Value delivery management requires a project to have more than a positive ROI to be approved; it must also be relevant, achievable, and doable. The Project Investment Committee needs to assess both the dimensions of value and the threats to the practical realization of this value.
The Investment Committee needs to assess not just the dollars but also the enhanced capability, improved competitive positioning, and reduced corporate risk benefits that the project can deliver. These are all measures of value.
The Investment Committee needs to assess the following questions:
- Will this project deliver value to the organization?
- Is it relevant to our strategic direction and objectives?
- Is it achievable with all of its attendant risks?
- Is it within our capability and skill-sets to deliver?
- Is it within our capacity to resource, govern and support?
- Is it doable with all of the other projects that will be going on at the same time?
Value delivery management, therefore, usually requires an upgrade of your project justification, evaluation, and prioritization processes.
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Click here for the sixth article in this the series "Refocusing Projects onto Business Value, Part 6: Scope Management"
Click here for the first article in this the series "Refocusing Projects onto Business Value, Part I: The Need".
Jed Simms is CIO magazine's weekly project management columnist. Simms, founder of projects and benefits delivery research firm Capability Management, is also the developer of specialized project management and project governance Web site www.project-sponsor.com
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