Projects Need Benefits ID

  Manufacturing   PMO   Stakeholder Management   Strategy   ProjectsAtWork  

Organizations are wasting money on projects and missing major opportunities to add strategic value because they lack a formal, focused approach to benefits management, according to a new study from Project Management Institute.

Organizations that adopt a mature approach to managing benefits waste much less — $112 million, or 67%, less for every $1 billion invested in projects and programs — than those that don’t. (That’s $54 million vs. $166 million, respectively). And most organizations are missing major opportunities to add strategic value because they lack a formal and focused approach to benefits management, according to findings from the Project Management Institute’s 2016 Pulse of the Profession: The Strategic Impact of Projects.

The new study from PMI quantifies the value of ensuring that identified project benefits are aligned with strategic goals. When the two are aligned, 80 percent more projects meet or exceed forecasted ROI and 57 percent more meet goals and business intent. In addition, 45 percent more are within budget, and 50 percent more are on time.

Despite these clear indicators of the value added by managing benefits realization, data from PMI’s 2016 Pulse of the Profession shows that a staggering 83 percent of organizations lack maturity with these processes.

“Setting up a planning milestone dedicated to …

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