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The Guiding Principles of the Project Economy
Network:2466



I was doing some study on the "Project Economy". I came across this interesting article
https://www.linkedin.com/pulse/project-man...ieto-rodriguez/
The guiding principles of project economy - the project manifesto. One that strikes me most is principle - 8 , Our highest priority is to deliver projects better, to reduce the failure rate, to create more value for individuals and organizations, and to create more sustainable development in our economies and societies at large.
What in your opinion is value and value creation. How can projects best create value ?
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Network:1910



My recommendation is going to PMI´s Practice Guide for BRM. You will find the answer aligned with the PMI, just in case is what you like.
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1 reply by Priya Patra
Nov 08, 2019 12:35 AM
Priya Patra
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Thanks Sergio for the recommendation. I am going through the guide now
Network:1660



Good question Priya!

We invest in projects to achieve value for ourselves, our organizations or for society in general.

Maximizing value creation happens by:

1. Developing good strategic plans
2. Picking the "right" projects to align with those plans - effective project portfolio management
3. Improving the efficiency & effectiveness of project delivery and change sustainment. This includes things like leaning out bureaucracies, tailoring project approaches to better fit the specific context of projects, and emphasizing the human-side of the equation.

Kiron
Network:1814



Dear Prya
Interesting your question
Thanks for sharing

I didn't know this manifest

I am convinced that we all agree with point 8 that you share.

What will it be like in practice?
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1 reply by Priya Patra
Nov 08, 2019 12:27 AM
Priya Patra
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That is the question .. how will be it in practice. Kiron did highlight a few interesting points to delve into.
Network:347



Value is very subjective as it comes down to what qualities we deem most important. Prior to the creation of a project, some need is identified. Projects seek to address fulfilling that need, so one part of the value is how well the product fits the stated need. This is the value to the customer.

There is also the value to the performing organization. Part of that value may be measured purely based on the profit but often projects have more intangible value. Projects may preserve a more stable workforce by utilizing people for less profitable projects when times are slow so that they will still be there when it is time for higher profit ventures. They can develop the talent of our workforce so that they perform higher on future projects. They can foster good will with existing or potential customers and provide opportunities later.

To maximize value, we need to consider what are the most important qualities of the solution to the various stakeholder perspectives, which we believe are the most important, and ensure we prioritize those qualities in both the project output, and how we achieve that output through the project planning and execution.
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1 reply by Priya Patra
Nov 08, 2019 12:39 AM
Priya Patra
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Thanks Keith for your response. We need get stakeholder's perspective as to what is 'value" for them and ensure our project goals aligns to the same.
Network:2466



Nov 07, 2019 1:07 PM
Replying to Luis Branco
...
Dear Prya
Interesting your question
Thanks for sharing

I didn't know this manifest

I am convinced that we all agree with point 8 that you share.

What will it be like in practice?
That is the question .. how will be it in practice. Kiron did highlight a few interesting points to delve into.
Network:2466



Nov 07, 2019 12:15 PM
Replying to Sergio Luis Conte
...
My recommendation is going to PMI´s Practice Guide for BRM. You will find the answer aligned with the PMI, just in case is what you like.
Thanks Sergio for the recommendation. I am going through the guide now
...
1 reply by Sergio Luis Conte
Nov 08, 2019 4:00 AM
Sergio Luis Conte
...
You are welcome. I did that because I was part of the group of authors in the begining of the process and it was a hugh internal debate. Just to comment, project does not create value in a direct way. Value is create by the product/service/result the project is creating becuase that is the solution. Project will create value in indirect way when creating the solution as defined (quality), in the time needed, the estimated cost. Just to refering you to other sources that had been taken when PMI started working on BRM you can go to ISACA standards, IEEE standards, and all "Val" models from the British Goverment.
Network:2466



Nov 07, 2019 5:39 PM
Replying to Keith Novak
...
Value is very subjective as it comes down to what qualities we deem most important. Prior to the creation of a project, some need is identified. Projects seek to address fulfilling that need, so one part of the value is how well the product fits the stated need. This is the value to the customer.

There is also the value to the performing organization. Part of that value may be measured purely based on the profit but often projects have more intangible value. Projects may preserve a more stable workforce by utilizing people for less profitable projects when times are slow so that they will still be there when it is time for higher profit ventures. They can develop the talent of our workforce so that they perform higher on future projects. They can foster good will with existing or potential customers and provide opportunities later.

To maximize value, we need to consider what are the most important qualities of the solution to the various stakeholder perspectives, which we believe are the most important, and ensure we prioritize those qualities in both the project output, and how we achieve that output through the project planning and execution.
Thanks Keith for your response. We need get stakeholder's perspective as to what is 'value" for them and ensure our project goals aligns to the same.
Network:18



Priya,
If you ask Stakeholder’s perspective, you might get the same reply stating deliver on time with quality and schedule. My interpretation of “Value” is anything which is not expected from a resource. To give you an example, Developer finds out a design or performance issue in the project and coming up with a solution which gets accepted. This might not save billions of dollars of the customer but if we continuously look for this kind of value adds then customer will start feeling that the team is not only doing what has been asked for, but they actually try to go out of their way and trying to make the overall solution more effective. This will eventually create a positive impact in customer’s mind and they will start looking at your team as partner rather then set of resources.
Now, to answer that how come projects can create best value is to create an environment where everyone is encouraged to look for value adds. This value adds also will have an additional weightage in performance discussion. The motto should be “from good to better and from better to best”. Hope this helps.
Network:1910



Nov 08, 2019 12:35 AM
Replying to Priya Patra
...
Thanks Sergio for the recommendation. I am going through the guide now
You are welcome. I did that because I was part of the group of authors in the begining of the process and it was a hugh internal debate. Just to comment, project does not create value in a direct way. Value is create by the product/service/result the project is creating becuase that is the solution. Project will create value in indirect way when creating the solution as defined (quality), in the time needed, the estimated cost. Just to refering you to other sources that had been taken when PMI started working on BRM you can go to ISACA standards, IEEE standards, and all "Val" models from the British Goverment.

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