Both the OGC’s “Managing Successful Programmes” (MSP) approach and Value Delivery Management™ (VDM) are focused on ‘benefits’ the two approaches have different definitions of what a benefit is and different ways of ensuring they are delivered. Not surprising, we find VDM’s much easier, clearer and practical.

BENEFITS AND OUTCOMES

MSP has two key points of measurement – the delivery of project outputs and business benefits.

Note that the word missing is ‘outcomes’. In MSP ‘outcomes’ exist as the half way house between the project delivered capabilities and the business benefits – but are not a primary focus. They are a means to an end – the realization of the benefits. This can make fuzzy the points of handover between the program and the business, as the program is delivering ‘capabilities’ – yet another intermediate element.

Delivery of the benefits is deemed to prove that the outcomes have been delivered – so, the benefits measurement process is also the outcomes achievement measurement process, and hence the primary MSP focus on benefits realization measurement, not outcomes delivery measurement.

MSP’s definition of benefits is what VDM usually refers to as ‘value’ – the quantified value of a benefit. However, financial values are the least stable element of the overall Value Equation™ and therefore not a good basis for measuring delivery ‘success’.

This strong value/benefits-focused thinking fundamentally changes the dynamics of benefits delivery. (more…)