October 11, 2020 — Peter Nichol published new research highlighting a practitioner approach to achieve value realization in a value management office.
Executives don’t want to have to sell snake oil. Explaining the value of your PMO—when it doesn’t add value—is challenging.
The number one challenge when transforming a failing PMO is changing the value, beliefs, and behaviors of the existing portfolio, program, and project management teams. In a nutshell, the challenge is education. No one wants to be executing projects that are not aligned with strategic corporate goals. Likewise, most employees want to deliver value to the enterprise, they just don’t know how to quantify it.
Peter’s research moves the idea of value management offices from conceptual frameworks to practical step-by-step instructions of what is required to captured, document, and report on value. This paper is written for practitioners who are challenged to deliver value-based outcomes every day.
The paper outlines a specific example of how to quantify value for a project management initiative.
Abstract — This paper aims to present a practitioner approach to applying project-management principles of value realization within a value-management office. Portfolio leaders and program and project managers are confused about how to apply value management in the real world. Project-management offices are being shut down, because they’ve not delivered on the promise to add value to the business. What has emerged to fill this void is the concept of a value-management office. This new organizational construct is narrowly focused on maximizing value for the company’s strategic initiatives. The result is a huge divergence from the traditional project-management office, which has been viewed organizationally as a cost center that provides little if any value to the company. To optimize the value-management office, new techniques need to be applied and integrated into the existing processes and procedures to deliver projects and quantify results. By using a general-structure portfolio, program and project managers can deliver impactful and quantified value to business partners. In this paper, we’ll explore an example of how to achieve value realization. Leaders, by using this model, have a roadmap for achieving quantified outcomes for their value-management office.
What will you learn?
- How to step-by-step capture, document, and report value for your project or initiative.
- What are the steps to quantify outcomes?
- The difference between process maps and value-stream maps.