How can businesses manage projects better and increase value?
Most businesses are good at Operations, but not at Projects – yet the latter is where a lot of (if not most) of their value should be coming from.
Businesses are expected to increase their value, over time. They are expected to create value for their owners (i.e. shareholders). To do so, they allocate their scarce resources to the most promising operations – and projects. The latter activities is where they take advantage of new opportunities and deal with threats.
From our research and experience, we learned that projects have a significant impact on value. We also learned that the following areas are critical to selecting and managing projects to create value:
- Value drivers of business
- Stakeholder mapping and engagement
- Risk assessment and mitigation
- Structures and systems
- Portfolio prioritisation and balance
- Portfolio performance
- Project appraisal (non-financial considerations)
- Project appraisal (financial considerations)
- Innovation and technology
- Continual basis
We developed a framework to assess project/ project portfolio practices of businesses – of any size and sector. A framework which helps them create value, leveraging the areas listed above.
Over the years, this framework helped our clients select and manage the projects which are most likely to succeed. And create value. (Considering their unique strengths and strategies.)
Typically, project appraisal (financial considerations) and project portfolio prioritisation are the two areas which businesses need to improve the most.
Read more in this PowerPoint: P27 Projects and Value (please login/ register to download this PowerPoint). It presents findings from our own research on projects and value. It also includes the results of a survey, and recommendations for project appraisal (financials), and portfolio prioritisation.
(Note that we conducted the survey years ago, but our recent assignments tell us that the findings are still valid. And the recommendations still useful.)