through integrating Portfolio Management with Program and Project Management
SECOND EDITION
İpek Sahra Özgüler
Istanbul, Turkey
ABSTRACT
In the business dictionary, there are three definitions of the word “benefit”. The first definition is “advantage, privilege, right or financial reimbursement”, the second is “desirable and measurable outcome or result from an action, investment, project, resource, or technology”, the last is “desirable attribute of a good or service, which a customer perceives he or she will get from purchasing. Whereas vendors sell features, buyers seek the benefit”.
According to the Project Management Institute (PMI), “Projects are a key way to create value and benefits in organizations”. (PMBOK Guide, 2017, p.10) Furthermore, the PMI stated that “successful business value realization begins with comprehensive strategic planning and management” and continued “In order to bridge the gap between organizational strategy and successful business value realization, the use of portfolio, program, and project management techniques is essential.” in the “A Guide to the Project Management Body of Knowledge”. (PMBOK Guide, 2013, p.16)
The primary aim of this paper is to develop end-to-end benefits realization process through integrating portfolio management with program and project management. In order to achieve this, the author conducted a deep research about benefit management based on PMI’s perspective and will explain them on the background section. Then, the relationship between portfolio management, program management and project management will be developed and a new end-to-end benefits realization process will be proposed.
Key words: Benefits Realization, Benefits Realization in Portfolio Management, Benefits Realization in Program Management, Benefits Realization in Project Management, End-to-End Benefits Realization
JEL code: Z00
INTRODUCTION
In the last few decades, the awareness of benefits realization has increased. Ginger Levin argued that “although much has been written on benefits realization since the 1980s, primarily regarding return on investment in the information systems field, it began to be discussed in the project management field in the 1990s in program management”. (Ginger Levin, 2015)
PMI stated in the Pulse of the Profession report that “the traditional measures of scope, time, and cost are no longer sufficient” and a project must deliver the expected benefits. (Pulse of the Profession 2017) Benefits realization management (BRM) is a way to achieve this through aligning projects, programs and portfolios to the organizational strategy. (The Boston Consulting Group, 2016)
The purpose of this paper is to develop and visualize end-to-end benefits realization process based on the PMI’s view. In order to achieve this, the author will explain the key word “benefit” on the background section. Then, the benefit management will be discussed in detail from the project, program and portfolio management perspective. Finally, a new process will be proposed through visualization the relationship between portfolio, program and project management.
BACKGROUND
- Benefit
As stated on the abstract section, the word “benefit” has three definitions in the business dictionary. The first definition is “advantage, privilege, right or financial reimbursement”, the second is “desirable and measurable outcome or result from an action, investment, project, resource, or technology”, and the last is “desirable attribute of a good or service, which a customer perceives he or she will get from purchasing. Whereas vendors sell features, buyers seek the benefit”.
PMI defined benefit as “the gains and assets realized by the organization and other stakeholders as the result of outcomes delivered by the program”. (The Standard for Program Management, 2017, p.164) “Programs are conducted primarily to deliver benefits to the sponsor organizations or constituents of the sponsoring organization” (The Standard for Program Management, 2017, p.3), and “for a benefit to have value, it needs to be realized to a sufficient degree and in a timely manner”. (The Standard for Program Management, 2017, p.52)
Benefits are varied such as: expanded market presence, improved financial performance, operational efficiencies, enhancing current capabilities, facilitating change, creating or maintaining assets, offering new products and services, or developing new opportunities to generate or preserve value.
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Second Editions are previously published papers that have continued relevance in today’s project management world, or which were originally published in conference proceedings or in a language other than English. Original publication acknowledged; authors retain copyright. This paper was originally presented at the 9th Scientific Conference on Project Management in the Baltic States at the University of Latvia in April 2020 and published in the journal “Project Management Development – Practice and Perspectives”, ISSN 2256-0513. It is republished here with the permission of the author and conference organizers
How to cite this paper: Ozguler, I.S. (2020); How to Develop End-to-End Benefits Realization Process through integrating Portfolio Management with Program and Project Management; presented at the 9th Scientific Conference on Project Management in the Baltic States, University of Latvia, April; republished in the PM World Journal, Vol. IX, Issue IX, September. Available online at https://pmworldlibrary.net/wp-content/uploads/2020/08/pmwj97-Sep2020-Ozguler-end-to-end-benefits-realization-process-2nd-ed.pdf
About the Author
İpek Sahra Özgüler
Istanbul, Turkey
İpek Sahra Özgüler graduated from the Istanbul University with a Bachelor of Science degree in Computer Engineering and from Middle East Technical University with an MSc degree in Software Management. As a project manager, she has more than 10 years’ experience in various areas such as portfolio management, program management, project management, software management, business analysis. She became a certified PMP in January, 2012 and a certified SCRUM Master in 2014.
She has managed a variety of projects across manufacturing, defence, FMCG (Cola Cola), insurance (Euler Hermes), audit (Deloitte), telecommunication, ICT and aviation sectors and gained broader insights. In addition, she has worked as international correspondent for the PM World Journal since 2014.
Ipek is the creator and editor of the highly acclaimed book, The Perspective of Women Project Management Professionals, interviews with leading female PM experts and professionals around the world. The book was published in March 2020 and is available here.
Ipek is based in Isanbul and can be contacted at ipeksahra@gmail.com. Her portfolio is published at the http://ipeksahra.strikingly.com/.
To view other works by Ipek, visit her author showcase in the PM World Library at https://pmworldlibrary.net/authors/ipek-sahra-ozguler/
