First, What is a Benefit ?
It is the measurable improvement resulting from an outcome that is perceived as an advantage by one or more stakeholders.
It is recommended to to have a clear understanding of what an Output is, and what an outcome is to clearly understand what a benefit actually means. Check this Output-Outcome-Benefit
PMBOK defines Project Benefit as, an outcome of actions, behaviors, products, services, or results that provide value to the sponsoring organization as well as the project’s intended beneficiaries.
Project Benefits Management Plan
It is the document that describes 2 things
- how and when the benefits of the project will be delivered.
- the mechanisms that should be in place to measure those benefits.
PMBOK Defines Project Benefits Management Plan as ” The documented explanation defining the processes for creating, maximizing, and sustaining benefits provided by a project.”
Key components of a Benefits Management Plan
Target Benefits – expected tangible and in-tangible value to be gained by project implementation
- Strategic Alignment – how well the projects benefits align to overall organizational strategy
- Time frame for realizing benefits – eg: short term, long term
- Benefits Owner – person accountable to monitor, record, and report realized benefits
- Metrics – measures to measure the benefits realized
Developing the benefits management plan makes use of the data and information documented in the business case and needs assessment.
The Project Manager works with the sponsor to ensure that the project charter, Project Management Plan, and Benefits Management Plan remain in alignment through out the project life cyle.