What Type Of Benefits Does Your Project Have?
Projects are temporary, and they deliver something new – a change and business value. Many executives forget about the “business value” part though, and instead focus on:
- Doing business with a company because their friend / partner / spouse owns it,
- Adding the latest system just because it is currently trending,
- Doing a project because you need to spend the budget you have before the end of the year.
Those things don’t inherently add business value. Instead, there are two types of business value we can be aware of when delivering a change or a project.
Tangible Value
This is something physical that we can see making a difference directly. It usually comes down to money. It could be:
- Increased monetary assets
- Increased market share
- Increased stockholder equity
- Increased revenue or profit
It might be directly more customers, or figuring out how to increase customer value, or reducing the customer acquisition cost.
It is something we can measure directly.
Intangible Value
Intangible value is harder to measure. We know we are adding value, we know something is increasing, but it is hard to see how it directly affects the bottom line of our department or company. It might include:
- Brand recognition
- Goodwill
- Reputation
- Strategic alignment
We might see how many people have seen and can recognize our brand, but we won’t know the real difference it has made until we can see an improvement to our bottom line.
See more Project Management Picture Concepts:
- How The Cost of Quality Increases On Your Project
- How to Measure Business Value for Your Project (NPV, ROI and more!)
- Scrum Roles & Responsibilities
- The Change Control Process in Project Management
- Prototypes in a Waterfall or Agile Project
- Agile Estimating Techniques – Planning Poker and More
- Good versus Bad Project Management
- Benchmarking: How To Do It
- Project Management Office (PMO) Types
- Project Benefit Types – Tangible and Intangible
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