Value-Driven Project Management
August 2009, ©2009
In the traditional view of project management, if a project manager completed a project and had adhered to the triple constraints of time, cost, and performance, the project was considered a success. Today, in the eyes of the customer and the parent or sponsoring company, if a completed project did not deliver its anticipated value, it would be seen as a failure.
Today's changing economic climate, marked by an increasingly competitive global environment, is driving project managers to become more business oriented. Projects must now be viewed from a strategic perspective within the context of a business or enterprise that needs to provide value to both the customer and the organization itself. As a result, project managers are now required to possess the skills to complete a project within certain specifications, and also know how to create and deliver value.
Responding to the needs of today's project managers, Value-Driven Project Management begins by changing the paradigm of project management. Rather than judge the success of a project from the perspectives of time, budget, and quality, the authors demonstrate why success is only achieved when planned business values are met, including:
The authors also offer best practices that allow you and your organization to create additional value in efficiency, customer satisfaction, and enhanced products and services. Finally, the book helps you incorporate value into clearly defined business objectives and "sell" the value-driven process to executives.
Throughout the book, helpful illustrations clarify complex concepts and processes.
Assigning valuable resources to projects that don't provide some tangible form of value to the organization and to the client is poor management and poor decision-making. On the other hand, selecting and implementing projects that will deliver value and an acceptable return on investment is effective management and decision-making, but is very challenging, especially when a project may not provide its target value for years to come. With Value-Driven Project Management in hand, you'll discover the tools you need to ensure that projects deliver true value upon their completion.
Chapter 1: HOW PROJECT MANAGEMENT HAS CHANGED.
Why Traditional Project Management May Not Work.
Today’s View of Project Management.
Changing Views of Project Management.
Recognizing the Need for Change.
Chapter 2: CHANGING OUR DEFINITION OF PROJECT SUCCESS.
Not Meeting the Triple Constraint.
Defining Project and Program Success.
Redefining the Triple Constraint Success Criteria.
Definition of Success.
Chapter 3: THE IMPORTANCE OF VALUE.
Types of Value.
Return on Investment (ROI).
Types of Business Values.
Chapter 4: THE STAKEHOLDERS: VIEW OF VALUE.
Classification of Stakeholders.
The Sydney, Australia Opera House.
Apple’s Lisa Computer.
Denver International Airport.
Balancing Stakeholder’s Needs.
Traditional Conflicts over Values.
Project Management Value Conflicts.
Value Perceptions within a Project.
Chapter 5: THE COMPONENTS OF SUCCESS.
Four Cornerstones of Success.
Categories of Success.
Categories of Values.
Deciding on the Quadrant.
Reasons for Internal Value Failure.
Reasons for Financial Value Failure.
Reasons for Future Value failure.
Reasons for Customer-Related Value Failure.
General Electric (Plastics Group).
Asea, Brown & Boveri (ABB).
Computer Associates Technology Services.
Automotive Suppliers Sector.
Commodity Products (Manu.) Sector.
Chapter 6: SUCCESS AND BEST PRACTICES.
From Values to Best Practices (BP).
Two Components of Success.
Redefining Value Metrics (CSF & KPI).
The Need for Changing Metrics.
Project Management Office Involvement.
Discovery of Best Practices.
The Debriefing Pyramid.
Disclosure of Best Practices.
Levels of Success in Obtaining Values.
Project Management Knowledge.
Project Management Benchmarking.
Sharing Values during Benchmarking.
Intellectual Property Cost versus Value.
Chapter 7: THE VALUE CONTINUUM.
The Timing of Values.
The Value Continuum.
Barriers along the Continuum.
Activities to Speed Up the Value Continuum.
The Value Continuum and the PMMM.
Value Management Life Cycle Phases.
Value Identification Phase: Business Case.
Business Drivers Phase: Business Drivers.
Measurement Phase: KPI.
Value Realization Phase: Value (Benefits).
Customer Satisfaction Management Phase: Continuous Improvement.
Chapter 8: ASSIGNING VALUE THROUGH OBJECTICES.
Types of Performance Reports.
Benefits and Value at Completion.
Determining Benefits (Value) at Completion.
Establishing the Business Objectives.
Marrying Project Management and Program Management.
Chapter 9: VALUE LEADERSHIP AND SENIOR MANAGEMENT.
The Evolution of Leadership.
Measurements and Triggers.
What do Executives want to Hear?
Critical Issue for the Selling Process.
Threats that Executives Face.
Project Management Success versus Maturity.
Harold D. Kerzner, Ph.D., is Senior Executive Director at the International Institute for Learning, Inc., a global learning solutions company that conducts training for leading corporations throughout the world. He is a globally recognized expert on project, program, and portfolio management, total quality management, and strategic planning. Dr. Kerzner is the author of bestselling books and texts, including the acclaimed Project Management: A Systems Approach to Planning, Scheduling, and Controlling, Tenth Edition.
Frank P. Saladis, is a Senior Consultant and Trainer for the International Institute for Learning, Inc. and editor of the allPM.com newsletter, a global project management publication. Mr. Saladis was awarded the 2006 Linn Stuckenbruck Person of the Year Award by the Project Management Institute. The award recognizes people who have made significant contributions to the Institute as leaders in project management. Mr. Saladis is the originator of International Project Management Day, held each year to celebrate and recognize project managers from around the world.
International Institute For Learning, Inc. (IIL) is a global leader in professional training and comprehensive consulting services in the areas of project, program, and portfolio management, PRINCE2®, business analysis, Microsoft® Office Project and Project Server, and Lean Six Sigma. IIL is an IIBA- endorsed education provider, a PMI® charter global registered education provider, and a member of PMI's Silver Alliance Circle, and Corporate Council.
