Benefits management approach

The benefits management approach describes how the project will ensure that its expected benefits are realized in practice, not just on paper. It provides a structured framework for identifying, planning, tracking, and reviewing benefits so that project outcomes contribute directly to organisational objectives.

This document clarifies how benefits will be defined, measured, and reported throughout the project and after closure. It sets out the responsibilities of the project team, business representatives, and senior stakeholders in ensuring that benefits are actively pursued and not treated as an afterthought. The approach also explains how interim indicators will be monitored during the project, how baselines will be established, and how benefits reviews will be scheduled beyond the project lifecycle.

By applying this approach, the project ensures transparency and accountability in demonstrating value for investment. It helps decision-makers assess whether the project remains viable, supports alignment with the business case, and provides evidence that outcomes translate into tangible improvements such as efficiency gains, cost savings, or customer satisfaction.

In summary, this approach bridges the gap between delivering outputs and achieving meaningful outcomes, ensuring that the project delivers value to the organisation and its stakeholders.

Lifecycle

The benefits management approach is applied throughout the project and beyond, aligning with PRINCE2’s processes:

1. Starting up a project (SU) – Potential benefits are identified at a high level to support the creation of the outline business case. These are initial ideas and may be refined later.
2. Initiating a project (IP) – The benefits management approach is created by the project manager, defining benefits to be measured, how and when measurement will occur, and who is responsible. It is baselined with the project initiation documentation.
3. Directing a project (DP) – The project board approves the benefits management approach and ensures the expected benefits are realistic and aligned with strategic objectives.
4. Controlling a stage (CS) – The project manager monitors progress against benefit-related performance indicators where relevant. Early signs of benefit delivery (e.g., efficiency gains, reduced errors) are tracked, and issues that could threaten benefits are escalated.
5. Managing product delivery (MP) – Team managers and work package leaders ensure that outputs are delivered as agreed.
6. Managing a stage boundary (SB) – Benefits forecasts are reviewed, and the benefits management approach is updated to reflect any changes in scope, performance, or organisational priorities.
7. Closing a project (CP) – Benefits achieved during the project are confirmed, the benefits realization plan for post-project activities is handed over, and responsibilities are transferred to the business.
8. Post-project – The business (or corporate/programme management) carries out benefits reviews at agreed intervals to measure and confirm realization in line with the plan.

Contents

A benefits management approach will normally include:

• Scope: The benefits to be managed and measured, including tangible and intangible benefits.
• Benefits realization procedures: Actions to ensure project outcomes lead to benefits, including post-project arrangements.
• Benefits measurement: How and when benefits will be measured, plus baseline data for comparison.
• Benefits tolerance guidance: Any tolerances defined in the business case.
• Product performance: How the performance of the project’s product will be monitored and reviewed.
• Responsibilities: Who is accountable for benefits measurement, reporting, and achievement.
• Resources: People, skills, and tools required for benefits management activities.
• Supporting tools and techniques: Systems or models used for tracking and analysis.
• Standards: Relevant organisational or industry standards for benefits measurement.
• References: Links to related documents such as the business case or benefits realization plan.

Tips

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

• Engage senior stakeholders early – Agree on benefit definitions and measurement methods before baselining the plan.
• Be realistic – Use evidence-based estimates for benefits to avoid unrealistic expectations.
• Link benefits to strategic objectives – Ensure each benefit aligns with organisational goals.
• Keep it live – Review and update the benefits management approach at each stage boundary.
• Plan for post-project reviews – Define responsibilities, timing, and resources before closure.
• Document baselines clearly – Capture starting performance levels accurately for comparison.

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Written by Frank Turley.

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