Quantifying the value of project management
Return on investment (ROI) is a buzzword many researchers, practitioners, and executives use when talking about measuring the organizational value of investing in projects. This article, however, suggests that ROI limits the perspective these professionals use when attempting to accurately gauge and fully comprehend project value. The author instead recommends using a balanced grouping of measuring models that look beyond the financial bottom line, models that examine financial and non-financial outcomes. By embracing such a broader view of project investment beyond ROI-calculated tangibles, professionals--the author explains--can better understand how organizations accrue the array of present and future intangibles that implementing project management initiatives and realizing projects generate. She offers as proof of this claim the results of two studies: one by the Center for Business Practices and another sponsored by PMI and researched and authored by C. William Ibbs and Young-Hoon Kwak. To substantiate her argument, the author describes four measures that professionals can use to more accurately gauge the value of implementing project management initiatives and realizing projects.