Not Any More
Talk to most executives and they will not be interested in the areas of measurement discussed on the previous page. What do they talk about? They talk about profitability, return on investment, delivery of benefits and taking advantage of windows of opportunity.
We used to say that executives are interested in just two things about projects: when will they be finished and what will they cost. Not any more. Now, at least in the for-profit arena, they ask:
- What mix of potential projects will provide the best utilization of human and cash resources to maximize long range growth and ROI for the firm?
- How do the projects support strategic initiatives?
- How will the projects affect the value of corporate shares (stock)?
Perhaps this is an oversimplification. However, if we start with this premise and examine its meaning, we can begin to realize the tremendous impact of this observation on the way that we conduct project management and even in the way that we select and implement project management tools.
Note: Similar issues apply to the non-profit and government operations where optimizing the utilization of limited funds and resources, and support of missions and strategies are vital. PPM can be effectively applied to both the public and private sectors. Although ROI is often a decisive factor, with minor adjustments, PPM can be adapted to non-profit and government operations. PPM is equally effective whether the projects are aimed at delivering benefits directly from the project product or indirectly from research, new product development or information technology.