Benefits management across project and asset lifecycles

Effective benefits management is a continuous process that spans the entire project lifecycle and extends into the operational phase of the resulting asset or change. Understanding how benefits management activities align with different stages of the project and asset lifecycles is crucial for maximising value realisation.

Project lifecycle stages and benefits management activities 

Let's examine some key benefits management activities across the typical project lifecycle stages: 

As illustrated in the diagram, benefits management activities evolve as the project progresses (see also BS 202002 Figure 7): 

1. Initiation: during this phase, the focus is on understanding the problem that needs to be solved (or opportunity). This means estimating an approximate value (whether monetary or non-monetary) which is likely to be linked to the organisation’s strategic objectives; and deciding if the organisation has the capability and capacity to solve this problem. Often there will be a single key driver (solution to a problem) or benefit that the organisation wants to achieve, and some additional ones. This stage often results in a Strategic Outline Business Case. 
2. Planning: having decided that it’s worth investigating further, the project leadership team prepares some delivery options. This is the best time for benefits mapping workshops, where stakeholders affected by the problem or opportunity define benefits and explain dis-benefits, outcomes (changed organisational state), outputs (capabilities and artifacts that need to be in place to create or enable that change) and work (work needed includes projects, programmes or tasks) to create the capabilities and artifacts. With knowledge of the costs and benefits of different options, ROI can be determined and a business case prepared. 
3. Execution: as the project moves into implementation, the emphasis shifts to monitoring forecasted benefits. This involves tracking progress towards benefit realization and making adjustments as necessary. 

Aligning with the asset Lifecycle 

Benefits management doesn't end when the project is completed. It's crucial to consider the entire lifecycle of the asset or change being implemented: 

1. Monitoring: benefits are realised only when users change their processes and behaviours, which doesn’t happen automatically. By monitoring and reporting, the change team and line managers can ensure the changes happen and benefits are realised. We can also respond to emergent benefits and disbenefits. 
2. Operation and maintenance: benefits realisation should continue until we have confidence in the amount of benefits being realised and can learn lessons. It’s not necessary to continue to monitor benefits for the whole asset lifecycle, and there is a time limit for attributing benefits 
3. Closure: the project concludes with reviews and learnings. This involves conducting post-implementation reviews, capturing lessons learned and reviewing the quality of benefit forecasts. 

Challenges and best practices 

Several challenges can arise when managing benefits across project and asset lifecycles: 

1. Long-term commitment: benefits often take time to materialise fully. Maintaining focus and resources for benefits management over extended periods can be challenging. 
2. Changing environment: external factors may impact the relevance or achievability of planned benefits over time. 
3. Ownership transitions: although benefit owners should be operational team leaders, it’s common that benefit owners change after handover of the project. Clear ownership and accountability for ongoing benefits realisation is crucial. 

To address these challenges, consider the following best practices: 

1. Integrate benefits management into governance structures: ensure that benefits are regularly reviewed at key decision points throughout the project and asset lifecycles. 
2. Maintain flexible benefit profiles: regularly reassess and update benefit expectations to reflect changing circumstances. 
3. Implement benefits tracking systems: use robust tools and processes to monitor benefits forecasts and the transition to benefits realisation over extended periods. 
4. Foster a benefits-focused culture: encourage all stakeholders to maintain a focus on benefits realisation, not just project delivery. 

Case Study: London 2012 Olympics 

The London 2012 Olympics provides an excellent example of benefits management across project and asset lifecycles. The organisers identified potential benefits early in the planning stages, including urban regeneration, increased tourism and improved national pride. They implemented a comprehensive benefits realisation plan that extended well beyond the games themselves. 

Post-event evaluations have shown significant long-term benefits, including the successful repurposing of Olympic venues and lasting economic impacts on East London. This case demonstrates the importance of considering benefits not just during the project phase but throughout the entire lifecycle of the resulting assets and changes. 

By aligning benefits management activities with project and asset lifecycles, organisations can ensure that they realise the full value of their investments. This approach helps maintain a focus on outcomes rather than outputs and supports continuous improvement in benefit delivery. 

 

You may also be interested in:

• What is benefits management and project success?
• A guide to using a benefits management framework
• Benefits mapping: the foundation for benefits management