Optimizing Long-Term Project Value

The ChallengeIt is a principle of Project Management that every project will produce something of value for the Sponsor (Business Value). This value can be strategic (e.g. creating a new market; improved customer retention) or tactical (e.g. adding new function to a system; optimizing business process). While the Business Value of a project is always implicit, it is often not clearly defined at the start of a project. This is a mistake. Without this information, the project manager is left without important guidance on how to plan and execute the project, and realization of intended Business Value is placed at risk. The SolutionProject Portfolio Management makes it very clear: every project is an investment. It is essential that all of the players understand what is at stake so that the project can be defined and executed in such a way that Business Value is maximized. Having clear project objectives allows us to measure the success of the project to the point of its conclusion. Measuring Business Value after project completion goes further, allowing us to measure success at the business level. It should be the goal of every Project Manager to create a solid foundation for Business Value realization. Making Business Value an integral part of project planning and execution adds depth and power to the most fundamental concepts in project management. This presentation establishes a practical definition of Business Value, and then explores what optimization of that value means for our understanding of the role of Project Manager, conduct of the project, and successful realization of Business Goals.