The PMBOK Guide 7th Edition Exposure Draft is built around a Value Delivery System, of which projects are a fundamental component. Value is the foundation of successful change initiatives which include strategic initiatives, programs, projects, innovation and continuous improvement.
Value can be defined as a ratio between the alignment with stakeholders’ expected benefits and the achievability of the proposed solutions. The Value ratio is also the basis for business analysis techniques like the ROI (Return vs Investment), NPV (Net Present Value) SWOT analysis, and the project management’s Scope and Quality vs Time and Cost. Value management is also strongly linked to creativity and innovativeness which are essential in today’s VUCA (Volatile, Uncertain, Complex and Ambiguous) context.
To support this approach, Benefits Realization Management (Alignment) is considered as one aspect of the value ratio and Risk Optimization (or Achievability) as the other aspect of that ratio.
The presentation showed how to calculate the value index and use it to prioritise change initiatives, not only on their alignment to objectives, but also on their achievability, or overall risk. Thus enabling, sponsors, portfolio, program and project managers to define, measure and deliver value to the business.
Video Link to Webinar Recording
About Dr. Michel Thiry
Michel has an extensive worldwide experience and has worked in many cultural environments. He is recognized as a worldwide authority in strategic applications of project, program and value at organizational level and has supported the development and implementation of numerous strategic programs for major corporations in various fields.
He has written and lectured widely and been invited to sit on expert panels in international Academic and Practitioner forums and is the author of “A Framework for Value Management Practice” and of the best-seller “Program Management”. He is currently preparing a book titled 'Making Sense of Value' to published in 2021.