1. Outputs Capabilities Outcomes Benefits
A guide to a complete conversation with your key stakeholders to better understand the objectives of your project.
By Julie Grabb B Math, PMP, Prince2

2. On time, on budget, on scope
So What?
Eric Reis – Author of “The Lean Startup”
“What’s the point in being on time and on budget when no one wants, needs or understands what is being delivered?”
Read: MY RESPONSE
In David Barrett’s latest blog titled “I try to Avoid Hiring PMPs” the person in the gym suggests that PM’s these days are too focused on being on time and on budget.  While I agree to a certain extent, there is another side to this story. The reason the PM is so focused on time & budget is because that is what the decision makers and Sponsor are focused on.  The PM is often TOLD “here is what you are to build” without any context as to what business outcomes/changes this so called thing is mean to enable and context as to the strategic decision making that has led to the need for this project.
Until PM’s are brought into the conversations earlier, or enabled to ask the questions around why are we doing this project, how does it fit into the broader organization and what business changes are we meant to enable, the ON TIME ON BUDGET mentality is unlikely to change.
The PM is one cog in the wheel when it comes to making projects successful. When the organization focuses on only time and $, then don’t be surprised when the PM does to.

3. What questions do you ask once you have been assigned as a PM?

4. How about asking …. Why are we doing this project?
What are the objectives of this project?
Discuss your current projects with your neighbours.
Share 1 with the class.
Ask the group – for your current projects to you know?
Capture some of the key highlights on the board…. (
To build…..
- to fix…..
10 15 min + debrief on board

5. How about asking ….WHY? Reasons PROJECT Benefits
CURRENT STATE
Existing problem to fix
Opportunity to take advantage of
Mitigate future business risk
Legislative compliance
PROJECT
Benefits
FUTURE STATE
Less operating costs
Increased volume
More customers
When you are assigned as the project manager on a new project, one of the first questions to ask is What are the objectives of this project? Or why are we doing this project? Not that you want to challenge what the project is trying to accomplish, but rather to gather a better understanding of what you are being asked to do and what the project is all about.
The answer to the WHY question, should NOT BE to BUILD something.

6. How about asking ….objectives?
Reasons
PROJECT
Benefits
OBJECTIVES ARE ABOUT THE FUTURE
... To change some aspect of the way we do business
... To enable the organization to generate benefits
When you are assigned as the project manager on a new project, one of the first questions to ask is What are the objectives of this project? Or why are we doing this project? Not that you want to challenge what the project is trying to accomplish, but rather to gather a better understanding of what you are being asked to do and what the project is all about.
The objective of the project should NOT BE to BUILD something.

7. Outputs Outcomes Benefits Definitions
Term
Definition
Example
Output
Specialized product / deliverable
New sales system
Capability
A set of project outputs required to deliver an outcome
New Sales System + Training Programs + Documentation + Trained Trainers
Outcome
Business changes that occur when the output is used
Sales orders are processed more quickly and with fewer errors
Benefit
Measurable improvement resulting from an outcome
Costs are reduced by 10%, sale orders +15%, revenue +10%

8. Outputs Outcomes Benefits
also cause
Project
outputs
Organizational
changes
Side-effects and consequences
Dis-benefits
enable
realize further
realize
helps achieve
one or more
Outcomes
Corporate
objectives
Benefits
trigger
Result in
Capabilities
build
Tangible or intangible artefact produced, constructed or created as a result of a planned Activity
Result of change, normally affecting real-world behaviour or circumstances
Measurable improvement arising from an outcome perceived as an advantage by one or more stakeholders and contributes to one or more organisational objectives
Slide builds – do normal speech on this
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9. Organizational Context
Benefits s
Corporate
Objectives
achieved
creates
forms mandate
developed into
defines the e
realizes
delivers
Project
outputs
Capabilities
Outcomes
Programme
vision
blueprint
transitions to
Organizational Context
Where do our projects fit in?
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10. from Current to Future State…
Reasons
PROJECT
Benefits
Pre-transition
Transition
Post Transition
user communities start to use the “NEW” capabilities to establish the business outcomes
initial measurement of benefits & identifying lessons that need to be learned
removing the “OLD”
- ongoing benefits measurement
- done in the user communities
- typically not part of the project
When you are assigned as the project manager on a new project, one of the first questions to ask is What are the objectives of this project? Or why are we doing this project? Not that you want to challenge what the project is trying to accomplish, but rather to gather a better understanding of what you are being asked to do and what the project is all about.
Talk about phasing/staging of transition, it isn’t only at the end of the projec
With your neighbours, discuss what kinds of work happen in pre-transition.

11. from Current to Future State…
Pre-transition
Transition
Post Transition
PRE-TRANSITION
project deliverables are created
planning for transition
establishing training programs, initial training & train the trainer
data conversion
new /revised job descriptions
documentation
internal and external marketing regarding the changes
establishing mechanisms to measure benefits
...
When you are assigned as the project manager on a new project, one of the first questions to ask is What are the objectives of this project? Or why are we doing this project? Not that you want to challenge what the project is trying to accomplish, but rather to gather a better understanding of what you are being asked to do and what the project is all about.

12. from Current to Future State…
Pre-transition
Transition
Post Transition
Stage 1 – PILOT – by location, by functionality, by structure
Stage 2 – Apply lessons from Stage 1, expand usage......
Stage 3 – expand usage......
When you are assigned as the project manager on a new project, one of the first questions to ask is What are the objectives of this project? Or why are we doing this project? Not that you want to challenge what the project is trying to accomplish, but rather to gather a better understanding of what you are being asked to do and what the project is all about.

13. How is this information used:
Benefits:
Business Case
Project Charter
Stakeholder Analysis
Scope, WBS, WBS Dictionary
Include items relating to establishing baselines and measuring of benefits
Work to establish pilot delivery
Subset of features
Subset of the user community
Interim measurement of benefits
Rework of the intended solution and future delivery
Schedule
Staged/phased delivery of features / benefits
NOTE: Most benefit realization will occur after the project has closed and the outputs have transitioned in to day to day use.

14. Benefits Distribution Matrix
Fig 7.5 Benefits distribution matrix of stakeholders (example)
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15. How is this information used:
Outcomes:
Business Requirements
Stakeholder analysis
Scope, WBS, WBS Dictionary
Include items relating to transitioning the outputs
Training
Marketing
Awareness
Documentation
Schedule
Establish phase/stages for transition of outputs into day to day use.
Success criteria for the project.
Completion criteria for the project.

16. How is this information used:
Outputs:
Scope Statement, In/Out of scope
WBS, WBS Dictionary
Building a Schedule:
Activities to build, check, approve
Identify required skill sets
Estimating
Dependencies

17. Benefits Map Figure 7.7 Benefits map: new HR system example Retrained
managers
New HR IT
system
New
Recruitment
process
Project
output
Capability
Outcomes
Benefit t
Corporate
objective
Delays for
applicants
reduced
Applications
Processed faster
Better staff
retention f
Increased
productivity
Higher staff
morale
Increased HR
staff efficiency i e n
Reduced
personnel costs
Fewer HR
staff
Fewer
vacancies
Lower
Recruitment costs
Benefits Map
Improved
continuity
Figure 7.7 Benefits map: new HR system example
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18. The Project Manager’s Question Kit by Julie Grabb
PDF Download
Available at

19. The End….