Project benefit management: A conceptual framework of target benefit formulation

•Formulating target benefit is the first step toward successful benefit realization.•Project target benefits are essential for project funding decision-making.•This paper introduces a framework of project target benefit formulation.•Appraisal criteria and contributing constructs for target benefits are discussed.

Successful realization of project benefits is strongly associated with organizational performance. Formulating project target benefits is regarded as the first and critical step in the benefit management process. In this study, we drew upon relevant theories and conducted in-depth interviews with senior managers in Australia to develop a conceptual framework of project target benefit formulation and corresponding propositions. Our findings highlight the important role of project target benefits in funding decision-making and suggest seven criteria for their appraisal (strategic fit, target value, measurability, realism, target date, accountability and comprehensiveness) and four constructs which improve the formulated target benefits (a formal benefit formulation process, senior executive leadership, senior executive supports, and public service motivation). These findings extend the current literature on project benefit management by providing a holistic view on how project target benefits should be formulated and appraised.