Benefits management is the process used to identify, define, plan, track and realise the benefits of a project. It is all about ensuring that benefits are extracted from the outputs and outcomes of your project. Whenever a new project is started, there should always be defined business benefits that a project manager will want to achieve.
What is a benefit in project terms?
Understanding what constitutes a benefit is essential if you want to consider the benefits management process. A benefit is defined as the positive consequence that occurs as a result of a change. It is an improvement that is quantifiable and measurable to the stakeholder. It should typically have a value that is tangible in either monetary or resource terms. When an activity is undertaken, a benefit is realised.
What does benefits management mean in a project management setting?
Essentially benefits management means investing your time and resources in order to help drive positive change in a project setting. This means identifying, planning, tracking and measuring benefits from the very beginning of a project right up to the end.
The benefits that form part of this are those that are realistic, time-bound, measurable, agreed upon and specific. They can be applied to things like organisational change, strategy planning, process and project benefits. The main aim of benefits management is always to try and boost the success of a project. However, it can also be about outcomes extend beyond those of an individual project.
Measuring benefits is, therefore, important but often neglected, and they are not being measured, then they are also not being managed either. The bare minimum within a project is meeting the expectations of project stakeholders so there needs to be more attention focused on benefits realisation if you want to deliver truly successful projects.
So what are the advantages of good benefits management?
When you focus on the benefits of your project, you can ultimately drive better decision-making in the management of the project. You can also make better allocations of the resources that you have for your projects. Benefits management takes your project beyond the point where you simply measure the success of a project by looking at how efficient it is and also takes a look at the return on investment that can be had over time.
To achieve the greatest success with any project, no matter how large or small, managing benefits can really matter. Benefits help to assess when the business results that they were designed to deliver are achieved. They help to minimise risk along the way and maximise any additional benefits. They ensure that the project quite simply has value.
When a project manager focuses on the benefits of a project, there is better decision-making and of course, allocation of resources. All this can contribute to a better project outcome, which is something everyone can see the benefit of.
