Innovation Project Management, 2nd Edition

Value-Based Innovation Project Management Metrics

Learning Objectives for Project Managers and Innovation Personnel

• To understand what is meant by business value
• To understand the importance of measuring and reporting business value
• To understand that there are many metrics available for reporting innovation value
• To understand how to create a value metric based on value attributes

INTRODUCTION

In earlier chapters, we discussed how new versions of project management, such as PM 2.0 and PM 3.0, focused on the creation of more business-oriented metrics for project management and how information warehouses and knowledge management systems now include more supporting data for project management decision making. All of these activities are providing innovation project managers with additional information for creating the business value outcomes expected from innovation. Business value will most likely be the driver for all new forms of project management. Value-in-use may be the driver for all new forms of innovation. We now have the capability of creating and monitoring business value metrics throughout the life of an innovation project.

Any metric can be regarded as a value metric based on how and when it is used. Unlike traditional projects where we often do not question who is assigned, strategic projects involving innovation usually are staffed with some of the firm’s best ...