Project Management Value Measurement System

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As warren buffet rightly said “Price is what we pay and Value is what we get”. Looking for a way to stay ahead of the pack in today’s competitive and chaotic global economy, companies are turning to project management to consistently deliver business results. Disciplined project management starts at the portfolio level, where the strategic vision drives initial investments and where value measures are established. A fully aligned project, program and portfolio management strategy encompasses the entire organization, dictating project execution at every level and aiming to deliver value at each step along the way. Project management is, in fact, shorthand for project, program and portfolio management. And more companies are clearly seeing the…show more content…
A Strong project management discipline brings exceptional value to a business, when there is a demand for a product. To keep the competitive edge, the companies need to align their project management strategies with their strategic business goals. And PMO’s can serve as a powerful bridge in creating and managing the link between strategy and results. PMO’s help in implement standard processes across the company. Tying project results across the across the portfolio to key business objectives drives the value of project management for the executive team. Project management adds value in quite a number of ways, some of which are detailed…show more content…
These value generators must be seen on a collective basis and are therefore more difficult to measure individually and comprehend. So therefore, secondly, ROI would not be of much value to a project manager in the performing of his day to day tasks. Thirdly, economic value added (EVA) (and the corresponding market value added—for listed companies) is difficult to apply in a project setting because investments in project management do not always directly and exclusively contribute to a company’s market capitalization EVA determination is a very meticulous procedure, where capital costs must be authorized and pooled costs distributed to the appropriate business unit or project. Also, EVA is dependent on macroeconomic factors, such as cost of capital, which are not tightly linked to project management effectiveness. Although these measurements of financial value are fundamentally important, they do not tell the whole
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