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SubscribeProjects are born to introduce changes.
However, very often we focus all our attention on the tangible result, the easiest to see. The deliverable of the project gets all attention, while we lose scope of why we are carrying out the project in the first place.
A project is more than a deliverable, it has impact and benefits that are aligned with the organisation’s vision and should not be taken for granted.
Project teams tend to focus their efforts on producing tangible results, the deliverables. But in reality, the project deliverables are the means and not the end, the real goal of the project is to achieve specific final results that lead to measurable benefits.
This is why project management uses terms like project ‘outputs’, ‘outcomes’ and ‘benefits’.
It is very important that all the resources involved in the management and execution of a project (managers and team members) understand the relationship between these three elements.
Deliverable, also translated as results. Output can be a product and/or service that introduces something new (a change).
The change introduced by the output leads to an outcome, a final result, which offers direct benefits.
The real “why” of the project. Benefits are measurable improvements resulting from the final result or outcome.
What are the characteristics of these three elements and what is their relationship?
According to The PM² Methodology Guide v3.0, all parties involved in the project must be able to identify the outputs, outcomes and benefits of a project. Without understanding, project participants can lose sight of the original goal and produce deliverables that have little (or no) value for the organisation.
Since the project team finishes its work with the delivery of the output, it is the Project Manager who must ensure that they are implemented. In order to do so, he/she must create the vision from the beginning of the project and share this vision with the project team.
While it is true that often the final results and benefits are realized only after the closure of the project, it is necessary to avoid reaching the conclusion of the project without the involvement and a clear vision for all team members.
For example, the output of a project can be the development of new software that keeps user requests for a particular line of products. The outcomes can be service improvement, greater accuracy of the data collected and better user satisfaction. The benefits could be a 20% increase in product sales and 25% revenue growth.
Download your copy of the Benefits Management Approach Template PRINCE2:
a useful document (word) that can support you in managing your projects!
Source: The PM² Methodology Guide v3.0