Manage Benefits

Ali Farshidnasab
S40054276
Assessment 1
Part A – Written or Oral Questions
1. Define Benefit Management. (1 marks)
Benefit management is the process of identifying realistic benefits, planning, ownership, tracking
and actual realization to ensure that any project or program a company undertakes delivery against its
objectives and provides value for money.

2. Provide two examples of Benefit Profile Type . (4

marks)

Examples of Project benefits include:

• Direct monetary benefits (tangible) – those benefits
that can be quantified and valued in financial terms, for
example cost savings, revenue generation, cost
reductions
• Direct non-monetary benefits(tangible) – those that
can be quantified but are difficult or impossible to value
in financial terms, for example fewer customer
complaints, productivity gains, greater accuracy, lower
staff turnover, increased response times
• Indirect benefits (intangible) - can be identified, but
cannot be easily quantified for example end user
satisfaction, better access to information, organizational
image, customer service, better morale, better
perceptions
• Dis-benefits - negative consequences from the
intended change.
3. Why is it important to clearly identify types of benefits? (2
marks)
It is important to clearly identify types of benefits so we can
determine whether projects, programs, and portfolios can
produce the intended business results.
4.Provide and define one example of short and long-term
Benefits. (4 marks)

Every business should set short – and long-term actions and

accompanying tactics to achieve the actions. Short-term actions
help a business deal quickly with crisis or rapid change.
Because these actions are quick and often low cost, their effect
tends to be incremental: for example, sponsoring a project to
refine a product rather than developing something entirely new.
Usually the cost benefits appear quickly and are easy to
measure.
Through long-term actions, businesses aim to achieve
more significant, even transformational changes that will
enable durable and lasting success. They may invest in new
infrastructure was projects or business areas. These
investments take longer to p y off and can be difficult to
quantify in advance — but can act as g me changers f r
businesses.

5. At what stage of Benefit Management is it appropriate or

necessary to communicate short and long-term benefits with
pertinent stakeholders? (4 marks)

When identifying or mapping benefits, these should be

communicated to stakeholders who are likely to be affected by the
project, as well as those who have the ability to make decisions,
for example senior executives. By getting sign-up at the early
stage of the process there will be a mutual understanding of the
project aims and what the likely benefits for stakeholders will be.

6. What are benefit trade-offs? (2 marks)

business functions, such as training workers, improving structures
and transport, etc. However, the trade-off will compensate the
medium and long term, because this can increase the growth of
the organization and increase its profitability.

7. When managing an internal and external program,

how often should expected Benefits be monitored and
evaluated? (2 marks)

Periodic review and monitoring of benefits must be accomplished

during the four phases that bring together key principles,
governance issues and interrelated processes to facilitate
successful business prioritization and measurable business benefits.
1. Identify and Structure encompasses the Initiation and Approval
phase
2. Benefit planning is aligned with the governance and planning
phase
3. Monitoring and optimizing the benefits covers the execution and
control phase
4. Conduct and evaluate the benefits covering the project closure
and review phase.

8. Provide two examples of changes that may occur within a

program
that would trigger a review or amendment to expected benefits. (4
marks)
No initial knowledge about end users, leading to increased
customer dissatisfaction as to the function and use of the product.
No involvement of stakeholders about project objectives and exact
benefits. In this way, stakeholders can generate a review of project
specifications and benefits.

9. During which stage of Benefit Management should expected

benefits be reviewed and updated accordingly? (2 marks)
Reviews are important to track the actual realization of any
planned benefits and to assess the real success of change
initiatives in creating value for the business. Reviews and
upgrades should happen throughout the project cost life cycle.

10. When expected benefits are updated, why is it important to

confirm trade-offs with pertinent stakeholders? (2 marks)

Whenever benefits are updated, stakeholders should be

communicated as they have their own needs and interests within
the project, and any changes can directly affect stakeholder
expectations.

Assessment 1
Part B – Project Instruction
Complete the attached Benefits Measurement Plan based on a
project
of your choice. (18 marks)
Project: Use of steel in construction