Why Benefits Realization Matters More Than Ever in Today’s Projects

Introduction

In today’s dynamic project landscape, delivering on time, within scope, and under budget—the traditional “triple constraint”—is no longer enough to define success. Organizations increasingly recognize that delivering measurable benefits aligned with strategic goals is the true hallmark of success.

The 2024 PMI Maximizing Project Success report reinforces this shift. It reveals that while 74% of project professionals consider delivering on time and within budget essential, true success lies in achieving outcomes that justify the effort and investment. This evolving perspective underpins the critical role of benefits realization (BR) in modern project management.

In the following sections, we explore why BR has become indispensable for modern projects, using fresh research insights and practical examples.

Importance of Benefits Realization

Imagine you are leading the implementation of a Patient Medical Records System at a local hospital. The project is set for two years and has a $10 million budget. It aims to deliver agreed-upon functionalities, such as storing electronic health records, test results, and records of patients’ prescriptions and medications. Being optimistic and with few changes, let’s say the project is delivered on time, under budget, and provides the agreed-upon functionalities.

Traditionally, most project sponsors and team members would deem this project a success. But what if patients now wait twice as long to secure medical appointments, electronic records are not updated due to doctors’ access rights issues, and administrative staff complain about inefficiencies from double data entry and poor interdepartmental data sharing? How would you judge the success of this project?  Does this example sound familiar to the challenges you’ve faced in your projects?

From a project management perspective, the patient medical records project appears successful—it met its time, budget, and scope targets. However, from a benefits realization standpoint, it falls short. A benefit is a measurable improvement that is valuable to one or more stakeholders, often serving as the resolution to a pain point. For example, if a key pain point is the six-month wait time for securing medical appointments, an expected benefit of the new system might be reducing this time to one month. Similarly, another benefit could be improving the accuracy and completeness of patient medical records.

Projects across industries—from public infrastructure (as in the U.K.) to construction (Saudi Arabia) and public sector digital transformation (Trinidad and Tobago)—have demonstrated that the achievement of greater success can occur by integrating benefits realization practices. While delivering projects on time, within budget, and within scope is necessary, it is not sufficient for true success. Benefits must be realized.

Benefits realization involves identifying, planning, delivering, and sustaining a project’s benefits. Instead of focusing solely on producing deliverables, it emphasizes ensuring that those deliverables create real value for stakeholders. Studies have shown that private and public sector projects, particularly in IT, frequently fail to deliver intended benefits, leading to wasted resources and missed opportunities.

In their 2023 publication “How Big Things Get Done,” Flyvbjerg and Gardner indicated that after reviewing 16,000 projects in 136 countries, 0.5% of the projects were delivered on budget, on time, and on benefits. The authors found that most projects were over budget, over time, and under benefits over and over again—a phenomenon known as the “Iron Law of Megaprojects.” During my doctoral research, I reviewed numerous books, reports, and articles that underscored the idea that focusing on benefits increases the likelihood of projects achieving broader strategic objectives and creating long-term value.

Unlike traditional measures of success, BR improves the likelihood that project deliverables create lasting value aligned with strategic goals. Without a structured approach to BR, projects risk falling into common pitfalls: wasted resources, eroded stakeholder trust, and strategic setbacks. By prioritizing benefits, organizations can ensure their projects contribute meaningfully to broader objectives and long-term success.

Pain Points from Failing to Deliver Intended Value

Over the years, the persistent issue of projects failing to deliver their intended value has become a major pain point for organizations. When projects fall short of their promised benefits, the consequences can be severe:

• Wasted Resources: Projects consume significant financial, human, and technological resources. Failing to realize benefits means these resources do not yield the expected returns, leading to inefficiencies.
• Erosion of Stakeholder Trust: When projects don’t deliver as promised, stakeholders, including executives, customers, and public sector constituents, lose trust. This erodes confidence in future initiatives.
• Strategic Setbacks: Organizations that fail to achieve project benefits may compromise their broader strategic objectives. For instance, IT projects that do not deliver user adoption or operational efficiencies can hamper digital transformation goals.

These pain points underline why benefits realization is so critical today. By ensuring that project outcomes deliver real, measurable benefits, organizations can reduce, if not prevent, the disappointment and setbacks that have plagued projects for years.

While benefits realization is a powerful approach, it’s important to recognize that it is not a cure-all for all project challenges. As Breese argues in his article, “Benefits Realisation Management: Panacea or False Dawn?” benefits realization should not be viewed as a “false dawn” but rather as an effective approach that, when applied correctly, can substantially improve project success. Although BR is not a panacea, its strategic focus on measurable outcomes offers a structured path to achieving project goals that go beyond traditional measures like time and cost.

