Value increases when the satisfaction of the customer augments and the expenditure of resources diminishes.

Robert Tassinari Le Rapport Qualite/Prix, 1985

In Chapter 1, we discussed the idea of the balanced scorecard as one of the business scoring models driving the selection and funding of projects. On every scorecard there are quantitative financial measures that set the bar for project selection and for project success or failure. It is inescapable that project managers will be involved in financial measures and in the financial success of projects. Financial performance in projects, like every other aspect of project performance, is subject to uncertainty: uncertainty of performance by the project team; uncertainty of performance by vendors, suppliers, and partners; and ultimately, uncertainty of financial performance by project deliverables in the marketplace. Uncertainty, we know, is risk. In this chapter, we introduce the financial concepts most important to the project manager, but we introduce them in the context of risk adjustments that are made to provide a more realistic context for measurement and evaluation.

Team LiB

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Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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