Proving Project Value

ProvingProject Value

Priscilla Bahrey, PMP

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Proving Project Value Overview

Pre-ProjectEnterprise Strategic ObjectivesProject Selection

During ProjectProving Project ValueStakeholder Management & Communication

Post ProjectLessons LearnedProject Benefits Realization

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Pre-Project

Enterprise Strategic ObjectivesProject Selection

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Defining Value

Initiate CloseBuildEnterpriseanalysis

Plan

Product/Service life cycle

Project life cycle

Project Charter:

Project scope (high level plan)

Key metrics

Success criteria

Stakeholder Analysis

Project authorization

Maintenance

Support

Operations

Business Case:

• Project justification

• Alternate approaches

• Recommended approach

• Expected benefits

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Project Selection Methods

Organizational Strategic ObjectivesCost/Benefit AnalysisValue AnalysisNet Present ValueReturn on Investment

Business Case Project Charter

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Project Benefits Selection

Sales VolumeMarket ShareProfitabilityROICorporate ScorecardReputation/ImageMedia presence

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What is the Strategic Objective?

Financial

• Increase in revenue

• Reduction in costs• Overall financial

improvement• Higher margins

Efficiency

• More with less• Same with less• Less with less

(while achieving more)

Effectiveness

• Better results• Customer

satisfaction• Improved

performance

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Aligning Strategic Objectives with Project Objectives

Creating a line of sight from business or strategic objectives to project objectives keeps the project team focused on the right things

Organization ObjectivesProject Objectives

Project Team Member Objectives

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Strategic Objectives Framework

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Benefits Definition

Ensure project objectives are aligned with strategic objectivesDefine project objectives and success criteriaIdentify and quantify business benefits (how and when will be realized during

project and post-project)Develop key metrics to measure actual deliveryCreate communication processes to record progress and report to

stakeholders

2-30

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During Project

Proving Project ValueStakeholder Management & Communication

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Proving Value

Initiate CloseBuildEnterpriseanalysis

Plan

Product/Service life cycle

Project life cycle

Project Execution

Project Controls

Performance measurement

Project Status Reporting

Stakeholder Management and Communication

4-4

Maintenance

Support

Operations

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Stakeholder Importance Ranking

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Stakeholder Priorities Ranking

Measures the significance a stakeholder attaches to four fundamental success criteria:TimeCostScopeQuality

The stakeholder’s priorities are each assigned a ranking from 1 (the highest priority) to 4 (the lowest priority)

Each success criteria must be given a different ranking; there can be no ties.

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Stakeholder Priority Scoring System

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Track Benefits

Documentation and recording of benefitsArticulation and communication of benefitsExpectations management (magnitude, areas, timing)Alignment with corporate and organizational objectives and strategyShort vs. long-termProcess vs. performance and capabilities (product related)Outputs vs. outcomes vs. benefits

2-31

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Benefits Register

Collects and lists the planned benefitsUsed to measure and communicate the delivery of benefits Initially based on the program business case and the organization’s

strategic plansReviewed with stakeholders to develop appropriate performance

measures for each benefitElaborated in next phase of the benefits life cycle and continually

updated

2-32

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Project Status Meetings

Proving value of deliverablesMajor deliverables

Related interim deliverables

Measuring against Key MetricsExplaining benefits to Stakeholders

Project Status Report

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Communicating Value

Reporting benefits at MilestonesRealization of Key Metrics

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Post Project

Lessons LearnedProject Benefits Realization

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Delivering Value

Initiate CloseBuildEnterpriseanalysis

Plan

Product/Service life cycle

Project life cycle

Transition planning

Administrative closure

Lessons learned

Closing procurements

Maintenance

Support

Operations

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Lessons Learned

Shows value of the project to the organizationDocumented and applied to future projects:

Procedures and practicesEstimating informationPreferred vendorsRisks

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Transition Project to Operations

Transition capability to the receiving organizationChange management post-projectMonitor key metricsMonitor expected benefits beyond the project lifecycle

4-18

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Measure Benefits

*From Managing Change in Organizations: A Practice Guide, Project Management Institute, Inc., 2013, Figure 5-9, 89.

Strategic objective

• Respond to new market position

Benefits

• Change organization while maintaining work culture

Projects

• Redesign jobs and reengineer business

• Introduce new IT and networking systems

Measure of success

• Encourage acceptance of new systems

• Methodology accepted by most personnel

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Project Benefits Realization

Sales VolumeMarket ShareProfitabilityROICorporate ScorecardReputation/ImageMedia presence

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Final Project Report

Final Deliverables proving how Project supported Strategic Goals:Measurements of Key MetricsBenefits Realization

Celebrating Success!

Final Project Report

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Proving Project Value Review

Pre-ProjectEnterprise Strategic GoalsProject Selection

During ProjectProving Project ValueStakeholder Management & Communication

Post ProjectLessons LearnedProject Benefits Realization

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PDU

PMI R.E.P. Number: 1999

PMI Activity Name: Proving Project Value

PMI Activity ID/Number: WBNR0813

PDU Amount: 1 PDU

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Courses

0503:

Effective Stakeholder Communications

21 PDUs

2813:

Program Management

21 PDUs

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