Quantifying the Value of Project Management

In a recent post I discussed the value of project management. See related posts below. From the comments on that post, we see that there are several kinds of benefits of having a project management method.   My conclusion was that we manage projects to increase revenues.

This post is about quantifying the increased revenues.

Passion for Quantifying

Quantifying the value of project management is one of my passions. ( Used to work in the project economics department of an Exxon Refinery, where I had to quantify the revenue of every one of my projects ).

Importance of Quantifying

Senior Management always wants to know if project management will pay for it's cost. That is why it is important for us project mangers to quantify the value of project management.

Quantifying the Value of Project Management

Quantifying the value of project management is based on the fact, that with a project management method, you can work faster! Working faster means saving money.

In some cases project management will generate a one time saving, such as when getting a product on the market faster.

In other cases project management will generate recurring savings, such as when implementing software to work more efficient.

In both scenarios we have to sit and figure out the monetary saving and compare that to the cost of project management.

 

This is in brief the approach we have to take in quantifying the value of our profession. 

 

TIME = MONEY

 

References:

The Value of Project Management

Discover Your Project Experience

Selling Project Management

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