Benefits Realization

It should be clear to you that all contemporary approaches to added-value analysis involve stakeholder and client involvement. The determination of both costs and benefits must be expanded to include client and stakeholder costs and the benefits that the clients and stakeholders expect for the project.

More important, the use of the added-value chain to determine primary and secondary benefits must involve clients and stakeholders, as they will generally be the major recipients of the benefits and, as a result, must be accountable and responsible for the garnishing of the benefits.

In our example of the vehicle inspection objective, the primary avoided cost benefit of the reduction of time in inspections must be realized by:

• The project team delivering the redesigned process, and

• The vehicle inspectors and police effectively using the redesigned process (these are stakeholders).

The secondary avoided cost benefit of reduction in costs through reduction in accidents can only be realized by the car drivers, insurance companies, and police.

This expansion of the benefit chain is another strong argument for total involvement of the project's clients and stakeholders in the participative planning process (RAP sessions).

As shown in Figures 9.4 and 9.6 you and your team are responsible for the primary benefits and your project sponsor and stakeholders are responsible for secondary benefits. The critical issue here is that stakeholders must be held accountable for the changes required to realize the outcome (secondary) benefits.

Figure 9.6. The benefits responsibility model