13Value‐Driven Delivery
A CLASSICAL PLAN-DRIVEN PROJECT WAS DEEMED TO BE SUCCESSFUL if it delivered well‐defined project requirements on‐time and under‐budget. The problem with that is the assumption that the “well‐defined requirements” accurately reflect the “value” that the customer really needs.
In most projects, “value” has a much broader meaning than simply delivering well‐defined requirements within a budgeted cost and planned schedule. There have been many projects that have met their cost and schedule goals but failed to deliver an acceptable level of customer value. It’s a trade‐off between maximizing the efficiency of meeting cost and schedule goals and the overall effectiveness of the solution.
In some cases, “business value” might be measured in financial terms such as Return on Investment (ROI) or Internal Rate of Return (IRR). In other words, did the project produce an acceptable financial return for whatever it cost to do the project? However, in many cases, the value that a project produces is not always quantifiable in financial terms. In many cases, it is a more subjective measurement that the Business Sponsor (the person paying for the cost of the project) believes that the project produced a valuable result considering the costs and effort that went into the project.
VALUE ‐ DRIVEN DELIVERY OVERVIEW
Delivering ...
Get The Project Manager's Guide to Mastering Agile, 2nd Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
