Strategic Project Portfolio Management
Benefits Realisation Management
Project Portfolio Management
Principles of Benefits Realisation Management
Principles about how we Think about benefits realisation
- Benefits need to be first understood as outcomes. Benefits are the reason the investment is made.
- The benefits must be aligned to the organisation’s strategic goals. The outcomes and benefits realisation delivered by the change helps achieve strategic goals.
- Benefits realisation is an end-to-end process during the full lifecycle of the investment. Benefit measurement, reporting and evaluation will occur during and after the project / program has delivered its capabilities and change.
- Benefit Management is the cornerstone of a successful business case. Identification and understanding of benefits will provide evidence that the proposal will be effective and represents value for money.
Principles about how we approach benefits realisation
- Change programs deliver benefits. It is critical that change initiatives are successfully embedded in order to deliver the benefits.
- Benefits are not automatic. In addition to effective project management, delivery of desired benefits requires active monitoring of project/program progress and the outcomes and benefits to be realised.
- Benefits are dynamic; they need to be regularly reviewed and updated. Benefits identified at the commencement of the project/program’s life cycle will almost certainly change over the life of the investment.
- Benefits are both financial and non-financial. A benefit is the measurable improvement resulting from an outcome which is perceived as an advantage by a stakeholder.
- intermediate outcomes are needed to realise end benefits (and are just as important). Achievement of and reporting on intermediate benefits are just as important as the benefits associated with final strategic outcomes.
- Benefits must be measurable. Benefits must be measurable and evidence based in order to demonstrate that an investment provides value.
Principles about how we Manage benefits realisation
- The ‘Business’ needs to own the benefits. Benefits must be owned by appropriate sponsors and managers, not by the project / program manager.
- keep the number of benefits to a sensible, manageable number. Priority should be given to those benefits with the greatest potential value whether they are financial or non financial.
- Benefits management needs to linked to Project/Program management. The new capabilities delivered by project and program management need to be understood in terms of their bringing about change and therefore benefits.
- Benefit Realisation needs to be integrated. Effective benefits management will have integration with the other relevant management. It is therefore necessary that throughout the benefits management cycle that there be integration with other relevant management frameworks.
- Benefits need to be communicated. Benefits need to be communicated to demonstrate how the project/program is performing in its progress towards the outcomes
“Benefits Realisation Management Framework” Parts 1-5. An electronic version of this document is available at https://www.finance.nsw.gov.au/publication-and-resources/benefits-realisationmanagement-framework
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© State of New South Wales through Department of Finance, Services and Innovation 2015.