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Benefits Realization Governance

5 minutes 5 Questions

Benefits Realization Governance defines the framework for the decision-making process related to a project’s benefits. The governance process ensures that benefits are identified, planned, delivered, reviewed, and sustained in a controlled manner. It includes the roles and responsibilities of the various stakeholders in realizing benefits and provides the policies, procedures, and guidelines to be followed. Benefits Realization Governance is crucial for ensuring transparency in the process and for establishing accountability for the realization of project benefits.

Guide: Benefits Realization Governance

What is Benefits Realization Governance?
Benefit Realization Governance is a structure that ensures projects or changes implemented in an organization deliver the expected benefits. It focuses on achieving strategic objectives through the effective management of benefits.

Importance
Benefits Realization Governance is important because it ensures that resources are effectively utilized and investments made towards change are yielding the expected results. It helps in aligning projects with the organization's strategic goals, thereby providing value for money. Additionally, it provides transparency and accountability within the organization.

How it Works
Benefits Realization Governance involves creating a framework that outlines how benefits will be tracked and measured, identifying benefits realisation roles, responsibilities, and the process to follow. This process includes benefit identification, benefit analysis & planning, benefit delivery and benefit review.

Exam Tips: Answering Questions on Benefits Realization Governance
When answering questions on Benefits Realization Governance:

1. Ensure you understand the concept of benefits realization.
2. Define Benefits Realization Governance clearly in your answers.
3. Explain how Benefits Realization Governance drives strategic alignment.
4. Showcase the relevance of Benefits Realization Governance by citing practical examples wherever possible.
5. Be familiar with its process right from benefit identification to review.

Understanding and answering questions on Benefits Realization Governance requires a good grasp of not just the definition but also its practical application in an organizational setting.

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CAPM - Benefits Realization Management Example Questions

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Question 1

In a scenario where a project is not delivering the expected benefits, what strategy should be reviewed and possibly adjusted?

Correct Answer: Benefits realization plan

In a scenario where a project is not delivering the expected benefits, the 'Benefits realization plan' should be reviewed and possibly adjusted. This strategy outlines the anticipated benefits of a project and how they will be delivered and measured. The 'Corporate Social Responsibility strategy' is a broader concept and does not directly focus on the project’s benefits. 'Marketing strategy' may impact the visibility and uptake of a project's benefits, but does not decide the realization of these benefits. The 'Competitor's business strategy' is not relevant to the internal benefits of a project.

Question 2

In benefits realization governance, what is the primary purpose of conducting a benefits mapping exercise?

Correct Answer: To visualize the relationship between project outputs and strategic objectives

The primary purpose of conducting a benefits mapping exercise in benefits realization governance is to visualize the relationship between project outputs and strategic objectives. This is the most accurate answer because benefits mapping is a crucial tool that helps project managers and stakeholders understand how the deliverables of a project contribute to the overall strategic goals of an organization. It creates a visual representation that links project activities and outputs to intermediate outcomes and ultimately to the strategic objectives. The other options are not the primary purposes of benefits mapping: Creating a detailed timeline for benefit realization is more related to benefits scheduling or planning, not mapping. Assigning monetary values to expected benefits is part of benefits valuation, which is a separate process from benefits mapping. Identifying potential risks that may hinder benefit achievement is more closely related to risk management. While benefits mapping can indirectly help identify risks, it's not the primary purpose of the exercise. Benefits mapping is essential for ensuring that projects are aligned with organizational strategy and for demonstrating how project outcomes contribute to overall business value.

Question 3

Your project is almost finished and, as part of closing out the project, you are evaluating the benefits realization. When does the benefits realization period end?

Correct Answer: When the benefits have been fully realized and are not expected to further grow

The benefits realization period ends when the benefits have been fully realized and are not expected to further grow, hence option with pk 151210 is the correct answer. This is because the purpose of evaluating benefits realization is to assess whether the project has delivered the expected benefits and value. If the benefits have been fully realized and are not expected to further grow, it implies that the project has achieved its objectives. On the other hand, the other answers are incorrect. 'Immediately after project closure' (pk 151211) is not correct because there may still be benefits to realize after the project has officially closed. 'When the project budget has been fully spent' (pk 151212) is also not a valid end to benefits realization because the realization of benefits does not solely depend on the expenditure of the budget. Finally, 'one year after project closure regardless of the benefits outcome' (pk 151213) is not correct because the benefits realization period is not determined by a fixed period but by whether the benefits and value have been fully realized.

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