Benefits Delivery PlanProtect
EVL 2nd Class Mail Delivery
BENEFITS DELIVERY PLAN
EVL 2nd Class Mail Delivery
Change Initiative Lead: Xxxxxxx
Author / XxxxxxxDate / 23 July 2012
Version No. / V0.4
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Configuration Control
Title: Benefit Delivery Plan for EVL 2nd Class Mail Delivery
Document Owner: Xxxxxx
Created by: Xxxxxx (Change Initiative Lead)
Document History
Version / Status / Who / Date / LocationV0.1 / Draft / Xxxxxx / 10/10/11
V0.2 / Draft / Xxxxxx / 21/12/11
V0.4 / Revised / Xxxxxx / 23/07/12
Document Revision History
Date of this Revision / V0.2 / Date of Next Revision23.7.12 / V0.4
Sign off agreement
Role / Name / Date agreedHead of Business Change / Xxxxxxx
Benefits Facilitator / Xxxxxxx
Senior User * / Xxxxxxx
Business Benefits Owner * / Xxxxxxx
Business Change Manager / Xxxxxxx
* Add additional rows if more than one name applies
Contents
1.Introduction
2.Project/Change Initiative Background and Objectives
3.Project/Change Initiative Base Data
4.Detailed Benefits & Disbenefits Data
5.Secondary Benefits
6.Summary of Costs and Savings
7.Annex C - Benefit Profiles
1.Introduction
1.1Purpose of the Document
1.1.1 The purpose of the Benefits Delivery Plan is to:
- Provide details of the benefits identified in the following;
Project/Study Brief
BAU Benefits Delivery Plan
- State transaction and volume baselines from which benefits will be measured.
- Identify the business areas impacted by the changes.
- Identify the person(s) responsible for realising the benefits.
- Detail disbenefits and new/additional operational running costs identified.
- State detailed assumptions (providing measures where applicable) on which the achievement of benefits depends.
- Provide detailed benefit information to enable the viability of the project/change initiative to be assessed.
- Form the basis on post project assessment of the Actuals, to determine whether the planned benefits have been realised.
- Set out the process by which the delivery of benefits will be measured.
1.1.2The Benefits Delivery Plan forms a contract between the Business Change Manager and Project Executive (Projects)/Sponsor (BAU) for the management and delivery of benefits within their area of responsibility.
1.2Relationship of the Benefits Delivery Plan to Other Documents.
1.2.2BAU Change Initiative
1.2.3The BAU Business Case (BBC) was approved on 18/10/10.
2.Project/Change Initiative Background and Objectives
2.1Tax discs issued from DVLA as a result of customers transacting using the EVL channel are issued via 1st class mail. This DVLA initiative is to undertake a trial, and subsequently introduce as BAU if successful, to issue EVL tax discs using 2nd class mail.
2.1.1Following successful introduction of 2nd class mail, to undertake a trial of manila envelopes for the issue of EVL discs.
2.2The reason for the initiative is to make financial savings due to:
- the reduction in postage costs, and
- reduced envelope costs (manila envelopes are more cost effective than white)
2.3Initially the trial will be contained to issuing the discs by 2nd class on certain days of the month. If successful, the whole of the EVL run will be issued via 2nd class mail.
2.3.1Following a successful trial of manila envelopes, the whole of the EVL run will be issued via manila envelopes.
3.Project/Change Initiative Base Data
3.1Generic Details
Generic Details1. / Full Project/Change Initiative Name / EVL 2nd Class Mail Delivery
3. / Project/Change Initiative Acronym (if any) / N/A
4. / Project/Change Initiative Status
(Circle as appropriate) / BAU Business Case
Live
5. / Name Project Manager/Change Initiative Lead / Xxxxxxx
6. / Name Project Executive / N/A
7. / Funding Type / DVLA
3.2Milestone data
Milestone DataMilestone No / Description / Due date / % confidence of achievement / Achieved date (if applicable)
1 / Commence Trial / Feb11 / 100% / Feb 11
2 / Introduce 2nd class for all EVL tax discs / Aug 11 / 100% / Aug 11
3 / Introduce trial of bilingual manila envelopes / Aug 11 / 100% / Aug 11
4 / Introduce manila envelopes for all EVL envelopes / Oct 11 / 90% / Oct 11
* Add additional rows as required.
4.Detailed Benefits & Disbenefits Data
- Financial – Postage Savings
- Financial – Reduced Envelope Costs
5.Secondary Benefits
None.
