We start projects because we want something out of them. Those deliverables are supposed to give the project owners the tools they need to achieve the stated benefits. Benefits delivery is something the PMO should support.
However, project managers aren’t always involved in the benefits-side of projects. When a project manager is tasked with delivering on time, on budget and to the defined scope and quality measures, benefits somehow get squeezed to one side. And yet they are the fundamental reason for starting the work in the first place.
It’s not unreasonable to think that an on time, on budget delivery automatically delivers some kind of benefit, but it’s not always the case. When the deliverable is a new product, for example, the product owner then has to run with it and generate the level of sales that the business case predicted in order to achieve the Year 1 benefits. Looked at in the round, it’s clear that while project managers have a part to play in ensuring the benefits can be achieved, you’ll get more consistent benefits realization when there’s a clear approach to delivering them.
And that’s where your Project Management Office has a huge part to play in supporting the benefits delivery. Let’s look at how.
From the Beginning: The Business Case
This is the important step in making sure the benefits delivery can actually be realized. If the business case is flaky, you won’t have clarity on what the benefits are, let alone whether or not they can be achieved.
There should be a clear list of benefits in the business case. That’s a start, but you also want your project proposals to have detail about how those benefits are going to be achieved. Is it through more product sales, staff savings, efficiency targets or something else?
Project benefits can be tangible or intangible, and it’s fine to accept both. However, if you have any expectation of being able to measure if they were delivered, you need to establish how you are going to measure them. These performance indicators and key success factors should be set out in the business case. If they aren’t there, the PMO team can work with the business case owner to establish sensible measures for tracking the benefits.
The PMO experts can review and challenge appropriately, for example, making sure that the benefits of this project are not double-counted through being also mentioned in another business case. This step is all about transparency and making sure that you are starting out on the right foot: being able to track and measure the benefits you have identified when the time comes.
During the Project: Tracking and Control
There are simple checks to carry out during the project. The PMO can ensure that the project plan includes tasks around preparing for benefits realization, such as making sure any reports that are needed to track benefits are built or that training is given to teams that need it.
If there are any benefits that will be realized before the project or program officially draws to a close, there should be some milestones in the plans that point to this. These can act as an early warning sign that benefits may not be achieved, and allow the project sponsor to review the forecasts if required.
The PMO is also the guardian of the change management process. One of the triggers for a change, and a criteria for change evaluation, should be anything that affects the benefits as they are stated in the business case. For example, if a new software requirement is going to delay the launch of the product for a month, that delay might wipe out a month of benefit to the point where the company feels this is not an acceptable change to make – even if in all other cases it looks fine. This information allows the decision makers to decide which path to go down, which in this instance might be to delay the software change until after launch and package it into a product update.
Project reporting is another key area during the project. The PMO has a part to play in ensuring that Project Board meetings have a focus on benefits – or that it’s a least a regular agenda item. It gives the project team the opportunity to raise any concerns they might have about the achievability of benefits. You’ve then got time to work together to either reforecast benefits or adjust the plans accordingly.
Good project reporting also offers the opportunity to consider closing the project down before too much investment is wasted chasing benefits that don’t really exist or cannot be delivered. Closing a project is always a tough call, but it’s far better to do so early and reinvest the remaining budget on something that will deliver value.
After the Project: Follow Up
When the project team moves on, the PMO team doesn’t. This puts them in a great position to provide follow up support to the product owner or project sponsor.
It’s also a good way to build long term, supportive relationships with business areas outside of the hectic schedules of project delivery. It’s also a way to show that it’s not simply acceptable to think of benefits on paper. The PMO can hold the business case owners accountable for both benefits delivery and support teams where there is less accountability.
While the PMO can’t take ultimate responsibility for achieving the benefits in any given business case, they can certainly play a supporting role. With the structure, process and focus that the PMO can give, you’ll have more chance of achieving realistic benefits and turning more of your projects into success stories.