Value measures should first focus on the tangible (e.g., ROI, better margin) or making the intangible more tangible (e.g., tying customer satisfaction to revenue or reduced escalation costs). In addition, I would also suggest that one should also look at how much value one’s executives attribute to project management. Of course, the initiative has to have delivered results. But many PMOs forget to ensure that senior leadership understands exactly how PM improvement translates to the firm’s bottom-line, top-line, brand value, etc.
One of the most powerful endorsements of SAP’s project management efforts came from the current CEO of SAP America, Greg Tomb. During our global services leadership summit, each regional leader presents a short presentation on the “whats and whys” of his/her unit’s performance. When Greg was discussing the excellent revenue, margin, and customer satisfaction results in the Americas, he explicitly credited project management as the foundation for all three.
“Public” and vocal executive references are some of the best intangible value proof points. Not only was the recognition appreciated by the Americas PMO leadership, it also reinforced the global PMO message to the rest of the global leadership team: project management works.
Filed under: Strategy Management, Portfolio Management, PMO, Communications, Leadership, Business Case, Organizational Change Management, Program Management, Project Management | Tagged: PMI, Value of Project Management, Janice Thomas, Mark Mullaly, Project Management Institute, Researching the Value of Project Management, Global Corporate Council, Value Destruction, ROI, SAP Success Stories, customer satisfaction, customer value, public relations, executive buy-in, internal references | Leave a comment »