits.

The goal was to extend General Electric's boundaries by:

◾ evaluating careers.

◾ linking bonuses to new ideas, customer satisfaction, and sales growth.

◾ promoting cost-cutting and efficiency; and

◾ spending billions to fund “imagination breakthrough” projects.

Chapter 7: Cloud Software for Asset Management
Asset management and private banking overlap in some of their functions. The former is much
broader since it concerns institutional investors and the banks’ fortune. Every company must
effectively manage its assets, and this entails a flow of both daily and longer-range decisions
regarding:

◾ asset allocation by instrument and market,

◾ country and currency in which investments are made, and

◾ the structure of portfolios and their effective risk management.

Every asset manager must establish, follow, and steadily recalibrate an asset allocation strategy. He or
she also needs state-of-the-art tools to support his or her research and decision, as well as provide
steady position management capabilities. Networks, databases, computing engines, and software are
second in importance only to skills, but at the same time, asset management firms have to watch their
cost base—hence the interest in onDemand software. Here is a short list of programming routines
available in the cloud:

◾ Asset allocation permits the determination of optimal allocation of assets to achieve targeted
investment goals. Stocks of different countries, bonds in different currencies, and money market
instruments are covered.

◾ Bond systems are designed to help in managing and evaluating risks for debt instruments, options,
and futures based on a spot yield curve.

◾ Equity systems cover individual stock and stock market indices, allowing one to screen issues
following investors’ objectives.

◾ Forex systems support currency exchange and other functions, like currency options trading,
hedging of forex exposure, and foreign exchange forecasting.
Figure. Building blocks of a basic assets management function
A simple schema of a typical asset management system is shown in Figure One of the value-added
building blocks that allows the assets manager to experiment with reordering investment plans for his
or her assets. The processing of order and contract data is the work of the back office and the cloud’s
offers of onDemand software include:

◾ balance sheets,

◾ profit and loss statements,

◾ legal financial reporting, and

◾ attribution of portfolio performance by fund manager.

Fund distribution by country, currency, and commodity-based on expected risk and return, as well as
investment restrictions in each market, is assisted by onDemand programs such as:

◾ asset analyzer, assessing the efficiency of the present portfolio and recommending likely
improvements.

◾ market trend analyzer, able to evaluate the global stock, bond, and currency exchange markets from
various angles.
◾ basic information provider, which gives for equities the beta coefficient (sensitivity to index),
dividend yield, price/earnings, and other issues critical in each market; and

◾ experimental allocator, enabling the user to simulate likely results from plans for allocating assets
based on individually specified rates of return or indices.
Value-added software will support interest rate and exchange rate projections for each market, as well
as trends in credit risk, market risk, and political risk.
Programming products are also necessary for currency exchange risk, which is a critical issue in the
global market. Forex market rates can be estimated, by employing purchasing power parties. In the
case of simultaneous investment in foreign-currency-denominated bonds and stocks, the system must
provide the assets manager with necessary information to help decide on crucial ratios to hedge
investments, for instance, between:

◾ bond futures and options,

◾ stock futures and options, and

◾ Forex futures and options.

Chapter 8: Cloud Technology can Improve Fund Management

The key to continuing effective use of technology is in reengineering the organization as well as in
hiring, training, and retaining key staff able to:

◾ manage uncertainty,

◾ control risks,

◾ observe limits,

◾ deal effectively with very creative accounting,

◾ understand and manage the role of the technology as gatekeeper,

◾ keep on being creative and high performing over time.

An integral part of this challenge is how to better communicate with, inspire, and guide professionals
to create a more highly motivating work environment. Senior management has a significant role to
play in this effort because it is part of the relationship between innovation, motivation, change, and
uncertainty that haunts all financial (and many other) organizations. To provide the appropriate
guidance, the board and CEO must be able to answer for themselves and their employees questions
such as:
◾ What will the asset management business model look like in five years?

◾ What activities should each asset manager see as his or her core competencies?

◾ What level of technology investment and associated skill will be required to support the business?

◾ How much onDemand software should be bought to avoid delays and unnecessary costs in
implementation?
Senior management will also be wise to examine and find by itself that long and complex
programming routines are not only very costly and time-consuming but also failing to satisfy end-user
demands. Several reasons lie behind this statement, some of which have been already brought to the
reader’s attention in connection to legacy programs:

◾ lack of a customer-centric view that characterized old solutions but today is antibusiness

◾ focus on plugging the gaps rather than delivering a streamlined business functionality that provides a
competitive edge

◾ absence of a common architecture across multiple channels of activity

◾ inability to adopt a holistic, proactive core systems strategy that satisfies the shifting asset
management objectives

◾ high development and maintenance cost of legacy systems; and

◾ the still present batch processing, which handicaps decision-making in trading and fund
management.
All these reasons caution against the use of legacy technology in banking. Not only is onDemand
software cost-effective, but a recent survey in Western Europe pointed out, four-fifths of the
participating institutions were not satisfied with their core banking systems.
Chapter 9: Criteria of Success in Asset Management Technology
There are two ways of measuring success or failure. The one most favored by managers, investors,
and bankers is to look at profit figures. The other is to account for and evaluate not just one but
several factors behind profits, such as skills, products, and the market, with technology the next in
line. As far as the asset management business is concerned, there are also other top performance
indicators to account for:

◾ net new money under management.

◾ invested assets, their preservation, and their growth; and

◾ gross margin on invested assets (in basis points).

Behind all these indicators lie reputation, human capital, customer handholding, prestige, opportunity
analysis, and the fine print of risk control in financial transactions.

Figure. General schema of technological support in assets management

Examples of business solutions currently available on demand include (in generic terms):

◾ a comprehensive banking functionality for wealth managers and account managers covering
portfolio valuation, information positions, online messaging, and account statements.

◾ creditworthiness evaluations for debt instruments (a higher level), requiring credit exposure
computation, limits specification and monitoring, and netting agreements.

◾ other necessary routines including collateral handling, such as the calculation and updating of
collateral requirements, the revaluation of positions coupled with real-time feeds, trade/custodian
reconciliation, and rehypothecation.
Browser-based position management applications must be deployed portfolio-wide, to provide
comprehensive real-time risk measurement by account, product type, topology, and institution-wide
basis. Equally important is marketing management facilitating demographic and other segmentations,
activity tracking, and database mining for personalized processing.
Middleware facilities are also necessary, integrating a variety of front desk and back office operations.
Both administrative chores and CRM marketing routines are offered in the cloud by different vendors,
and they increasingly feature value added enhancements. For example, Google AdWords:

◾ lets customers place ads in its CRM environment and

◾ helps track the success of their online ad spending by tracing which ads and keywords generate leads
and opportunities.
Also available on demand are asset management dashboards, and software supporting campaign
management that assists in planning marketing chores, managing a variety of online and offline
initiatives and campaigns, and analyzing the performance of these different initiatives.