We have an existing Project charter with a section on Benefits to be realized. However, I'm struggling with what content should go in this section of the charter.
Deliverables or Outcomes?
for example: if the project was to paint 12 buses blue, then, the deliverable would be 12 blue buses. However, the business told us the "benefit" would be 10% happier people with blue buses.
based upon the above...what goes into the benefits section?
(10% happier people I assume.).
if so, what section would the deliverables belong to?
I'm tripping up on where to place deliverables vs benefits inside a charter.
@Keith. "The thing" to be created by the project will deliver benefits. Call it product, or service, or result if we talked according to the PMI. The project is just a mean to create "the thing". "The thing" is created to achieve a goal. If not, it has no sense. And goals are created according to a basic strategy: survive, growth and develop. Organizations do not achieve the goal thanks the project (the process to create "the thing"). Organizations achieve the objectives thanks "the thing" the project creates, that could be a product, a service or a result. What the project "can do" is to assure the needed quality (which involves scope, cost, time and other things) to create "the thing" as defined according to the goal to be reach. In the examples you stated somebody (usually the business analyst) must help the organization to define "the thing" to be created by the project to achieve the goal. The project will be a mean only. That is because when the project ends must be a continue monitoring of the delivered product/service/result to understand if the benefits are reached as stated (usually inside the business case) and, if not, a decision must be taken about the delivered product/service/result and a new project is usually started to do something with it. This is an activity that belongs to business analysis too.
I understand what you are saying, however I think that the thing being created is not always the end goal, so much as the process to develop the thing. Some projects are really job creation programs or other business growth/sustainability measures such as utilizing otherwise idle capital equipment. The operational value of the thing actually produced is less important than the organizational benefits.
It is really the difference between whether you consider the thing being produced, the system design or the system architecture. The architecture level involves not only the operational environment of the system produced and how much value the thing provides to the end customer, but also the business environment and how well the project execution fits the organization's needs.
If the product/thing is really the system architecture and not the actual system itself, then it includes the development process and therefore the value of the thing is to maintain critical staffing levels.
Even to use the iconic military example of a project to dig a hole and then fill it back up can have organizational value. There is team building involved, practice doing something that may be useful later, and human/capital resources are not sitting idle where they are likely to face downsizing.
The filled in hole was never the objective. The hole has negative NPV and no use to anyone as a physical thing. At a strategic level however, it may be better long-term than the do nothing option. Staffing and assets were preserved until needed for something with a positive business case at the system level.
As they say, sometimes the journey is more important than the destination.
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1 reply by Peter Rapin
Jan 15, 2022 1:45 PM
Peter Rapin
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I think it boils down to clearly defining the objective. In job creation the objective is not the hole but the employment (or training, team building) of the resources. This is where a Charter may be important - it should not read "dig and fill the hole" but "utilize resources (or team building)".
Much like life itself - its the journey, not the final destination.
Saving Changes...
Peter RapinSubject Matter Expect; Project Delivery| Independent ConsultantOntario, Canada
Jan 15, 2022 12:52 PM
Replying to Keith Novak
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I understand what you are saying, however I think that the thing being created is not always the end goal, so much as the process to develop the thing. Some projects are really job creation programs or other business growth/sustainability measures such as utilizing otherwise idle capital equipment. The operational value of the thing actually produced is less important than the organizational benefits.
It is really the difference between whether you consider the thing being produced, the system design or the system architecture. The architecture level involves not only the operational environment of the system produced and how much value the thing provides to the end customer, but also the business environment and how well the project execution fits the organization's needs.
If the product/thing is really the system architecture and not the actual system itself, then it includes the development process and therefore the value of the thing is to maintain critical staffing levels.
Even to use the iconic military example of a project to dig a hole and then fill it back up can have organizational value. There is team building involved, practice doing something that may be useful later, and human/capital resources are not sitting idle where they are likely to face downsizing.
The filled in hole was never the objective. The hole has negative NPV and no use to anyone as a physical thing. At a strategic level however, it may be better long-term than the do nothing option. Staffing and assets were preserved until needed for something with a positive business case at the system level.
As they say, sometimes the journey is more important than the destination.
I think it boils down to clearly defining the objective. In job creation the objective is not the hole but the employment (or training, team building) of the resources. This is where a Charter may be important - it should not read "dig and fill the hole" but "utilize resources (or team building)".
Much like life itself - its the journey, not the final destination.
...
1 reply by Keith Novak
Jan 15, 2022 4:14 PM
Keith Novak
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I 100% agree in principle. The objective should be the guiding star to the successful journey. In practice, sometimes the true objective is not as clear, in which case the PM must be better informed than most on the team. If you're going to make value based judgements, you had better have your value systems aligned.
