Introduction

In today’s competitive business landscape, organizations rely on projects to drive transformation, innovation, and efficiency. However, many companies fall into the trap of focusing solely on project execution and deliverables while failing to ensure that those projects create meaningful business value.

This is where the benefit realization approach to project management comes into play. Instead of merely measuring success based on on-time, on-budget delivery, organizations must shift their perspective toward ensuring that projects lead to tangible, strategic business outcomes.

The Real Purpose of Projects: Business Performance Improvement

Projects are not just temporary efforts to create products or services; they are investments aimed at improving business performance. Whether in the private sector, government, or non-profit organizations, executives approve projects to drive positive change, enhance efficiency, or capture new opportunities.

According to Project Management: A Benefit Realisation Approach, by Ofer Zwikael and John R. Smyrk, projects serve three key strategic triggers:

  1. Deliberate Strategy Implementation Projects – These are projects aligned with an organization’s long-term vision, such as launching a new product, expanding into new markets, or upgrading IT infrastructure.
  2. Emergent Strategy Projects – These arise from unexpected opportunities or market shifts, such as acquiring a competitor that suddenly becomes available.
  3. Imposed Projects – These projects are driven by external regulations, compliance requirements, or mandatory industry changes.

The Disconnect Between Outputs and Outcomes

One of the biggest challenges in project management today is that many organizations judge success based only on traditional metrics:

  • Was the project completed on time?
  • Was it delivered within budget?
  • Did it meet the scope and technical specifications?

While these metrics are essential, they do not guarantee that the project will create business value. For example, a company might successfully implement a new CRM system, but if employees do not adopt it or if customer satisfaction does not improve, the project has failed to achieve its intended business benefits.

Instead of focusing only on outputs, organizations must track whether the project delivers real business outcomes, such as:

  • Increased revenue or market share
  • Increased revenue or market share
  • Reduced operational costs and improved efficiency
  • Compliance with regulatory requirements

Project Funders Prioritize Outcomes Over Outputs

For senior executives, the number one priority in project investment is achieving target outcomes. Research in the book highlights that project funders rank the following factors as the most critical:

  • Achieving target outcomes – Ensuring the project delivers business benefits.
  • Approving and developing a business case – Making strategic investment decisions.
  • Defining agreed deliverables – Ensuring clear expectations and accountability.
  • Monitoring and controlling execution – Tracking progress against expected benefits.

This reinforces the need for a strategic project management approach that moves beyond execution and ensures long-term impact.

The Shift Toward Benefit-Driven Project Management

To address these challenges, organizations must:

  • Align projects with strategic business goals – Every project should have a clear link to corporate strategy.
  • Measure success beyond outputs – Track business value, not just project completion.
  • Engage stakeholders early and continuously – Ensure alignment with executive expectations.
  • Implement governance frameworks – Define roles and accountability for benefit realization.

Conclusion

For senior executives and project managers, the key takeaway is simple: successful projects are not those that just meet scope, time, and budget constraints—but those that deliver real, measurable business benefits.

In the next post, we will explore how the Input-Transform-Outcome (ITO) Model provides a structured framework for ensuring projects create lasting value. Stay tuned!