Challenges in Delivering Benefits

• Identifying benefits. Projects often fail to deliver their intended benefits due to challenges in planning, execution, and alignment. A key issue lies in clearly identifying benefits at the outset. When benefits are misaligned or ambiguously defined, teams struggle to establish a shared understanding of what success looks like. Unrealistic benefits, often shaped by over-ambition or external pressures, further complicate matters, frequently resulting in unmet expectations and stakeholder dissatisfaction. One of the insights from my dissertation highlights the importance of addressing the drivers behind benefit identification. For instance, focusing on pain points early in the project lifecycle can clarify and refine the definition of benefits, creating a stronger foundation for project success.
• Poor alignment with project objectives is another significant hurdle. Benefits realization demands that project goals are directly linked to organizational strategy and outcomes. However, disconnects frequently occur, leaving teams to pursue deliverables that lack real-world value. Moreover, ignoring the business case during execution can derail benefits tracking, as the foundational justification for the project becomes an afterthought.
• Tracking benefits. The challenge of tracking benefits throughout the project lifecycle often arises from inadequate systems or lack of ownership. Without continuous monitoring, organizations risk losing sight of whether expected benefits are being achieved. Similarly, measuring benefits—particularly intangible ones—can be daunting, as metrics are either poorly defined or challenging to quantify.
• Lack of ownership. Another critical issue is the lack of ownership for benefits realization. Who ensures that benefits are tracked and sustained after implementation? Without a dedicated benefits owner, efforts to realize benefits often become fragmented, especially in environments with weak governance or unclear roles. Findings from my dissertation emphasize the need for clearly defined roles to support and sustain benefits realization. Specifically, assigning benefits owners ensures accountability and continuity, enabling projects to deliver lasting value beyond their initial objectives.
• Focus on outputs over value. Many teams emphasize completing deliverables on time and budget, neglecting whether these deliverables create lasting value.

Addressing these barriers requires robust planning, consistent alignment with objectives, and the integration of benefits realization into project governance. By proactively tackling these issues, organizations can enhance their ability to deliver meaningful and measurable project outcomes.

Steps for Implementation

Implementing benefits realization (BR) in projects requires a structured approach to ensure alignment with organizational objectives and effective delivery of intended outcomes. Based on insights from research and practice, organizations can consider the following steps:

• Identify and Define Benefits: Begin by clearly identifying tangible and intangible benefits linked to the organization’s strategic goals. This involves engaging stakeholders to ensure alignment and consensus on expected outcomes.
• Develop a Benefits Realization Plan: Create a comprehensive plan detailing how benefits will be achieved, including timelines, required resources, and roles. The plan should outline metrics for measuring success and define responsibilities for benefits ownership.
• Align Project Activities with Benefits: Ensure that project deliverables directly contribute to the realization of identified benefits. This alignment involves integrating BR practices into project planning, execution, and monitoring.
• Track Benefits Throughout the Project Lifecycle: Implement a robust tracking system to monitor progress and adapt plans as necessary. Regular reviews and updates to the benefits realization plan are crucial to address challenges and stay on course.
• Assign Benefits Ownership: Designate a benefits owner or team to oversee the realization process. This ensures accountability and continuous focus on delivering value.
• Evaluate and Sustain Benefits Post-Project: Conduct post-implementation reviews to assess whether benefits have been realized and identify opportunities for improvement. Adopt practices to sustain benefits, such as ongoing training and updates to systems.

By following these steps, organizations can enhance their capacity to deliver meaningful and measurable project value.

Conclusion: Driving Projects Towards Real Value

The era of defining project success by deliverables alone is behind us. Today, true success lies in ensuring projects deliver measurable, lasting value that aligns with organizational goals. Benefits Realization is no longer optional—it is essential for bridging the gap between effort and impact.

By embedding BR practices into your project framework, you can move beyond the traditional focus on time, scope, and budget to deliver outcomes that truly matter. Start by redefining success: identify clear, measurable benefits, assign ownership, and ensure alignment with strategic objectives at every stage. These steps are not just about improving projects—they are about driving meaningful change and achieving organizational excellence.

Ready to Elevate Your Projects?

Start by rethinking how you define success. Is your project aligned with strategic objectives? Are benefits clearly identified, planned, and tracked? Take the first step today to embed benefits realization in your project framework. Let’s move beyond deliverables to achieve real impact.

It’s time to elevate your projects. Share your experiences with benefits realization in the comments below. Let’s transform how projects deliver real impact—together.