Benefits Realization Management as a key driver of Project Management Effectiveness

Revision as of 20:28, 18 February 2019

Abstract

Benefits Realization Management also referred to as BRM describes the concept of aligning projects, programs and portfolios to the organization’s strategic objectives by delivering measureable benefits and therefore maximizing project, program and portfolio value. BRM includes accountabilities across stakeholders to identify, execute and sustain benefits to drive strategic outcomes. Thus, it ensures benefits – meaning the value being created as a result of the successful completion of a project - are derived from project deliverables. Operating in a rapidly changing and highly complex business environment, companies find themselves in the need to generate and maintain a competitive advantage in the market. Many companies manage and assess projects, programs and portfolios in terms of efficiency based on traditional measurable outputs - such as time, quality and budget. Yet, they fail to constantly monitor whether the projects contribute to achieving the company’s overarching strategic objectives. A project may be successfully delivered in terms of time, quality and budget but it may not be in alignment of the company’s strategic goals therefore decreasing its value and not generating benefits for the company. Benefits Realization Management tackle this gap between corporate strategy and project management shifting project management towards an effective management practice by supporting support better decision making about which projects to prioritize and appropriate levels of investment. Even though Benefits Realization Management applies to project, program and portfolio management subject of this article is BRM in the context of improving the effectiveness of the project management practice. To ensure a better understanding of Benefits Realization Management the article will explore the differentiation between benefits and deliverables in relation to the concept of efficiency versus effectiveness. It will continue to elaborate on the concept of Benefits Realization Management and outline its application in its main processes of identifying, executing and sustaining benefits. BRM focuses on generating benefits both tangible and intangible. Yet, the latter can be difficult to measure therefore the article will then reflect upon the limitations of Benefits Realization Management as a concept.

Benefits vs. Deliverables

It is crucial to differentiate between the terms deliverables and benefits in the context of project management for the further discussion of Benefits Realization Management.

Deliverables

Deliverables are the final output resulting from processing inputs over the course of a project endeavor. They are quantifiable goods or services that are being transferred to a third party upon the completion of a project which is very likely to be the customer or client outside of the project. Deliverables can be both tangible or intangible. Yet, they cannot be utilized as a metric to measure the benefits created within an organization by a project for it is indeed the impact of using and working with the deliverables that generates benefits.

Introduction to Benefits Realization Management

Application of Benefits Realization Management

Limitations

Bibliography

1. Benefits Realization Management: A Practice Guide. Project Management Institute: Project Management Institute; 2019.