Mike FrenetteManager, IT PMO| Halifax Water (retired)Halifax, Nova Scotia, Canada
PMI's Benefits Realization Management Practice Guide will allow you to "drive more successful outcomes and better strategic alignment in your organization."
Who is responsible for realizing defined benefits? Saving Changes...
The benefits owner - that role might fall on the client in some cases, a role such as a business lead in others, or it might be shared across a group of key stakeholders.
The important things are to ensure that there is a benefits owner or owners identified as part of the business case and there is an objective definition for how benefits will be measured. Then, there needs to be processes in place to measure expected and realized benefits over the life of the project and beyond and monitoring to ensure that if forecast benefits erosion is likely that decision makers are given the opportunity to make a decision proactively about continued investment in the project.
Kiron Saving Changes...
Mike FrenetteManager, IT PMO| Halifax Water (retired)Halifax, Nova Scotia, Canada
An excellent answer, Kiron!
A Follow up question:
Whose feet are held to the fire if defined benefits do not acrue?
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1 reply by Kiron Bondale
Mar 17, 2024 5:56 PM
Kiron Bondale
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That's the $1M question, Mike, as in many organizations sponsors are able to get projects initiated with inflated benefits projections and when those benefits don't materialize there is no accountability for having wasted the financial resources and people's time.
In general, whoever initiated the business case for the project should be held accountable where there was clear evidence that the projections were questionable from the get-go.
Where factors outside the control of the organization, especially unknown unknowns led to this, it could be chalked up to the usual risk of investing in something uncertain but even then, there should be low tolerance for falling prey to the sunk cost fallacy.
Senior Projects Manager | Field & Marten AssociatesNew Westminster, British Columbia, Canada
Mike, I do currently manage a program and benefits realization is the responsibility of a comittee comprised of Project Sponsor (Client CEO), Program Manager (me), and Client Business Development Manager.
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1 reply by Mike Frenette
Mar 18, 2024 10:16 AM
Mike Frenette
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Really important to bring the business into the picture on benefits definition and realization, especially since benefits are often not realized until long after the project is finished.
Whose feet are held to the fire if defined benefits do not acrue?
That's the $1M question, Mike, as in many organizations sponsors are able to get projects initiated with inflated benefits projections and when those benefits don't materialize there is no accountability for having wasted the financial resources and people's time.
In general, whoever initiated the business case for the project should be held accountable where there was clear evidence that the projections were questionable from the get-go.
Where factors outside the control of the organization, especially unknown unknowns led to this, it could be chalked up to the usual risk of investing in something uncertain but even then, there should be low tolerance for falling prey to the sunk cost fallacy.
Kiron Saving Changes...
Mike FrenetteManager, IT PMO| Halifax Water (retired)Halifax, Nova Scotia, Canada
Mar 17, 2024 1:17 PM
Replying to Rami Kaibni
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Mike, I do currently manage a program and benefits realization is the responsibility of a comittee comprised of Project Sponsor (Client CEO), Program Manager (me), and Client Business Development Manager.
Really important to bring the business into the picture on benefits definition and realization, especially since benefits are often not realized until long after the project is finished. Saving Changes...
George FreemanThought Leader | Author | Architect| Florida, United States
The sponsor is responsible for “ensuring” that objectives and planned benefits are realized, which means they are, at minimum, responsible for “making sure” that an appropriate structure (e.g., a benefits owner) is set up to monitor and manage these two areas. Otherwise, they hold this responsibility.
There’s a direct negative correlation between strategic objective alignment (or lack thereof) and the trustworthiness of the financial business case. In other words, the business case will likely rely heavily on “soft value benefits” that are difficult to measure when strategic alignment is absent or exists as a mirage. However, when alignment is explicit and enforceable, you will "more likely" find an appropriate tangible mixture of hard and soft benefits. Saving Changes...
EVERYONE is responsible if the organization culture is focused on teaming vs. an Us vs. Them profit center mentality.
It's like asking who is responsible for employee safety. Is it the manager's job to keep people safe, or are the team members also responsible for their own actions and protecting the welfare of those around them?
Success does not happen by decree. It happens when the team embraces the higher objectives and focuses on what is best for the team. Saving Changes...
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