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10.7 Benefits Management and Realisation

10.7.1The management and planning of policies, programmes and projects should include specific provision for benefits management and realisation. This applies to projects in general. Benefits management is the identification of potential benefits, their planning, modelling and tracking, the assignment of responsibilities and authorities and their actual realisation. In many cases, benefits management should be carried out as a duty separate from day to day project management.
10.7.2Benefits management complements and overlaps with appraisal. While appraisal provides the justification for the investment, benefits management allows organisations to plan for and achieve the benefits. Costs and benefits cannot be viewed in isolation, and the benefits management process and the overall appraisal should be planned together. Benefits management also interfaces with performance management, a means of measurement and management that monitors and reports achievement of outcomes.
10.7.3

Benefits management is a process that:

  • identifies expected benefits, contributions to business objectives and stakeholders
  • establishes a benefits management structure defining functions, relationships, communications, roles and responsibilities
  • develops models of benefits, including baseline measurements and intermediate and final outcomes
  • defines the benefits, including their attributes and measures, owners and risks
  • assesses value and organisational impact, dependencies and risks; it will also show how the benefits are interrelated
  • develops a benefits realisation plan, including a schedule for delivery, assessment or review points, alignment/linkage/inter-dependencies with other modules, projects or programmes, and business change processes for implementation and delivery
  • establishes accountability for realisation and a means of tracking benefit realisation, including any performance management requirements
  • evaluates the extent to which benefits have been realised.
10.7.4Benefits fall into four main categories, as indicated below.

Benefit

Example
Financial Quantitative Operating cost reduction, revenue increase
Non-financial Quantitative No. of customer complaints, reduction in road accidents, % of Government Departments on-line
Non-financial Qualitative Staff skills, staff morale
Outcomes Quantitative & Qualitative Improved standards of health care

Benefits Management and Realisation in the Business Case
10.7.5

In developing a business case an SRO is responsible for ensuring that the project's objectives, costs and benefits are correctly aligned with the business strategy or programme direction. Of particular importance, from an early stage, is the identification of benefits and how these will be realised. In general, business cases should:

  • Assess/estimate the benefits that the project should deliver to answer the question - 'is the project worth doing?'
  • Document the process for identifying, monitoring and realising the benefits
  • Ensure plans/processes are in place to achieve the benefits
  • Define the baseline benefits position to allow comparison with projected benefits
  • Define boundaries with other programmes/projects to ensure benefits are not 'double counted'
10.7.6DFP will look for evidence that these steps have been suitably addressed and documented in business cases submitted to it.
10.7.7

In addition, Benefits Realisation Plans should be included in business cases. They should identify the benefits by category, the activities that will be undertaken to pursue and realise them, and who is responsible for each benefit realisation activity. In general:

  • A draft BRP should be included in OBCs
  • A final BRP should be included in FBCs
  • The format and content of BRPs should accord with the guidance and templates provided at the Benefits page of the CPD Successful Delivery (NI) website.
10.7.8Further information on benefits management is provided at the Benefits page of the CPD Successful Delivery NI website. Briefings and further relevant guidance on benefits management are available at the OGC Managing Benefits page.
10.7.9CPD's Centre of Excellence (CoE) for Delivery can supply advice on benefits management and realisation.

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