Different Levels of Value Across Projects - PM 360 Consulting
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Different Levels of Value Across Projects

05 Mar Different Levels of Value Across Projects

Posted at 14:05h in Project management Simplified by
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Effective portfoliomanagement is therefore a holistic activity, dependent on organisational strategy and planning. The selected portfolio (of programmes and projects) together with its business as usual operations must never be separated to collectively advance the organisation towards its desired strategic objectives and vision.

It requires a keen understanding of the relationships between strategy design and strategy execution. It ultimately enables senior management to create, define and manage the portfolio of strategic options through programmes and projects that best delivers the organisation’s vision, balancing short and long term objectives and measures in the balance scorecard. (Milivo D )

In this diagram originally developed by John Thorp, author of Information Paradox; collectively represents the cornerstone to the optimised benefits realisation and value management approach.

diagram

 

What defines success and failure of a project? There are two elements of project success: success criteria – how we will judge the project to be successful and success factors – the elements of the project we can influence to increase the chance of success. Different stakeholders judge the project to be successful in different ways.It is important to achieve a balance of those different criteria in meeting the needs of the different stakeholders. Overall the project will be successful if it delivers the desired performance improvement or better at a time and cost that provides value and benefits for ther organization.

The diagram below offers a visual path of these steps and how they interrelate. (Henrico Dolfing)

 

What is the Value of a Project

 

The Project Success Model

 

Value = Benefits – Costs

Value creep is when the benefits of your project progressively go down while the costs go up. The result is a loss in project value, often resulting in a move from positive to negative returns and it’s happening all the time. Most projects are subject to the scope changes, unforeseen events, and time and cost overruns that represent this value creep. (Henrico Dolfing)

 

The establishment of project management processes and systems have been proven to help companies create a source of competitive advantage in the ability to deliver projects on time,on budget and delivery of the clients objectives. I strongly believe every company can dramatically improve its project success and return on investment on projects by implementation of the following five steps:

(1) Project Business Case

(2) Engaged Project Sponsor

(3) Establish Project Goal

(4) Project Management Capabilities – Ten Steps

(5) Probability Success Indicator – PSI

(pm360 consulting)

 

Article written by Padraig Friel MPM MBA IPMA-C CSM CMC PM360 Consulting 5th  March 2025.

https:// www.pm360consulting.ie/blog/

The Project Success Model and The Real Killer of Your Project Is Value Creep written by Henrico Dolfing – 13th May 2019

Article written by Milvio D “How portfolio,programme and project layers aligns and contributes to different levels of value” 1st March 2025

https://www.linkedin.com/in/milvio-d/