Concepts
The most successful program managers understand the importance of optimizing the benefits realization of each project within the program. This is accomplished by continually identifying and capturing synergies and efficiencies identified throughout the program life cycle. The Program Management Professional (PgMP) exam hones in on this vital aspect of program management, as such skills are key to achieving an organization’s strategic objectives.
1. Identifying Synergies and Efficiencies
Synergies refer to the increased combined outcome of two or more projects, which separately might not be as effective. Efficiencies, on the other hand, refer to improvements that reduce waste, increase productivity, and streamline operations. Identifying synergies and efficiencies starts with a comprehensive understanding of all projects within the program. It involves consistently assessing and re-assessing the interdependencies and potential outcomes of these projects on the overall goal of the program.
For example, in a program designed to improve customer experience, one project might be focused on upgrading the company’s CRM system while another project may aim to train the customer service team. Independently, these projects can improve customer experience to some extent. However, the synergy between these projects (an upgraded CRM system and a well-trained customer service team) can significantly enhance the overall customer experience.
2. Capturing Synergies and Efficiencies
Capturing these synergies and efficiencies involves leveraging them for maximum value throughout the program life cycle. This can involve reallocating resources, establishing consistent communication channels, or integrating processes across projects for simplicity and clarity. Using the same customer experience improvement program, when the synergy is captured properly, the interaction between the CRM system and a trained customer service team can create a holistic and efficient approach to not just resolving customer issues but also capturing feedback to improve products and services.
Table 1: Comparing Standalone Projects and Synergized Projects
| Standalone Projects | Synergized Projects | |
| Output | Individual project outcomes | Combined project outcomes |
| Efficiency | Operate independently | Rely on overlapping resources |
| Effectiveness | Limited by individual scope | Enhanced by synergistic effect |
3. Communicating the Benefits Realization Plan
The benefits realization plan is the roadmap that outlines how and when the benefits of the projects within the program will be realized. Updating this plan and communicating it to stakeholders, including sponsors, is key to maintaining transparency and securing continued support.
Let’s say one of the projects within the program has realized an efficiency that reduces the project’s duration without compromising the output quality. The benefits realization plan should be updated to reflect this efficiency, and this updated plan should then be communicated to stakeholders to ensure they are aware of the progress, and they can adjust their expectations accordingly.
Table 2: Stakeholder Communication
| Stakeholder | Understanding of Benefits Realization Plan | Impact of Updated Communication |
| Sponsors | The sponsors expect timely and quality results | The sponsors will adjust their expectations in line with the updated plan |
| Customers | Customers anticipate better service delivery | Customers will know what to expect and when to expect it |
| Team members | Team members are equipped with a clear roadmap | Team members can adjust their strategies and tasks accordingly |
Achieving synergies and efficiencies, and continuously updating the benefits realization plan, represents an ongoing task that can significantly influence a program’s direction and success. This demonstrates the critical role of a Program Management Professional (PgMP) in the program’s life cycle. As such, the PgMP exam lays significant emphasis on understanding and executing these processes efficiently and effectively. To ace the PgMP exam, having a deep understanding of these concepts and the ability to implement them at any stage of the program life cycle is essential.
Answer the Questions in Comment Section
True/False: The benefits realization plan should be updated and communicated to stakeholders at the beginning of the program life cycle only.
• True
• False
Answer: False
Explanation: The benefits realization plan should be updated and communicated to stakeholders throughout the entire program life cycle. This is an ongoing activity, not a one-time event.
Single Select: During which stage of the program life cycle is it most crucial to identify and capture synergies and efficiencies?
• A) Initiation stage
• B) Planning stage
• C) Execution stage
• D) Closure stage
Answer: C) Execution stage
Explanation: It is during the Execution stage where the work of the project is performed. This is the most appropriate stage to identify and capture synergies and efficiencies for maximum impact.
Multiple Select: Who are the potential stakeholders that should be communicated about the updates in the benefits realization plan?
• A) Program Manager
• B) Project Team Members
• C) Sponsors
• D) Suppliers
Answer: A) Program Manager, B) Project Team Members, C) Sponsors
Explanation: Key stakeholders who should be updated about the benefits realization plan include the Program Manager, Project Team Members, and Sponsors. Suppliers may not necessarily need to be updated unless it directly impacts their work.
True/False: A benefits realization plan can include elements such as cost savings, increased efficiency and improved processes.
• True
• False
Answer: True
Explanation: A benefits realization plan typically includes these elements. They are a reflection of the synergies and efficiencies identified throughout the program life cycle.
Single Select: The benefits realization plan is an output of which process in program management?
• A) Benefits management
• B) Risk management
• C) Quality management
• D) Procurement management
Answer: A) Benefits management
Explanation: The benefits realization plan is a part of the benefits management process. This process outlines how the benefits of the program will be realized and tracked.
Single Select: What is the primary objective of capturing synergies and efficiencies in the program life cycle?
• A) To reduce cost
• B) To accelerate the schedule
• C) To maximize benefits
• D) To minimize risk
Answer: C) To maximize benefits
Explanation: The primary objective of capturing synergies and efficiencies in the program life cycle is to maximize the benefits. This is in line with the overall aim of benefits management.
True/False: It is the accountability of the program manager to identify and capture synergies and efficiencies throughout the program life cycle.
• True
• False
Answer: True
Explanation: Identifying and capturing synergies and efficiencies is part of the program manager’s responsibilities for achieving maximum benefits.
Multiple Select: Capturing synergies and efficiencies throughout the program lifecycle can help in:
• A) Optimizing resources
• B) Delivering more value for stakeholders
• C) Reducing program costs
• D) Increasing program risks
Answer: A) Optimizing resources, B) Delivering more value for stakeholders, C) Reducing program costs
Explanation: Capturing synergies and efficiencies can help optimize resources, deliver more value for stakeholders, and reduce program costs. However, it doesn’t increase program risks, but helps to manage them better.
True/False: Communication of the benefits realization plan to stakeholders should be performed in a formal and structured manner.
• True
• False
Answer: True
Explanation: Formal and structured communication ensures that all stakeholders have a consistent understanding of the benefits realization plan.
Single Select: The benefits realization plan should be updated and communicated to stakeholders:
• A) Only after the completion of the program
• B) Only at the start of the program
• C) Whenever significant changes are made
• D) Only when the program is at risk
Answer: C) Whenever significant changes are made
Explanation: The benefits realization plan should be updated and communicated every time there are significant changes in the program. This allows stakeholders to have the latest and most accurate information.
This blog post is incredibly insightful on identifying synergies throughout a program’s lifecycle. Thanks for sharing!
How do you recommend capturing efficiencies without disrupting the existing workflow?
Appreciate the detailed breakdown on the benefits realization plan.
Can someone explain how updating the benefits realization plan can impact stakeholder buy-in?
This information is gold! Very useful for those preparing for the PgMP exam.
How often should the benefits realization plan be updated?
Totally agree with regular checkpoints for identifying efficiencies. It’s worked well in my programs.
Any tools or software recommended for capturing synergies?