Value and Benefits Realization

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This subject focuses on the process of creating value for the organization through the measurement and management of benefits from identification to realization and understanding the link between delivering benefits and creating value..

Topics included in Value and Benefits Realization:

- Value and Benefits Overview
   - Defining project success
- Benefits Management
- Value Management and Value Engineering
- Useful External Web-links & Resources.


Other related sections of the PMKI:

- For more on project/program selection and prioritization see
   Portfolio Management.


Value and Benefits Overview

Value and Benefits Realization are closely linked. When benefits are realized, that support the objectives of the organization, value is created. 

Benefits Management are the steps taken by the organization to ensure the value intended to be achieved from an investment in a project or program are achieved - See below.

Value Management (or Value Engineering) is a structured planning and review process designed to achieve best value or, where appropriate, best value for money from the project or program - See below

WP: Outputs, Outcomes and Benefits. The relationship between goals, objectives, outputs, deliverables, outcomes, benefits and value.

WP: Benefits and Value. Benefits management and the value chain between the creation of a deliverable and the creation of quantifiable value.

 

Project Success

Project success is more then being 'on time' and 'on budget'.  A project is successful if it is seen as successful by its stakeholders, and they value the outcome.

Art: Achieving Real Project Success. There are at least three different criteria for success that can operate independently: Project Management Success, Technical Success and Business Success.

Blg: Defining project success – moving beyond benefits realization! Project success appears to be a complex, emergent, characteristic that manifests after the work of the project has been completed - this makes managing for success difficult.

Blg: Defining Project Success using Project Success Criteria. Project success can be ephemeral – successful organizations work to define success so they know when it has been achieved!

PP: Avoiding the Successful Failure! Delivering to time, cost and scope may not be enough, the value of a project is determined by its end users and may change over time.

 

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Benefits Management

Blg: Who Manages Benefits? The various managers and other stakeholders involved in managing the realization of benefits.

Prs: Who Really Benefits? Value is in the eye of the stakeholder! Developing a realistic and achievable benefits management plan requires understanding which stakeholders really matter and discovering what is really important to them.

WP: Developing a Business Case. The business case should define the value the project will create if successful, to justify its cost. However, the project manager cannot be held directly responsible for delivering value to the organization.

Art: Stop Throwing Money Away! The effect of sunk costs and emotions on the decision to kill a project.

  

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Value Management and Value Engineering

Value Management is a structured analytical process focused on achieving the best value and, where appropriate, best value for money in products, processes, services, systems and organizations.

Art: What is the value of value? Value is a concept that is unique to each organization and encompasses the total sum of all tangible and intangible ‘value elements’.

Art: Who values value? Assessing and measuring the full value of a proposal in the unique context of each organization.

Art: Creating Value from Change. The different roles involved in generating value from the change created by a project. The relationship between project deliverables and the creation of organizational value are discussed in WP: Organizational Change Management.

Art: Performance Management - the creation of value. Value is maximized when the organization's objectives, strategy and project delivery are aligned.

 

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Useful External Web-links & Resources

Best Management Practice products, UK Government (formally OGC, now Axelos) - the umbrella site dedicated to making access to information quick and easy - https://www.axelos.com/
- MoV - Value Management: https://www.axelos.com/best-practice-solutions/mov

Institute of Value Management Australia: The IVMA is Australia’s peak body for the definition of value and the achievement of best value for money - http://www.ivma.org.au/

SAVE International - SAVE is the premier international society devoted to the advancement and promotion of value engineering, value analysis and value management (the value methodology): https://www.value-eng.org/

AS4813:2007 - Value Management. VM is a structured analytical process focused on achieving the best value and, where appropriate, best value for money in products, processes, services, systems and organizations.

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