For a limited time, PMI has its new Practice Guide available for public download.
This article is my second one regarding BRM and the new PMI Practice Guide. If you have not seen the first, please go to https://www.linkedin.com/pulse/benefits-realization-management-peter-mello/
“BRM encompasses the standard methods and processes that an organization uses for identifying benefits, executing its benefits realization management plans, and sustaining the realized benefits facilitated by portfolio, program, and project initiatives.” [BRM, pag.7]
The Practice Guide
[BRM] – Benefits Realization Management A Practice Guide is a Project Management Institute, Global Standard.
Its purpose is to describe benefits realization management (BRM), providing a practical description of it. It defines the role and life cycle relationships of BRM to portfolios, programs, and projects while identifying a common vocabulary to aid any discussions of BRM.
“The information and guidelines in this practice guide may be used in whole or in part to develop manual or automated practices with any type of strategic management, including portfolio, program, and project life cycles that the organization uses.” [BRM, pag.2]
The main structure of the Guide
The guide has four chapters (numbered from 1 to 4) and several Appendix, plus references, bibliography, glossary, and index.
The four main chapters are:
- BRM And Organizational Context
- BRM Framework
- Guidance for Portfolio, Program, and Project Management in a BRM Context.
Chapter 2 – BRM and Organizational Context
This article is a concise view of what can is available at this new PMI Practice Guide, and it is intended to create awareness of the importance of BRM to the context of not only Portfolio, Programs, and Projects, but the entire organization and its strategic plan.
Besides the overview of the topic, Chapter 2 of the Practice Guide (PG) helps the understanding of how to connect business strategy to BRM, discusses organizational goals as drivers and the importance of sponsorship and benefits.
It also brings BRM Core Principles: Net Benefits Justify the Use of Invested Resources, Commencement of Work is Driven by Benefits Identification, Planned Benefits Are Identified in Authorizing Documents, Benefits Realization is Holistically Planned and Managed, and Governance and Adequate Resources Are Essential to BRM Success.
The fourth part of this chapter brings BRM Critical Success Enablers, and the last discusses Organizational BRM Roles and Responsibilities.
Points of attention
It is not my goal here to be a “shorter version” of the BRM PG (not even of Chapter 2 that names this article). I expect that the community of Project Managers, students and researchers realize the importance of downloading and reading the full PG.
I am listing here some of the items from Chapter 2 that are dear to me. I guess that people can bring other topics in the comments for this article or in new posts and articles too!
- Benefit and Value are often used interchangeably, but for BRM we need to understand the differences.
- In the PG, “a benefit is defined as a gain realized by the organization and beneficiaries through portfolio, program, or project outputs and resulting outcomes. Value, however, is the net result of realized benefits less the cost of achieving these benefits. Value may be tangible or intangible”. [BRM, pag.7]
- Benefits should be the positive outcomes or results of investments of an organization and linked to its strategic goals and objectives.
- Benefits should be managed before an initiative starts and long after it is executed, as an initiative output should be sustained in the organization.
- Benefits should be aligned to strategic goals and organizational objectives, as it was illustrated in the first article with figure 2-2 of the PG.
- Figure 2-3 shows many types of benefits an organization may pursue, related to its strategic goals and organizational objectives.
[Figure extracted from the BRM Guide]
- Please check the many insights and comments given by Dr. Paul D. Giammalvo, Ph.D., CDT, CCP, MScPM, MRICS to my first article and I hope he will comment on this one too! We should not agree on everything, but he does hold a lot of experience in this subject!
- I will be adding more posts regarding BRM, and you may also check some videos at:
I want to hear from you! email@example.com
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