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Measuring the Value of Project and Portfolio Management

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Rosemary Peh

on 1 October 2013

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Transcript of Measuring the Value of Project and Portfolio Management

Measuring the Value of Project and Portfolio Management
Key Questions
why is value important?
what is the value?
how is it defined and communicated?
what are the methods for measuring & monitoring value

- efforts of the Project Manager and Project Support Staff to manage a project.
The Myth of Fair Value
"Price" is a collective hallucination...
- William Poundstone -
Project & Portfolio Management Value
Recognize that Rome did not get built in a day...
What gets measured, gets done!
Start simple with immediate and relevant data.
Grow as maturity is achieved.
Oh My!
1. Determine the current state. Collect rudimentary data.
2. Determine what's most important for your company.
3. Pick a model and align your road map.
4. Collect relevant data to begin focus.
5. Get Executive Sponsorship alignment. Set Governance.
6. Measure and review monthly.
Key Differentiators
Drive focus on business results
Deliver on business strategy
"Like the circles of a tree's rings,
time is the test for progressive success"

Project Management costs as a percent of total project costs?
Portfolio Management costs as a percent of the total portfolio?
Business value returned as a percent of investment?

- efforts of the Portfolio Managers and Portfolio Support Staff to manage a portfolio.

- efforts to govern project & portfolio management, manage company stakeholders, provide staff & leadership development, and measure & monitor business value.
Project Management
Portfolio Management
Project Management Office
Nike Vapor $89
Roger Federer Vapor $287
1986 Air Jordan $31,000
Grandma's Baby Shoes: Priceless
Project Management
5% of total
10% of total
20% of total
To save a critical project: priceless
Value is what your business needs
to show results for its investments
Go where others have gone before you...
Metrics on Project Inputs, Process Consistency
Metrics on Intermediate Outputs, Project Execution
Metrics on Project Outputs, Business Outcomes
Benchmark Internally and Externally

Help each other Pace-set and Innovate

Within and Across Industries
Where to get help?
Corporate Executive Board


PM Solutions

Project Management Institute
Full transcript