As headlines and pending legislation show, government agencies are increasingly embracing project management as a way to efficiently execute programs and improve intended project outcomes. However, the reality is that many of these same organizations are not paying attention to a vital step in the project management process: aligning project benefits to the strategic objectives of the organization and measuring those benefits during and after the project.

A project is only truly successful if it delivers the benefits an organization envisions. This outlook is essential to maximize investments in a competitive and evolving business environment.   

Project Management Institute's (PMI) recent Pulse of the Profession® report analyzed the components of benefits realization management during project execution. To better understand how organizations are maintaining a focus on benefits during project execution, PMI surveyed 717 project management practitioners and conducted in-depth interviews with senior executives. The findings are compelling.

PMI was able to uncover that organizations that successfully deliver on strategy have the right tools and processes in place to monitor and measure benefits. These organizations make an investment in benefits realization management and implement a formal approach that can be replicated across projects. In fact, those that have a fully prescribed process for reporting benefits realization report an average of 38 percent more projects that meet or exceed forecasted ROI. Those that have fully standardized documentation for reporting benefits realization metrics report an average of 19 percent more projects that meet or exceed forecasted ROI.

Additionally, benefits realization leads to more significant roles for project managers within the organization. These roles include communication with those involved in the project and ensuring project benefits stay aligned to the organization's strategic objectives. The latter is crucial during project execution, where benefits can be derailed due to changes in the business, resource challenges, or even external forces. Those changes include sudden shifts in customer demands, which no longer align with the project's original goals.

While organizations that implement a strong project management framework may excel at completing projects and programs successfully, they may have trouble connecting their projects back to the strategy or business purpose — often because they have failed to identify the expected benefits before the start of the project. This leaves value unrealized. Benefits realization management assures that the desired goals and outcomes of a project align with the overall purpose of the organization or program.

It's something every organization needs to implement if they expect project success.

When benefits are managed well, government agencies realize the greatest possible savings for taxpayers. But at this moment, government agencies don't have effective benefits realization management processes in place. In fact, many have no benefits management approaches at all. And, as the findings from PMI's recent research show, these agencies are missing an opportunity to ensure their projects deliver the expected strategic impact and drive success of government-related projects. 

However, there are some great examples globally of governments and agencies that utilize sound benefits realization management frameworks. In Australia, the Government of New South Wales has a benefits realization framework that helps to "focus attention on the most important benefits" and "improve the chances of successful business change by focusing on final outcomes".  

Additionally, the UK government has a strong benefits realization framework that articulates every stage of a "best in class" benefits realization process comprising five different, yet related, stages: identification, valuation, planning, realization and review. In both these governments, benefits realization frameworks play a vital role in ensuring that projects and programs meet intended goals and align to the overall strategy. 

A benefits realization management framework could soon be a reality in the U.S. federal government as well. If enacted, S.1550, the Program Management Improvement and Accountability Act of 2015 (PMIAA), will make unprecedented improvement to program and project management policy and bolster workforce development throughout the U.S. federal government. The increasing adoption of sound program management practices would allow for the implementation of a benefits realization management approach which would directly result in the intended benefits of government-related projects aligning with their strategic objectives.

PMI believes that all organizations, and especially the federal government, can significantly improve their impact through identification and management of benefits. We recommend that organizations establish a project management framework that incorporates sound benefits realization management techniques.  As Winston Churchill once said, "However beautiful the strategy, you should occasionally look at the results."

Jordon Sims is director of organization relations and programs for the Project Management Institute.

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