GR3 - Benefits Management

Question 1

When are benefits usually realised?

Answer 1

-after a project has finished

Question 2

What are benefits often used as?

Answer 2

-a measure of success

Question 3

Whose job is benefits management?

Answer 3

-the user’s of the project’s output

Question 4

Benefit (BOK Definition)?

Answer 4

“A positive & measurable impact of change”

Question 5

Benefits Management (BOK Definition)?

Answer 5

“The identification, definition, planning, tracking & realisation of business benefits”

Question 6

If assumptions about the benefits change, what do you have to do?

Answer 6

-update the business case

Question 7

When is the minimum time frame you would update the business case on the benefits?

Answer 7

-at the end of each phase of the project e.g. concept, definition, deployment, transition

Question 8

In which project phase should you think of ways to increase the benefits?

Answer 8

-the Deployment phase

Question 9

What are steps of Transition Management?

Answer 9

-train users
-change operational processes
-achieve outcome & benefits
-(remember transition management is a key aspect of programme management)

Question 10

What is the requirements of the DOAM test that benefits need to pass?

Answer 10

-D = Described (are the benefits clearly described)
-O = Observed (what will we see that is different after the benefit has been delivered?)
-A = Attribution (in which operational area will this benefit arise?)
-M = Measurement (how will we measure the benefit)

Question 11

Summarise benefits?

Answer 11

-financial & non-financial
-tangible & intangible
-must pass the DOAM test
-must be managed
-realised in operations
-users training required & change of processes to take advantage of product
-maintain in deployment (& look for new opportunities to increase benefits)
-not all outcomes may be positive (recorded as dis-benefits)

Question 12

Benefits Management process?

Answer 12

1- identify the benefits through discussion w/ key stakeholders (sponsor & users)
2- define clearly the benefit, include suitable measures (what, when occur, where occur, how measured)
3- plan benefits realisation by bench-marking current state to provide baseline as to which changes can be assessed (measures links to outputs, actions required); plan activities needed to ensure users adopt the new outputs & create outcomes
4- track & realise benefits by monitoring current performance values & plans for realisation, monitor BAU activities post transition; during adoption ensure the user’s create the outcome where the measures will be repeated & the change from the baseline should indicate the outcomes & benefits are being created (necessary to take corrective action if this isn’t the case)

Question 13

What was the approach suggested by Steve Jenner (2012)?

Answer 13

-start by defining the strategic goals of the organisation (e.g. what needs to be achieved)

Question 14

Success factors are that Benefits Management is (6)…

Answer 14

-Active = start from benefits & look for their achievement
-Evidence based = must be date to back up the forecast & achievement
-Transparent = clear link from strategy to benefit requirement
-Benefits-led = focus is on improvement not output
-Forward looking = achieve strategic goals
-Managed across the lifecycle = defining benefits, defining output’s requirements, confirming benefits

Question 15

4 steps of Benefits Realisation Management Approach?

Answer 15

1- Identify & quantify the benefits & dis-benefits
2- Plan the benefit delivery & review
3 - Deliver the capability to achieve the required benefits
4- Measure the level of benefits delivered
-the process then repeats with the next level of strategic planning

Question 16

Which of the following elements are included in the DOAM test for benefits?
-Described
-Organised
-Attribution
-Agreed
-Measurement

Answer 16

-Described
-Attribution
-Measurement

Question 17

Identify the missing word in the following sentence: The Association of Project Management’s Body of Knowledge defines a benefit as “a positive & measurable impact of [ ? ]?”
-Change
-Risk
-Cost
-Time

Answer 17

-Change

Question 18

Identify the phase during which benefits are usually realised?

Answer 18

-Operations phase
-Rationale: Benefits are typically realised during the Operations phase, after the project has been completed & the outputs have been integrated into the business. This phase is crucial for achieving the planned benefits, as it involves the actual use of the project deliverables to create value & improvements for the organisation.

Question 19

Example Q: What are 2 outputs of benefit definition? (2 marks)

Answer 19

Example A:
-Benefit Profiles: Detailed documents that describe each benefit, including what the benefit is, when it will occur, where it will occur, what will be different & how it will be measured.

-Benefits Register: A centralised record that captures all identified benefits, their profiles, & tracking mechanisms to ensure that they are realised throughout the project life cycle

-Benefits Map: A diagram showing the inter-dependencies of all the benefits showing the initial, mid & final benefits. These allow the team to understand which benefits to measure first & allows early intervention if those early benefits are not being achieved.

Question 20

Example Q: Give 3 reasons why these help with benefit realisation? (3 marks)

Answer 20

Example A:
-Clear Accountability & Tracking: Benefit profiles & the benefits register clearly outline the expected benefits & how they will be measured. This allows for regular tracking & monitoring of the benefits throughout the project, ensuring that they are on track to be realised. By having defined measures, it is easier to hold individuals accountable for delivering the expected outcomes.

-Alignment with Strategic Objectives:
Maintaining detailed benefit profiles and a comprehensive benefits register ensures that the project
remains aligned with the organisation’s strategic objectives. Regular updates and reviews of these documents help in making adjustments as necessary to keep the project focused on delivering benefits that support the overall strategy of the organisation.

3. Improved Benefit Realisation Planning: Allows the team to understand the sequence and timings of the various benefits. To include mitigation actions if benefits are not being achieved and identify the most appropriate people to take responsibility for monitoring the benefits.
4. Informed Decision-Making: With well-defined benefit profiles and a benefits register, Project Managers and stakeholders have access to critical information that supports informed decision-making. These documents provide insights into whether the project is delivering the anticipated benefits and whether corrective actions are needed. This helps in making timely decisions that can enhance the chances of benefit realisation and project success.