Governance establishes the processes and procedures of maintaining program to project management oversight and decision making for applicable policies and practices. We have found through years of experience that the best governance structures require value to be measured in an unbiased and agreed manner, leading to aligned business requirements and programs /project direction. This fosters an environment that can create the Best Value for the organisation.
And with a recent PMI survey finding that “fewer projects are being completed within budget or meeting original goals and business intent”, an effective governance system will provide the linkage between an organisation’s vision/strategy and the program/ project implementation.
We have worked in many organisations that are challenged by, or simply don’t have methods for resolving how they will measure Value. Some organisations we have seen include such complications of having over 60 criteria, leading to confusion and disagreement on what is the true value to be delivered. This also results in ill-informed and subjective decision making by the governance systems.
Implementing a Best Value governance model will promote a method for decision making that best suits the organisations strategy and long-term sustainability. The challenge for an organisation is then, how to resolve Best Value?
To measure the value criteria, need to be defined and aligned to an organisation’s vision and strategy. This alignment enables the aggregation of the projects into program outcomes to test the value in delivering each strategy iframeive. Whilst strategies are talked about in a lot of organisations, very few seem to have a simple clear picture that reflects it.
So, what do you need to consider in defining how you measure Value? It is important that a holistic approach is taken, one that considers all elements of organisational benefits towards sustainability and is not simply monetary. This can also include non-monetary matters such as key performance indicators, resources, social return on investment etc.
Does your organisation governance apply a best value approach to its programs and projects?
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