Benefits Management Process
Benefits Management in project management is done in two stages: Benefits Planning and Benefits Measurement.
Benefits planning is done in parallel with project planning. Benefits planning is done in two stages:
- Identifying strategic (high level) benefits
- Detailed benefits planning (completion of benefits management plan)
Strategic Benefits Planning
High level benefits are identified in the start-up phase of the project lifecycle and recorded in the Project Start-Up Document. The purpose of identifying benefits at this point is to determine the reason for doing the project and determine if it is worth funding further investigation of the project. At this stage we don’t need to try and quantify the benefits as this will be done as part of the detailed benefits planning process. Some examples of identified benefits at this stage are:
- Reduce licensing fees
- Win more contracts
- Improve employee morale
- Increase efficiency of process
- Improve team cohesiveness
Detailed Benefits Planning
Once the project concept has been approved detailed benefits, corresponding cost estimates (where applicable), and a plan to measure the benefits need to be recorded in the Benefits Management Plan. To estimate benefits at this stage, it is usually necessary to measure the current state of the organisation and estimate the future state of the organisation. The difference between the two gives us the estimated future benefits of the project. We will measure against these estimates to see how successful the project was.
The key to successful benefits management is getting the plan right. The completed Benefits Management Plan is attached to the Business Case and used to determine the viability of the project before approval.
If you have any questions or need any assistance with planning your benefits or completing the benefits management plan, please contact the Project Journal team. We are here to help!