The Infrastructure & Projects Authority has published new guidance for major project teams on how to manage the benefits - and disbenefits - during major projects

Benefits management is defined by the Cabinet Office as “the measurable improvement resulting from an outcome perceived as an advantage by one or more stakeholders, which contributes towards one or more organisational objectives”. Fundamentally this means that benefits:

• should be measurable – if they cannot be measured they cannot be claimed as ‘realised’;
• are the improvement resulting from the outcome (the end result) of the change, they are not the change itself;
• are in the eye of the beholder – in other words different; stakeholders will value the same benefits differently. Additionally, in some cases, a benefit to one stakeholder may be a disbenefit (an outcome perceived as negative) to another;
• create the link between tangible outputs and strategic goals, and;
• ensure there is alignment of effort, resources and investment towards achieving organisational objectives.

The guidance says that active and effective benefits management demonstrates the reason why a project should be undertaken, and as such should be managed as robustly as costs.

“The realisation of benefits show that a project has been worthwhile and the investment of time, money and resources have had a positive impact for stakeholders. Project success should be measured not only by the delivery of outputs to time, cost and quality but also the positive, measurable improvements they have delivered for stakeholders.” the guidance states.

Benefits management is defined “the identification, definition, tracking, realisation and optimisation of benefits”.

The guidance says that benefits management should be undertaken throughout the project lifecycle and into operations/business-as-usual, not just during investment decision-making. The identification of benefits should happen before a project is even initiated, informed by a defined problem, strategy or policy. The benefits can then be developed throughout the project lifecycle, and then typically measured during project delivery and after the project has closed.

Key advantages of benefits management cited in the guidance include:

• Thinking about benefits before the project has been scoped and starting with the end in mind ensures the most adequate and suitable solution is developed.
• Considering the impact on benefits throughout the project lifecycle provides reassurance that the project is still viable and worthwhile.
• Planning for benefits activities to continue after project close means that valuable information will be collected regarding benefits realisation, performance management, assumptions and lessons learned.

Disbenefits should be managed in same way as benefits

The guidance also flags up another key aspect of benefits management as managing the disbenefits – defined as “the measurable decline resulting from an outcome perceived as a negative by one or more stakeholders. “

Disbenefits should follow similar activities and processes as benefits management and should be identified, categorised, quantified and measured in the same way benefits are, the guidance says.

This is particularly important in managing stakeholder expectations and concerns around major projects.  According to the guidance, “often project teams are reluctant to be forthcoming with disbenefits. However, disbenefits management is invaluable in understanding what your stakeholders perceive as negative consequences of change, and help inform communications plans and realisation planning.”

It also points out that most projects will have some type of disbenefits, whether they are actual negative consequences of change, or a benefit that is perceived as positive by most, but another stakeholder group may perceive as a disbenefit.

The guide provides structure and sets expectations when undertaking benefits management,  together with outlining key benefits management principles and activities for major projects and covers:

• key activities to be undertaken for effective benefits management
• principles and good practice to adopt to ensure benefits are managed and realised
• how benefits management fits within IPA’s (Infrastructure and Projects Authority) assurance process
• how benefits management fits within the Green Book Business Case process
• key roles involved in benefits management
• a glossary of terms
• suggested benefits management cycle and practices

Click here to download Guide for Effective Benefits Management in Major Projects