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A summery of Benefit Realization Management

Today is the final day of the “Strategies, Benefits and Alignment” course. I can’t believe that almost two months have past since the program introduction and the initial lecture. As I stated in my previous blog post I will try to summarize the essence of the two books “The standard for Portfolio Management” and “Benefit Realization Management – A practical guide” in the two final blog posts of the course. Today, it’s time for “Benefit Realization Management – A practical guide”.

What is Benefit Realization Management
Benefit Realization Management (BRM) is a framework, developed by PMI, that aim to provides organizations a way to measure how portfolios, programs and project deliverer value to the organization. Business strategy is fundamental to BRM as it utilizes a holistic approach to derive, plan, manage and track the identified benefits, beyond the scope of a particular portfolio, program or project.

BRM is constituted by three phases: identify, execute and sustain. During the identify phase, senior management identify the benefits to be pursued by the organization and determine whether a portfolio, program or project could produce the intended business result. During the execute stage, portfolio managers, program managers and project managers plan and execute activates to achieve the requested outputs that realize the identified benefit. The goal of this stage is to maximize the opportunity of benefits being realized while minimizing the risk of future benefit being forfeit. The last phase, sustain, is where plans and activities are executed to sustain the values obtained if or when the current conditions (market, strategy, legislations etc.) change.

Core principals
PMI have identified five core principles of BRM: net benefits justify the use of invested resources; commencement of work is driven by benefits identification; planned benefits are identified in authorizing documents; benefits realization is holistically planned and managed; and governance and adequate resources are essential to BRM success. When applied, these core principals align and structure the work of the organization to ensure that the organization strive towards the right set of goals and resources are well spent.

Benefit tracking
BRM emphasizes on benefit tracking as a critical success enabler. In order to monitor the identified benefits throughout their lifecycle, identified benefits needs to be organized, categories and assigned to the different initiatives of the organization. Tools, such a benefit register, a benefit map or a benefit traceability matrix could constitutes a charter of authorized benefits and visualize the plan of how they will be achieved. This will also help senior management to illustrate how changes of strategy or priorities affect the overall benefit realization plan.

Culture
BRM emphasize on building the right culture with clear roles and responsibilities. To enable the successful implementation of BRM a culture that embrace changes must be established and where executives, initiative leaders, suppliers, individual contributors, and stakeholders are able to easily identify the intended outcome of each initiative; not just the deliverables. Some might even argue that the definitions of project success must be redefined within organizations implementing BRM.

According to me, these are the foundations to begin your implementation of benefit realization management. However, there are more subjects and several critical success enablers that should be considered. Please read the full book for further details.

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Core principels of BRM

Today is Saturday and I’m trying to finish up this weeks study,
unfortunately life is getting in the way and to be honest, this have been the case for the entire week. On the positive side, I’ve managed to study the initial chapters of the standard for benefit realization management with a focus on the core principals of BRM.

These core principles should be considered common sense in any organization but to be fair, this is likely not the case. I believe it’s important for organization to utilize a framework and to articulate the guidelines or principles needed to support this; providing them the references to keep within.

The core principles of BRM are:

  • Net benefits justify the use of invested resources
  • Commencement of work is driven by benefits identification
  • Planed benefits are identified in authorizing documents
  • Benefits realization is holistically planned and managed
  • Governance and adequate resources are essential to BRM success

According to me the most interesting principle is the fourth – Benefits realization is holistically planned and managed. Though, this principle is probably aimed at larger companies and organizations it’s the first time I thought about IT projects from a strategic view.

What do you think? Got a favourite principle of BRM? Please leave a comment.