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    Planned Benefits Delivery vs. Actual Benefits Delivery

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    Lillian

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    © All Rights Reserved
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    Planned Benefits Delivery vs. Actual Benefits Delivery

    Uploaded by

    Lillian
    4 views2 pages

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    © © All Rights Reserved

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    PDF, TXT or read online from Scribd

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    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    4 views2 pages

    Planned Benefits Delivery vs. Actual Benefits Delivery

    Uploaded by

    Lillian

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    Project Management Notes: Planned Benefits Delivery vs.

    Actual Benefits Delivery

    1. Planned Benefits Delivery:

    o At the start of a project, organizations often identify the expected benefits


    and value to be delivered upon the project's completion. These are
    documented in the business case.

    o Examples of planned benefits include increased revenue, cost savings,


    improved customer satisfaction, enhanced market share, etc.

    2. Actual Benefits Delivery:

    o As the project progresses, it is essential to measure the benefits that are


    actually being delivered.

    o This involves tracking the real outcomes against the expected outcomes
    to assess if the project is on track to deliver the planned benefits.

    Importance of Measuring and Comparing Benefits:

    1. Justification for Continuation:

    o By comparing the planned benefits with the actual benefits delivered,


    project managers and stakeholders can determine whether the project is
    meeting its intended goals.

    o If the actual benefits align with or exceed the planned benefits, this
    provides a strong justification for continuing the project.

    2. Identification of Issues:

    o If there is a significant discrepancy between the planned and actual


    benefits, it could indicate issues that need to be addressed, such as
    scope changes, resource allocation problems, or unrealistic initial
    assumptions.

    o This comparison helps in making informed decisions about project


    adjustments.

    3. Decision Making:

    o The insights gained from this comparison can lead to critical decisions,
    such as:

     Continuing the Project: If the project is delivering the expected


    benefits, it makes sense to continue.

     Revising the Project: If there are minor discrepancies,


    adjustments can be made to bring the project back on track.
     Cancelling the Project: If the project is not delivering the
    expected benefits and there is no clear path to achieving them, it
    might be prudent to cancel the project to avoid further resource
    wastage.

    Example:

    Consider a project with the planned benefit of reducing operational costs by $200,000
    annually. Throughout the project, the actual benefits delivered are monitored:

    • Mid-project review:

    o Planned reduction by this point: $100,000

    o Actual reduction achieved: $70,000

    • Actions Based on Comparison:

    o Analysis: Investigate why the actual reduction is lower than planned (e.g.,
    implementation delays, additional unforeseen costs).

    o Decision: Based on the analysis, decide whether to adjust the project


    approach, allocate additional resources, or, if the shortfall is significant
    and likely to persist, consider project termination.

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