Project benefits are the advantages and gains that are delivered by a project. They are defined in a business case and other early stage project documents such as a project charter. Project benefits may be traced to project objectives and tracked over the course of a project. In some cases, a project is delivered on-time and on-budget but project benefits fail to materialize. As such, identification, quantification and validation of project benefits is considered basic due diligence for large projects. The following are illustrative examples of a project benefit.
RevenueRevenue from sources such as a new product or product improvement.
CostCost reductions such as automation of a resource intensive activity.Improving systems, infrastructure and processes to get more output for a unit of input.Improving a tool or process to get more output for an hour of work.
Reducing or avoiding a risk. For example, a new product feature may not improve revenue but it may reduce a competitive risk that can be quantified in terms of potential revenue declines.
Reputation & ComplianceComplying with rules and regulations, improving your reputation or reducing reputational risks.
Taking steps to reduce the environmental impact of your operations, treat workers fairly and improve quality of life for communities.
ResilienceTaking steps to make your organization more resilient to stresses. For example, installing your own solar power systems so that you have some access to power if the grid goes down.
AssetsDevelopment of valuable assets such as digital assets, facilities and infrastructure.
Information and tools designed to improve strategy, decisions and problem solving.Improvements to data quality that reduce operational errors.
Customer ExperienceImproving customer experience, typically measured in terms of customer satisfaction. For example, improvement to a hotel lobby that results in better ratings on travel sites.
Improving your services such as the speed of your website.Improvements to the quality of products such as a phone that is more reliable.Projects that remove gaps between how a brand wants to be perceived and how it is perceived. For example, an organic cosmetics company that reformulates products to remove an ingredient that is perceived as unhealthy, environmentally destructive or artificial.
Competitive advantages that allow you to take market share from competitors.Competitive advantages such as premiumization of products that gives you pricing power in the market. Measured with profit margins.Improving customer lifetime value. For example, preventing customer churn by fixing a problem with your products, services or experience.Anything that is done to increase customer awareness of your brand and its attributes. For example, a project that gives back to the community that also generates significant publicity.Projects designed to improve employee satisfaction or some element of organizational culture such as creativity. For example, renovation of an office to support creative processes such as a mix of quiet spaces and social spaces.Developing the capabilities of teams with training, knowledge tools and knowledge resources.Projects for governments, non-profits and cities are often measured in terms of the quality of life of communities. For example, a project that has air quality benefits.
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