The success of programs is ultimately judged by the net benefits achieved – be those benefits financial or non-financial. It is therefore essential that the program has clearly defined:
- Expected benefits from each project and the program as a whole, as measured against a baseline of the current state.
- Processes and accountabilities for measuring the actual benefits achieved.
This blog contains instructions and guidance on:
- Benefits categories.
- Roles and accountabilities.
- Processes and mandatory deliverables.
- Structuring the program for benefits traceability.
- How various tools, templates and techniques can be used to develop the program’s benefits review plan.
Key principles of benefits management
The fundamental purpose of a business case is to provide an objective assessment of the program costs and benefits, with a view to making an informed decision on whether or not the program should commence. To that end the following principles should inform the development of all business cases.
Start designing the proposed program with the strategy in mind:
- Identify the Pillar Objective to which the projects and overall program will contribute.
- Identify the strategy to which the projects and overall will contribute.
- The program should be comprised of the minimum work required to deliver the stated benefits.
The last sub-bullet point above applies in two fashions:
- The program should not attempt everything that can conceivably be done in the program’s domain. Rather, the program should have a lean design which addresses only that must be implemented to generate the stated benefits.
- In some cases a program may intentionally do more than the minimum required to deliver the expected benefits. This may be due to trialing an innovative new method, upskilling junior staff members or another valid reason. In such cases the benefits associated with these decisions should be listed as additional program benefits.
There should be clear traceability of how the program outcomes will deliver all of the stated benefits. Benefits should be clearly defined as an actual benefit. For example: “Enhanced staff productivity” is not a benefit unless:
- The bandwidth generated is assigned to other defined work, or
- There is a reduction in FTE, or
- A tangible improvement in client satisfaction can be measured, or
- There is some other tangible use of the “spare” time generated by the program.
Financial benefits should be reflected as net benefits (ie. Financial benefits minus program and ongoing costs). Indicating that a benefit is “Non-Financial” does not necessarily mean there is no dollar amount attached, it may mean:
- It will take more time to quantify the dollar outcomes than the program warrants, and/or
- The benefits are to stakeholders outside.
The most reliable benefits projections are those which:
- Have baselined metrics against which to measure improvements.
- Have tolerance limits to manage stakeholder expectations and provide a fair and more transparent view to the program’s expected benefits.
Close collaboration with the enterprise program management office (EPMO) is essential to avoid double counting (multiple projects or programs seeking to deliver the same benefits), and for general guidance on benefits management.
Benefits management roles and accountabilities
In addition to general program related roles and accountabilities, the following roles hold additional accountabilities specifically in relation to benefits management.
| Role | Accountabilities |
| Program Sponsor | Accountable for the Business Case for the duration of the programOversee the development of a viable business case, ensuring the program is aligned with the strategy and securing funding for the program. |
| Senior User | Accountable for defining the benefits derived from the program outcomes |
| Program Manager | Accountable for developing the business case in conjunction with the Senior User, Program Sponsor and EPMOContinually ensure that the program is on track to deliver the stated benefitsEnsure benefits impacts are considered in risk, issue and variation management |
| EPMO | Support the Program Manager in ensuring no benefits are double countedProvide guidance and support to Program Managers in defining realistic, measurable and clear benefits which are traceable to the program outcomesMaintain and report against the Master Benefits Register |
Optimizing project benefits
The table below details the steps required in projects to effectively manage program benefits.
| Project Phase | Actions | Outputs | Accountability |
| Identification | Collaborate with the Senior User(s) in defining the issues the proposed program will solve | Initial Program Management Plan Initial Project Briefs | Program Sponsor (or Director for Mandated Projects) |
| Identification | Collaborate with the Business Owner(s) in identifying the high level benefits the program will deliver | Initial Program Management Plan Initial Project Briefs | Senior User(s) |
| Identification | Identify alignment with the strategy, collaborating with the EPMO as required | Initial Program Management Plan Initial Project Briefs | Program Sponsor (or Director for Mandated Projects) |
| Identification | Develop the initial Program Management Plan in collaboration with the Program Sponsor, Senior User(s) and the EPMO Oversee development of the Project Briefs | Initial Program Management Plan Initial Project Briefs | Program Manager |
| Definition | In collaboration with the Program Manager, detail baseline and target metrics for benefits measurement | Project Briefs | Senior User |
| Definition | Develop the Benefits Review Plan in collaboration with the Senior User, Program Sponsor and EPMO | Benefits Review Plan | Program Manager |
| Definition | In parallel with all other Identification and Definition activities, design the program in a lean manner delivering only the program outcomes required to achieve the stated benefits | Approved Program Management Plan Approved Project Briefs | Program Manager |
| Definition | Enter agreed project benefits into the Master Benefits Register | Updated Master Benefits Register | EPMO |
| Control & Validation | Where the program has approved variation requests which impact benefits realisation, update the Benefits Review Plan in collaboration with the EPMO | Updated Benefits Review Plan Updated Master Benefits Register | Project Manager EPMO |
Templates
