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Project value
The organisations add value to the business through the series of processes. Increasingly such processes are usually undertaken within the context of the project. It is the cumulative effect of the projects which decides the success or the failure of the organisation in delivering the value to both the customers and the shareholders. An aspect of the project value is how this is used at the portfolio level to make sure that the right projects are brought through the portfolio. While looking across the portfolio to decide on the prioritisation of the projects a key consideration is that the value that they add to the organisation. This also reinforces the importance of making sure that the value which the project contributes to an organisation is clearly defined and articulated.
To create and also sustain the competitive advantage in the form of effective differentiation and the cost savings, the organisations will need the help of the suppliers. The supply chain has recently received significant attention in the business press. There is a need to mention about it here because the projects bring together a range of suppliers. Increasingly, the suppliers might only add the value to the project if there is co-operation between them which has driven the trend towards the projects being undertaken in the spirit of partnership rather than the adversarial manner.
There are organisations which have built reputations for being able to consistently manage projects effectively. However, the vast majority of the organisations still have difficulties in measuring their project. The value proposition for the project management will take time and effort to proactively manage the project. The cost is calculated for the life of the project by finishing the projects more quickly and cheaply. One of the biggest profits of using the common methodology is the value of reuse. Once the processes, the procedures and the templates have been created they can be used on all the projects in the future. This will result in the reduced project start-up time, shorter learning curve for the project team members and also the time savings, for, there is no necessity to reinvent the processes and the templates from scratch on every project. Proactive scope management saves effort and the cost. Better planning helps to decide on the best solution fit. This also helps in resolving the problems more quickly, resolving the future risks and managing the expectations. Better planning helps in building good quality product, improving the financial management and helps to resolve the wrong initiatives in projects more quickly, focusing more on the metrics and on the fact based decision making and improving the work environment.
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