Buyers have a new obsession. It is called ‘benefits realization’, or alternatively ‘benefits delivery’. They have lost faith that promises made before the sale will actually materialize and are determined to intervene to ensure that they do.

Buyers Become Benefits-Obsessed

It makes no sense for organizations to spend many months in planning the right strategies, finding the optimum solutions and choosing the best suppliers, simply to leave the most important element to chance – that is the realization of benefits.

Managers have learned that benefits – just like anything else – must be planned, tracked and managed. They are increasingly seeing benefits management as essential to the management of success.

Buyers Focus On The Full Costs-Benefits Equation

Cutting costs has long been a key driver for procurement. But, what happens when costs cannot be cut much further? Well, the focus turns to the other side of the costs-benefits equation and ensuring that benefits are fully realized. Managers have logically turned their attention to benefits and performance.

Traditionally most attention was focused on cutting costs in respect of suppliers and projects, with considerably less on maximising benefits.

However, that is very much a one dimensional view of the bottom line. After all the price-value (or benefits) equation isn’t just about price negotiation, but performance management and most of all benefits realization. Benefits realization is at the core of ‘getting more for less’.

Why Benefits Realization Is So Important

‘Show me the money’ is a popular movie-inspired catch-phrase that has been discovered by buyers and reworded into ‘show me the benefits’.[1] It is a new mantra for internal project management and programme delivery. Moreover it is a taunt for suppliers who are being increasingly measured upon the fulfillment of their promises.

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