Benefits realization is when actual results meet the goals of a strategy. Each initiative of change has two levels of success: delivery and benefits realization. If you successfully deliver a new project to schedule, requirements and budget the project may still be viewed as a failure if benefits aren't realized. The following are illustrative examples.
Product DevelopmentA new product is developed to specifications, schedule and cost but doesn't sell well resulting in business losses.
Information TechnologyA technology transformation project is based on the business case that it will make core business processes more efficient. When the technology launches, processes become more unstable and key operating metrics worsen.
InfrastructureA high speed rail project is overbudget and late. However, the benefits of the system exceed initial projections with billions of trips logged and a stellar safety record. As a result, the project is perceived as a resounding success.
Customer ExperienceAn airline launches a culture transformation project in customer service to shift to a customer advocate model whereby staff fight for the customer as opposed to fighting for the company. The initiative faces resistance and takes years longer than projected. Benefits eventually are achieved as the firm gains large improvements in customer satisfaction and brand value.
This is the complete list of articles we have written about project management.
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A guide to project risk.
A list of basic project management techniques.
A definition of workaround with examples.
A list of project branding techniques.
A definition of project stakeholder management with examples.
A definition of action plan with examples.
The primary types of cost overrun.
The definition of document control with examples.
A guide to project oversight.
A definition of design driven development with examples.
An extensive list of business strategies.
A reasonably comprehensive guide to strategy.
The difference between a baseline and a benchmark.
A definition of strategy vs tactics with two examples.
A list of common competitive advantages.
A list of macro environment components.
The difference between competitive advantage and distinctive capability.
An overview of a common business strategy.
A definition of restructuring with examples.
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