A Typical Pattern of Costs and Benefits

Understanding the typical pattern of costs and benefits is crucial for effective program benefits management. It helps program managers align stakeholder expectations, make informed decisions, and ensure the program delivers value throughout its lifecycle.

What is the Typical Pattern of Costs and Benefits?
The typical pattern illustrates how costs and benefits are distributed over the course of a program. Generally, costs are incurred early in the program, while benefits are realized later. The pattern consists of three key phases:
1. Investment Phase: Significant costs are incurred with minimal benefits realized.
2. Harvesting Phase: Benefits start to accrue, while costs decrease or level off.
3. Decline Phase: Benefits diminish, and the program may incur additional costs for maintenance or decommissioning.

How Does it Work?
By understanding the typical pattern, program managers can:
- Set realistic expectations for stakeholders
- Plan for resource allocation and budgeting
- Monitor and track the program's progress
- Make informed decisions about program continuation, modification, or termination

Exam Tips: Answering Questions on A Typical Pattern of Costs and Benefits
1. Identify the phase: Determine which phase of the pattern the question refers to (Investment, Harvesting, or Decline).
2. Analyze the scenario: Look for clues about costs incurred and benefits realized in the given situation.
3. Apply the concept: Use your understanding of the typical pattern to select the most appropriate answer.
4. Consider exceptions: Be aware that some programs may deviate from the typical pattern due to unique circumstances.
5. Manage trade-offs: Recognize that decisions made in one phase can impact costs and benefits in later phases.