Benefits of Management are Essential for Business


By Avesh Dahiya


Benefits Management refers to the management of benefits obtained from various change programs undertaken by an organization. The function of Benefits Management is to: determine the benefits that each project would provide to an organization; maximize the benefits for a project; and at the end of a project determine whether the predetermined benefits have actually been obtained. Benefits Management comes into focus before beginning a project, during the implementation of a project, as well as at the end of a project.

Benefits Management is quite different from project management. Traditional project management methodologies normally focus on time, cost, and quality and a project manager is responsible for administering and monitoring a project, and ensuring that it is completed on time. The benefits manager is responsible for benefit determination and evaluation of a project. In case of benefit determination, the task of a benefits manager begins before that of a project manager, i.e. before the implementation actually begins. Thereafter, on completion of the project, the task of the project manager ends, while the role of the benefit manager comes into focus in benefit evaluation. During the implementation of the project, the benefits manager and the project manager have to work in synchronization with each other.

From the above conversation, it is clear that the first step in Benefits Management is determining the benefits that would be obtained from a project in a clear-cut manner; both the tangible as well as intangible benefits foreseen through a project need to be defined. These benefits need to be prioritized, which is necessary for the selection of the right project. The benefits manager also has to develop suitable measures and timeframes for the benefits. However, measuring the benefits of a project can be a hard task. It becomes even more complicated in case of measuring intangible benefits. Surveys of staff members, customers, etc. can help in this process. Sometimes, statistical models are utilized for the measurement of benefits.

During the implementation of project, the benefits manager has to check whether the benefits are being achieved within the specified time frame. He also has to decide whether there is a possibility of increasing the benefits, and suggest appropriate measures to the project manager.

The benefits provided by a project are affected by several internal as well as external circumstances, which are subject to change. Hence, in the course of execution of a project, it may sometimes happen that a certain change in the internal or external environment of the firm reduces the pre-determined benefits of the project. In this situation, the project might have to be scrapped altogether or modified. This situation is known as ‘benefits creep’.

After the completion of the project, the benefits manager measures the actual profit received, using the measurability criteria developed in the first stage. At this stage, discrepancies between actual and pre-determined benefits are noted, and reasons for the same are gauged.

Why is Benefits Management essential? Benefits Management helps in determining the benefits that each project would provide to the firm, and therefore helps the management in selecting the right projects. Unnecessary projects, which would not provide any real benefit to the firm, can be avoided and optimum use of available resources can be made. As the benefits manager regularly monitors the benefits obtained throughout project implementation, there is a greater probability of the predetermined benefits being achieved and if any negative aspects arise within a project, they can be dealt with straight away. Benefits Management can also help in interlinking similar projects so that the benefits obtained from each project can be maximised.


More Resources

Unable to open RSS Feed $XMLfilename with error HTTP ERROR: 404, exiting

More Management Information:

Related Articles

How to Make the Best of it - Take Your Weather with You
I once worked in a place where there were three lines of words, placed just before employees went from backshop to front of shop. These said:-Smile!Remember - you represent your CompanyDelight your customers.
Building Bridges of Communication
Building a 'bridge of understanding' between parties is fundamental if your business communication is to succeed. If you are a consultant to a client, or a salesperson attempting a closer relationship with your customer, here are five techniques that help achieve just that.
I Cant Use This Approach Unless My Boss Does - Power, Accountability, and Consequences
People who work with us often struggle with this dilemma: in theory, they come to believe that it would be very helpful to use our approach with people who have more power than they do, and in practice, sometimes it seems too risky to try. Some examples of things that feel too risky include raising questions with your boss about his or her performance, disagreeing publicly with people who have more power , or otherwise sharing information that might lead you or the person in power to feel put on the sp ot.
Hire People For What They Do Best
I recently flew from Seattle to Atlanta, I realized, just as we began our taxi, that it takes hundreds of support personnel to maintain a flight. I saw the woman at the check-in desk, security, pilots, luggage handlers, flight crews, air controllers, and the various staff physically on the tarmac doing whatever people do on an airport tarmac.
Top Ten Tips About Communicating with Your Employees Effectively
Communication is the basis of who you are as a manager/leader in business. The rules are simple and the good news is that you can learn them and develop your skills.
How to Deal With Salespeople
If you are an executive, you may sometimes feel like a open jelly sandwich at a picnic. Every crazy critter in the world wants to bite into your budget.
Morale Boosters: Feed the Troops First
When economic conditions turn tough or when the heavy work load seems never-ending, leaders tend to forget the "basics"-building commitment beyond the paycheck. It's the small things everyday that can bring down morale and it's the small things everyday that can raise performance.
7 Essential Elements To Every Organizational Change
[This article is based on excerpts from the special report "Overcoming Resistance to Change" by Dr. Mike Beitler.
Demise of the Lone Ranger Manager: A Lesson in Management Communication Style
When executives see themselves as solely responsible for the overall success of their enterprise, subordinates can hardly be blamed for acting according to predictions.Let's look at a familiar scene in classical American - if I may use the word - mythology.
Downsizing in Organisations - The Real Truth
I've met and worked with many people in all sectors of the business world and found that the majority of managers and team leaders are spending too much of their time on basic administrative tasks. Tasks for which they have had no training in.
Allowing Employees Responsibility
Merely assigning a task with detailed instructions is not effective delegation. An employee cannot grow without the freedom to make decisions on how the job should be done.
Improving Patient Sensitivity in Doctors and Hospital Staff
COMPANY/ORGANIZATIONA South Florida hospital. The CEO of the hospital saw the need to provide exceptional customer service to differentiate itself from the competition and avoid being acquired.
Is Busyness Affecting Your Business?
I'm too busy; I'd love to but I'm very busy; I'll get round to that when I'm not so busy.How often have you said any of those phrases? How many times a week do you hear someone else say those phrases? They're very common and busyness seems to have become a way of life for many people.
The Seven Cs: Partnership Danger Signs - The 5th C: Control Issues
A series of articles exploring the seven critical areas that can indicate a partnership is in trouble.The 5th C: Control IssuesWhen control is in the picture it is a lose/lose proposition.
Attract and Retain Positively Great Employees - An Action Plan for Employee Training
Everyday a business owner, CEO, or manager somewhere is complaining about the lack of good employees. On the same day, in a break room, employees are complaining about the lack of good jobs.
Innovation Management - Diversity Can Make All The Difference
Companies are welcoming a diverse range of employees (The Sunday Times, April 10 2005). Doh!It is incredible that this concept is getting coverage in 2005.
Smart Choices: How to Hire the Best
Your organization's continued growth and success depend on making smart choices and hiring the best. Today's economy is exploding with talent, allowing you to be selective about the staff you hire.
Business Intelligence & Data Warehousing in a Business Perspective
Business IntelligenceBusiness Intelligence has become a very important activity in the business arena irrespective of the domain due to the fact that managers need to analyze comprehensively in order to face the challenges.Data sourcing, data analysing, extracting the correct information for a given criteria, assessing the risks and finally supporting the decision making process are the main components of BI.
Customer Focus - Just 5 SimpleThings You Need to Think About
You can boil down the difference between successful businesses and the rest in how they work with their customers, in just five areas.So, what does this mean?What They WantSelling what your customers really want is just critical.
Innovation Management and Brainstorming Management - why people hate to brainstorm!
Creativity can be defined as problem identification and idea generation whilst innovation can be defined as idea selection, development and commercialisation.There are distinct processes that enhance problem identification and idea generation and, similarly, distinct processes that enhance idea selection, development and commercialisation.