Concept 2 of 9

Benefits realisation

4 questions test this

A project delivers an output. What the organisation actually bought was a change in how it performs, and the distance between the two is where most of the disappointment in project work lives.

An output is not a benefit

A new claims system is an output. Settling a claim in nine days instead of fourteen is a benefit. The output is finished when the project says so, and the benefit only appears once claims handlers are fluent in the new system, once the old process is switched off, and once enough claims have run through to move the average.

Project closesand the team disbandsOutputThe new claimssystem, handed overOutcomeHandlers use it andthe old path closesBenefitSettlement in ninedays, was fourteenThe project manager owns thisA named benefit owner in the business owns theseand reports them at the dates in the plan

The project ends one step into the chain. The output crosses the line and the outcome and the benefit both land on the far side of it, in the hands of somebody who was never on the project team, which is why a benefits plan has to name that person before the case is approved.

That timing is the awkward part. Most benefits land after the project closes, which means the team that produced them has been disbanded and the status report that would have shown the truth no longer exists. A project judged only on date, cost and scope can be declared a success in a quarter where nothing the organisation wanted has yet happened.

What a benefits management plan says

For each benefit the plan answers four things, and each of them is the answer to a question somebody will ask later.

  • What the benefit is, stated as a movement in a measure rather than as a capability. "Faster settlement" is a hope. "Mean settlement time down from fourteen days to nine" is a benefit.
  • How it is measured, with the baseline value recorded before the project starts. A baseline reconstructed afterwards is an argument rather than a measurement.
  • Who owns it after handover, named as a person rather than a function.
  • When it is expected, as a profile over time. Benefits usually ramp, and a single date hides both the ramp and the dip that often precedes it.

A plan that leaves any one of these blank tends to leave the whole benefit untracked, because the first missing answer is the excuse for not filling in the next.

Why an operational manager owns the benefit

The owner is almost always a line manager in the area receiving the change, rather than the project manager who built it. The reason is control rather than courtesy. The things a benefit depends on are operational decisions, meaning staffing levels, whether the old process is decommissioned, what people are measured on, and whether the manager keeps pressing after the novelty wears off. Those levers stay with the receiving area long after the project manager has moved on to something else.

The corollary is that the owner has to agree to the number before the business case is approved. An owner who first hears about the benefit at handover will treat it as somebody else's target, and a target nobody accepted is a target nobody chases.

Leading indicators during delivery

Waiting for the benefit measurement date to find out whether a benefit will arrive is waiting several months too long. Leading indicators are the preconditions that can be watched while the project is still running.

Adoption is the usual one, meaning the proportion of the intended users who have actually used the new capability in the last week. Volume through the new path against the old is another, as is the rate of errors and rework in the first weeks, and whether the support queue is filling with questions the training was supposed to have answered.

Each of these is a condition the benefit depends on rather than the benefit itself. If adoption sits at thirty per cent three months after go live, the settlement time figure will not move, and knowing that early is the difference between fixing it and explaining it.

When the benefit does not arrive

Two very different failures produce the same disappointing number, and they need separating before anyone reaches for a lesson learnt. Either the output was wrong for the job, which is a delivery problem, or the output was fine and the organisation has not changed around it, which is a change and operations problem. The second is far more common, and it is invisible to anyone reading only the project record.

Worth counting too are disbenefits, meaning the outcomes that got worse. A process that is faster for the customer and slower for the back office has both, and a benefits plan that records only the good half will be contradicted by the people living with the other one.

Common misconceptions

The project came in on time, on budget and in scope, so it succeeded.

Those three measure an output against a plan. The money was approved for a change in how the organisation performs, and a project can hit all three constraints and return nothing, which is why the benefit is tracked separately and for longer than the project exists.

Benefits are measured when the project closes.

Most of them are not available yet. Adoption takes time, the old process usually runs alongside the new one for a while, and a full operating cycle has to pass before the measure moves. The measurement dates belong in the benefits management plan, often a year or more after handover.

The project manager owns benefits realisation.

The project manager owns the output and the plan for realising the benefit. Realisation depends on staffing, targets, and the decision to switch the old way off, none of which the project manager controls after handover.

4 questions test this concept

A council has taken a new licensing portal live on the agreed date and within budget. At the closure meeting the project manager proposes recording the benefit, a fall in mean processing time from twelve days to seven, as delivered. What is the right position?

  • ARecord the output as delivered and hand the benefit measure to its named owner with the dates it falls due, since processing time will not move until applicants adopt the portal and the counter service closes.
  • BAgree, since the portal is live and the case said the portal would produce the reduction.
  • CHold the project open until the measure moves, so that the team which built the portal stays accountable for it.
  • DRecord the benefit as delivered and book a review in twelve months to confirm the figure.
Check whether it stuck.

One per page, with a worked explanation.

Start the set
Related material
Book
Managing Successful Programmes, On benefits mapping and why the owner sits in the business.
Book
Outcomes Over Output, On committing to what people will do differently rather than what gets built.
Book
Who Does What By How Much?, On writing a measure that names a behaviour change rather than a deliverable.
Book
Project to Product, On funding an outcome over time instead of a fixed delivery.