In the context of PRINCE2 7 Practitioner and the Business Case practice, the Benefits Management Approach is a specialized management product that describes how, when, and by whom the project's benefits will be measured and realized. While the Business Case provides the justification for the projec…In the context of PRINCE2 7 Practitioner and the Business Case practice, the Benefits Management Approach is a specialized management product that describes how, when, and by whom the project's benefits will be measured and realized. While the Business Case provides the justification for the project by comparing costs against expected value, the Benefits Management Approach acts as the practical execution plan to ensure that this value is actually achieved.
Its primary objective is to move beyond simple estimation to concrete realization. It defines the specific management actions required to ensure that the project's outputs lead to the desired outcomes and subsequent benefits. The document details the 'scope' of the benefits, the 'baseline' measurements (current performance levels), and the specific 'metrics' used to quantify improvement. Crucially, it establishes the timeline for benefit reviews, which often extends beyond the project's closure into the operational phase.
Regarding roles, the Senior User is ultimately accountable for specifying the benefits and ensuring they are realized, while the Project Manager is responsible for ensuring the approach is created and maintained. The document is first created during the 'Initiating a Project' process. It is then reviewed and updated at every stage boundary to reflect any changes in the Business Case. Finally, during the 'Closing a Project' process, it is updated to schedule post-project benefit reviews, ensuring that the organization tracks long-term value even after the project team has disbanded.
Comprehensive Guide to the Benefits Management Approach in Prince2 Practitioner v7
What is the Benefits Management Approach? In Prince2 7, the Benefits Management Approach is a management product that defines the management actions that will be put in place to ensure that the project's outcomes are achieved and confirmed. It essentially describes how and when a measurement of the achievement of the project's benefits can be made. It acts as the bridge between the delivery of outputs and the realization of value.
Why is it Important? Projects are investments designed to create value. Without a Benefits Management Approach, an organization risks the 'deliver and forget' scenario, where a project delivers a product, but no one checks if it actually solved the business problem. Its importance lies in: 1. Accountability: It specifies exactly who is responsible for realizing specific benefits. 2. Validation: It proves whether the Business Case was justified. 3. Alignment: It ensures that project outputs actually lead to the desired business outcomes.
How it Works The document is dynamic and evolves throughout the project lifecycle: 1. Initiation: Created during the Initiating a Project process. The Project Manager creates it, but the Senior User is responsible for specifying the benefits. 2. Baselines: It must record the current performance (e.g., 'Current sales are 100 units/month') to serve as a baseline for comparison. 3. Reviews: It is updated at each Stage Boundary to reflect any approved changes or delays. 4. Closing: During Closing a Project, it is used to assess benefits realized during the project and to plan for the review of benefits that will be realized after the project has finished.
Exam Tips: Answering Questions on Benefits Management Approach For the Prince2 Practitioner exam, you will be analyzing a scenario. Here is how to tackle questions related to this topic:
1. Watch for 'Who': The Senior User is accountable for specifying the benefits and ensuring they are realized. The Project Manager ensures the plan is created and updated. If a question implies the Project Manager is responsible for realizing a post-project benefit, it is likely a 'False' or inappropriate action.
2. Distinguish Output vs. Benefit: Exam questions often confuse these to trick you. Output: The App (Deliverable). Outcome: Customers can order online (Change). Benefit: 20% increase in sales revenue (Measurable Value). The Benefits Management Approach focuses on the Benefit. If the document lists 'New Server Installation' as a benefit, it is incorrect.
3. Measurability is Key: Critique the scenario. Are the benefits vague? 'Better culture' is not a valid entry for a Benefits Management Approach. It must be quantifiable, such as 'Employee satisfaction index increased by 5 points'.
4. The Post-Project Trap: Pay attention to timing. Many benefits are realized after the project closes. The Approach must explicitly state who (corporate, programme management, or the customer) will measure these after the project team has disbanded. If the plan assumes the Project Manager will measure benefits 6 months after closure, the approach is defective.