Benefits management approach

The benefits management approach defines the expected benefits and, most importantly, outlines how they will be measured to demonstrate they have been achieved. This allows you to compare the results with the baseline (current situation or project start).

The approach must include the timeline for realizing and measuring the benefits, as well as identifying who will gather the required information.

Tip: If something cannot be measured, it should not be considered a benefit!

Lifecycle

The following is the lifecycle of the benefits management approach:

• The benefits management approach is created and facilitated by the project manager during the initiation stage.
• The senior user typically provides most of the benefits-related information.
• The project manager will use a template from the programme or organization to review and finalize the approach.
• The project board will sign off and baseline the benefits management approach.
• The project manager can review realized benefits at the end of each stage, if necessary.
• The benefits management approach may be updated if there are changes in expected benefits, responsibilities, or the timing of benefit reviews.
• During the closing a project process, the project manager uses the original benefits management approach to prepare the end project report and schedule post-project benefits reviews.
• After the project, the business level (corporate level or programme management) takes over responsibility for checking realized benefits.

Responsibilities

The following are the main responsibilities related to the benefits management approach:

• The senior user is responsible for specifying the expected benefits. After the project is completed and the project team is disbanded, a representative from the senior user role reports to business level on the realized benefits. They must clearly show whether the expected benefits were achieved, or provide explanations if not (e.g., management excuses).
• During the project, the executive is responsible for ensuring that benefits reviews are planned and conducted as needed. They also ensure that reviews are planned after the project is closed.
• The project manager reports to the project board on any benefits realized during the project. They update the benefits management approach and business case accordingly. During the closing a project process, the project manager will also plan post-project benefits reviews for the years following the project’s completion.

Sources

The information in the benefits management approach comes from multiple sources, including the following:

• Facilitated workshops with the senior user
• Business case documentation
• Project product description, particularly the acceptance criteria

Quality criteria

The following are the criteria for the quality of the benefits management approach:

• Clearly addresses all benefits identified in the business case.
• Includes only measurable benefits. Non-measurable outcomes should not be classified as benefits.
• Ensures each benefit has defined and documented baseline measurements, established at the project’s initiation.
• Specifies appropriate timing for benefit measurements, clearly explaining the rationale behind the chosen schedule.
• Identifies necessary skills or specific individuals responsible for conducting benefit measurements.
• Includes realistic assessment of effort and cost involved in performing benefit reviews, ensuring these are proportionate to the anticipated benefit value.
• Evaluates and documents whether dis-benefits should also be measured and reviewed.

Tips

A well-structured benefits management approach ensures that projects deliver real value. Here are some key recommendations:

• Obtain a quality template
  • Request a professionally designed benefits management approach template from your programme or organisation.
  • A well-structured template saves time and ensures consistency with organisational standards.
• Engage senior support for realistic benefit estimates
  • Schedule dedicated time with senior stakeholders to discuss benefit projections.
  • Encourage a conservative and realistic approach to estimating benefits, as there is often a tendency to overstate potential gains.
  • Ensure benefit estimates consider risks, assumptions, and dependencies to provide a credible projection.
• Ensure the senior user’s full understanding
  • Clearly communicate the purpose and importance of the benefits management approach to the senior user.
  • Explain how the approach will be implemented and monitored throughout the project lifecycle.
  • Reinforce their responsibility to achieve and sustain the identified benefits post-project.
• Regular reviews and updates
  • The benefits management approach is not a static document—it should evolve with the project.
  • Regularly review and, if necessary, revise it during each stage boundary process.
  • Adapt the approach based on changes in project scope, external factors, or new insights.

By following these tips, project managers can ensure that benefits are accurately tracked, aligned with business objectives, and effectively realised.

—o—

Written by Frank Turley.

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