Value-Driven Project Management

Preface vii

Acknowledgments xi

International Institute for Learning, Inc. (IIL) xii

Chapter 1: HOW PROJECT MANAGEMENT HAS CHANGED 1

Why Traditional Project Management May Not Work 2

Today’s View of Project Management 8

Changing Views of Project Management 16

Recognizing the Need for Change 46

Chapter 2: CHANGING OUR DEFINITION OF PROJECT SUCCESS 49

Changing Times 50

Not Meeting the Triple Constraint 52

Defining Project and Program Success 54

Redefining the Triple Constraint Success Criteria 56

Definition of Success 58

Chapter 3: THE IMPORTANCE OF VALUE 61

Success 62

Types of Value 64

Return on Investment (ROI) 66

Types of Business Values 68

Changing Values 70

Chapter 4: THE STAKEHOLDERS’ VIEW OF VALUE 103

Stakeholder Perception 104

Classification of Stakeholders 106

The Sydney, Australia, Opera House 108

Apple’s Lisa Computer 112

Denver International Airport 116

Balancing Stakeholders’ Needs 120

Traditional Conflicts over Values 122

Project Management Value Conflicts 124

Value Perceptions within a Project 126

Chapter 5: THE COMPONENTS OF SUCCESS 129

Four Cornerstones of Success 130

Categories of Success 132

Categories of Values 134

Deciding on the Quadrant 138

Internal Values 140

Financial Values 142

Future Values 144

Customer-Related Values 146

Reasons for Internal Value Failure 148

Reasons for Financial Value Failure 150

Reasons for Future Value Failure 152

Reasons for Customer-Related Value Failure 154

Antares Solutions 156

General Electric (Plastics Group) 158

Asea Brown Boveri (ABB) 160

Westfield Group 162

Computer Associates Technology Services 164

Convergent Computing 166

Motorola 168

Automotive Suppliers Sector 170

Banking Sector 172

Commodity Products (Manufacturing) Sector 174

Large Companies 176

Small Companies 178

Chapter 6: SUCCESS AND BEST PRACTICES 181

From Values to Best Practices 182

Two Components of Success 184

Redefining Value Metrics (CSFs and KPIs) 186

The Need for Changing Metrics 188

Project Management Office Involvement 190

Discovery of Best Practices 192

The Debriefing Pyramid 194

Disclosure of Best Practices 196

Levels of Success in Obtaining Values 198

Project Management Knowledge 200

Project Management Benchmarking 202

Sharing Values during Benchmarking 204

Intellectual Property Cost versus Value 206

Implementation Failures 208

Chapter 7: THE VALUE CONTINUUM 211

The Timing of Values 212

The Value Continuum 214

Barriers along the Continuum 216

Activities to Speed Up the Value Continuum 218

The Value Continuum and the Project

Management Maturity Model 220

Value Management Life-Cycle Phases 222

Value Identification Phase: Business Case 224

Business Drivers Phase: Business Drivers 226

Measurement Phase: Key Performance Indicators 228

Value Realization Phase: Value (Benefits) 230

Customer Satisfaction Management Phase:

Continuous Improvement 232

Chapter 8: ASSIGNING VALUE THROUGH OBJECTIVES 235

Types of Performance Reports 236

Benefits and Value at Completion 238

Determining Benefits (Value) at Completion 240

Establishing the Business Objectives 242

Estimating Approaches 246

Project Plans 248

Business Plans 250

Canceling Projects 252

Marrying Project and Program Management 254

Chapter 9: VALUE LEADERSHIP AND SENIOR MANAGEMENT 257

The Evolution of Leadership 258

Measurements and Triggers 260

What Executives Want to Hear 262

Critical Issues for the Selling Process 264

Threats that Executives Face 266

Project Management Success versus Maturity 268

Conclusions 270

Index 273