While the charter might not come right out an say it, including things like work-share agreements with a new partner firm, using new processes or tools, or setting budget levels may really be about team development, asset development, or staffing protection respectively.
Sergio and I may in fact be saying the same thing with a language barrier. It would not be a 1st. :-)
I am simply saying that there are cases where the product created by the project team is mostly a vehicle that allows engagement of the team. Engaging and exercising the team may provide more intrinsic value to the organization than the actual product itself.
I think it boils down to clearly defining the objective. In job creation the objective is not the hole but the employment (or training, team building) of the resources. This is where a Charter may be important - it should not read "dig and fill the hole" but "utilize resources (or team building)".
Much like life itself - its the journey, not the final destination.
I 100% agree in principle. The objective should be the guiding star to the successful journey. In practice, sometimes the true objective is not as clear, in which case the PM must be better informed than most on the team. If you're going to make value based judgements, you had better have your value systems aligned.
While the charter might not come right out an say it, including things like work-share agreements with a new partner firm, using new processes or tools, or setting budget levels may really be about team development, asset development, or staffing protection respectively.
Sergio and I may in fact be saying the same thing with a language barrier. It would not be a 1st. :-)
I am simply saying that there are cases where the product created by the project team is mostly a vehicle that allows engagement of the team. Engaging and exercising the team may provide more intrinsic value to the organization than the actual product itself. Saving Changes...
Binay SamantaDirector| Project & Environment ConsultantsDhanbad, India
Project charter such as in case of mining plans should include provisions of adjustments as per ground reality. Geotechnical situation of mining reserves, change with the progress of project. Same applies to projects with fuzzy parameters for finalizing project charter. Saving Changes...
I would suggest, like Kiron mentioned, to cover the deliverables at a very high level in your scope section. Leave the details of the deliverable for later during the project planning phase.
As for your benefits, I suggest you offer outcomes over time. In my last project, I had short-term, mid-term and long-term outcomes. The big lesson learned for me was to make sure a defined outcome has not only a organizational owner but an organizational process. The second lesson learned is to expect some of the outcomes to change if your project is relatively long. Saving Changes...
Binay SamantaDirector| Project & Environment ConsultantsDhanbad, India
Very valuable suggestions have already been made about inclusions of deliverable in Project Charter. Actually deliverables in the project will help viability and generate profit of the project. Investors would definitely like gains from the project. Initial market survey of deliverables should be definitely included, update provisions should be kept in the project charter. Saving Changes...
Christopher HealySR IT Program Manager| General MotorsBerkley, Mi, United States
This is an interesting discussion and highlights that there is not a one solve for it all. What is needed it a clear process and alignment.
When I was in a larger organization, it was critical to have a project charter and business case and scope document, because they provided different information to different levels of the organization. Working in a smaller organization, we have 1 document that gets updated with information at different points in the process.
Whether you call it benefits, value, outcomes, deliverables etc, is not nearly as important as making sure it means they same thing to everyone. Saving Changes...
Thomas WalentaGlobal Project Economy ExpertHackenheim, Germany
True Christopher, these terms mean mental concepts and it is a benefit (hic) if people collaborating share those concepts.
On the other hand, using standardized terms/concepts adds benefits regarding 1. knowing what others that defined the term learned already (and decrease own mistakes) and 2. being able to onboard new people quickly.
Thomas
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1 reply by Christopher Healy
Jan 19, 2022 12:50 PM
Christopher Healy
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Completely agree! It comes down to how much time/effort you (the PM or PMO) want to invest to change others and is that where you want to spend it :)
Saving Changes...
Christopher HealySR IT Program Manager| General MotorsBerkley, Mi, United States
Jan 19, 2022 12:30 PM
Replying to Thomas Walenta
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True Christopher, these terms mean mental concepts and it is a benefit (hic) if people collaborating share those concepts.
On the other hand, using standardized terms/concepts adds benefits regarding 1. knowing what others that defined the term learned already (and decrease own mistakes) and 2. being able to onboard new people quickly.
Thomas
Completely agree! It comes down to how much time/effort you (the PM or PMO) want to invest to change others and is that where you want to spend it :) Saving Changes...
Peter RapinSubject Matter Expect; Project Delivery| Independent ConsultantOntario, Canada
I look at project initiation documentation as a hierarchy
1) identify need/problem/expected benefit
2) undertake the business case - justifies undertaking of the project
3) Prepare charter - establish objectives, define governance, get stakeholder sign-off and authority to proceed (spend resources)
4) develop the project plan (first step of the next phase - execution).
I submit that every project has to address these requirements to some extent - anywhere from memo format to individual documents with multiple sections. The complexity of the project, nature of the company, experience of the staff and demands of the stakeholders will impact on the effort going into these documents and the amount of overlap. Saving Changes...