Benefits management is the third domain in program management according to the Examination Content Outline. These questions constitute 11%, or 19 questions, on the PgMP® exam. Since programs are established in order to obtain greater benefits than if the projects and other work that comprise them were managed in a standalone fashion, it is essential to focus on benefits management from the time the program was set forward in its business case, as a candidate to be in the organization’s portfolio, until the program is officially closed, and the realized benefits then are transferred to others.
This area, therefore, focuses on the importance of the benefits realization plan and the criteria that are used to determine whether the benefits in the plan actually are met. This plan requires detailed and ongoing communications with stakeholders, especially if there are changes to the plan during the life of the program. Any changes, especially when benefits are realized as described in the plan or if they need to be modified, must be communicated to stakeholders, especially to the Governance Board and to the sponsor.
Additionally, a benefits transition plan and a benefits sustainment plan are needed. This means that once the program ends, its benefits then are transitioned to customers, end users, or to a product or an operations support group. These stakeholders require involvement in the program and a detailed understanding of the benefits of the program so they are able to sustain them once a project in the program is complete as well as the entire program.
Metrics then must be monitored to make sure the benefits are realized as stated in the plan and are communicated to stakeholders often in terms of a benefits realization report. Some benefits will be tangible and easily quantifiable, while others will be intangible and difficult to quantify but may be of equal or greater importance depending on the specific program. These benefits also must be continually reviewed to make sure the program remains in alignment with the organization’s overall strategic objectives.
As risks (both threats and opportunities) and issues arise, or as new projects are added, and others are completed, the benefits realization plan requires review and update to see if changes are required.
Benefits management, therefore, is ongoing throughout the life of the program, and its life cycle also requires review. The benefits domain in The Standard for Program Management—Third Edition (2013) discusses these items in greater detail and is titled Program Benefits Management. It describes the program life cycle and the relationship to a benefits management life cycle and shows the relationship in Figure 4-1. It also describes the importance of maintaining a benefits register during the program and its suggested contents. Figure 4-2 explains cost and benefit profiles across the generic program life cycle. The relationship between benefits management and the roadmap is explained along with program benefits and governance. Study this section of the Standard thoroughly.
The Importance of Benefits Management to Program Management
Program Life Cycle and Benefits Management
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19. | a | b | c | d |
20. | a | b | c | d |
1. b. | Sustainment of benefits While all are good measures of success, programs are established in order to obtain greater benefits than if the projects that comprise them were managed in a standalone fashion. The benefits are stated in the benefits realization plan, and success is measured in terms of the continued realization of benefits once the program is complete. PMI®. Program Management Professional (PgMP)® Examination Content Outline, April 2011, 13 PMI®, The Standard for Program Management, 2013, 34 |
2. d. | The program sponsor The program sponsor is the group or person who champions the program initiative and is responsible for providing resources and for the ultimate delivery of program benefits. PMI®, The Standard for Program Management, 2013, 62 |
3. c. | The ability of benefits to translate into value Value delivery is essential in benefits delivery. Value delivery focuses on ensuring the program delivers the benefits, and they translate into value. There may be only a small window of opportunity to accomplish the realization of a planned benefit, and the program manager, Governance Board members, and other stakeholders need to ensure if this window of opportunity can be met successfully. PMI®, The Standard for Program Management, 2013, 41 |
4. d. | The program is terminated A program may be terminated without transition to operations especially if the charter has been fulfilled, and operations is not a consideration in realizing benefits, or if the program is no longer of value to the organization. Each component and the program as a whole must still be viable. PMI®, The Standard for Program Management, 2013, 40, 42 |
5. c. | Define and approve key performance indicators The benefits register is updated during benefits analysis and planning. It is reviewed with appropriate stakeholders to define and approve key performance indicators and other measures to monitor program performance. PMI®, The Standard for Program Management, 2013, 39 |
6. d. | Benefits delivery In Benefits Delivery, the emphasis is to ensure the program delivers the expected benefits as stated in the benefits realization plan. It also involves preparing a defined set of reports or metrics and providing them to stakeholders to monitor the program and its actions to ensure successful benefits delivery. PMI®, The Standard for Program Management, 2013, 39–40 |
7. d. | Verifying the program has met or exceeded benefit realization criteria During Benefits Transition, the benefits are transitioned to operational areas and can be sustained once they are transferred. A key activity is to verify that the integration, transition, and closure of the program has met or exceeded the benefit realization criteria established to achieve the program’s strategic objectives. PMI®, The Standard for Program Management, 2013, 41 |
8. b. | How new benefits affect the flow of operations For an internal program, the benefits realization process measures how new benefits affect the flow of operations in the organization. The emphasis is to review how the change is introduced and how negative impacts and the potential disruptiveness of introducing the change may be minimized. PMI®, The Standard for Program Management, 2013, 41 |
9. a. | Dispose resources A key activity of the Benefits Transition is to dispose all related resources since the program is closed and integrated into other elements. PMI®, The Standard for Program Management, 2013, 42 |
10. c. | A way to link the outputs to the planned program outcomes There are a number of key components in the benefits realization plan, which is prepared in Benefit Realization Plan. One is the need to link the component project outputs to the planned program outcomes as part of achieving the program’s planned benefits. PMI®, The Standard for Program Management, 2013, 38–39 |
11. b. | Benefits realization plan The benefits realization plan is drafted early and maintained throughout all phases of the program. Among other things, this plan defines the metrics including key performance indicators and the process to use to measure benefits. PMI®, The Standard for Program Management, 2013, 39 |
12. d. | Ensuring the capabilities provided continue A number of activities are performed during Benefit Sustainment. One is to implement the required changes to ensure the capabilities provided by the program continue as it is closed and as its resources are returned to the organization. PMI®, The Standard for Program Management, 2013, 43 |
13. b. | Identify and qualify benefits The purpose of Benefit Identification is to analyze available information about organizational and business benefits, internal and external influences, and program drivers. This is done in order to identify and qualify the benefits the program stakeholders expect to realize from the program. PMI®, The Standard for Program Management, 2013, 35 |
14. b. | Benefits realization plan A key component of the benefits realization plan is a description of roles and responsibilities for benefits management. PMI®, The Standard for Program Management, 2013, 39 |
15. d. | Benefits delivery A process for benefits monitoring is established in benefits delivery. This includes monitoring components, maintaining the benefits register, and reporting benefits. PMI®, The Standard for Program Management, 2013, 35 |
16. a. | Define program critical success factors In Benefit Identification, the program manager uses the program mandate and the business step. A key, and usually the first, activity is to define the program’s objectives and its critical success factors. PMI®, The Standard for Program Management, 2013, 35–36 |
17. a. | One part of program transition Benefits transition planning is extremely important, however, they are only one part of the complete transition process. PMI®, The Standard for Program Management, 2013, 41 |
18. b. | Business case The benefits register is developed based on the business case, strategic plan, and other relevant program objectives. PMI®, The Standard for Program Management, 2013, 36 |
19. a. | Organizational environment A major activity in Benefits Delivery is to monitor the organizational environment, considering both internal and external factors. This is done to ensure the program remains aligned with the organization’s strategic objectives. PMI®, The Standard for Program Management, 2013, 39 |
20. a. | During the performance of the program Ongoing sustainment of the program cannot wait until the program closes. Sustainment of program benefits is planned by the program manager and component managers during the performance of the program. PMI®, The Standard for Program Management, 2013, 43 |
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