Benefit Realization Management

Introduction

Benefit Realization Management (BRM) is a critical discipline that plays a vital role in ensuring organizations derive maximum value from their projects and programs by focusing on the identification, planning, execution, and review of benefits throughout their lifecycle. It is more crucial than ever for firms to invest in programs that provide value and help organizations achieve their strategic goals in today's competitive business environment. By coordinating projects and programs with strategic goals and turning these goals into quantifiable and reachable outcomes, BRM offers a disciplined framework to manage this process.

BRM's main goal is to guarantee that a program's targeted objectives and outcomes are accurately aligned with benefits that can be controlled and monitored, increasing return on investment (ROI) and promoting continuous improvementt. This entails not just recognizing prospective advantages but also organizing and carrying out actions to help them operationalize. It also entails comparing actual benefits to anticipated benefits in order to assess success and guide future actions. By adopting BRM practices, organizations can improve decision-making, foster stakeholder engagement, and optimize resource allocation, ensuring that projects and programs deliver the expected value. Furthermore, BRM helps organizations to better manage risks and uncertainties associated with projects and programs, increasing the likelihood of success and promoting a culture of learning and growth.

This article provides an in-depth exploration of the concept of Benefit Realization Management and its importance in the context of program management. It delves into the various aspects of BRM, including the process of operationalizing benefits, techniques and tools used, roles and responsibilities of stakeholders.

What is Benefit Realization Management

The purpose of Benefit Realization Management (BRM) is to ensure that the program's outcomes align with the business objectives and that the expected benefits are achieved. Program management is concerned with managing multiple related projects that are intended to deliver a common goal or set of goals. The purpose of BRM in program management is to ensure that the benefits of each project are integrated and aligned with the overall program objectives. This involves identifying, planning, delivery, transition and benefits sustainment of each project is expected to deliver, and then ensuring that they are integrated into the program's overall benefits realization plan.

Figure 1: Program benefits management mapped into the program lifecycle. Obtained from Project Management Institute, Inc. (PMI). (2017). Standard for Program Management (4th Edition).

Benefit Realization Management Framework

From the standpoint of program management, BRM offers a framework for managing the program's benefits, including benefit identification and prioritization, creation of a benefits realization strategy, and tracking and evaluating progress. BRM gives program managers a means to assess if their programs are accomplishing their intended objectives. Program managers can decide if a program has been successful or not by comparing the actual outcomes to its anticipated benefits. To maximize the program's effectiveness and value, this information can be used to make improvements to its strategy, tactics, and execution. Overall, the purpose of BRM from a program management perspective is to ensure that the program delivers the intended benefits to the organization. By using a structured approach to identifying, planning, and monitoring the benefits of the program, program managers can ensure that the program is aligned with the business objectives and delivers value to the organization. Furthermore it assist the program stakeholders to focus on the outcomes and benefits to provided by the various activities and components conducted during the programs durations. To allow for this it is essential that the program manager employs Benefit Realization Management to:

• Identify and assess the value and impact of program benefits
• Monitor the interdependencies among the outputs being delivered by the various components within the program and how outputs contribute overall to the program's benefits
• Analyze the potential impact of planned program changes on the expected benefits and outcomes
• Align the expected benefits with the organization's goals and objectives
• Assign responsibilities and accountability for the realization of benefits provided by the program and ensure that the benefits can be sustained.

Benefit Identification

The first phase within the program benefit realization management framework is where you as an organization identify the strategic goals. Initiatives based on the strategic goals of the company are identified and a program initiated to steer the organization in a more desired direction. In general, this phase consists of scoping activities. Activities that are included Benefit identification include defining the objectives and critical success factors for the program, identifying and quantifying business benefits.

Benefit register

The program's projected benefits are gathered and listed in the benefits register, which is also used to track and communicate benefit delivery over the course of the program. The organization's strategic strategy, the program business case, and other relevant program objectives are used to construct the benefits register during the benefits identification phase. The register is then discussed with important stakeholders in order to create the best performance metrics for each benefit. The program benefits register is updated after the identification of the key performance indicators, and the associated quantitative and qualitative measurements are defined and elaborated in the following phase. This is a repository in which benefit profiles are recorded. At various organizational levels, the register may be used in multiple ways to suit the demands of the organization. For instance, a program might have a management repository for all of its benefits. The benefits register may take many different shapes, but it normally contains:

• List of planned benefits
• Mapping of the planned benefits to the program components, as reflected in the program roadmap
• Description of how each benefit will be measured
• Key performance indicators and thresholds for evaluating their achievement
• Risk assessment and probability for achieving the benefit
• Status or progress indicator for each benefit;
• Target dates and milestones for benefits achievement
• Person, group, or organization responsible for delivering each benefit
• Establishment of processes for measuring progress against the benefits plan
• Tracking and communications processes necessary to record program progress and report to stakeholders.

