Project value is an important metric for determining overall success. Actual value refers to the benefits that the project is able to deliver after it is completed successfully. That is, it refers to the project achieving its goals and the results of that achievement for the company in question, and can be increased market share, higher profitability, better overall stability or something else completely. However, when you toss in the term “added project value”, things get a little sticky. What is it and what does it mean for your project?
What Is Added Value?
Essentially, added value is any value delivered in the project that goes above and beyond what the project was slated to provide. You might be wondering if that is something that you should even be bothering with. After all, you have your hands full just trying to ensure that your project delivers on its projected value, much less trying to add even more. Always remember, added value is a good thing, and it can come in many different ways.
What Constitutes Added Value?
The short answer to the question above is “almost anything”. There are as many types of added value as there are projects and processes within those projects. For instance, added value might be nothing more than a reduction in payroll. It might be financial savings by consolidating with new project management software. It might be savings on materials, or it might be higher than anticipated preorders for a particular project thanks to savvy marketing.
The Most Important Considerations with Added Value in Your Project
There are two considerations in your project where added value is concerned. First, you need to ensure that you’re accurately tracking all value (project progress toward the ultimate goal, as well as any additional value generated over the course of time). Track, record and document that added value, and ensure that it’s stored properly, whether you’re using old-school file folders or project management software.
The second consideration is that you need to communicate that added value to your project’s sponsors and/or stakeholders. If you do not have any specific sponsors (you should), then make sure that your stakeholders are kept abreast of the situation. There are several reasons that you need to ensure that this information is disseminated properly.
First, added value provides fuel for your sponsors – many executives still hold a dim view of project management, and ensuring that your sponsors have this ammunition can increase support across the board for your current project, as well as future ones. Second, it provides your sponsors with solid information about how your project is exceeding specifications, which is a serious feather in your own cap.
Added value is important – it helps foster better support, ensures that you’re exceeding expectations and can further your career in project management. Make sure you stay on top of it with accurate tracking, recording and communication techniques. You cannot afford to let this vital aid get away from you.