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value

The net gain—covering both financial returns and nonfinancial benefits—that exceeds the investment and is realized by achieving the objectives of a portfolio, program, or project.

Key Points

  • Value is benefits minus costs, including both monetary and nonmonetary factors.
  • It depends on how well outcomes meet strategic objectives and stakeholder needs.
  • Value can be delivered and measured incrementally across the delivery lifecycle.
  • Assessment should use KPIs and benefits realization while accounting for total lifecycle costs.

Example

A company implements a new CRM system. The investment includes licenses, training, and rollout costs. Benefits include higher sales conversion, reduced service time, improved customer satisfaction, and stronger brand reputation. If these combined benefits outweigh the total investment, the initiative has created positive value.

PMP Example Question

Which statement best describes "value" in the context of portfolios, programs, or projects?

  1. The total amount of money spent to complete approved deliverables.
  2. The surplus of tangible and intangible benefits over the investment achieved by meeting objectives.
  3. The approved scope baseline used to manage project changes.
  4. The number of features delivered during an iteration.

Correct Answer: B — surplus of benefits over investment achieved by meeting objectives

Explanation: Value reflects net benefits (financial and nonfinancial) that exceed the investment and result from achieving the intended objectives.

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