Friday, May 10, 2013

Managing for value

One of my agile project management students said this:
My company will not allow us to start a job until we budget the revenue and plan for all costs. We are judged by how closely our projects come to the original planned budget.
To which I said this:
Being judged by the budget is being judged by input rather than output. Your sponsor will be disappointed often, even if you don't spend more than planned. Agile shifts the management to the value of the output which is far greater than the value of the input. Afterall, projects are a value multiplier: spend $10 on the project and get $1000 in business return, for example.
This whole idea of projects as a value multiplier -- as evidenced on the balance sheet if nowhere else -- is the theme of my most recent book (available in Kindle, ebook, and, of course, paper)


Check out these books I've written in the library at Square Peg Consulting