Hello and welcome to another Parallel Project Training podcast, this time on Benefits Management. These podcasts are aligned with the APM PMQ syllabus for exams starting in September 2024. My name is Ruth Phillips, and I’m here today with Lisa Regan, one of Parallel’s senior project trainers. Hi, Lisa.
Hi, Ruth. I’m looking forward to talking about benefits today—learning about the benefits of benefits!
Yes, indeed. The learning outcomes for this topic are centred on understanding that benefits management is about monitoring benefits realisation throughout the project. The first key point is understanding what is meant by benefits management, which includes identification, definition, planning, tracking, and realisation. The second focuses on the importance of aligning those benefits with strategic objectives and how we can effectively communicate them to stakeholders.
It would be good to start with a more general discussion about benefits. What are your thoughts?
Benefits are absolutely vital. Without benefits being delivered by our project, there’s no reason to do the project. The APM defines benefits as quantifiable and measurable improvements, and that’s so important. They must be measurable and result from the completion of deliverables that are accepted, utilised, and perceived as positive by our stakeholders. The involvement of stakeholders is a crucial aspect here.
Just to clarify the relationship between benefits, outputs, and outcomes on a project: a project delivers outputs (or deliverables or products—there are many terms for this). When these outputs are put into use, they generate outcomes, which are the changes we see, like a new hospital or IT system. The benefits are the positive, measurable improvements that result from these outcomes. That’s when we start to quantify them.
Absolutely, and it’s really important because benefits are part of the justification for your project in the business case. The cost of the project is clear and quantifiable, so we need to ensure the benefits are equally tangible to justify the investment.
Yes, it’s no good saying, “Our project will cost £1.5 million to deliver and result in some stakeholder satisfaction.” That’s too vague.
Exactly. So, let’s dive into the benefits management process. There are five steps: identification, definition, planning, tracking, and realisation. The most important thing to emphasise is the involvement of stakeholders throughout the process. It’s not up to the project team alone to determine the benefits—stakeholders must agree on what they need, what will be delivered, and how it will be measured.
The first step is identification, where we identify the potential benefits that the project could deliver, involving stakeholders in this process is crucial.
The next stage is definition. These benefits need to be clearly defined, quantified, and measurable. It’s also important to prioritise them. Again, stakeholders should be involved because, for example, while one might measure customer satisfaction through surveys, a stakeholder might have a different measure in mind.
So, identification and definition are the first two steps. The third step is planning. This involves linking the benefits into our project plans and ensuring that the outputs we deliver are aligned with achieving those benefits. However, it’s important to note that many benefits won’t be realised within the project’s lifecycle, especially in a traditional lifecycle, and will only become apparent once the project has been operational for some time.
It sounds like identification, definition, and planning are the project manager’s responsibilities. Is that right?
Yes, that’s a good point. Although stakeholders should be involved, the project manager drives these activities. Benefits should be included in the business case and developed further during the definition phase as part of the Project Management Plan (PMP).
The next step is tracking. It’s not enough to assume that benefits will be realised just because the outputs are delivered. We need to ensure that we’re on track to deliver the intended benefits. This involves monitoring progress, assessing the impact of any changes, and keeping an eye on the external environment, as assumptions may change.
The final step is realisation, which occurs after the project lifecycle in the benefits realisation phase. At this stage, the responsibility shifts to the sponsor and end users, as the project organisation will likely have been disbanded.
So, tracking is a dual activity, partly during the project and partly in the extended lifecycle?
Yes, exactly. The extended project lifecycle is particularly useful for ensuring continuity in benefits management from identification through to realisation.
Thanks, Ruth. Your explanation of the process really highlights that benefits management is like a mini project in itself. It’s essential to focus on it to ensure the benefits are realised.
Absolutely. The decision to go ahead with a project should be driven by the potential benefits. There’s no other reason to undertake a project.
Agreed. The second part of the learning outcome is about aligning benefits with strategic objectives and communicating these benefits to stakeholders. How do we ensure our project’s benefits are aligned with the organisation’s strategic goals?
This alignment is key because the project is a means to an end, not an end in itself. When a project’s benefits are closely linked to the organisation’s strategic objectives, benefit realisation is more likely to succeed. Without this alignment, there’s a risk that the project’s outputs will be delivered, but the benefits won’t be fully realised or prioritised.
Yes, it’s about getting buy-in. If stakeholders understand and focus on the benefits, it helps maintain motivation and clarity about why the project is being undertaken.
Exactly. Sometimes, when you’re deeply involved in a project, it’s easy to lose sight of the bigger picture. It’s like watching a child grow—you don’t notice the daily changes, but someone who sees them infrequently will see a big difference. Similarly, tracking benefits from the start of a project helps to clearly see the impact over time, which is important not only for justifying the project but also for motivating the team and shaping stakeholders’ perceptions.
I like that analogy. It’s true that when you’re in the thick of it, you might not realise the contribution you’re making to the bigger picture.
For example, I recently completed a project implementing a learning management system. One of the drivers was improving system speed, and one of the benefits was increased learner engagement through faster loading times. Initially, we didn’t realise the extent of the improvement until we compared the old system’s average load time with the new one. It had gone from nearly a minute to less than two seconds—a significant change. That’s a great example of how tangible benefits can be.
Yes, that’s a powerful example. It’s essential to have those quantifiable, measurable benefits to justify the project.
Finally, let’s discuss how to communicate the benefits of a project to stakeholders. It’s crucial to involve stakeholders from the outset, ensuring they understand how the project’s benefits align with the organisation’s strategic goals. We also need to communicate how these benefits will be measured, monitored, and managed, and we may need their help with this.
Keeping stakeholders engaged throughout the project, showing progress towards achieving the benefits, and identifying intermediate measures can help maintain their motivation and buy-in. It’s important not to wait until the end to say, “We’ve done it.” Continuous communication is key.
As the project transitions to the benefits realisation phase, the project sponsor should take the lead in communicating the benefits to stakeholders. While the project manager and sponsor have different roles, they share the responsibility for ensuring that all benefits are realised. After the transition, the sponsor’s role in managing benefits becomes even more critical, especially in formal reviews or audits.
Yes, we’re not always good at celebrating success, but recognising and communicating the benefits delivered by a project is essential. It helps maintain focus on the project’s purpose and ensures that the effort is recognised.
Thank you, Ruth. I think you’ve highlighted the importance of benefits management really well. It often doesn’t get the attention it deserves, but it’s crucial to monitor benefits throughout the project, even if the project manager isn’t involved in the actual realisation. Planning and preparing for benefits realisation, as well as communicating with stakeholders, are vital.
Yes, and that’s why it’s important to link benefits to the organisation’s strategic goals. It ensures that everyone is focused on the right outcomes, not just on delivering the project on time, within budget, and to the required quality.
Great. Thank you, Ruth. I’ve enjoyed our discussion on benefits management.
Thank you, Lisa. It’s been a great conversation. Goodbye!
Goodbye!
