About value (*)
In many posts in this blog, I have established these propositions:
- That there is a distinction between project value and business value, and
- That the interests of the customer/user, sponsor/stakeholder, and project manager are to be balanced among these parties, even as they all compete for attention as value is developed.
We recognize that:
- Each has their own needs and wants,
- Each has their own sense of urgency and importance, and
- Each has an idea of the investment they want to make and the risk they are willing to accept.
Value planning challenge
The planning challenge for project sponsors is to fashion a practical and rewarding opportunity from the myriad of permutations and combinations of needs and wants, colored by urgency and importance, affordability, and risk.
To make the best of opportunities requires goal setting and strategic development in the context of mission and vision.
- Mission provides the compelling call for action.
- Vision provides the epic narrative and points the way ahead.
- Goals set the stage; goals motivate business strategy and, in turn, motivate project strategy
OE and project objectives:
Business goals, extended through business strategy, drive project objectives. But of course business strategy also drives operational effectiveness (OE) ....
OE being the quality of the operations and operating programs that amounts to doing things better with predictable repetition (see: Michael Porter for more ideas like these). But even predictable repetition, if done better over time, like projects, add value to the business.
OE and projects, working together, are two instruments of strategy. They are interdependent. The outcomes of projects may well affect operations—add, change, or delete them—thereby closing the loop on goals and strategy, as captured on the business scorecard
Strategic Plan
Here, at the bottom of this post, is the bottom line:
Strategy is a plan that integrates continuous improvement of operational effectiveness with a vision and narrative for differentiated innovation attained with projects
(*) Some of the material in this post come from Chapter 2 of my book, cover illustration below, "Managing Project Value"
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