Benefit realization management
- Overview
Benefit Realization Management (BRM) constitutes a method that is used in various organizations for the purpose of measuring and assessing the added value to their enterprise by specifics projects and programs.
The three main steps to this process are the identification, the execution and the sustainment of the project and program benefits. In the first step the expected benefits are identified; it is determined whether the project is achievable and what results it will yield. The project’s stakeholders must ensure that the benefits are of relevance to the organization’s strategies and goals. Secondly, once the intended benefits are determined, an execution plan must be formed to achieve the expected results. This plan contains all the necessary steps needed for the project’s success. Namely, it includes the benefits, assumptions, tasks, and changes that must take place coupled with metrics, roles and responsibilities that are to be carried out by employees, as well as a communication strategy for the report of progress to the stakeholders. Lastly, it must be ensured that the benefits achieved in the previous step, will remain effective.
Once the project is finished, an evaluation must occur where the deliverables are discussed, and improvements of existing strategies might be formed. This step is crucial, as it must be ensured that the project benefits will remain into effect. Benefit Realization Management tools, such as benefit maps are essential and quite helpful as well. Benefit Dependency Maps (BDM) and Benefit Dependency Networks (BDN) serve the purpose of visualizing the necessary steps to the planning, execution, and sustainment process. The end goal is included, as well as the change factors that led to the realization of the project or program.
2. Purpose, Scope and Method of Benefit Realization Management
2.1 Purpose and Scope
The creation and implementation of a Benefit Realization Plan is a very useful method when managing the integration of a project or program in a company or organization. BRM might appear as a well-defined process, it is however not in the least automated and requires a number of tasks to be completed. Firstly, the most important factor is major commitment in all managerial levels and especially from senior managers. Additionally, adequate financing, assets and personnel with experience are essential for the project or program’s success. [book] This plan is important as the benefits to be gained are communicated through it and the probability of their realization grows significantly. Additionally, the development of the case is enhanced, securing the increase of successful projects contained in the company’s portfolio. Benefit realization management is mostly performed on a project and program level, given that on that the expected value and strategic decisions are mostly done for projects and programs. However, it must be ensured that benefits realization belongs to the general framework of a company’s or organization’s portfolio.[sote] However, BRM is a tool that can be applied on different levels, as well. This plan can be used on a portfolio or strategic level, but as well on smaller scale programs or projects. The implementation of detailed and well thought benefit realization plan is powerful. First of all, the current situation of the organization is determined and the need for change or unexploited opportunities are identified through this process. Essentially, the organization transitions from the current ‘status quo’ to the desired prospect in quantifiable and planned manner. Furthermore, the change and the delivered value is sustained. [book] During the planning process of the programs, certain projections and assumptions are drawn, which can be verified with the benefits realization plan. In case the project implementation proves to be a failure, having developed a plan can be very useful for future reference. The actions taken for the project can be properly evaluated and feedback can be given for future improvement of the entirety of the process that was followed. This is achieved with ensuring that the formulated steps, and processes have been put into effect to achieve the desired benefits. [site 2] The steps to the plan are three. The first step is to identify the potential benefits, followed by the creation of an execution plan regarding the identified benefits of step one. Lastly, it must be ensured that the benefits that were gained during this process will remain into effect, hence a sustainment action plan must be part of the whole process. In the next chapters, the methodology on how a benefits realization plan will be described and thoroughly analyzed.
