Proving Project Value

Proving
Project Value
Priscilla Bahrey, PMP

© 2015 Global Knowledge Training LLC. All rights reserved. 8/14/2015 Page 1
Proving Project Value Overview
 Pre-Project
 Enterprise Strategic Objectives
 Project Selection
 During Project
 Proving Project Value
 Stakeholder Management & Communication
 Post Project
 Lessons Learned
 Project Benefits Realization

Pre-Project
 Enterprise Strategic Objectives

Defining Value
Initiate CloseBuildEnterprise
analysis
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

Project Selection Methods
 Organizational Strategic Objectives
 Cost/Benefit Analysis
 Value Analysis
 Net Present Value
 Return on Investment
Business Case Project Charter

Project Benefits Selection
 Sales Volume
 Market Share
 Profitability
 ROI
 Corporate Scorecard
 Reputation/Image
 Media presence

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

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 Objectives
 Project Objectives
 Project Team Member Objectives

Strategic Objectives Framework

Benefits Definition
 Ensure project objectives are aligned with strategic objectives
 Define project objectives and success criteria
 Identify and quantify business benefits (how and when will be realized during
project and post-project)
 Develop key metrics to measure actual delivery
 Create communication processes to record progress and report to
stakeholders
2-30

During Project

Proving Value
analysis
Plan
Project life cycle
Project Execution
Project Controls
Performance measurement
Project Status Reporting
Stakeholder Management and Communication
4-4
 Maintenance
 Support
 Operations

Stakeholder Importance Ranking

Stakeholder Priorities Ranking
 Measures the significance a stakeholder attaches to four fundamental
success criteria:
 Time
 Cost
 Scope
 Quality
 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.

Stakeholder Priority Scoring System

Track Benefits
 Documentation and recording of benefits
 Articulation and communication of benefits
 Expectations management (magnitude, areas, timing)
 Alignment with corporate and organizational objectives and strategy
 Short vs. long-term
 Process vs. performance and capabilities (product related)
 Outputs vs. outcomes vs. benefits
2-31

Benefits Register
 Collects and lists the planned benefits
 Used to measure and communicate the delivery of benefits
 Initially based on the program business case and the organization’s
strategic plans
 Reviewed with stakeholders to develop appropriate performance
measures for each benefit
 Elaborated in next phase of the benefits life cycle and continually
updated
2-32

Project Status Meetings
 Proving value of deliverables
 Major deliverables
 Related interim deliverables
 Measuring against Key Metrics
 Explaining benefits to Stakeholders
Project Status Report

Communicating Value
 Reporting benefits at Milestones
 Realization of Key Metrics

Post Project
 Lessons Learned

Delivering Value
analysis
Plan
Project life cycle
Transition planning
Administrative closure
Lessons learned
Closing procurements
 Maintenance
 Support
 Operations

Lessons Learned
 Shows value of the project to the organization
 Documented and applied to future projects:
 Procedures and practices
 Estimating information
 Preferred vendors
 Risks

Transition Project to Operations
 Transition capability to the receiving organization
 Change management post-project
 Monitor key metrics
 Monitor expected benefits beyond the project lifecycle
4-18

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

Project Benefits Realization
 Sales Volume
 Market Share
 Profitability
 ROI
 Corporate Scorecard
 Reputation/Image
 Media presence

Final Project Report
 Final Deliverables proving how Project supported Strategic Goals:
 Measurements of Key Metrics
 Benefits Realization
 Celebrating Success!
Final Project Report

Proving Project Value Review
 Pre-Project
 Enterprise Strategic Goals
 During Project
 Post Project
 Lessons Learned

PDU
 PMI R.E.P. Number: 1999
 PMI Activity Name: Proving Project Value
 PMI Activity ID/Number: WBNR0813
 PDU Amount: 1 PDU

Courses
0503:
Effective Stakeholder
Communications
21 PDUs
2813:
Program Management
21 PDUs
www.globalknowledge.ca

Continue the Conversation
@gkcanada

Find Out More
www.globalknowledge.ca/knowledgecentre
On-demand & live webinars, white papers, blog...

Proving Project Value

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Proving Project Value

Similar to Proving Project Value (20)

More from Global Knowledge Training

More from Global Knowledge Training (20)

Recently uploaded

Recently uploaded (20)

Proving Project Value

Editor's Notes