Benefits realization management is really quite a simple concept as depicted by our Value Equation™
Project change “activities” (A) progressively deliver “desired business outcomes” (O) — business end states.
The outcomes deliver, enable or support one or more “benefits” (B)
Each benefit can have a value (V) — which may be dollars or some other measure
This value is determined by the value drivers (D) — the assumptions at the time of realization (These drivers are the financial elements that can change during the course of the project).
To many, this ‘Equation’ seems self-evident, but most projects are not set up to allow its use to track, measure and quantify their benefits.
A key characteristic of the equation is that every element is measurable — completion of each change activity, delivery of each outcome, realization of each benefit, the value of each benefit and the current value of each value-driver are all measurable. This level of measurability is not a characteristic shared by most project or benefits management approaches.
