Project Portfolio Management: A View From The Management Trenches

7.2. KEY 2: CAPTURING ALL VALUE CREATED

"Too often projects hit the hurdle rate and then stop," Bill continued, "but that means potential benefits may be ignored and consequently lost, since the business change required to realise them won't occur. The answer is to ensure we look at all investments from the other end of the kaleidoscope—rather than asking are there sufficient benefits to justify the investment, we should be asking, Have all potential benefits from this investment been identified?"

"That's great—I presume you have a framework that I can use?" John asked hopefully.

"Of course, grasshopper, listen and you shall be enlightened . . . capturing all potential value means that we need to focus on four main categories of benefit."

Bill picked up on the "grasshopper" comment and recalled that in college, Bill had been a big fan of the television series Kung Fu. It appeared he was still a fan. "Maybe it's all the reruns of the show now on the cable channels," Bill thought to himself.

"First, efficiency benefits, which include both time and financial savings. The key here is to borrow from Steve McGarrett."

"What?" For once John was completely lost.

"You remember, the old television series Hawaii Five-O and the immortal line McGarrett always uttered when they finally caught up with the villain: "Book 'em, Danno!"

"Oh, yes, I remember. I think my dad told me about it."

"Don't forget—we are the same age," Bill retorted.

"Ouch!" exclaimed John. "Touché!"

"Now, back to what I ...