This is the first in the 4 part blog about BRM and benefit value in an organization. Benefits management is crucial to any organization if the strategic goals are to be met. Every organization goes in to business with one goal, to gain some benefits from the investments made; in the context of portfolios, programs and projects. There are better chances of achieving this, if there is proper and established approach to Business Realization Management (BRM), a great driver to project success. One of the reasons why most projects fail, is because they fail to consider the benefits that the business inspire to achieve but rather get so much engrossed with the delivery of products and management of deliverables.
Why BRM?
To forge a greater working capacity between IT and the business environment, BRM is needed to be the mediator that harmozies IT operations with the business strategies of the company. IT contributes to a company’s services by demonstrating it’s value and relevance to the business by helping an organization to prioritize projects and ensure that portfolios, programs and projects are well aligned, with the technology that maximizes ROI (Return on investment). Shortly put, it helps to bridge the gap from the actual planning of a deliverable to realization of maximum measurable benefits. Programs and project managers are usually tasked with securing value creation in the organization is achieved, through creation of a dialogure-friendly environment where different departments work towards the right conditions for success. To have realistic chances of aligning business operations with the strategic goals of an organization, the project manager should be responsible for strategic alignment of projects within a program while the portfolio manager is responsible for strategic alignment of programs. In simple sterms, BRM is the chain connecting a business strategic goals and the benefits realized.
How company culture influnces BRM
Company management plays a significant role in building a culture and practice within the company’s structure, that is tailored to meet this approach. When there is a positive company culture which nurtures accountability and collaboration, it quickly becomes possible for the company to move forward and work towards their strategic goals and a guided path in decision-making. The involvement of management and executive leadership in aligning the key three levels of a product development cycle (portfolio, program and project managers), are the steering factors in adapting the best practices of BRM to fit a company’s culture and improve benefit realization and sustainment. The three key steps which are used in implementing BRM are:
- Identifying benefits – In the initial phase of the project, it is important that the benefits to be attained are well addressed within the business case. It is a key decision-making moment, where management should ensure that the projects’ benefits are aligned with the strategic goals and objectives of the company.
- Benefits execution – This is guided by a benefits execution plan in which key performance indicators are continously used to monitor progress as well as discovering new benefit opportunities.
- Sustaining the attained benefits – This occurs post delivery of the deliverables where an evaluation is performed to review the execution phase and the goodies and failures along the way.
To further understand why most businesses struggle with BRM realization in an organizational context, continue to the second series.
Project Management 