Organisation Theme and Business Case Theme

19 The Benefits Review Plan

Tony Allan

The purpose of a benefits review plan (BRP) is to determine if the expected benefits of the project have been achieved. In order to understand what and why a BRP should be developed let’s consider, when is an appropriate time to develop one.

The following provides two examples of similar projects but there are some differences in what made each project feasible. The most appropriate time to develop a BRP is also different for each project. As you read through the following background information, it should become apparent when the most appropriate time to develop each BRP should be.

Imagine that there were two towns of similar size, population and economy. Both have a river running through the middle of the town with one bridge crossing the river. Both towns have a problem with peak hour traffic. People are spending so much time travelling to and from work that the economic efficiency and standard of living in both towns has been deteriorating over the last 5 years. Both towns have decided to build a second bridge.

One town decided to build a second bridge because widening the existing bridge would not solve the problem because of the local area traffic congestion on either side of the bridge would still exist. The second town would not have the same problem because they have a network of freeways enabling people to get to and from the bridge and therefore if they widened the existing bridge they would not have just shifted the congestion problem.

The second town decided to build a second bridge because it would be less expensive than widening the first bridge. The reasons widening would be more expensive are related to engineering costs, such as the width of the river and the required depth of the pylons because of the riverbed in the area where the current bridge is built. The town made a mistake putting the original bridge where it is and don’t want to make the same mistake again.

At first sight, the benefits of these two projects could look the same because both are aiming at reducing traffic congestion during peak hour. However, when the measures of success are developed the first town is to be measured by:

  • the length of the average daily peak traffic period 5 years after the completion of the bridge, which is to be compared with current traffic patterns.
  • measures of local area traffic congestion on either side of the two bridges five years after the bridge is completed. Which would also be compared to existing patterns.

The second town is to be measured by:

  • was the bridge completed on or under budget?
  • Was the bridge completed on time?

This is a simplified scenario where it should be apparent that the most appropriate time to develop a BPR is:

  • five years after the completion of the project for the first town
  • immediately after the end of the project for the second town.

What a benefits review plan should contain

  • the scope of the benefits review plan
  • who is accountable for the expected benefits
  • how to measure the expected benefits
  • when to measure the expected benefits
  • what is the process and resources needed to review the benefits
  • baseline measures from which improvements can be calculated
  • who will be responsible for ensuring the benefits review plan is completed.

License

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