proving project value
TRANSCRIPT
ProvingProject Value
Priscilla Bahrey, PMP
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Proving Project Value Overview
Pre-ProjectEnterprise Strategic ObjectivesProject Selection
During ProjectProving Project ValueStakeholder Management & Communication
Post ProjectLessons LearnedProject Benefits Realization
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Pre-Project
Enterprise Strategic ObjectivesProject Selection
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Defining Value
Initiate CloseBuildEnterpriseanalysis
Plan
Product/Service life cycle
Project life cycle
Project Charter:
Project scope (high level plan)
Key metrics
Success criteria
Stakeholder Analysis
Project authorization
Maintenance
Support
Operations
Business Case:
• Project justification
• Alternate approaches
• Recommended approach
• Expected benefits
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Project Selection Methods
Organizational Strategic ObjectivesCost/Benefit AnalysisValue AnalysisNet Present ValueReturn on Investment
Business Case Project Charter
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Project Benefits Selection
Sales VolumeMarket ShareProfitabilityROICorporate ScorecardReputation/ImageMedia presence
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What is the Strategic Objective?
Financial
• Increase in revenue
• Reduction in costs• Overall financial
improvement• Higher margins
Efficiency
• More with less• Same with less• Less with less
(while achieving more)
Effectiveness
• Better results• Customer
satisfaction• Improved
performance
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Aligning Strategic Objectives with Project Objectives
Creating a line of sight from business or strategic objectives to project objectives keeps the project team focused on the right things
Organization ObjectivesProject Objectives
Project Team Member Objectives
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Strategic Objectives Framework
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Benefits Definition
Ensure project objectives are aligned with strategic objectivesDefine project objectives and success criteriaIdentify and quantify business benefits (how and when will be realized during
project and post-project)Develop key metrics to measure actual deliveryCreate communication processes to record progress and report to
stakeholders
2-30
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During Project
Proving Project ValueStakeholder Management & Communication
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Proving Value
Initiate CloseBuildEnterpriseanalysis
Plan
Product/Service life cycle
Project life cycle
Project Execution
Project Controls
Performance measurement
Project Status Reporting
Stakeholder Management and Communication
4-4
Maintenance
Support
Operations
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Stakeholder Importance Ranking
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Stakeholder Priorities Ranking
Measures the significance a stakeholder attaches to four fundamental success criteria:TimeCostScopeQuality
The stakeholder’s priorities are each assigned a ranking from 1 (the highest priority) to 4 (the lowest priority)
Each success criteria must be given a different ranking; there can be no ties.
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Stakeholder Priority Scoring System
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Track Benefits
Documentation and recording of benefitsArticulation and communication of benefitsExpectations management (magnitude, areas, timing)Alignment with corporate and organizational objectives and strategyShort vs. long-termProcess vs. performance and capabilities (product related)Outputs vs. outcomes vs. benefits
2-31
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Benefits Register
Collects and lists the planned benefitsUsed to measure and communicate the delivery of benefits Initially based on the program business case and the organization’s
strategic plansReviewed with stakeholders to develop appropriate performance
measures for each benefitElaborated in next phase of the benefits life cycle and continually
updated
2-32
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Project Status Meetings
Proving value of deliverablesMajor deliverables
Related interim deliverables
Measuring against Key MetricsExplaining benefits to Stakeholders
Project Status Report
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Communicating Value
Reporting benefits at MilestonesRealization of Key Metrics
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Post Project
Lessons LearnedProject Benefits Realization
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Delivering Value
Initiate CloseBuildEnterpriseanalysis
Plan
Product/Service life cycle
Project life cycle
Transition planning
Administrative closure
Lessons learned
Closing procurements
Maintenance
Support
Operations
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Lessons Learned
Shows value of the project to the organizationDocumented and applied to future projects:
Procedures and practicesEstimating informationPreferred vendorsRisks
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Transition Project to Operations
Transition capability to the receiving organizationChange management post-projectMonitor key metricsMonitor expected benefits beyond the project lifecycle
4-18
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Measure Benefits
*From Managing Change in Organizations: A Practice Guide, Project Management Institute, Inc., 2013, Figure 5-9, 89.
Strategic objective
• Respond to new market position
Benefits
• Change organization while maintaining work culture
Projects
• Redesign jobs and reengineer business
• Introduce new IT and networking systems
Measure of success
• Encourage acceptance of new systems
• Methodology accepted by most personnel
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Project Benefits Realization
Sales VolumeMarket ShareProfitabilityROICorporate ScorecardReputation/ImageMedia presence
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Final Project Report
Final Deliverables proving how Project supported Strategic Goals:Measurements of Key MetricsBenefits Realization
Celebrating Success!
Final Project Report
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Proving Project Value Review
Pre-ProjectEnterprise Strategic GoalsProject Selection
During ProjectProving Project ValueStakeholder Management & Communication
Post ProjectLessons LearnedProject Benefits Realization
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PDU
PMI R.E.P. Number: 1999
PMI Activity Name: Proving Project Value
PMI Activity ID/Number: WBNR0813
PDU Amount: 1 PDU
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Courses
0503:
Effective Stakeholder Communications
21 PDUs
2813:
Program Management
21 PDUs
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