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)

Book


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

1 comment:

  1. I agree that this is a new literacy for today's project management. Maximizing project management is an excellent example of a foraging tool. The trick is in selecting the right people to follow.

    Angela West

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