How to Plan For Business Benefits

Why is Business Benefits Planning Essential?

Benefits planning aims to deliver the benefits promised in the business case and ensures they are actually realized. Many projects although they complete successfully in project management terms fail to deliver any of the initial benefits that launched the initiative. I have seen countless examples of project teams and managers congratulating themselves with the success of the project, ‘how well it went’, ‘all the deliverables done’ and so forth – but with not one penny piece of value delivered for the organization.

I have sat on project boards to go through the business case and been confronted many times with promises of 25% cost reductions or increased production that if taken in the round with all the other things on the go would mean we get a product that costs nothing to make and sell for millions by the millions – forgive me if I am cynical. The failure of many projects to actually deliver any benefit in real terms in part explains the reluctance to give the go-ahead for new projects. Senior management are getting (more cynical) about the benefits and are getting fed up with being confronted with yet another initiative that promises hundreds of thousands of dollars in savings, increased revenue or more customers for example but actually delivers nothing. We have low expectations from any activity and even of the ability of projects to pay for the outlay and our expectations are being met.

Cynicism borne of the experience of hundreds of pleadings from staffers that have come to naught and project’s launched that have promised benefits that in the end have failed to come up with the goods. Evidence show’s that the majority of projects (well over 60%) in such diverse areas as IT, Outsourcing and BPR fail to deliver any discernable improvement. I have found no Outsourcing project that has delivered anything of value – the only exception being when they closed half the department and we got half the service.
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