Chapter 20. Value‐Focused Project Management

Projects are a vital part of the activity of many organizations. In research and development (R&D), high‐tech, construction, consulting, and defense companies, the business is based on project execution.

This chapter introduces a value‐focused approach to project management. The well‐established theory and techniques of project management will not be deliberated. We assume that you have some fundamental knowledge of project management. Our purpose in this chapter is to show how the value of the organization can be increased by focused and professional project management, using modern management concepts.

Project Management Environment

A project has a set of predefined outcomes that are achieved using numerous resources within the constraints of a timetable, content, budget, and performance. Projects are usually planned and performed with uncertainty. This uncertainty stems from the inability to foresee the exact environment in which the project is occurring, and the performance of the organization while it executes the project plan. Projects usually require teamwork. The teams are usually interdisciplinary; hence, the resources come from several organizational units.

Because of the uncertainties surrounding projects, there are risks that may harm the value of the organization. However, once properly managed, uncertainties may become opportunities to increase the value of the ...

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