Over the past five decades, there have been evolutionary changes in the way projects are managed. Project management has now matured into a business process as well as an organized product and service delivery process. As such, project objectives are now aligned with business objectives in addition to technical objectives. The definition of a successful project has also changed from technical success criteria to business-related success criteria — specifically, on time, within planned cost, at the desired performance level, and with formal customer acceptance. For professionals that need the latest project management insights and best practices, John Wiley & Sons, Inc. has aligned with the International Institute for Learning, Inc. (IIL) to publish books to keep professionals up to speed on project management methods and technologies. The first three titles are set to publish this month, and they cover everything executives and managers need to know about project management. Using the IIL’s successful Kerzner Approach® to project management, this series of books also acts as a supplement for IIL course offerings.
VALUE-DRIVEN PROJECT MANAGEMENT (September 2009; $24.95) is the first book in the new series and it is written by the best-selling project management authors Dr. Harold Kerzner and Frank Saladis. The book focuses on fundamentally changing the way project management is viewed and implemented within corporations, covering the traditional approach of planning, scheduling, and controlling, as well as how to view each project by its value to the corporate and business strategy as a whole.
The second book, WHAT EXECUTIVES NEED TO KNOW ABOUT PROJECT MANAGEMENT (September 2009; $24.95), focuses on teaching the basic principles of project management to top managers who need an understanding of the benefits and how it fits into the overall business strategy, but not necessarily the step-by-step processes. Today, project management skills are becoming more business-oriented skills. Many executives now believe that they are managing their business as though it is a series of projects, and project managers are expected to make decisions that are in the best interest of both the project and the business or company.
The third release, WHAT FUNCTIONAL MANAGERS NEED TO KNOW ABOUT PROJECT MANAGEMENT (September 2009; $24.95), covers the basic principles of project management to mid-level managers who need an understanding of the benefits and how it fits into the overall business strategy, as well as knowledge of the step-by-step processes. As with the previous two titles, this book contains the entire IIL course, both text and accompanying images, in easy and accessible language and format.
When project management is implemented correctly, it works, and it works well. But there is sometimes resistance to change introduced by project management. Some people put their own personal aspirations for power and authority ahead of what may be in the best interest of the company. The result can be a very slow maturity process. This set of new releases helps professionals break through the resistance and use project management efficiently and effectively.
Founded in 1807, John Wiley & Sons, Inc. has been a valued source of information and understanding for more than 200 years, helping people around the world meet their needs and fulfill their aspirations. Wiley and its acquired companies have published the works of more than 350 Nobel laureates in all categories: Literature, Economics, Physiology or Medicine, Physics, Chemistry, and Peace.
Our core businesses publish scientific, technical, medical and scholarly journals, encyclopedias, books, and online products and services; professional/trade books, subscription products, training materials, and online applications and Web sites; and educational materials for undergraduate and graduate students and lifelong learners. Wiley's global headquarters are located in Hoboken, New Jersey, with operations in the U.S., Europe, Asia, Canada, and Australia. The Company's Web site can be accessed at http://www.wiley.com. The Company is listed on the New York Stock Exchange under the symbols JWa and JWb.
About International Institute for Learning, Inc. (IIL)
International Institute for Learning, Inc. (IIL) is a global leader in professional training and comprehensive consulting services in the areas of Project, Program, and Portfolio Management, PRINCE2™, Business Analysis, Microsoft® Office Project and Project Server, and Lean Six Sigma. In addition to its many course offerings, productivity tools, and professional certification pathways, IIL leads the way in customized course development. Its Many Methods of Learning™ enable IIL companies in more than 18 major countries around the world to deliver innovative, effective, and consistent training solutions via a variety of learning platforms (traditional classroom, virtual classroom and on-demand training). IIL is an IIBA endorsed education provider, a PMI® charter global registered education provider, a member of PMI’s Silver Alliance Circle member, and PMI’s Corporate Council. For more information and free webinars visit http://www.iil.com or call 800-325-1533. Also visit IIL’s PM portal www.allPM.com.
ABOUT THE AUTHORS:
HAROLD KERZNER, PHD is Senior Executive Director for Project, Program and Portfolio Management at the International Institute for Learning, Inc. (IIL), a global learning solutions company that conducts training for leading corporations throughout the world.
FRANK P. SALADIS, PMP, is a senior consultant and trainer for the International Institute for Learning Inc. (IIL) Mr. Saladis was awarded the 2006 Linn Stuckenbruck Person of the Year Award by the Project Management Institute. The award recognizes a person who has made a significant contribution to the Institute as a leader in project management. Mr. Saladis is the originator of International Project Management Day, held during November each year. IPM Day 2009 will be celebrated on November 5th. For more information, go to http://www.iil.com/ipmday2009.
WHAT FUNCTIONAL MANAGERS NEED TO KNOW
ABOUT PROJECT MANAGEMENT
Published by John Wiley & Sons, Inc.
Publication date: September 28, 2009
$24.95; Hardcover; 256 pages; ISBN: 978-0-470-52547-0
WHAT EXECUTIVES NEED TO KNOW ABOUT PROJECT MANAGEMENT
Published by John Wiley & Sons, Inc.
Publication date: September 7, 2009
$24.95; Hardcover; 304 pages; ISBN: 978-0-470-50081-1
VALUE-DRIVEN PROJECT MANAGEMENT
Published by John Wiley & Sons, Inc.
Publication date: September 7, 2009
$24.95; Hardcover; 288 pages; ISBN: 978-0-470-50080-4