Summary of Important Points


Summary of Important Points

Table 1-4 provides the highlights of this chapter.

Table 1-4: Summary of Important Points

Point of Discussion

Summary of Ideas Presented

Successful projects

  • Successful projects return value to the business.

  • Successful projects improve processes or product, reduce costs and operational inefficiencies, make contributions to the technical and functional competence of the organization, or add capacity and capability to serve customers and markets with greater satisfaction.

  • They are projects that make good on the promises of the project charter and deliver the intended scope within a time frame commensurate with business objectives.

  • Valuable projects are "instruments of strategy."

  • Really valuable projects enhance core competencies or benefit directly from them.

Business value motivates projects

  • Insofar as projects return more in financial resources than they absorb, then those projects are valuable to the business.

Balanced scorecard

  • Four scoring areas seek to balance the goals and resource commitments of the business: financial, customer, internal operations, and innovation and learning.

Treacy-Wiersema model

  • Business takes on a persona, seeking customer intimacy, operational effectiveness, or product superiority.

  • It is difficult if not impossible to be all three; more likely the best success is found in optimizing one.

Kano model

  • The Kano model is most useful in representing customer preferences compared to the product and service features offered by the business.

  • The Kano model focuses on customers and products.

  • The Kano model can be used by the project manager for resource allocation and risk assessment planning.

Accounting balance sheet

  • Assets are property of the company put in the custody of the company managers to employ when they execute on the business model.

  • Assets are among the resources to be used by project managers to execute on projects.

  • Assets are paid for by liabilities (loans from outsiders) and capital.

  • Capital is the property of the owners.

Project balance sheet

  • The project equation: Value delivered from resources invested = project capability and capacity plus risks taken.

  • The project manager's mission: "...is to manage project capability and capacity to deliver expected value, taking measured risks to do so."



References

1. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) — 2000 Edition, Project Management Institute, Newtown Square, PA, p. 204.

2. Goodpasture, John C., Managing Projects for Value, Management Concepts, Vienna, VA, 2001.

3. Hamel, Gary and Parahalad, C.K., The core competence of the corporation, Harvard Business Review, pp. 79–90, May–June 1990.

4. Hamel, Gary and Parahalad, C.K., Competing for the Future, Harvard Business School Press, Boston, MA, 1994, chap. 9.

5. Kaplan, Robert S. and Norton, David P., The balanced scorecard — measures that drive performance, Harvard Business Review, pp. 71–79, January–February 1992.

6. Treacy, Michael and Wiersema, Fred, Customer intimacy and other value disciplines, Harvard Business Review, pp. 84–93, January–February 1993.

7. Treacy, Michael and Wiersema, Fred, The Discipline of Market Leaders: Choose Your Customers, Narrow Your Focus, Dominate Your Market, Perseus Books, Cambridge, MA, 1996.

8. Kano, Noriaki, Attractive quality and must-be quality, Journal of the Japanese Society for Quality Control, pp. 39–48, April 1984.

9. Shiba, Shoji, Graham, Alan, and Walden, David, A New American TQM: Four Practical Revolutions in Management, Productivity Press, Portland, OR, 1993, pp. 221–224.

10. Goodpasture, John C. and Hulett, David T., A balance sheet for projects: a guide to risk-based value, PM Network, May (Part 1) and June (Part 2) 2000.

11. Goodpasture, John C., Managing Projects for Value, Management Concepts, Vienna, VA, 2001, chap. 3.

12. Goodpasture, John C., Managing Projects for Value, Management Concepts, Vienna, VA, 2001, chap. 3., p. 46.

13. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) — 2000 Edition, Project Management Institute, Newtown Square, PA, p. 204.

14. A Guide to the Project Management Body of Knowledge (PMBOK® Guide) — 2000 Edition, Project Management Institute, Newtown Square, PA, p. 54.