Value realization is not a wishful thinking

Is your project or program delivered on-time, on-budget plus on-scope? Does it mean that an organization implemented it with success? Well, I would say it depends on effectiveness in contributing to the company's strategy through the value it is delivering to shareholders or business owners.

Value-driven mindset helps to buy-in your stakeholders

The value realization mindset is critical when deciding which project to prioritize and whether it is worth paying attention to it.

Tell me, what is the business value of a project, and how it supports the company's strategy?

If you want to give your CEO/CFO a firm answer to the above question, you should be ready to present all future benefits and how these will be reflected in strategic KPIs. The outcome of a project or program must always have a positive impact on a company's performance. In the long run, a direct contribution to the bottom line of the organization.

It is still fair to talk about how your planned project assists in capitalizing on strengths, exploiting opportunities, mitigating threats, and managing weaknesses. But if you are looking for a smooth approval or management buy-in, prepare a more tangible list of benefits, linking them back to the organization's strategic KPI's, sequencing & tracking them and also introduce a strict value delivery governance.

Benefits definition

Benefits should be specific, measurable, achievable, relevant and time-related. Value realization concept is about showing the substantial business value - it is not wishful thinking. And as you need to buy in all relevant stakeholders, there must be general alignment and transparency across an entire organization. The value concept is also about the collaborative and cross-functional approach.

Here are a few quick tips on the value approach

• Always be sure and transparent about the business strategy.

• Business goes first, not technology. Having the latest technology without delivering value to a business is just a waste of resources.

• Culture eats strategy for breakfast. This famous quote from Peter Drucker reminds us that empowering culture is a surer route to success than a brilliant strategy.

• Involve, buy-in all relevant stakeholders and have their commitment. Very often, the minor ones can make a substantial difference in overall project delivery and success.

• Formalize a business case, be specific about benefits and clearly communicate link to KPIs.

• Do not underestimate communication around benefits and people's engagement/empowerment

• Maintain full transparency, be crystal clear about the actual value being delivered and regularly track a progress

• Frequent sign-offs drive stakeholder engagement and value delivery throughout the lifecycle of a project

• Include both financial (NPV, ROI, Revenue increase, Costs reduction) & non-financial value drivers (e.g. client retention, customer satisfaction, better control and risk reduction, lead time, processing power, security)

• The initial burst of attention is essential, but a long term effort makes a significant difference