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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.
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.
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?
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.
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.
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