Figure 2: Example of a benefit register. Inspired by from Project Management Institute, Inc. (PMI). (2019). Benefits Realization Management - A Practice Guide.

Benefits analysis and Planning

Establishing the program's benefits management strategy as well as creating the metrics and framework for tracking and managing the program's components and measuring its benefits are the goals of the benefits analysis and planning phase. Benefits analysis and planning tasks include the following:

• Establishing the benefits management plan that will guide the work through the remainder of the program
• Defining and prioritizing program components and their interdependencies
• Defining the key performance indicators (KPI) and associated quantitative measures required to effectively monitor the delivery of program benefits
• Establishing the performance baseline for the program and communicating program performance metrics to the key stakeholders
• Updating positive and negative risks to benefits as more information becomes known.

Where in the benefit identification phase it was asked what should be changed and measured now it is time to ask how. In the Benefit analysis it is suggested to formulate a benefits management plan. This is to make actions in the next phase benefits delivery tangible. It allows prioritization of components and efficient execution of components.

Benefits management plan

The benefits management plan is the officially recorded description that outlines the procedures for generating, enhancing, and preserving the benefits yielded by a project or program. This plan thoroughly records the steps necessary for attaining the intended benefits of the program. It lays out the expected timing and methods of delivering benefits to the organization and details the systems that should be in place to guarantee that benefits are fully reaped over time. The benefits management plan serves as the foundational document directing the delivery of benefits throughout the program's execution. Additionally, it pinpoints the corresponding activities, processes, and systems required for the change sparked by the realization of benefits; the necessary modifications to existing processes and systems; and the manner and timing of the transition into an operational state. The benefits management plan should:

• Define each benefit and associated assumptions and determine how each benefit will be achieved
• Link components outputs to the planned program outcomes
• Define the metrics (including key performance indicators) and procedures to measure benefits
• Define roles and responsibilities required to manage the benefits
• Define how the resulting benefits and capabilities will be transitioned into an operational state to achieve benefits
• Define how the resulting capabilities will be transitioned to the individuals, groups, or organizations responsible for sustaining the benefits
• Provide a process for managing the overall benefits management effort.

During benefits analysis and planning, the benefits register, which was started during benefits identification, is updated. On the basis of the program roadmap, program benefits are currently mapped to the program components. Following a review of the benefits register by the relevant parties, key performance indicators and other metrics that will be used to gauge program success are defined and approved.

Benefits Delivery

The benefits delivery phase is aimed at making certain that the program yields the anticipated benefits, as outlined in the benefits management plan. Throughout the program's execution, risks impacting benefits may come to fruition, may require modification, or may become outdated; also, fresh and revised risks should be incorporated into the benefits register along with their associated benefits. The components of benefits delivery consist of:

• Monitoring the organizational environment (including internal and external factors), program objectives, and benefits realization to ensure that the program remains aligned with the organization’s strategic objectives
• Initiating, performing, transitioning, and closing components, and managing the interdependencies among them
• Evaluating opportunities and threats affecting benefits, including updating the benefits register for new opportunities and risks affecting benefits, and updating realized or obsolete risks affecting benefits
• Evaluating key performance indicators related to program financials, compliance, quality, safety, and stakeholder satisfaction in order to monitor the delivery of benefits
• Recording program progress in the benefits register and reporting to key stakeholders as directed in the program communications management plan.

The benefits delivery phase guarantees that there is a pre-determined set of reports or metrics provided to the program management office, program steering committee, program sponsors, and other program stakeholders. By regularly keeping track of and reporting on benefits metrics, stakeholders can evaluate the overall state of the program and initiate suitable actions to ensure successful benefits delivery.

Benefits management is an iterative process. Particularly, benefits analysis and planning, as well as benefits delivery, maintain a cyclic relationship. Benefits analysis and planning may be perpetually revisited as circumstances alter. Corrective measures might be necessary in reaction to insights obtained from monitoring the organizational environment. Components might need adjustment to keep the expected program results aligned with the organization’s strategic objectives. Corrective measures might also be necessary as a result of evaluating program risks and key performance indicators. Modifications may be required in components due to performance related to program financials, compliance, quality, safety, and/or stakeholder satisfaction. These corrective measures might necessitate that program components be introduced, altered, or discontinued during the benefits delivery phase.

Bibliography

Planning Benefits