Connecting the dots

Projects deliver both tangible and intangible benefits. But too often, organizations fail to gauge and quantify these two types of benefits, particularly intangible benefits, mostly because they lack the tools needed to determine how intangible benefits can actually generate monetary value. This article describes why organizations should quantify the monetary value that intangible project benefits can generate. In doing so, it identifies the purpose of using the measurement known as market value added (MVA), a metric that can help companies better understand their actual market value of their long-term activities. It also discusses the purpose of using two other key metrics: economic value added (EVA) and net present value (NPV). It then explains how EVA and NPV can help organizations assess and understand the tangible and intangible wealth they generate through their projects. It identifies how these two metrics can help organizations to effectively rank projects and successfully practice project portfolio m
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