The benefit of an outcome is the measure of the advantage gained by the organisation through achieving that outcome.
Understanding Benefit in Relation to Outcome
In the context of project or business change, the term "benefit" has a specific definition directly tied to the results achieved. According to the provided reference, the benefit is defined as:
The benefit - It is the measure of the advantage gained by the organisation through achieving the outcome.
This means that while an outcome represents a specific business change or result (a direct result of the project's output), the benefit quantifies the value or advantage that this change brings to the organisation.
Key Relationship: Outcome and Benefit
- Outcome: Represents the achieved business change.
- Benefit: Quantifies the advantage or value derived from that change.
Think of it this way: the outcome is what changes, and the benefit is why that change matters and how much positive impact it has, measured in some tangible or intangible way.
Why Measure the Benefit?
Measuring the benefit is crucial because it demonstrates the value and success of achieving the outcome. It answers the question: "What was the point of making that change?"
Measuring benefits helps organisations to:
- Justify investment in projects or initiatives.
- Understand the real impact of the changes they implement.
- Prioritise future investments based on potential value.
- Ensure that changes are actually delivering expected advantages.
Simple Example
Imagine a project implements a new customer relationship management (CRM) system.
- Output: The delivered and installed CRM software.
- Outcome: Sales representatives effectively using the new CRM system.
- Benefit:
- A measure of increased sales conversion rates due to better customer tracking.
- A measure of time saved by sales reps each week through streamlined processes.
- A measure of improved customer satisfaction scores.
In this example, the 'benefit' isn't just the feeling of improvement; it's the quantifiable metric (the measure) showing the advantage gained from the outcome (using the new system).
In essence, the benefit serves as the score card, indicating the positive impact and value delivered by the outcome.
