Module 2 · Lesson 13 of 16
Financial and non-financial benefits
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Learning objectives
- Classify project benefits without overstating savings.
- Assign clear calculation ownership.
- Link operational and financial measures.
Three kinds of value
- Hard savings — reduce expense or cash outflow.
- Capacity release — value only when the capacity is used.
- Risk avoidance and non-financial gains — real but reported separately.
Garment-factory example
Reducing repair hours may lower overtime, release capacity, reduce shipment risk and improve operator morale; each benefit needs its own calculation rule.
Method
- Build a benefit logic tree.
- Define baseline and counterfactual.
- Assign Finance validation.
- Track realization after Control closes.
Common mistakes
- Multiplying every saved minute by labour rate as cash.
- Ignoring implementation cost.
Knowledge check
Pick one answer per question. Explanations appear after you submit.
1. A forecast benefit is:
2. Non-financial benefits:
Author: NOSK.life · Last reviewed: 2026-07-21