What is Value? ...or Project Value?

TL;DR

Value in project management is the worth or importance of something, which can be subjective and measured by the ratio of satisfaction of requirements over the use of resources.

Transcript

value has come right up the project management agenda in recent years and rightly so indeed it now has pride of place in the seventh edition of the project management institute's project management body of knowledge between them pinbox seven and the seventh edition of the association for project management's apm body of knowledge offers three diffe... Read More

Key Insights

• 📽️ Value has gained significance in project management.
• 💨 Different organizations offer various definitions and ways to measure value.
• ❓ Value is subjective and can vary for different individuals.
• 🥳 Value can be calculated through the ratio of benefit to cost or as a net benefit.
• ❓ The PMI and APM bodies of knowledge include value as an essential concept.
• ❓ Value is the worth, importance, or usefulness of something.
• 👨‍💼 Business value in project management refers to the net quantifiable benefit derived from a business endeavor.

Questions & Answers

Q: What are the three different definitions of value provided by PMI and APM?

PMI defines value as the worth or importance of something, APM defines it as a standard principle or quality considered worthwhile or desirable, and both emphasize subjectivity and a different value for different people.

Q: How does the APM measure value in projects?

The APM measures value by using the ratio of satisfaction of requirements over the use of resources, essentially calculating the value obtained in relation to the resources invested.

Q: What is the PMI's definition of business value?

The PMI defines business value as the net quantifiable benefit derived from a business endeavor, which can be tangible, intangible, or both.

Q: How can value be calculated in project management?

Value can be calculated in two ways: as a ratio of benefit to cost, where value equals what you get divided by the total cost, or as a net benefit, which is the difference between total benefit and total cost.

Summary & Key Takeaways

• Value has gained importance in project management and is now included in the latest editions of the Project Management Institute (PMI) and Association for Project Management (APM) bodies of knowledge.

• The PMI's definition of value is the worth or importance of something, while the APM defines it as a standard principle or quality considered worthwhile or desirable.

• The APM also introduces a way to measure value by using the ratio of satisfaction of requirements over the use of resources.