Business Needs & Value realization
It is the basic quality required with every PM, which he should first understand why a project is being undertaken and performed, what is expected from the project? How the value is realized after project completion? …etc., without having such understanding, a PM cannot guide or direct project teams. This article will give you a start to think in those terms and better execute the project.
Projects are initiated due to internal Business needs or external influences. These needs or influences often trigger the creation of needs analysis, feasibility study, business case, or description of the situation that the project will address.
Now what is business needs?
An organizational business needs may be based on a market demand, technological advance, legal requirement, government regulation or environmental consideration. Project statement of work is also provided by project sponsor based on business needs.
Business needs is the best way to get approval on the project. Because business needs identify the opportunity and benefits to the business. If the output of the project outweighs the cost and time to create the product or service, then you can easily sell the project. In most of the proposal we have to specify the business need, how the project will address specific needs or opportunities. Why should the customer invest that much of resources on the project?
What is Value realization?
Business value is unique to each organization. The total sum of tangible and intangible elements is business value. Depending on the organization business value scope can be short, medium and long term. Successful value realization begins with strategic planning and management. Effective organizational strategy provides defined directions for development and growth, in order to bridge gap between organizational strategy and successful value realization, the use of project management is essential.
Business needs comes in initiation phase and it’s a measurable goals. It requires selecting the right initiatives, building them onto the right way, and achieving the intended benefits. That may seems easy but you cannot simply have good intensions to do these things. It required discipline that must be installed throughout the organization.
Questions & Answers
- A market demand, a business need and a legal needs are all example of
- Reason to have change management
- Justification for initiation a project
- Reason to have a team
- Reason to create a management plan
Correct Answer: B
- Identifying high-level project performance criteria, defining business needs, and determining product description are all part of WHICH project management process group?
- Monitoring & Controlling
Correct Answer: A
- Lesson learned are best completed by:
- The Project Manager
- The team
- The Sponsor
- The Stakeholders
Correct Answer: D
- Which of the following are a term describing people who think their culture is the best?
- Culture – centric
- Enlightened self interest
Correct Answer: C
- The main focus of managing a project include identifying requirements, establishing clear and achievable objectives, and<
- Making sure all the scope is identified in initiating
- Eliminating the need for any change
- Balancing competing demands for scope, time, cost etc.
- Holding status meeting with the team
Correct Answer: C
- All of the statement about project feasibility studies are true EXCEPT
- They can help selecting one project over other
- They can be first project phase or a separate project
- They can be used to determine if a project should be completed
- They can be used to determine project team members.
Correct Answer: D
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