The Benefits Management Approach is a fundamental component within PRINCE2 7 that defines how benefits will be identified, tracked, measured, and ultimately realised throughout and beyond the project lifecycle. This approach serves as a strategic document that ensures the project delivers tangible …The Benefits Management Approach is a fundamental component within PRINCE2 7 that defines how benefits will be identified, tracked, measured, and ultimately realised throughout and beyond the project lifecycle. This approach serves as a strategic document that ensures the project delivers tangible value to the organisation.
The Benefits Management Approach establishes the framework for understanding what benefits the project aims to achieve and how these will be quantified. It identifies who is responsible for achieving each benefit, typically assigning benefit owners who remain accountable for their realisation. This accountability often extends beyond the project manager to senior stakeholders or business change managers.
Key elements included in the Benefits Management Approach encompass benefit profiles that describe each expected benefit in detail, baseline measurements against which improvements will be assessed, target values that define success criteria, and the timeframes within which benefits should be realised. Many benefits materialise after project closure, making this approach essential for long-term value tracking.
The approach also outlines measurement techniques and data collection methods required to demonstrate benefit achievement. It specifies when benefit reviews will occur and who will conduct them, ensuring continued focus on value delivery rather than just output completion.
Within the Business Case practice, the Benefits Management Approach provides crucial evidence that supports continued project viability. It helps decision-makers understand whether projected benefits remain achievable and whether the investment continues to be justified. Regular benefit reviews inform stage gate decisions and help identify when adjustments to project direction may be necessary.
The approach acknowledges that some benefits are easier to measure than others, distinguishing between tangible benefits like cost savings and intangible benefits such as improved customer satisfaction. Both types require appropriate measurement strategies to demonstrate project success and organisational value creation.
Benefits Management Approach in PRINCE2 7th Edition
What is the Benefits Management Approach?
The Benefits Management Approach is a key management product within the Business Case practice of PRINCE2. It defines how and when the measurement of benefits will be achieved, and by whom. This document outlines the actions required to ensure that the project's outcomes are achieved and that the expected benefits are realized both during and after the project.
Why is the Benefits Management Approach Important?
Projects exist to deliver benefits to organizations. The Benefits Management Approach is crucial because:
• It provides a structured framework for tracking and measuring benefits • It ensures accountability for benefit realization by identifying who is responsible • It establishes baselines against which improvements can be measured • It extends beyond project closure, ensuring long-term value delivery • It helps justify the investment made in the project • It supports decision-making throughout the project lifecycle
How Does the Benefits Management Approach Work?
The Benefits Management Approach typically includes:
Scope: Defines which benefits will be managed and tracked
Accountability: Identifies who is responsible for achieving each benefit (usually the Senior User)
Baseline Measures: Documents the current state before the project begins
Target Measures: Specifies the expected improvement or target values
Measurement Methods: Describes how benefits will be measured
Timing: Indicates when benefits will be measured, including post-project reviews
Resources: Identifies what resources are needed to track benefits
Key Relationships
The Benefits Management Approach is closely linked to: • The Business Case (which identifies the benefits) • The Project Product Description (which defines the outputs that enable benefits) • Post-project benefits reviews
Responsibilities
The Senior User is primarily responsible for specifying benefits and ensuring they are realized. The Executive is accountable for the Business Case, which includes the benefits. The Project Manager maintains the Benefits Management Approach document.
Exam Tips: Answering Questions on Benefits Management Approach
1. Remember the timing: Benefits are often realized after project closure. Questions may test whether you understand that benefits management continues beyond the project.
2. Know the responsibilities: The Senior User specifies and confirms benefits. The Executive owns the Business Case. Exam questions frequently test role accountability.
3. Distinguish between outputs and benefits: Projects deliver outputs (products), which enable outcomes, which lead to benefits. Benefits are the measurable improvements to the organization.
4. Understand baselines: You cannot measure improvement if you do not know the starting point. Questions may ask about the importance of establishing baseline measurements.
5. Link to Business Case: The Benefits Management Approach supports the Business Case by providing evidence of benefit realization. Questions may test this relationship.
6. Watch for dis-benefits: The approach should also consider dis-benefits (negative consequences) that need to be managed.
7. Look for keywords: When exam questions mention measuring benefits, tracking improvements, or post-project reviews, think Benefits Management Approach.
8. Remember it is a living document: The Benefits Management Approach is updated throughout the project as understanding of benefits evolves.
Common Exam Question Themes
• Who is responsible for benefit realization? • When should benefits be measured? • What is the purpose of the Benefits Management Approach? • How does it relate to the Business Case? • What information does it contain?