Managing Projects as Investments: Earned Value to Business Value

Stephen A. Devaux

September 18, 2014 by CRC Press
Reference - 255 Pages - 79 B/W Illustrations
ISBN 9781482212709 - CAT# K21718
Series: Systems Innovation Book Series

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Features

  • Explains the use of new tools such as critical path drag and drag cost and true cost that help to maximize business value through time management and to optimize and recover slipping schedules
  • Shows how much of the project management community shares a misunderstanding of the concept of earned value management
  • Illustrates how the current overreliance on standard earned value metrics can lead not just to a distorted vision of project status, but actually can introduce moral hazard providing incentives for poor decisions
  • Introduces new techniques that provide the metrics to plan and track programs and projects as investments, and to make decisions based on reliable and quantified data
  • Discusses how modifications to current metrics can lead to a better view of the full picture, and thus to better decisions

Summary

Every project is an investment; however, traditional project management methodologies do not support assessment of the business value that enables senior management to maximize decision making. The next evolution in project management, therefore, will be to manage projects as investments. Managing Projects as Investments: Earned Value to Business Value provides tools and metrics to enable planning, measuring, evaluating, and optimizing projects.

This book shifts the paradigm. It builds on traditional scope-cost-schedule tools, adding a critical new focus on the expected value of projects and programs. The enhancements in processes and metrics allow senior management and PMOs to guide the entire organization on the basis of business benefits, and to ensure that decisions ranging from project selection to resource assignment facilitate those goals. The author shows how framing projects as investments enables significant improvement in project performance. He provides metrics that allow you and your team to track and maximize performance based on ROI.

Demonstrating the importance of recognizing an enabler project in a program, and why its value and cost of time are so great, the book provides the tools to determine right-sized staffing levels for project-driven organizations. It includes a comprehensive but easy-to-understand explanation of both basic and advanced earned value metrics, their shortcomings, and how they can be improved and shows you how to optimize contract terms on projects in a way that can avoid misaligned customer/contractor goals.