47. A retail chain is evaluating a project to replace payment systems across all stores in multiple locations. The project does not pass the financial threshold but is also expected to increase market share, improve customer services, and retain more customers. The project is planned as a phased implementation, building on learning from the retrospectives during each phase. How should the business increase the value of the project?
Answer: B
Quantifying the expected tangible and intangible benefits in the benefits management plan will enhance the project's value.
By quantifying both the tangible and intangible benefits in the benefits management plan for each phase, the business can create a clearer picture of the value generated, supporting the project's viability despite its initial financial shortcomings.
A) Use a fishbone diagram to find the root cause of the low financial benefits with the benefits owner.
While a fishbone diagram can help in identifying potential causes of issues, it does not directly address how to enhance the value of the project. This option lacks a focus on quantifying benefits, which is essential for justifying the project's continuation and improvement.
B) Quantify the expected tangible and intangible benefits in the benefits management plan for each phase.
This option is the most effective approach as it directly involves assessing and articulating the value generated by the project. By doing so, the retail chain can strategically align its project objectives with the benefits expected over time, thereby reinforcing its business case.
C) Ask the benefits owner to reassess the identified risks that are impacting the outcomes of the financial benefits.
Reassessing risks is important for project management, but it does not inherently increase the project's value. This option focuses on mitigating risks rather than enhancing the understanding or articulation of benefits, which is crucial for stakeholder buy-in.
D) Consult with experts on methods to reduce costs and increase the financial value of the project.
While consulting with experts may provide insights into cost reduction, it does not directly relate to enhancing the perceived value through quantification of benefits. This option may lead to financial improvement but does not address the broader aspects of value generation that are critical to the project's success.
Conclusion
Quantifying both tangible and intangible benefits in the benefits management plan is essential for illustrating the project's overall value and justifying its implementation despite not meeting the financial threshold. The other options either focus on risk management, cost reduction, or problem identification without addressing the core need to effectively communicate the benefits derived from the project. This makes Option B the most strategic choice to increase the project's overall value.