Research shows us that businesses rarely get full benefits from their investments. It’s largely why Benefits Realization is such a hot topic today. Defined by Gartner as the discipline organizations adopt to maximize the business value of projects and investments, Benefits Realization allows senior management to see how specific investments align with the business so they’re better able to understand the total impact of investments on the business.
Project owners are in a great position to lead a transformation in their organizations which will result in stronger delivery of promised benefits. They can begin by taking three important steps.
- Shift thinking and focus from investments to benefits
Recognize that business has to own and control the investment; business owners must be involved with investment decisions. The investment system should measure and reveal how projects contribute to improving specific business metrics.
- Shift from fragmented to integrated investments
Create a system to evaluate and manage investment programs then determine measurement improvement needed to meet business objectives and evaluate how programs will achieve the new metrics positions.
- Augment the current PPM control system with the benefits realization control system
Extend the investment control sheet to measure cost and benefits of the programs and portfolios including how benefits are impacted by lifecycle project decisions.
Redesigning benefits realization enables improved monitoring and increasing pressure on the project world to avoid poor investments and deliver business value. Why is Benefits Realization challenging for today’s businesses and what are the variables driving Benefits Realization? UMT360’s CEO Mike Gruia explores those topics and more in his new white paper, The Benefits Realization Crisis, now available here.
Interested in more information about Benefits Realization? Check out the following UMT360 resources:
- Webinar – Benefits Realization: Unleash the Power of the PMO (Presented by Frank La Rocca from Consolidated Edison)
- Video – Benefits Realization: Measure Results and Drive Accountability (Presented by UMT360’s Ben Chamberlain)