Understanding Benefits Realisation

It is always a rewarding to work with clients especially when making tangible improvements to their bottom line.

In the first of a 4 part series I provide some context and key principles about benefits realisation. Over the course of the series I will also share insights and lessons from a case study, how to overcome challenges and practical tips for tracking and reporting.

Understanding benefits realisation.

Benefits realisation is a process; a disciplined and structured process through which organisations ensure that the benefits anticipated from projects and initiatives are identified, realised, and sustained.

Benefits realisation is also (and fundamentally) about people, culture and behaviours. It requires people to believe in the need for the initiatives or projects, commit to their delivery, and be committed to measuring, tracking and being accountable for delivering, realising and sustaining those benefits.

It goes beyond the mere completion of projects, focusing on the end-value delivered to the organisation.

Main stages of benefits realisation

The key stages of benefits realisation include:

1. Identification of Objectives and Benefits: Clearly defining the objectives and expected benefits are and securing commitment.
2. Planning for Benefits: Baselining and developing a detailed plan that outlines how benefits will be achieved.
3. Management of Benefits: Ongoing tracking and adjustment of efforts to ensure benefits are realised.
4. Sustaining Benefits: Ensuring the benefits continue to deliver value over the long term.

Foundational principles

Many organisations are successful at realising benefits; others struggle. Like driving a car, there are many things to bear in mind when managing benefits. Here are some key principles to get you going.

Principle 1: Clear objectives and benefits

One of the most common challenges is the absence of well-defined objectives.

Setting clear, measurable objectives is the foundation of successful benefits realisation. Clear objectives provide a roadmap for what we intend to achieve, making it easier to allocate resources, manage expectations, and measure progress.

To define clear objectives, look to ensure that objectives are directly linked to the overall strategic goals, use specific, quantifiable metrics to define success and include input from key stakeholders to ensure that objectives are realistic and comprehensive.

Principle 2: Stakeholder Management

Poor communication and lack of involvement from key stakeholders can result in resistance to change, misaligned expectations, and ultimately, failure to achieve desired outcomes.

Sponsorship should come from the top. Identify and look to involve all relevant stakeholders, including the Board, Executive Team, senior management, middle management, all other employees, management, customers, and external partners. Foster engagement with regular updates, transparent communication about potential challenges, and channels for escalation and feedback. Align interests and secure collective support, holding workshops, surveys, and meetings as necessary to build consensus.

Principle 3: Dedicated Resources

Many companies struggle with insufficient resources, whether in terms of budget, people, or technology and in terms of capacity and capability. This inadequacy can hinder the proper execution of projects, delaying benefits or reducing their overall impact.

One main gap is benefits ownership. Another is a benefits manager.

You need to assess the resources you need. Create a detailed budget, track spend, continuously monitor, adjust and address any gaps promptly.

Principle 4: Change Management

Change management is key in benefits realisation as it helps in managing the transition and ensuring that all stakeholders are aligned with the new changes. It involves preparing, supporting, and helping individuals and teams in making changes.

Principle 5: Adaptability And Flexibility

You must be prepared to adapt your strategies as new information becomes available or as external conditions change. This includes adjusting timelines, re-allocating resources, and revising objectives as necessary.

Principle 6: Sustaining Benefits Over Time

Sustaining benefits requires long-term planning and a commitment to continuous improvement. This involves regular reviews and adjustments to ensure that the benefits continue to meet evolving needs.

Principle 7: Continuous Improvement

A culture of continuous improvement helps in maintaining the benefits over time. This includes support, regular training, and continuously assessing and refining processes.

Conclusion

Overall, benefits realisation is essential because it aligns projects with strategic objectives, optimises resource utilisation, provides a clear framework for measuring success and aligns personal motivations to organisation strategy.

The effective realisation of benefits can significantly enhance an organisations competitive advantage and overall performance and significantly motivate its people.

Next week, I will share lessons learned and insights from a case study. Meanwhile, to find out more, get in touch.