Business Value

Business Value:
Business value is a concept that is unique to each organization.
Business value is defined as the entire value of the business; the total sum of all tangible and intangible elements. Examples of tangible elements include monetary assets, fixtures, stockholder equity, and utility. Examples of intangible elements include good will, brand recognition, public benefit, and trademarks. Depending on the organization, business value scope can be short-, medium-, or long-term. Value may be created through the effective management of ongoing operations. However, through the effective use of portfolio, program, and project management, organizations will possess the ability to employ reliable, established processes to meet strategic objectives and obtain greater business value from their project investments. While not all organizations are business driven, all organizations conduct business-related activities. Whether an organization is a government agency or a nonprofit organization, all organizations focus on attaining business value for their activities.

Successful business value realization begins with comprehensive strategic planning and management. Organizational strategy can be expressed through the organization’s mission and vision, including orientation to markets, competition, and other environmental factors. Effective organizational strategy provides defined directions for development and growth, in addition to performance metrics for success. In order to bridge the gap between organizational strategy and successful business value realization, the use of portfolio, program, and project management techniques is essential.

Portfolio management aligns components (projects, programs, or operations) to the organizational strategy, organized into portfolios or sub portfolios to optimize project or program objectives, dependencies, costs, timelines, benefits, resources, and risks. This allows organizations to have an overall view of how the strategic goals are reflected in the portfolio, institute appropriate governance management, and authorize human, financial, or material resources to be allocated based on expected performance and benefits.

Using program management, organizations have the ability to align multiple projects for optimized or integrated costs, schedule, effort, and benefits. Program management focuses on project interdependencies and helps to determine the optimal approach for managing and realizing the desired benefits.

With project management, organizations have the ability to apply knowledge, processes, skills, and tools and techniques that enhance the likelihood of success over a wide range of projects. Project management focuses on the successful delivery of products, services, or results. Within programs and portfolios, projects are a means of achieving organizational strategy and objectives.

Organizations can further facilitate the alignment of these portfolio, program, and project management activities by strengthening organizational enablers such as structural, cultural, technological, and human resource practices. By continuously conducting portfolio strategic alignment and optimization, performing business impact analyses, and developing robust organizational enablers, organizations can achieve successful transitions within the portfolio, program, and project domains and attain effective investment management and business value realization.More Detail Click here
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The Link between Project Management and organizational Governance Projects (and programs)

The Link between Project Management and organizational Governance Projects (and programs) are undertaken to achieve strategic business outcomes, for which many organizations now adopt formal organizational governance processes and procedures. Organizational governance criteria can impose constraints on projects—particularly if the project delivers a service which will be subject to strict organizational governance.

Because project success may be judged on the basis of how well the resultant product or service supports organizational governance, it is important for the project manager to be knowledgeable about corporate/organizational governance policies and procedures pertaining to the subject matter of the product or service (e.g., if an organization has adopted policies in support of sustainability practices and the project involves construction of a new office building, the project manager should be aware of sustainability requirements related to building construction.) click for more Detail

Project-Based organizations

Project-based organizations (PBOs) refer to various organizational forms that create temporary systems for carrying out their work. PBOs can be created by different types of organizations (i.e., functional, matrix, or projectized (see 2.1.3)). The use of PBOs may diminish the hierarchy and bureaucracy inside the organizations as the success of the work is measured by the final result rather than by position or politics.

PBOs conduct the majority of their work as projects and/or provide project rather than functional approaches. PBOs can refer to either entire firm’s (as in telecommunications, oil and gas, construction, consultancy, and professional services) multi-firm consortia, or networks; it is also possible that some large project-based organizations have functional support areas or that the PBO is nested within subsidiaries or divisions of larger corporations. click for more Detail

Organizations and Project Management

Organizations and Project Management:

Organizations use governance to establish strategic direction and performance parameters. The strategic direction provides the purpose, expectations, goals, and actions necessary to guide business pursuit and is aligned

with business objectives. Project management activities should be aligned with top-level business direction, and if there is a change, then project objectives need to be realigned. In a project environment, changes to project objectives affect project efficiency and success. When the business alignment for a project is constant, the chance for project success greatly increases because the project remains aligned with the strategic direction of the organization. Should something change, projects should change accordingly.

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Operational Stakeholders in Project Management

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Operational Stakeholders in Project Management:
While operations management is different from project management (see 1.5.1.1), the needs of stakeholders who perform and conduct business operations are important considerations in projects that will affect their future work and endeavors. Project managers who consider and appropriately include operational stakeholders in all phases of projects, gain insight and avoid unnecessary issues that often arise when their input is overlooked.

Operational stakeholders should be engaged and their needs identified as part of the stakeholder register, and their influence (positive or negative) should be addressed as part of the risk management plan.

The following list includes examples of operational stakeholders (depending upon the business):

• Plant Operators,
• Manufacturing line supervisors, 
• Help desk staff,
• Production system support analysts,
•  Customer service representative,
• Salespersons,
• Maintenance workers,
• Telephone sale personnel,
• Call center personnel,
• Line managers, and
• Training officers,

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Operations Management

Operations management is a subject area that is outside the scope of formal project management as described in this standard.

Operations management is an area of management concerned with ongoing production of goods and/or services. It involves ensuring that business operations continue efficiently by using the optimum resources needed and meeting customer demands. It is concerned with managing processes that transform inputs (e.g., materials, components, energy, and labor) into outputs (e.g., products, goods, and/or services). click more Detail

Operations and Project Management

Changes in business operations may be the focus of a dedicated project—especially if there are substantial changes to business operations as a result of a new product or service delivery. Ongoing operations are outside of the scope of a project; however, there are intersecting points where the two areas cross.

Projects can intersect with operations at various points during the product life cycle, such as:

• At each closeout phase; 
• When developing a new product, upgrading a product, or expanding outputs; 
• While improving operations or the product development process; or 
•  Until the end of the product life cycle.

At each point, deliverables and knowledge are transferred between the project and operations for implementation of the delivered work. This implementation occurs through a transfer of project resources to operations toward the end of the project, or through a transfer of operational resources to the project at the start.

Operations are ongoing endeavors that produce repetitive outputs, with resources assigned to do basically the same set of tasks according to the standards institutionalized in a product life cycle. Unlike the ongoing nature of operations, projects are temporary endeavor