PM 2 Vorlesung 6 Teil 4

A project’s output is any of the project’s specialist products (whether tangible or intangible)

Capability comprises general and specialized expertise, skills, competencies, techniques, and knowledge building made possible through the project’s output.

An outcome is the result of the change derived from using the project’s outputs.

A benefit is the measurable improvement resulting from an outcome that is perceived as an advantage by one or more stakeholders.

Limiting monitoring of projects on the time frame until project completion endangers the success of the entire project portfolio.

Implementation of the skills / possibilities created by the project are not continued or controlled.

Benefit achievement of the individual project is unclear and less than planned.

Loss of essential information and experience from projects that would be useful for other projects.

Long-term survival of portfolio is in danger.

Business Case -> Lessons Learned -> Follow-up control

Definition and Analysis

Monitoring

Documentation

Project closure

Value-tracking

The Business Case examines the profitability of a project.

In the context of project management, a business case includes, among other things, the entire financial planning of a project.

In addition to the financial parameters, all non-monetary aspects of the project are also considered, as these are essential for a holistic assessment of the project.

The project leader or the project initiator is responsible for creating the business case

Examination of the economic feasibility of a project over the duration of the project and the entire life cycle

The solution to be created by the project is assessed with financial parameters (net present value, internal rate of return).

Detailed evaluation of the project including all work packages.

Need for precise information on the future user, savings or yield increases achieved through the project.

Considerations regarding risk strategy and overall strategy orientation in connection with the respective options and their economic advantages

Use of the business case over the entire life cycle of the project

Updating and reviewing the business case at pre-defined milestones

Analysis of deviations that arise; initiation of measures to counteract negative effects

Sustainable program approach

Active support of the executive board

Active management of business changes

Introduction of a PMO

Expenses for IT, training and consulting

Increased project success

Better strategy execution

Optimal resource utilization

Stakeholder satisfaction (especially employees)

Trustworthiness

Economic feasibility

Efficiency

Teamwork

At project completion

Securing knowledge after project completion

Operative handling of the project

Project review/ project experience workshop with all project members

Capture, evaluate and document lessons learned

Transfer knowledge to other projects

Project team already has new tasks in most cases

Motivation to secure experience is not very high (especially for less successful projects)

The documentation of project information represents a cross-sectional process accompanying the project, often takes place at the end of the project.

Simple & clear report generation

Up-to-date information on the current status of a project

Integration of graphical representations (e.g. Gantt diagrams, traffic lights)

Automatic notification of responsible role holders (e.g. e-mail in case of plan variances)

Intranet

Document template

Document management system

Collaboration system

Project completion meeting (single PM)

Success control

Collection of benefits

Dissolve project organization and release resources

Termination of all project-related contractual relationships

Quantitative: e.g. cost-benefit analysis or economic feasibility study

Qualitative: stakeholder survey

Closed loop control for multi-project control

Identify and sanction unrealistic promises within the framework of project requests

Project portfolio benefit controlling takes place as part of the follow-up control with a time lag after the project completion

A benefit can only be measured with a time lag after the end of the project (follow-up control), whereby an isolated consideration of the benefit contribution of a project compared to other influences and projects is very difficult.

The overall benefit of the projects should therefore be broken down into small benefit contributions, which on the one hand facilitates project benefit tracking and on the other hand enables a cross-project consolidation of benefit contributions through project portfolio management.

Identify available potential for improvement for the single project result

Gaining experience for individual projects, project management, the entire project portfolio, and portfolio management

Objective achievement control

Impact monitoring

Post calculation and profitabiltiy control

Risk control

Control of the strategy contribution

Whether the agreed objectives have been achieved

Whether the expected effects have occurred

E.g. incurred vs. estimated costs; achieved vs. planned financial benefit

Occurred vs. estimated risks

Achieved vs. planned strategy contribution

By linking the success of the project to bonus-relevant objectives

Little research on benefits management in portfolio contexts

No quantitative study on the relevance of business cases

No study on the application of business cases in project portfolios and the respective control mechanisms

Practitioner literature suggests importance of benefits management and business cases for PM & PPM

Use of business cases often only in project selection

1. How can BCC at the project portfolio management level be defined and measured?

2. What is the performance effect of BCC at the project portfolio management level?

3. Which enablers and contingencies affect the relationship between BCC and the project portfolio success?

the necessary information to enable management

to prioritize projects and

decide whether or not a project is worth funding and

contains estimates regarding the benefits, timescales, costs, and risks of a project.

BCC describes the application of business casesfrom a project portfolio-level control perspective andcomprises three dimensions:

BC existence

BC monitoring

BC tracking

Use of business cases for evaluation and prioritization

Continuous monitoring of the validity of ongoing projects

Tracking of realized benefits after project completion

1. Business Case Control (BCC) is a three dimensional second-order construct consisting of business case existence, monitoring, and tracking.

2. BCC is positively related to project portfolio success

3. This effect is stronger if there is clear accountability for benefits realization and managers are incentivized for portfolio success

4. Business Case Control is more relevant in larger portfolios and under higher external turbulence

▪ Conceptualization and test of the relevance of BCC: first quantitative test of benefits management in PPM

▪ Application of control theory (Ouchi 1977) to PPM: Importance of outcome control vs. process control

▪ Identification of key enablers and contingencies for BCC

▪ Relevance of business cases not only in project selection but also in later PPM phases (monitoring and tracking)

▪ Accountability and incentives are important; BCC may not be necessary for small and predictable portfolios

▪ Competence Retention differs significantly form employee retention/turnover (Smith et al., 2012)

▪ Theories of turnover have very rarely been applied to project management or project-oriented companies (Ekrot et al., 2014)

▪ High importance of human resources embodying organizational capabilities for long-term business success (Zollo & Winter 2002)

▪ Project management competence are seen as essential to project and overall business success (Crawford, 2005; Söderlund, 2005)

1. What factors influence project management competence retention?

2. How is project management competence retention related to project success and overall business success?