Analyze and update the benefits realization and sustainment plans for uncertainty, risk identification, risk mitigation, and risk opportunity in order to determine if corrective actions are necessary and communicate to stakeholders.

One of the essential tasks involves analyzing and updating the benefits realization and sustainment plans, particularly in light of uncertainty, risk management, and opportunity assessment. This process aids in determining if corrective actions are necessary and assists in effective communication to stakeholders. These elements are a key part of the Program Management Professional (PgMP) exam.

Benefits Realization and Sustainment Plans

Benefits realization is the process of executing and managing the benefits an organization intends to yield from a certain program. Sustainment plan, on the other hand, is a method to ensure all benefits continue to be reaped even after the program’s completion.

These management plans need to be frequently examined and modified to accommodate environmental changes, financial shifts, technological advancements, new risks, and market opportunities.

Example: Suppose a company implements a program to introduce a new product in the market with projected benefits of increased market share and revenue. The benefits realization management plan would detail how these objectives will be achieved and measured, while the sustainment plan would outline the strategy to maintain these benefits in the long-term.

Uncertainty and Risk Management

Uncertainty refers to the unpredictable factors that can disrupt the realization and sustainment of benefits. Professionals must strategize to mitigate these uncertainties and maintain the effectiveness of the program.

Risk identification is the first step in risk management. It involves identifying potential threats that might impede the realization of program benefits. Following that, risk mitigation strategies are developed to counteract those effects, striving to minimize their impact and probability.

Example: To curb the uncertainty of a drastic economical change that may affect the forecasted benefits, the organization may opt to hedge or diversify its investments.

Risk Mitigation

Risk mitigation is a strategy to prepare for the potential risks identified during the risk management process. The risk mitigation plan includes specific actions to reduce the probability and impact of identified risks.

Example: If one of the identified risks is a potential supply chain disruption, the risk mitigation plan may include enlisting alternate suppliers, or stocking surplus inventory.

Risk Opportunity

Risks can be both positive (opportunities) and negative (threats). Emphasizing risk opportunity involves strategic anticipation of circumstances that may lead to greater benefits realization. This approach can provide a competitive edge.

Example: An organization may identify changing customer behavior as a risk that may affect product acceptance. If properly managed, the same can turn into an opportunity to tailor the product according to changing demands and realize greater benefits.

Corrective Actions

Following the analysis, if certain areas of the program are found to be below expectations, or if new risks and opportunities are identified, corrective actions may be necessary and should be communicated to stakeholders.

Example: If the benefits realization is slower than projected, corrective actions may involve investing in more aggressive marketing techniques or making adjustments to the product to amplify customer acceptance.

In conclusion, the ability to effectively analyze and update benefits realization and sustainment plans lies at the cornerstone of program management, and consequently, is a key competency assessed in the PgMP exam. By proactively managing uncertainties, identifying risks, exploiting opportunities, and implementing corrective actions when necessary, a Program Management Professional can ensure successful benefits realization and sustainment, while effectively communicating with stakeholders.