Posted: December 30th, 2023

Benefits Realization Management in Project Management

Benefits Realization Management in Project Management Benefits realization management (BRM) is a project management methodology that measures how projects and programs add value to the organization and contribute to high-level business objectives. BRM maximizes the return on investment (ROI) from change, and according to Project Management Institute, it is the third largest driver of project success. What is BRM? BRM is the identification, definition, planning, tracking and realization of benefits. Benefits are the positive outcomes that result from the outputs and outcomes of a project or program. Benefits can be tangible (such as increased revenue, reduced costs, improved efficiency) or intangible (such as enhanced reputation, customer satisfaction, employee engagement). Benefits realization is the practice of ensuring that benefits are derived from outputs and outcomes, and that they are aligned with the organizational strategy and vision . BRM involves a set of processes that span across the project life cycle, from initiation to closure. These processes include: - Identifying and validating the benefits that are expected from the project or program - Defining the benefits realization plan that outlines how, when and by whom the benefits will be delivered and measured - Establishing the benefits governance structure that defines the roles and responsibilities of the stakeholders involved in BRM - Monitoring and reporting on the progress and performance of the benefits delivery and realization - Evaluating and reviewing the actual benefits achieved against the planned benefits - Capturing and sharing the lessons learned and best practices from BRM . Why is BRM important? BRM is important because it helps organizations: - Align their projects and programs with their strategic goals and priorities - Justify their investments in change initiatives based on the expected value and benefits - Optimize their resource allocation and decision making based on the benefits realization plan - Enhance their stakeholder engagement and communication by focusing on the benefits rather than the deliverables - Increase their project success rate and customer satisfaction by delivering the desired outcomes and value - Continuously improve their project management practices by learning from BRM experiences . How to implement BRM? To implement BRM effectively, organizations need to: - Adopt a benefits-driven approach to project management that integrates BRM across all types of delivery methods, whether agile, waterfall or hybrid - Establish a clear linkage between benefits, project objectives, requirements and success criteria - Involve the relevant stakeholders in BRM activities throughout the project life cycle, especially the sponsor who is accountable for benefits realization - Define SMART (specific, measurable, achievable, relevant and time-bound) benefits indicators and metrics that can be tracked and verified - Use appropriate tools and techniques to monitor, report and evaluate the benefits delivery and realization - Embed BRM into their organizational culture and processes by providing training, guidance and support to project managers and teams . Conclusion BRM is a vital component of project management that ensures that projects and programs deliver value and benefits to the organization. By applying BRM principles and practices, organizations can improve their project performance, alignment, optimization, stakeholder satisfaction and continuous improvement. Works Cited : APM. (n.d.). What is benefits management and project success? Retrieved February 6, 2024, from https://www.apm.org.uk/resources/what-is-project-management/what-is-benefits-management-and-project-success/ : PMI. (2019). Benefits Realization Management: A Practice Guide. Retrieved February 6, 2024, from https://www.pmi.org/pmbok-guide-standards/practice-guides/benefits-realization : Indeed Career Guide. (2022). A Definitive Guide to Benefits Realization Management. Retrieved February 6, 2024, from https://www.indeed.com/career-advice/career-development/benefits-realization-management : Lucidchart. (n.d.). 3 Crucial Stages of Benefits Realization Management. Retrieved February 6, 2024, from https://www.lucidchart.com/blog/benefits-realization-management : Serra C.E.M., Kunev B. (2014). Beyond Project Success: Benefits Realization Opportunities And Challenges. write my thesis Paper presented at PMI® Global Congress 2014—EMEA, Dubai, United Arab Emirates. Newtown Square, PA: Project Management Institute. Retrieved February 6, 2024, from https://www.pmi.org/learning/library/success-benefits-realization-opportunities-challenges-9272

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