Benefit Realization and Analytics

One of the most compelling reasons for benefit realization the ability for the program manager to report back to the business that the investment value is being realized. In order to perform this task properly the program manager is going to apply many of the principles of analytics. This blog wants to give high-level definition of analytics and how they will apply to program management and benefits realization.

As the image shows analytics have a couple major components to them that are right in line with the entire benefits realization concept. First analytics is a higher-level of looking at your data and communicating results visually as well as tactically. Analytics is looking at patterns in the data, it may be trends in maybe cause-and-effect it may be direct or indirect relationships. So the first step is understanding the data in the enablers to create. Second analytics relies on statistical disciplines, this includes using tools to extract data in the appropriate research in business intelligence in order to quantify the performance of that data.  Finally analytics does favorite data visualization to communicate the inside of the knowledge that has been obtained by the program manager that is reporting the actual results of the benefits realization.

In some ways the use of analytics expands the role of the program manager into a couple different areas both the delivery of the solution as well is running of the business. Analytics falls mainly under a business analysis skill set, and PMI now has a certification in business analysis, as well as performance analysis of the different components with in the program itself.  The program manager will need to be able to look at production data and be able to identify the patterns and communicate those and how they relate to the program itself. Analytics will require the current state the future state of the KPIs and how the benefits are going to be able to measure is associated KPIs. The other area that analytics will expand the program manager skill set is on analyzing a series of data points as opposed to just a snapshot in time traditionally project managers are able to give a readout of the current earned value, with respect to schedule and cost and project be earned value to completion. Analytics, as applied to the program, will also need to look at past performance and project future performance across multiple components and the people aspect of implementing these components.

What analytics will drive is a new means of communicating for the program manager. As mentioned in the definition above analytics resonate with the visual explanation. The program manager will be expected to provide that visual explanation interrelationship between expected results in actual results and the approach to close the gap is the variance is about tolerance level. This is not to be dependent on good data which will drive the program deliverables to ensure the proper hand also milestones are defined. It will also require the program manager to be able to map out the relationships between project results and business performance.

This is an exciting growth area for program managers and a great opportunity for a strategic project management office to be able to deliver more value to the business. This is another step in the journey to aligning the strategy of the company with the investment is being made. The program manager be looked at to be able to explain the journey and demonstrate where the organization is on that journey. And be able to do so in a visual data proven presentation that will transcend all components of the value chain.