Evaluate and deliver project benefits and value

Project benefits and value are vital concepts in project management as they justify the expenditure of resources on the project. The value refers to the net benefits that the project is expected to generate, taking into account the total cost of the project. On the other hand, benefits typically imply the positive impacts or outcomes derived from the project. These could be tangible like financial gains, or intangible like better brand reputation, customer satisfaction, or staff morale.

Evaluation of project benefits and value, therefore, concerns the measurement and assessment of the benefits and value that a project is likely to deliver, or has delivered. This is essential for any Project Management Professional (PMP) to ensure the strategic alignment of the project and maximum return on investment.

II. Importance of Evaluating Project Benefits and Value

Evaluating benefits and value not only justifies the initial investment in the project but also guides decision-making throughout the project. It helps determine whether to go ahead with a project, pause it, or stop it altogether. By assessing the potential benefits and value of the project, project managers can anticipate resources required, potential issues, and the likely impact on organizational objectives.

Moreover, this evaluation also enables the project manager to communicate the value of the project to stakeholders, gain their support, and manage their expectations throughout the project life cycle.

III. How to Evaluate Project Benefits and Value

Evaluation of project benefits and value is a continuous process throughout the project lifecycle. Here are the key steps:

• Identifying the Benefits: Initially, articulate clearly what the benefits of the project will be. You need a comprehensive understanding of the organization’s strategy to align the project outputs with the organizational objectives.
• Quantifying the Benefits: Convert the identified benefits into tangible measures. This will depend on the nature of the project and the benefits. For instance, if a project aims to improve customer satisfaction, metrics like customer satisfaction scores or repeat purchase rates could be used.
• Mapping the Benefits: Establish a clear link between the project outputs and expected benefits. This should involve identifying the chain of cause and effect that will lead from project delivery to the realization of benefits.
• Evaluating the Value: To comprehend the value, calculate the net benefits of the project. This involves deducting the cost of the project from the total benefits (both monetary and non-monetary). Tools like Cost-Benefit Analysis, Return on Investment (ROI), and Net Present Value (NPV) can be helpful.
• Benchmarking: Compare the project’s benefits and value against past projects or industry standards. This will provide an objective yardstick for the project and enable adjustments as necessary.
• Reviewing: Finally, continuously monitor and review benefits realization. Adjust plans as necessary to ensure that project deliverables lead to the expected benefits and value.

IV. Delivering Project Benefits and Value

Delivering project benefits and value is about ensuring outcomes and benefits are realized. Here’s how:

• Effective Implementation: Execute the project plan effectively and efficiently to the highest quality standards. This ensures that project deliverables, which should lead to the expected benefits, are achieved.
• Stakeholder Engagement: Keep key stakeholders involved throughout the project. Regular updates, honest communication, and effective change management can boost stakeholder buy-in and increase the chances of project success.
• Ongoing Management: Even after the project is closed, the realization of the benefits may carry on. You might need ongoing management of operations, resources, and stakeholders to ensure full realization of the benefits.

V. Conclusion

Evaluating and delivering project benefits and value is crucial for project success and justifying project investment. A systematic and continuous approach to identification, measurement, and management of benefits can help deliver greater value from projects. As a PMP, understanding and applying this approach can greatly enhance your effectiveness in the project management role.