THE VALUE-ADDED PROPOSITION: DECLARING AND REVALIDATING PROJECT VALUE

THE VALUE-ADDED PROPOSITION:
DECLARING AND REVALIDATING
PROJECT VALUE

Usually the selection of a project for funding and authorization includes a
careful analysis of the value it is to provide its intended audiences.
However, changes occur in the environment, regulations, social interests,
and market opportunities while a project is under way. Sometimes the outcome
of another project, or even reorganization, can make the outcome of
a current project obsolete. It is important not only to communicate the value
of a project at its inception but also to revalidate the effort and expenditure
at key intervals, especially for lengthy projects.
It would be ideal if a project’s value could be established in practical
terms so that the project’s management, sponsor, customers, and users
could agree that it had delivered on its promises. Some of the ways to gain
agreement on objective measures are addressed in Chapters 6 and 12. Those
familiar with the benefits of project management do not need “objective”
reasons; they feel that the reduced ambiguity, managed risk, shortened time
frames, and product existence are benefits enough.
William Ibbs and Justin Reginato, in their research study entitled
Quantifying the Value of Project Management,20 cited a number of dimensions
where organizations reaped tangible benefits. But some sectors discount
project management’s contributions or diminish its overall scope.
Most of these are low on the scale of organizational project management
maturity because the higher the maturity level, the greater are the realized
benefits. Companies with more mature project management practices have
better project performance.21
Spending a little time defining the different benefits of project management
according to the primary values of its own economic sector will
help an organization to clarify how value can be delivered by a project in
its own context. Some sectors will benefit from a focus on resource leverage
or efficiency; others, from a focus on maturity. After such an analysis
is complete, the strategic objectives of the organization and its
management, customers, and user groups need to be considered. Success
criteria built into the plan ensures that all know what the goals of the project
entail.