In PRINCE2 7, dis-benefits are a crucial concept within the Business Case practice that represents the perceived negative outcomes or adverse consequences that may result from implementing a project or change. Unlike risks, which are uncertain events that may or may not occur, dis-benefits are anti…In PRINCE2 7, dis-benefits are a crucial concept within the Business Case practice that represents the perceived negative outcomes or adverse consequences that may result from implementing a project or change. Unlike risks, which are uncertain events that may or may not occur, dis-benefits are anticipated negative impacts that are expected to happen as a consequence of the project deliverables being realized.
Dis-benefits are essentially the opposite of benefits. While benefits represent the positive, measurable improvements that justify a project's existence, dis-benefits acknowledge that change often comes with downsides that must be accepted as part of achieving the desired outcomes. They represent the price an organization pays for obtaining the benefits.
Examples of dis-benefits include: staff redundancies resulting from automation, increased workload during system transitions, loss of familiar processes or systems, reduced customer satisfaction during implementation periods, or environmental impacts from new facilities.
In the Business Case, dis-benefits must be identified, quantified where possible, and documented alongside benefits. This provides stakeholders with a balanced and realistic view of what the project will deliver. The net value of a project is calculated by weighing benefits against both costs and dis-benefits.
Managing dis-benefits involves several key activities. First, they should be identified early during project initiation. Second, their impact should be estimated and expressed in measurable terms when feasible. Third, strategies should be developed to minimize or mitigate their effects where possible. Finally, accountability should be assigned for managing each dis-benefit.
The Business Case should demonstrate that the expected benefits outweigh the combined costs and dis-benefits, providing justification for proceeding with the project. Throughout the project lifecycle, dis-benefits should be monitored and reassessed to ensure the business case remains viable and the project continues to represent value for the organization.
Dis-benefits in PRINCE2: A Complete Guide
What are Dis-benefits in PRINCE2?
Dis-benefits are the measurable negative outcomes of a project that are perceived as detrimental by one or more stakeholders. They represent the downside or negative consequences that result from implementing a project, even when the project successfully delivers its intended outputs and benefits.
In PRINCE2, dis-benefits are formally documented in the Business Case and must be weighed against the expected benefits to determine whether the project remains viable and worthwhile.
Why are Dis-benefits Important?
Understanding dis-benefits is crucial for several reasons:
• Balanced Decision Making: They provide a complete picture of the project's impact, enabling informed investment decisions • Stakeholder Management: Identifying dis-benefits helps manage expectations and address stakeholder concerns proactively • Risk Awareness: They highlight potential negative impacts that need to be monitored and managed throughout the project • Business Case Validity: The overall value of a project can only be assessed when both benefits AND dis-benefits are considered together • Continued Business Justification: Dis-benefits must be monitored to ensure the project remains justified
How Dis-benefits Work in PRINCE2
Dis-benefits are managed through the Business Case practice:
1. Identification: During project initiation, potential dis-benefits are identified through stakeholder analysis and impact assessments
2. Documentation: All dis-benefits are recorded in the Business Case document with clear descriptions and estimated values where possible
3. Quantification: Like benefits, dis-benefits should be measurable. They may be expressed in financial terms, time, quality metrics, or other relevant measures
4. Ownership: Dis-benefits should have owners who are responsible for monitoring and managing them
5. Review: At each stage boundary, dis-benefits are reviewed to check if they have changed or if new ones have emerged
Examples of Dis-benefits
• Staff redundancies resulting from automation • Temporary reduction in productivity during system implementation • Loss of existing customers due to service changes • Environmental impact from construction • Increased operational costs in specific areas • Reduction in staff morale during organizational change
Dis-benefits vs Risks
It is essential to understand the difference:
• Dis-benefits are certain negative outcomes that will occur if the project proceeds • Risks are uncertain events that may occur and could have negative impacts
Exam Tips: Answering Questions on Dis-benefits in PRINCE2
1. Remember the Definition: Dis-benefits are negative outcomes that ARE expected to happen, not things that MIGHT happen (those are risks)
2. Location in Documentation: Dis-benefits are recorded in the Business Case - if a question asks where they are documented, this is the answer
3. Measurability: Like benefits, dis-benefits should be measurable. Look for answer options that emphasize quantification
4. Stakeholder Perspective: Remember that dis-benefits are defined from stakeholder viewpoints - what one stakeholder sees as negative, another might view differently
5. Distinguish from Risks: Exam questions often test whether you can tell the difference between dis-benefits (certain negatives) and risks (uncertain events)
6. Business Case Context: Questions about dis-benefits are typically connected to business justification and investment decisions
7. Watch for Scenario Questions: In scenario-based questions, identify statements describing definite negative consequences versus potential problems
8. Net Value Calculation: Remember that project value equals benefits minus costs AND dis-benefits - all three elements matter
9. Ongoing Management: Dis-benefits are reviewed throughout the project lifecycle, not just at the start
10. Keywords to Look For: Terms like 'negative outcome', 'adverse effect', 'downside', and 'detrimental impact' often signal dis-benefits in exam questions