Key benefits are - business value realised, customer satisfaction, project team satisfaction (in terms of knowledge gained, challenges faced, sense of accomplishment) and gaining long-term relationship with customers.
Vincent,
Business value is not only monetary. It is the actual value realized by the organisation or its customers while using the project deliverable. It is basically how the project has added value.
Of course, customer satisfaction is measured.
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1 reply by Vincent Guerard
Jul 17, 2018 11:24 AM
Vincent Guerard
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Girija -
Many types of benefits, all can be measured and should. Not all organization do a before and after to see true impacts.
Increased customer satisfaction would increase the customer footprint, correct? Either through additional business or word of mouth. These combine for increasing revenue, from both increased existing customer business, new customers, and positive feedback from a market perspective (stocks).
So in your example, the cost of additional hires for handling increased business is simply just a further investment in the overall objective.
Good discussion, Vincent!
Andrew -
True it could increase revenues, it could stabilize revenues in other cases.
Just that in some case the link to revenue is a long road. :-) Saving Changes...
Again, in our case, the key "customer" is the "government" or the citizens. In most cases, there is no monetary value placed on the "benefit" realized as we are a "not for profit" entity.
Steve -
Might not be revenues, what about efficiency? reduce cost?
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1 reply by Steve Ratkaj
Jul 17, 2018 12:05 PM
Steve Ratkaj
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Vincent -
Yes, in some cases such as Shared Support Services, there were supposed to be efficiencies realized. In the case of the new employee pay system, Phoenix, it was sold on the basis of savings of CAN$70M/yr, but we know how that turned out. ; )
Vincent,
Business value is not only monetary. It is the actual value realized by the organisation or its customers while using the project deliverable. It is basically how the project has added value.
Of course, customer satisfaction is measured.
Girija -
Many types of benefits, all can be measured and should. Not all organization do a before and after to see true impacts.
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1 reply by Girija Ramakrishnan
Jul 18, 2018 10:13 AM
Girija Ramakrishnan
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Yes I agree with you, Vincent. At times a project's objective will itself be to reduce maintenance / operating cost which will indirectly be done through productivity improvement and in this case before & after metrics are measured and compared.
Might not be revenues, what about efficiency? reduce cost?
Vincent -
Yes, in some cases such as Shared Support Services, there were supposed to be efficiencies realized. In the case of the new employee pay system, Phoenix, it was sold on the basis of savings of CAN$70M/yr, but we know how that turned out. ; )
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1 reply by Vincent Guerard
Jul 17, 2018 8:31 PM
Vincent Guerard
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Steve,
That is one where we won't see benefits, just extra cost. To me, it sounds like a schoolbook example of poor quality control and communications from the client and supplier sides.
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RAJESH K LProject Manager, PMP| Bharat Electronics, Bengaluru, IndiaBengaluru, Karnataka, India
Agree with Girija Saving Changes...
Aleksei NikitinLead expert| Higher School of EconomicsSaint-Petersburg, Russian Federation
Jul 17, 2018 9:18 AM
Replying to Vincent Guerard
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Aleksei -
For projects for the external customers, do you have an evaluation of your organization benefits besides potential profits?
I think no.
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1 reply by Vincent Guerard
Jul 17, 2018 8:32 PM
Vincent Guerard
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Aleksei,
Should there be in your opinion?
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Joshua RenderProduct Owner| CognizantHarrisville, Ny, United States
Business objectives. Why are you doing the project?
As Andrew Craig said, usually it comes back to money. They either want to make money or save money. Without some sort of benefit, it seems unlikely there would be a point to doing the project.
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1 reply by Vincent Guerard
Jul 17, 2018 8:33 PM
Vincent Guerard
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Joshua,
Mostly benefits are but back to financial, but not all can be!
Saving Changes...
Anish AbrahamPrivacy Program Manager| University of WashingtonAuburn, Wa, United States
In my opinion, most important is customer satisfaction and also it should make sure that it will fulfill the projects objectives.
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1 reply by Vincent Guerard
Jul 17, 2018 8:34 PM
Vincent Guerard
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Anish,
Should the project objectives state the benefits expected?
