Maximising organisational success through benefits management and portfolio prioritisation

In today's fast-paced business environment, organisations face the constant challenge of balancing change initiatives with business-as-usual (BAU) activities. How can we ensure we're investing in the right projects while keeping the lights on? The answer lies in effective benefits management and portfolio prioritisation. 

The foundation: knowing your strategy 

Before diving into benefits management, we need a clear understanding of our organisational strategy. Whether you're a small department, a large corporation, or even a government agency, you need to know what you're trying to achieve. Ask yourself: 

• What kind of organisation do we want to be? 
• What's our top priority? Is it related to profit, innovation, social impact, or something else? 
• How will we know if we're succeeding? 

Remember, your direction isn't just about change. Many organisations focus solely on ‘objectives for change’, overlooking the Key Performance Indicators (KPIs) that keep the lights on. A balanced approach might include 7-12 objectives for change and an equal number of BAU KPIs. 

Benefits management: your GPS for strategy 

Benefits management is like a translator, turning your big-picture strategy into concrete project goals. It helps you: 

1. Identify “summary” benefits that support your strategy.
2. Prioritise projects that deliver the component benefits that make up these summary benefits.
3. Ensure every project contributes in one way or another to the benefits (don’t use “enabler projects” — either they enable something useful in which case they contribute to the eventual benefits, or what they enable isn’t useful).

When choosing projects, benefits management gives you X-ray vision. It helps you see beyond just the price tag, considering factors like strategic fit, risk reduction, capability enhancement and stakeholder satisfaction. 

Balancing change initiatives with BAU 

Benefits management helps you keep one foot in the present and one in the future. It's like being a DJ — you need to keep the current track playing smoothly while cueing up the next one. This balanced approach helps you drive change without dropping the ball on your day-to-day operations. 

Key components of effective benefits management 

Benefits management isn't a one-off task. It's more like tending a garden — ongoing care and attention yield the best results. Key components include: 

1. Benefits identification and categorisation 
2. Benefits mapping and dependency analysis 
3. Benefits valuation, forecasting, and measurement 
4. risk, assumption, issue, dependency (raid) management 

Prioritising the right projects and change investments 

Benefits management at the portfolio level is about understanding your entire portfolio — existing projects, BAU, and potential new initiatives. It helps you: 

• Reassess the benefits of existing projects 
• Identify gaps in benefit delivery 
• Initiate new projects to fill these gaps 
• Balance your portfolio to address all key organisational objectives 

Remember, the goal isn't to do every project — it's to do the right projects. 

Tools and techniques for effective prioritisation 

When it comes to portfolio prioritisation, we're not just looking at individual projects in isolation. We're orchestrating a symphony where each project plays a part in the organisation's overall success. Useful tools and techniques include: 

• Portfolio management software 
• Benefits mapping and dependency analysis 
• What-if scenario modelling 
• Road mapping for IT project alignment 

These tools help you see the big picture, understanding how changes in one project might ripple across the entire portfolio. 

Creating a comprehensive benefits management framework 

A solid benefits management framework is like a well-designed engine — it keeps everything running smoothly and efficiently. Your framework should include: 

1. Clear definitions of benefits 
2. Standardised processes for identifying, measuring and tracking benefits 
3. Defined roles and responsibilities 
4. A robust governance structure 

This framework ensures everyone's speaking the same language when it comes to benefits. 

Conclusion 

Benefits management is a powerful tool for ensuring your portfolio delivers real value to your organisation. By linking project benefits to organisational objectives, balancing change with BAU and using sophisticated tools for prioritisation, you can maximise the overall value delivered by your portfolio. 

Remember, effective portfolio management isn't just about managing individual projects well. It's about orchestrating a portfolio where projects complement each other, working in harmony to achieve your organisation's strategic objectives. 

In today’s competitive landscape, the ability to prioritise effectively and realise benefits consistently can be a significant advantage. By mastering benefits management and portfolio prioritisation, you're not just managing projects — you're driving your organisation towards success. 

For a more in-depth exploration of this topic, including detailed examples and practical tips, check out the full 4000-word article in the current edition of Project Management World Journal. 

 

You may also be interested in:

• What is benefits management and project success?
• Portfolio management: A practical guide
• APM Portfolio Management Interest Network