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.
registered user content locked

Log in or join PMI to gain access

or Account Registration



Related Content

  • PM Network

    Prefab Push member content locked

    To drive down construction costs, shave project schedules and sidestep the U.S. labor shortage hindering its build projects, hotel brand Marriott announced in 2017 that it would be embracing modular…

  • PM Network

    Transfer of Power member content locked

    By Parsi, Novid Anxiety and opportunity have gripped Germany's project management. With all eyes focused on post-Brexit repercussions, political and economic uncertainty threaten to slow Germany's full-throttle…

  • PM Network

    Leading Edge member content locked

    By Fister Gale, Sarah In the face of unprecedented disruption, organizations must adapt. This year's PMI® Project Excellence Award winners proved that, when teams embrace the need to pivot, they can deliver real value to…

  • PMI Sponsored Research

    The Management of Benefits

    By Aubry, Monique | Sergi, Viviane | El Boukri, Sanaa Questions pertaining to performance are crucial in any organizational context. Moreover, in the current economic climate marked by instability, performance, in general, has been attracting the…

  • PM Network

    Popular Demands registered user content locked

    By Fister Gale, Sarah Flawless project execution can change lives. This year's PMI Project of the Year finalists went all-out to prove that. All three teams mastered intense requirements to deliver critical improvements…


Publishing or acceptance of an advertisement is neither a guarantee nor endorsement of the advertiser's product or service. View advertising policy.