Ghost benefits and real project benefits

Ghost benefits are scary. They threaten to use up your money, time and reputation with nothing to show for it. Ghost benefits are the imaginary gains from projects that haunt business cases, PowerPoint presentations and project meetings. Most people know they aren’t real but they won’t say anything in case little Jimmy still believes in them. Where are the ghost busters when you really need them?

How do you detect a ghost benefit?

• You can see right through it. It has no substance.
• It doesn’t make a physical impact. Operational teams cannot detect it.
• It doesn’t stand up to scrutiny. When you shine a bright light it disappears.
• You can’t weigh or measure it. No one can confirm how big it is.
• Only the person behind the project can see it. It is invisible to everyone else.
• It may have once been real it but hasn’t been for a long time.
• You may have written it down or drawn a picture but no one believes you.
• There are no photos of it.

Remember. Ghost benefits are scary. Look out for them.

What does a real project benefit look like?

See our project benefits article for examples. The Project Management Institute (PMI) defines project benefits as the positive impacts and value derived from successfully completing a project. The cost-benefit analysis ratio divides the projected present value (PV) of benefit by the present value (PV) of cost attributable to a project using discounted cash flows.

It can be difficult to monetise all benefits. APMG advise that wherever possible, benefits should be stated as a measurable change, and the key performance indicators are the measures that demonstrate a change has come about.

How do we avoid ghost benefits?

We can avoid ghost benefits by having a comprehensive value for money framework. A good VfM framework continuously and consistently measures value in what we do. It covers both projects and ongoing operations and avoids having to create bespoke measurement regimes for each new initiative. It is a practical and cost effective approach to ensuring value for money.

Why are real benefits important?

Real benefits are important because strategic projects consume resources and energy that could be applied elsewhere. The opportunity cost of doing pointless projects is high so it makes sense to avoid it where possible and it is almost always possible. It is equally important to realise the benefits through deliberate action. Many projects do promise real benefits but they still don’t deliver them. Those benefits become lost spirits in a corporate netherworld. They need to be captured.

Are there ghost benefit busters I can call?

Yes there are! Hague Consulting Ltd offer a range of services including:

• Ghost busting of benefits – constructive review of benefits planning
• Lost benefits capture – to realise promised benefits from completed projects that never materialised and were never followed up.
• Development of organisation wide value for money (VfM) frameworks
• Integration of VfM into existing performance frameworks
• Benefits planning for new projects
• Independent external review of business cases benefits realisation plans
• Feasibility studies, options analysis and business case writing
• Baselining of existing performance against which future benefits can be measured
• Value for money audits and reviews

Phil Guerin, Consultant/Director, Hague Consulting Ltd. © Hague Consulting Ltd 2024. If you like this content, subscribe to our blog – it’s free!

Follow on LinkedIn