5 VALUE-BASED PROJECT MANAGEMENT METRICS
CHAPTER OVERVIEW
For some stakeholders, value is positioned at the top of the priority list. Establishing value metrics is now a necessity. However, there are shortcomings and pitfalls that must be addressed.
CHAPTER OBJECTIVES
- To understand what is meant by value
- To understand the need for measurements of value
- To understand the shortcomings with value measurement
- To understand how value has changed the way we manage projects
- To understand how to create a value-based metric
- To understand the need for creating a value baseline
KEY WORDS
- Boundary box
- Value
- Value baseline
- Value conflicts
- Value measurements
- Value metrics
- Value-driven projects
5.0 INTRODUCTION
For years, the traditional view of project management was that, if a project was completed and it adhered to the triple constraints of time, cost, and performance (or scope), the project was successful. Perhaps in the eyes of the project manager, the project appeared to be a success. In the eyes of the customer or the stakeholders, however, the project might be regarded as a failure.
As stated in Chapter 1, project managers are now becoming more business oriented. Projects are being viewed as part of a business for the purpose of providing value to both the ultimate customer and the parent corporation. Project managers are expected to understand business operations more so today than in the past. As the project managers become more business oriented, the definition of success ...
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