Business & Economics/Project Management An exclusive portal to the methods and tools the ROI Institute uses to determine return on investment in project management To survive this modern age of financially skeptical "show me the ROI" investors, it is a crucial step for companies to develop an effective project management strategy in order to stay ahead of the curve and achieve success. Project Management ROI takes the guesswork out of determining how to monetarily value projects by teaching the time-tested Return on Investment (ROI) methodology. It presents these results-based concepts in a methodical, reproducible manner that project managers, executives, and analysts can use as a validated reference for future projects. This book focuses on an array of measures to forecast project value and collect data during and after implementation, including reaction, learning, application and implementation, impact, return on investment, and intangibles.
Project Management ROI: * Is the first book from the renowned ROI Institute to focus on project management ROI * Provides both the tools and methodology for measuring the ROI of project management investments * Will help project managers discover the value of specific project management solutions to justify project expenditures
Dr. Jack J. Phillips is Chairman of the ROI Institute (www.roiinstitute.net.) and a world-renowned expert on measurement and evaluation. Phillips provides consulting services for Fortune 500 companies and workshops for major conference providers worldwide. Phillips is also the author or editor of more than thirty books and more than a hundred articles. His work has been featured in the Wall Street Journal, Bloomberg Businessweek, Fortune, and on CNN. Wayne Brantley, MSEd, PMP, CRP, CPLP, is the Senior Director of Professional Education for the University Alliance (www.universityalliance.com). He has taught and consulted on project management, quality management, leadership, curriculum development, Internet course development, and return on investment to Fortune 500 companies around the world. Dr. Patricia Pulliam Phillips is an internationally recognized author, consultant, and President and CEO of the ROI Institute, Inc. Phillips provides consulting services to organizations worldwide. She helps organizations build capacity in the ROI methodology by facilitating the ROI certification process and teaching the ROI methodology through workshops and graduate-level courses.
Preface xi The Need for This Book xi A Guide to Project ROI xii Credibility Is Key xiii Audience xiii Target Areas for Projects xiv The Difference xiv Flow of the Book xv Acknowledgments xvii About the Authors xix 1 Project Management Issues and Challenges 1 What Is Project Management? 1 Why Projects Fail 4 Project Leadership: Getting Results 8 Project Management Issues 9 Final Thoughts 14 2 The Project Management Lifecycle 15 The Project Management Steps 15 Project Management Solutions 23 Project Management Maturity Model 26 Final Thoughts 29 3 ROI Methodology Basics 31 Types of Data 31 The Initial Analysis 34 The ROI Process Model 36 Operating Standards and Philosophy 47 Implementing and Sustaining the Process 48 Benefits of This Approach 49 Final Thoughts 51 4 Achieving Business Alignment with the Project 53 Importance of Business Alignment 53 Determining the Potential Payoff 54 Determining Business Needs 59 Determining Performance Needs 64 Determining Learning Needs 65 Determining Preference Needs 67 Case Study: Southeast Corridor Bank 68 Developing Objectives for Projects 72 Final Thoughts 76 5 Measuring Reaction and Learning 79 The Importance of Reaction 79 The Importance of Learning 81 Sources of Data 84 Topics for Reaction Measures 86 Topics for Learning Measures 87 Data Collection Timing 88 The Challenges and Benefits of Measuring Learning 88 Data Collection Methods 90 Data Use 93 Final Thoughts 94 6 Measuring Application and Implementation 95 The Importance of Application and Implementation 95 Challenges 97 Measurement Issues 99 Data Collection Methods 101 Barriers to Application 104 Application Data Use 105 Final Thoughts 106 7 Measuring Business Impact 107 Project versus Project Management 107 The Importance of Business Impact 108 Collecting Effective Impact Measures 110 Business Performance Data Monitoring 117 Data Collection Methods 118 Measuring the Hard to Measure 127 Final Thoughts 128 8 Isolation of Project Impact 131 The Importance of This Issue 131 Preliminary Issues 134 Isolation Methods 136 Final Thoughts 150 9 Converting Data to Money 153 The Importance of Converting Data to Money 153 Key Steps in Converting Data to Money 156 Standard Monetary Values 157 When Standard Values Are Not Available 164 Technique Selection and Finalizing Value 171 Final Thoughts 175 10 Measuring the Intangibles 177 The Importance of Intangibles 177 Measuring and Analyzing Intangibles 180 Confronting Intangibles 186 Final Thoughts 198 11 Monitoring Project Costs and Calculating ROI 201 The Importance of Costs and ROI 201 Fundamental Cost Issues 203 Specific Costs to Include 206 Cost Classifications 208 The ROI Calculation 209 Other ROI Measures 214 Final Thoughts 215 12 Forecasting Value, Including ROI 217 The Importance of Forecasting 217 The Timing of Forecasting 219 Pre-Project ROI Forecasting 221 Forecasting with a Pilot Program 231 Forecasting ROI with Reaction Data 232 Forecasting ROI with Learning Data 237 Forecasting ROI with Application Data 237 Forecasting Guidelines 238 Final Thoughts 241 13 Reporting Results 243 The Importance of Communicating Results 243 Principles of Communicating Results 245 The Process for Communicating Results 247 The Need for Communication 248 The Communication Plan 249 The Audience for Communications 250 Information Development: The Impact Study 252 Media Selection 254 Reactions to Communication 261 Final Thoughts 261 14 Implementing and Sustaining ROI 263 The Importance of Sustaining the Use of ROI 263 Implementing the Process: Overcoming Resistance 264 Assessing the Climate 266 Developing Roles and Responsibilities 266 Establishing Goals and Plans 269 Revising or Developing Policies and Guidelines 270 Preparing the Project Team 272 Initiating ROI Studies 273 Preparing the Clients and Executives 275 Removing Obstacles 275 Monitoring Progress 278 Final Thoughts 278 Endnotes 279 Index 283