An Overview Of Benefits Management

Benefits Management is an integral concept, typically included in the program management wing of an organisation, entrusted with the task of answering the ‘WHY’ aspect of program conceptualisation and eventual execution. As apparent, being responsible for answering the purpose facet of a project, logically justifies conferring increased attention to benefits management, however this not always happen. Despite being a project priority, the specifics of Benefit Management is often ignored, thus seriously impairing the overall project output levels.

The role definition

Benefits Management is an exercise or rather a project in itself. The aim is to precisely define the desired outcome from a new project or suggested change in an already established project, and is particularly important when working out the investment rational.

The requirement definition

With the role statement defined, the next step in sequence seeks answer to the need of the concept i.e. why is Benefits Management required? To answer this question, let’s first attempt figuring out another important clause – the clause of existence. Why do businesses ever exist, or why do entrepreneurs take the chance of establishing a new business, or why are resources dedicated towards the various projects? In absolutely raw terms, this happens because all are interested in booking profits. However, despite such a clearly established objective, this doesn’t always happen. A number of projects simply fail and even a larger number end up under performing. Why?…because of lack of planning, in terms of the precise benefits expected.

The essentials

There are four key essential aspects of the appropriate benefits management program, without which the efficacy would certainly be questionable. The first fundamental aspect relates to the quantification of the output and thus the derivable benefits. Outcomes would certainly vary with the program definition, however in all circumstances; outcomes ought to be measurable, even if in approximate terms, to enable improvised performance analysis. While defining benefits, both tangible & intangible outputs, ought to be taken into account, for example: in addition to the deliverables, which can be numerically accounted for, crucial subjective aspects like enhanced customer satisfaction should also be marked relevant.

The second essential aspect aligns the project benefits with the business goals. All concerned parties should agree with the expected outcome and thus mutually work towards the realisation of the same goal. The stated is almost mandatory; as only this would help prioritisation at required levels and deal with probable issues of resource allocation. This combined work model, in fact, is one of the key outputs of a successfully visualised and managed program.

The third equally important aspect essentially relates to the definition of realistically achievable benefits. This would not only help successful realisation, but also enable periodic checks for desired continuity.