Benefits
A benefit is an improvement of some kind. It could have direct measurable effects or intangible, but nonetheless real, consequences; like happiness. The benefit may be quantifiable in financial terms or it may not – although beware of economists: they will quantify anything in financial terms.
Typical Types of Benefits
- Revenue enhancement or acceleration
The obvious one that most businesses focus on.
- Cost reduction, cost avoidance or cost control
The other obvious one, not just for the commercial sector. Reduction of waste is often an easy target to start with. Other examples of savings include:
a. Staff costs
b. Maintenance
c. Waste
d. Materials use
e. Energy consumption
f. Cash-flow benefits
g. Subsistence
h. Travel expenses
i. Accommodation
- Enabling benefits
Establish infrastructure or processes that pave the way for another project to succeed, which then delivers other benefits. i.e. People being happy at work can reduce absenteeism and turnover.
- Mandatory or Compliance benefits
You will be no better off for achieving these benefits, but you will avoid regulatory or legal penalties.
- Quality of service
This may be designed to improve revenue, reduce the cost of complaints, or be a valued benefit in itself, resulting purely in greater levels of satisfaction.
- Increased productivity
Similar to cost reduction – but this is the ability to get more with the resources you already have.
- Increased motivation
You may want to get more productivity or better service from your people, or just make them feel better about their work. This can reduce absences and general workplace stress, too.
- Flexibility
Setting up the ability to make quick changes in response to sudden events is often a significant benefit.
- Management or organizational benefits
Examples include knowledge sharing, or improved use of skilled resources by creating fairer staff recruitment, development and promotion processes.
- Risk reduction
Whether at an organizational or a lower level, reducing the likelihood or impact of a threat, or simply preparing to handle it if it should manifest, are valuable actions.
- Usability
The project may make services or products you supply, or equipment and processes you use, easier or more efficient to use.
- Durability
If equipment or assets you rely on last longer, it will reduce long term capital, procurement and decommissioning costs and disruption.
- Reputation
This is a big one – that can cut both ways!