Project Management and Business Value Creation

Diego Escobar has been a certified Project Management Professional (PMP®) since 2005. He has more than 18 years of project management experience.

Abstract
Project management is an important part of economic value creation for almost every business. This paper will deal with questions like: How sure are we, as project managers, that our projects are creating value and not destroying it? What metrics should we use to ensure value creation along with project planning and execution? What is the impact of our project decisions on the business results? Is our approach to risk assessment correct?

This paper shows the bridge between the business and project worlds, which are sometimes treated as separate entities, especially when there is not a clear link between their objectives. It is important to remember that one objective always remains the same: to create economic value.

Introduction
In order to answer or, at least, open a discussion about the aforementioned questions, we must begin to think about the idea of a broader scope of the project management profession—when projects are a real part of the business, and where they act as an enterprise in and of themselves.

In this new concept, projects are, indeed, treated as endeavors, like any other business. In this conception of project management and business, we must also consider the product life cycle, and not just the project life cycle, because business results are most often realized after the project closes, when the product outcome of the project …

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Even if you're on the right track, you'll get run over if you just sit there.

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