What is a Value Delivery System?
The value delivery system is a new concept introduced in the standards section of the PMBOK 7 along with project delivery principles. The value delivery system includes portfolio and program management that bring value-increasing efforts to a broader perspective than the project axis.
According to the value delivery system, the strategies, goals, and tasks that your organization are decisive for what the next portfolio and the programs and projects under them will be. Accordingly, the portfolio, programs, and projects carried out by your organization are considered holistically, reviewed, and aimed at adding value to your organization. Portfolios and programs are examined according to the results you get from the projects you perform and the values you earn and updated to create the highest value.
The results of the completed projects are evaluated and measured and an analysis is made as to whether the expected impact has occurred. According to the results of this analysis, the portfolios owned by the organization are reshaped and the necessary corrections are made when it is deemed necessary.
After a project has been completed, it should not be interpreted as the end of what needs to be done about the project. During the time after completion of the project, the value achieved by the organization is taken into account. According to the amount of realization of business value, institutions reshape their strategies and make new product portfolio arrangements. The main point that is intended to be achieved in the value delivery system is to engage in activities that will constantly increase the value of the enterprise portfolio.
Value Creation and Delivery
As we all know, the main feature of a project was that it was a temporary effort. In this aspect, projects and operations were definitely separated from each other. After a project was completed, a transition period was envisaged for it to turn into an operation, regardless of the outcome.
During this transition, no matter how much trouble was experienced, the project was seen to have been successfully completed. As long as the product or delivery included in the scope of the project was produced, the question of whether the targeted value was achieved remained somewhat ambiguous. In every project a benefits realization happens in the short term or long term. In a value management system, this benefits realization should be measured precisely and important value decisions should be taken according to feedbacks from operations, projects results, programs, and portfolios. In order to be able to do this, we have to build feedback loops. Because value decisions give direction to the projects, so an impact analysis is necessary for every completed project that will provide feedback for these value decisions at the portfolio level.
It is true that the project is a temporary effort and it is separated from the operations by a precise line, and it is a point to note? So how right is it that this distinction should be so sharp? Is there a feedback system that the projects we carry out provide the value contained in the strategic plans after the transition to the operational dimension is achieved?
Is a continuous improvement approach applied in portfolio management, operations management, change management, and most importantly, value management?
The importance of Value Delivery System in PMBOK
Being very successful in completing a project does not always mean that organization's strategies also achieve success. You may have produced more than one product as a result of successive successful projects, but this does not mean that you can capture a good Sunday share and add value to your company by increasing profitability. So, in summary, even if you apply a good project management methodology, if you do not have a holistic value delivery system, it is difficult to achieve organizational strategies and maintain your success. So this new concept of PMBOK 7 will definitely increase the sustainability of projects at the organizational level.
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