112 Managing projects as investments: Earned value to business value
Step 2: Develop a value breakdown structure (VBS)
A valuable tool in assessing a project’s expected value is a value break-
down structure (VBS). This is a document that I introduced and explored
in depth in my 1999 book, Total Project Control. To explain briey, a VBS
lays out the value-added of each component or work package within the
project, that is, how much each contributes to the total expected monetary
value. However, a VBS does not have to be limited to the project level. Itis
of even greater value at the program level where the contributions of each
project within the program can be dened, so that we can see how the
work of an enabler project is adding value to ...