Dienstag, 12. November 2013

The Main differences between Output, Outcome, Benefit, Monitoring, Evaluation and Auditing


ITIL ®V3 (IT Service Management)
PRINCE2 ® (Projects in Controlled Environments)
Agile Management Innovations
Wirtschaftsinformatik - Diplom-Ingenieur
Informatikmanagement - Mag. rer. soc. oec
Wirtschaftsinformatik - Bakk.rer. soc. oec
Social Science - DEUG

I like researching and sharing. I blog here to share my researches on  the main differences between Output, Outcome, Benefit, Monitoring, Evaluation and Auditing... There is no project without Output, Outcome, and Benefit. The Benefit could have positive or negative impact/effect. And then there is no management without Monitoring, Evaluation and Auditing. There are plenty definitions of Output, Outcome, Benefit in project management, Monitoring, Evaluation and Auditing in management around, but here I would like to share a sample and flexible definition of these termes and the main differences between them. These definitions  are not rigid and could be varied in different business environments and concepts.


 Main differences between Output, Outcome, Benefit

 In PRINCE2® - PRojects IN Controlled Environments:
  • A project’s output is any of the project’s specialist products (whether tangible or intangible)
  • An outcome is the result of the change derived from using the project’s outputs
  • A benefit is the measurable improvement resulting from an outcome that is perceived as an advantage by one or more stakeholders.

Example of output, outcome and benefits:

New sales system
Sales orders are processed more quickly and accurately
Costs are reduced by 10%, volume of sales orders increased by 15% and revenue increased by 10% annually.

Let me give a short framework example for the production of a practical Knowledge for Development to combat HIV/AIDS in a remote village that explains Input, output, outcome, and benefit in the following table:

Needs for new knowledge package or adaptation of existing knowledge package and the required socio cultural infrastructures to combat HIV/AIDS in a
Funding, and local capacity management for the operation and the support during and after the intervention are available.
Assessment and evaluation to produce a new knowledge package or to adapt an existing knowledge package into the local environment.
Decision to invest in a construction of a knowledge development center to support the local knowledge management and transfer procedures.
Knowledge development center is constructed, maintained and managed by a local knowledge management committee with support of knowledge management agencies, local government, NGOs, public, private sector, regional knowledge management coordination center etc.
Information on HIV/AIDS infection and prevention are offered more quickly and accurately through videos, cinema, storytelling, sketches, analogies, seminar, education, training, theatre, singing, discussion, knowledge sharing etc. in the local, national and regional language within and outside the knowledge development´s center.
HIV/AIDS infections are reduced by 10%, annually.
Evaluation approach
Direct ongoing feedbacks   from the final beneficiaries and the other stakeholder  without neglect other sources to measure the outcome results and to manage changes.

Main differences between Monitoring Evaluation and Auditing

Ongoing analysis of project progress towards achieving planned results with the purpose of improving management decision making
Assessment of the efficiency, impact, relevance and sustainability of the project’s actions.
Assessment of:
-The legality and regularity of the project expenditure and income
-Compliance with laws and regulation
-Efficient, effective and economical use of project funds
Internal management responsibility
Usually incorporate external agencies
Usually incorporate external agencies
Usually at completion but also at mid-term, ex-post and ongoing
Ex-post, completion.
Check progress, take remedial action, and update plans.
Learn broad lessons applicable to other programs and projects. Provides accountability.
Provides assurance and accountability to stakeholders.
Provides recommendations for improvement of current and future projects.
Source: EC, 2004, Project Cycle Management Guideline

According to the PRINCE2® - PRojects IN Controlled Environments, as the project’s outcomes and benefits are often only realized after the project has closed, it is unfortunately easy for projects to become focused solely on creating products (the outputs). The link from the project’s outputs to outcomes and benefits should be clearly identified and made visible to those involved, otherwise the original purpose of the project can get lost.


Framework based on knowledge for Development to analyze and measure the worth of Development Interventions

Download PRINCE2 Project Templates

Source: EC, 2004, Project Cycle Management Guideline.
DevOps - development and operations


*Author, Amouzou Bedi - Business Application Management - Operations&Infrastructures   by KPMG Austria - Expertise and knowledge of the science management and its cultural implications in the developed and developing world in particular), contact on LinkedIn. I will try to update this paper on a regular basis if a need arises. Many thanks for taking your time to read this paper, and for sharing this with the others


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