posted on November 02, 2008 05:58
One of the most discussed theories of project management is the value that it can mean to the organization. We all understand that there is value in understanding and performing the project management principles. However, how do you articulate this value to the stakeholders that make the decision of whether or not to invest in project management?
To start research, most people will search the web. Google will bring back over 30 million results if you search "Value of Project Management." However, very few of the results are to an article or study. Most results point to consulting firms or books.
I have been lucky enough to attend two presentations over the last month about this very subject. The first was a discussion with PMI and the announcement of their conclusions based ona four year study. A simple summary of their results states that there is significant value to project management in both tangible and intangible benefits. Yet, there is no one ruling factor. The results and success thereof seem to be different for everybody. This was a bit of a disappointing result. The study itself is available for purchase from the PMI Bookstore.
The second presentation was titled "Breaking Through the Project Fog" by Dr. James Norrie at a symposium in Canada. This discussion was based on a five year study and the results are published in a book bearing the same name. This book, approach, and speech were phenomenal. This was the research, results, and theories that I personally have been anticipating for quite some time. The results of the study show that the greatest value of project management stems from earlier involvement in project selection. The crux of the study is pointing out the fundamental flaw in many organizations methodology for selecting projects. Organizations tend to perform project selection on financial metrics only. This generally discounts strategy.
If you look at the way projects are selected today, they tend to follow the same process. We first set the strategy for the company. Then we assemble a list of projects. Here is where the flaw manifests itself. We then take a look at capacity, select the projects based on that, and pray that we hit the strategy selected. Dr. Norrie argues that we should let strategy dictate the projects selected, and then determine the capacity necessary to execute the strategy. It is in this process that project management can share it's greatest value to an organization. With proper planning techniques, stopping poor projects before they start, and selecting the best projects based on metrics well beyond financial basis, the value of project management can truly be measured and tracked.
Pick up a copy of Breaking Through the Project Fog by Dr. James Norrie. It is well worth the read!