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Project Management

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Benefits Realisation Principle
The Project Manager is responsible for identifying what benefits can be realised from the project.  In larger projects, the Project Manager might have to ask for help from a business analyst.

In our methodology, we insist that both tangible and intangible benefits must be given a financial value.

Objectives

The company achieves the commercial objectives of the project
The project is sustained until the benefits are achieved
The Board of Directors or Executive Management Team, Sponsors, stakeholders and project team members should know how the outcomes of the project are intended to impact on the company's cashflow

Our Approach
Stakeholders' expectations should be expressed:

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 in clear terms,

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 with measurable targets, and

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 with completion dates
The financial value of selected recognisable events are identified and quantified.  We call these the "Realisations"
The processes for measuring the Realisations are maintained until all of the intended events in the project have happened

Estimating Achievable Benefits

The hardest part in Benefits Realisation estimating is putting reasonably realistic financial values onto the various intangible benefits that are present in many projects.

Use the Benefits Realisation table created  in the stakeholder expectation analysis stage

Identify events that enhance cashflow
Assess the scale of impact on savings or income
where reasonable estimates are not available -

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 choose an ridiculously large value, then
- choose an ridiculously small value
- repeat the questions, narrowing the range until the answers are "It could just be greater than/less than that..."
Insert the value in the Benefits Realisation table

Click
Benefits Realisation Table Benefits Realisation table

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