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Benefits Management - An Introduction
May 15, 2009 | Author: PM Hut | Filed under: Project Portfolio Management
Benefits Management - An Introduction
By Oakleigh Consulting Ltd
Probably the best way to understand the role of Benefits Management is to look at it as a counter to (arguably) the traditional approach to project benefits which is:
- Identify only ’sufficient’ benefits needed to justify the project;
- Deliver the project at ‘all costs’; and
- As soon as the project is implemented, move onto another project leaving others to worry about the benefits.
Then, if challenged, adopt a 4-way stance:
- “It was OK when I left it!”
- “Subsequent changes muddied the waters!”
- “I can’t be blamed if the users don’t deliver the benefits!”
- “Anyway Benefits Management is a very difficult concept!”
Benefits Management Framework
A Benefits Management Framework should complement existing change management processes and provide greater clarity and control of benefits delivered. For example, to ensure a project delivers the benefits associated with an organisation’s vision and project business case:
- Ensure the business changes have identified benefits aligned to the organisations objectives;
- Ensure that funding and resources are allocated to the key projects and business changes that deliver the most benefit;
- Ensure benefits are communicated, owned and planned into the delivery of business changes; and
- Ensure benefits are delivered by:
- Ensuring realisable benefits are realised
- Taking corrective action for benefits not being realised
- Taking advantage of additional benefits.
Approaches to Benefits Management
There are a number of well published approaches and methodologies for Benefits Management. The following diagram gives an overview of the relationship between the business lifecycle and a Benefits Management Framework.
Realistic Approach to Benefits
However, in addition to the theory, there needs to be a pragmatic and realistic approach to identifying, delivering and realising benefits. For example: How many projects ever know which 20% of the business changes are capable of realising 80% of the benefits? Knowing the answer to that question, how many projects would expend 80% of the costs on the parts only delivering 20% of the benefits?
If the cost - benefit equation does not stack-up should the project continue? Also, if the ‘benefits’ work isn’t robust enough it will be difficult to make this decision with any degree of probability that it is the right one.
Principles of Benefits Management
Lastly, there are many principles associated with Benefits Management, my top 4 are:
- First and foremost, keep it simple;
- Benefits Management must be embedded into project delivery to ensure that it is not just considered as an ‘add-on’;
- Benefits Management should create an environment for co-operative working between the ‘delivery-side’ and the ‘operational-side’ of the business; and
- It is essential to obtain baseline data for benefits measures, prior to implementation starting.
Source: Oakleigh Consulting Ltd
If you have any questions about the subjects covered in this article or you would like to find out more about how Oakleigh Consulting Ltd could help your organisation, please contact us on 0161 835 4100 or email us.
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[...] Benefits management is the identification of potential benefits, their planning and tracking, the assignment of responsibilities and authorities and their actual realisation. There should be a Benefits Management Strategy to ensure that benefits are achieved as expected. A Post Implementation Review assesses whether the benefits have been achieved, whether more could be done and any opportunities for further improvements. [...]