Project value

Question 1

Who determines the project value?

Answer 1

Stakeholders define the value created by a project

Internal and external stakeholders

Question 2

How to create project benefits:

Answer 2

1. Identify benefits (by engaging with stakeholders)
2. Execute Benefits Management (planning how to deliver benefits while minimising risks)
3. Sustain Benefits (ensure project benefits are long-term, not short-term)

Question 3

What is the role of a project manager in relation to stakeholders?

Answer 3

A project manager seeks to create opportunities to maximize value for both external and internal stakeholders, understanding the strategic goals of the corporation.

Question 4

What are the components of project value?

Answer 4

Project value includes both tangible and intangible components, requiring the identification of stakeholder needs and the execution of benefits management.

Question 5

How to create Project Value?

Answer 5

• Understand tangible and intangible sucess criteria
• Engage stakeholders
• Understand strategy and align with business goals
• Educate the project team so they can create value
• Collect data, monitor deviations and variances
• Develop skills to accomplish change (roadmaps, gates, stakeholder reviews)

Question 6

Financial measures of project value

Answer 6

• Cost benefit ratio: benefits outweigh project costs
• Planned vs. Actual benefits: specified in business case
• Return on Investment: financial return compared to investment
• Net Present Value (+/-) Do project when it is positive and don’t do project when its negative