TAILIEUCHUNG - Creating the project office 7

Creating the project office 7. This is a book about improving organizational performance by implementing a project office system that develops project management as a core competency and thus adds value to the organization. A project office consists of a team dedicated to improving the practice of project management in the organization. The improvement in organizational performance is achieved by obtaining more value from projects, making project management a standard management practice, and then moving the organization toward the enterprise project management concept | 38 Creating the Project Office true of project management. It is not the cost of the project that is the real concern it is the value added. People in organizations say they want to minimize cost but do they really Many people assume that if project costs are minimized then the value added will be maximized. However cost must be incurred to create value and many times the more cost incurred the more value is created. A simple example of this is the cost of testing product ideas with potential customers. These potential customers often come up with the best ideas the ones that really add value to the product. Of course if costs are being minimized by not consulting potential customers then the organization builds whatever the engineers say is best. There is a long history of product failures that followed this minimum cost route. The costs associated with testing ideas with potential customers are usually agreed to be well worth the investment to ensure increased value. It is not the cost of the project that is the real concern it is the ability to maximize the value added. People in organizations say they want to minimize cost but do they really If you really want to know what concerns people listen to the stories they tell. Most of what you hear will be of the hero story variety where someone thinks up an ingenious idea or meets a customer expectation in a way to help save the organization. The hero story is about people overcoming enormous odds in order to help ensure organizational survival. The hero story is seldom if ever about the manager who minimized cost. If people were really concerned about minimizing cost then that would be the story they tell. But they don t so it seems that what they are really interested in is survival. It is not the cost of the project that is the real concern it is the ability to maximize the value added and thereby ensure organizational survival. The argument here is that it is difficult to create a sense of urgency for .

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