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The importance of common terminology in delivering benefits and portfolio effectiveness

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A rather thrilled person joined a management brief recently. They were very excited, almost exhilarated, because the project that they were working on had met an important milestone. I decided to join the meeting as I was somewhat intrigued by the title of the presentation; “The Benefits of *the project name*” However, I had spoken to the benefits manager on this project just a few moments before, and they had not been involved in the update and were just as interested as I was. What could this benefits update be, we wondered?

What transpired was what we anticipated and somewhat feared. It wasn’t about the ‘benefits’ – it was about the outcomes that had been delivered.

In themselves, outcomes are not benefits until we apply the “so what?” question to them. To be fair, with some drilling down, those outcomes could convert into benefits but as presented, they were simply statements of fact. “We’ve switched off an old server!” was one of the robust claims. Which is factually correct but becomes benefits when we measure the net financial status of not running the old server against the new, the financial equivalent savings on fixing issues and mitigating risks and the non-financial gains, such as efficiency social value from CO2 emissions, for example.

The concern I came away with was that the hundred or so people that had listened to this brief update would probably think that the outcomes were the benefits. That in turn could potentially lead to a resistance in the change process and turning those outcomes and deliverables into something that adds value.

As I sat back at my desk, I realised that this moment could have easily been avoided. All that needed to be said was that this was some form of update. Simple. A matter of words – using the right terms.

Common, standard terminology is crucial for ensuring clear communication, alignment and effective delivery of strategies across the corporate, organisational portfolio. This is particularly important in benefits management and change management, where precise understanding and consistent use of terms can significantly impact the success of initiatives.

So why is common terminology in benefits management essential?  

  1. Clarity and consistency: It ensures that all stakeholders have a shared understanding of what constitutes a benefit, how it’s measured and the processes involved in realising it. Also, that everyone involved in the change process understands the key concepts, stages and objectives.
  2. Alignment: It facilitates alignment between project goals and organisational objectives, ensuring that everyone is working towards the same outcomes.  
  3. Effective communication: It reduces misunderstandings and misinterpretations, enabling more effective communication and collaboration among team members and stakeholders. It also facilitates the development of training materials and support resources that are easily understood. It also enhances engagement by ensuring that communication is clear and consistent, helping stakeholders to understand and buy into the change process. 
  4. Measurement and reporting: It standardises the metrics and methods used for measuring benefits, making it easier to track progress and report on outcomes.

That all sounds sensible and easy, but how can we achieve it all? Probably the most effective way to ensure common terminology is to develop an agreed framework using simplified terms.

This framework should, in response to the above essential points: 

  1. Define key terms: Clearly define the key terms used in benefits management and change management, ensuring that everyone has a shared understanding. 
  2. Standardise processes: Standardise the processes and practices associated with these terms, making it easier to apply them consistently across projects. 
  3. Training and communication: Develop training materials and communication strategies that use the simplified terms, ensuring that all stakeholders can easily understand and apply them. 
  4. Continuous improvement: Regularly review and update the framework to ensure it remains relevant and effective, incorporating feedback from stakeholders. 

Clearly, there is still work to be done in informing and educating but it should also be an objective for anyone who works in portfolio management to take up. By adopting a common terminology and aligning it with the organisational culture, portfolio management can become more effective, leading to better outcomes in benefits and change management. This approach not only supports strategic goals but also fosters a positive and collaborative environment where strategies and people can thrive together. 

 

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