The Value of Project Management: PMI Study Discloses Key Value Drivers

You may already be familiar with the recent PMI study on the value of project management, led by Mark Mullaly and Janice Thomas.

The study has validated not only the value that project management can bring, but has taken a decidedly holistic view of what value really is----something I've been stressing for years. According to the study, benefits are achieved when the following value drivers are in place:

Level 1: Satisfaction -- including employee & stakeholder satisfaction, morale, and retention

Level 2: Alignment -- including clear roles & expectations, standards, and links to strategy

Level 3: Process Outcomes -- including internal controls and competencies, and service quality

Level 4: Business Outcomes -- including innovative solutions, client satisfaction, and business value

Level 5: ROI -- i.e. the financial numbers (formerly the sole source of truth for "value")

The study views Level 5, ROI, as the external view of value, which is enabled by the previous 4 levels, which are internal drivers. In other words, profitability is an ends, not a means, and thus is the lowest level in the hierarchy. It is indeed refreshing to see validation that "the traditional view of ROI, which focuses solely on financial measures, no longer applies."

Most importantly, the study shows that success is greatly dependent on how well the organization adopts its project management practices to organizational, geographical, and personal cultures. One size does not fit all, and the organization that realizes this will have a great chance of realizing the potential of project management.

Commitment to continuous training is another key enabler, according to the study.

All of this is music to my ears, as it validates my beliefs, observations, and experience. This is an important study that will hopefully change the way organizations view value, select projects, and leverage project management.

For more information on the study, and a video of the presentation in Warsaw, Poland, click here.