6.Summary of Costs and Savings
Cost / Saving / £Development Cost / 0.00
Annual Financial Benefit (1) / £1,995,336 (12/13)
Annual Financial Benefit (2) / £37,287 (12/13)
7. Annex C - Benefit Profiles
7.1Financial (1) Postage Savings
7.2Financial (2) Reduced Envelope Costs
Benefit Profile
EVL 2nd Class Mail Delivery
Type of Benefit
Financial Benefit
Date of Profile
23 July 2012
Description of what the benefit/disbenefit is
To issue EVL tax discs via 2nd class mail
Go Live Date of Project/Change Initiative
01 April 2011
Benefit/Disbenefit Go Live Date
01 April 2011
Confidence Level of Achieving Forecast
High
Supporting Tables
Year / 2012/13 / 2013/14 / 2014/15 / Insert / InsertTransaction Volume / Xx / Xx / xx
Baseline Costs
(1st Class) / Xx / Xx / xx
Actual
(2nd Class) / Xx / Xx / Xx
Total Benefit / £1,995,336 / £2,053,790 / £2,113,209
Updated Forecast (if required) and date of change /Confidence Level
Year / 2011/12 / 2012/13 / 2013/14 / 2014/15 / 2015/16 / 2016/17 / 2017/18Baseline
Txn Volume / Xx
1st Class Costs / Xx
2nd class cost / Xx
Total Benefit / 2,057,230
Monthly Forecast for Year 2012/13
Year / Apr / May / June / July / Aug / SepTransaction Volume / Xx / Xx / Xx / Xx / Xx / Xx
Baseline Costs (1st Class) / Xx / Xx / Xx / Xx / Xx / Xx
Actual (2nd Class) / Xx / Xx / Xx / Xx / Xx / Xx
Total Benefit / 180,037 / 192,969 / 135,898 / 179,524 / 173,870 / 206,153
Year / Oct / Nov / Dec / Jan / Feb / Mar
Transaction Volume / Xx / Xx / Xx / Xx / Xx / Xx
Baseline Costs (1st Class) / Xx / Xx / Xx / Xx / Xx / Xx
Actual (2nd Class) / Xx / Xx / Xx / Xx / Xx / Xx
Total Benefit / 186,838 / 165,159 / 125,045 / 147,161 / 155,246 / 209,329
Which Programme does the Project/Change sit with?
Efficiency
Business Change Manager/Contact Number
Xxxxxxx
Business Benefit Owner (Tracking)/Contact Number
Xxxxxxx
Measure 1 – How will this be tracked? e.g. volumes, ratio, percentage, no. of FTEs
Benefits measure = volume of transactions x postage savings
Measure 2 – Where will the benefit data be obtained from? e.g. new MI, OSG print runs, Q Max, performance point etc
OSG stats area is given the volume of transactions going out on each EVL run. As all the postage savings are volume related, they calculate the savings based on what other 1st class mail went out each day.
Assumptions e.g. take up rates, expected volumes
- Transaction volumes –xxxxxxxx - August - Change to all EVL discs being sent by 2nd class postage
- 1st Class Mail = Mailsort and CM+ as per attached model
- 2nd Class Mail = Mailsort and CM+ as per attached model
- Based on a 93%/7% split in favour of mailsort
- For future years a Royal Mail Postage increase of xxp per envelope is forecast
- Over the Christmas/New year period 1st Class Postage used
Interdependencies
None
Risks
- Reduced EVL take-up and increased transaction costs long term if customers return to PO channel
- Increased requests for duplicate tax discs resulting in subsequent increased postage costs, CEG and LSN activity
- Increased risk of enforcement on customers unable to comply with legislation (5 day rule)
Benefit Profile
EVL 2nd Class savings
Type of Benefit
Financial Benefit
Date of Profile
22 December 2011
Description of what the benefit/disbenefit is
EVL 2nd Class Manila Envelope - To change the 2nd class envelope from white to manila coloured paper
Go Live Date of Project/Change Initiative
01 November 2011
Benefit/Disbenefit Go Live Date
01 November 2011
Confidence Level of Achieving Forecast
Medium
Supporting Tables
Year / 2012/13 / 2014/15 / 2014/15 / Insert / Insert / Insert / InsertTransaction volumes / Xx / Xx / Xx
Cost of white envelopes / Xx / Xx / Xx
Cost of manila envelopes / Xx / Xx / Xx
Total Benefit / £37,287 / £39,619 / £42,085
Updated Forecast (if required) and date of change /Confidence Level
Year / 2011/12 / 2012/13 / 2013/14 / 2014/15 / 2015/16 / 2016/17 / 2017/18Baseline White / Xx
Manilla / xx
Total Benefit / £44,904
Monthly Forecast for Year 2012/13
Year / Apr / May / June / July / Aug / SepCost of white envelopes / Xx / Xx / Xx / Xx / Xx / Xx
Cost of Manilla / Xx / Xx / Xx / Xx / Xx / xx
Total Benefit / £ 4,312.05 / £ 4,624.86 / £ 4,057.71 / £ 3,623.07 / £ 3,508.98 / £ 4,160.49
Year / Oct / Nov / Dec / Jan / Feb / Mar
Cost of white envelopes / Xx / Xx / Xx / Xx / Xx / xx
Cost of Manilla / Xx / Xx / Xx / Xx / Xx / xx
Total Benefit / £ 3,770.68 / £ 3,333.17 / £ 3,185.81 / £ 2,969.94 / £ 3,133.11 / £ 4,224.59
Which Programme does the Project/Change sit with?
Efficiency
Business Change Manager/Contact Number
Xxxxxxx
Business Benefit Owner (Tracking)/Contact Number
Xxxxxxx
Measure 1 – How will this be tracked? e.g. volumes, ratio, percentage, no. of FTEs
Financial difference between white and paper
Measure 2 – Where will the benefit data be obtained from? e.g. new MI, OSG print runs, Q Max, performance point etc
Data obtained from Xxxxxx
Envelope Costs provided by the supplier
Assumptions e.g. take up rates, expected volumes
- Cost of white envelopes is £xx per 1000 envelopes (Oct 2011)
- Cost of manila envelopes is £xx per 1000 envelopes (Oct 2011)
- For future years a xx inflation rate is forecast
Interdependencies
None
Risks
Regular customers expect a white envelope and ring CEG if it doesn’t arrive leading to increased telephone calls.
Change Management Team Benefit Delivery Plan