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: Internal value Financial value Future value Customer-related value 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.

Table of Contents:
Preface vii Acknowledgments xi International Institute for Learning, Inc. (IIL) xii Chapter 1: HOW PROJECT MANAGEMENT HAS CHANGED 1 Why Traditional Project Management May Not Work 2 Today’s View of Project Management 8 Changing Views of Project Management 16 Recognizing the Need for Change 46 Chapter 2: CHANGING OUR DEFINITION OF PROJECT SUCCESS 49 Changing Times 50 Not Meeting the Triple Constraint 52 Defining Project and Program Success 54 Redefining the Triple Constraint Success Criteria 56 Definition of Success 58 Chapter 3: THE IMPORTANCE OF VALUE 61 Success 62 Types of Value 64 Return on Investment (ROI) 66 Types of Business Values 68 Changing Values 70 Chapter 4: THE STAKEHOLDERS’ VIEW OF VALUE 103 Stakeholder Perception 104 Classification of Stakeholders 106 The Sydney, Australia, Opera House 108 Apple’s Lisa Computer 112 Denver International Airport 116 Balancing Stakeholders’ Needs 120 Traditional Conflicts over Values 122 Project Management Value Conflicts 124 Value Perceptions within a Project 126 Chapter 5: THE COMPONENTS OF SUCCESS 129 Four Cornerstones of Success 130 Categories of Success 132 Categories of Values 134 Deciding on the Quadrant 138 Internal Values 140 Financial Values 142 Future Values 144 Customer-Related Values 146 Reasons for Internal Value Failure 148 Reasons for Financial Value Failure 150 Reasons for Future Value Failure 152 Reasons for Customer-Related Value Failure 154 Antares Solutions 156 General Electric (Plastics Group) 158 Asea Brown Boveri (ABB) 160 Westfield Group 162 Computer Associates Technology Services 164 Convergent Computing 166 Motorola 168 Automotive Suppliers Sector 170 Banking Sector 172 Commodity Products (Manufacturing) Sector 174 Large Companies 176 Small Companies 178 Chapter 6: SUCCESS AND BEST PRACTICES 181 From Values to Best Practices 182 Two Components of Success 184 Redefining Value Metrics (CSFs and KPIs) 186 The Need for Changing Metrics 188 Project Management Office Involvement 190 Discovery of Best Practices 192 The Debriefing Pyramid 194 Disclosure of Best Practices 196 Levels of Success in Obtaining Values 198 Project Management Knowledge 200 Project Management Benchmarking 202 Sharing Values during Benchmarking 204 Intellectual Property Cost versus Value 206 Implementation Failures 208 Chapter 7: THE VALUE CONTINUUM 211 The Timing of Values 212 The Value Continuum 214 Barriers along the Continuum 216 Activities to Speed Up the Value Continuum 218 The Value Continuum and the Project Management Maturity Model 220 Value Management Life-Cycle Phases 222 Value Identification Phase: Business Case 224 Business Drivers Phase: Business Drivers 226 Measurement Phase: Key Performance Indicators 228 Value Realization Phase: Value (Benefits) 230 Customer Satisfaction Management Phase: Continuous Improvement 232 Chapter 8: ASSIGNING VALUE THROUGH OBJECTIVES 235 Types of Performance Reports 236 Benefits and Value at Completion 238 Determining Benefits (Value) at Completion 240 Establishing the Business Objectives 242 Estimating Approaches 246 Project Plans 248 Business Plans 250 Canceling Projects 252 Marrying Project and Program Management 254 Chapter 9: VALUE LEADERSHIP AND SENIOR MANAGEMENT 257 The Evolution of Leadership 258 Measurements and Triggers 260 What Executives Want to Hear 262 Critical Issues for the Selling Process 264 Threats that Executives Face 266 Project Management Success versus Maturity 268 Conclusions 270 Index 273