1 Project Value and the Assessment Baseline Free Online FlashCards

What does project value measure?

Project value is the worth of the outcomes a project is expected to create for stakeholders, compared with what would happen without it.

Why are budget and schedule targets insufficient to prove value?

Meeting cost and schedule targets does not prove that a project created value; it may still fail to deliver its intended benefits.

Why may one financial ratio be inadequate for judging value?

No single ratio captures every relevant consideration: impacts may be hard to monetize, unevenly distributed, or uncertain. Use financial measures alongside suitable nonfinancial evidence.

What is a project assessment baseline?

A baseline is the documented reference point against which a project’s expected or actual effects are assessed.

What information should be documented for a value-assessment baseline?

Record its date, key assumptions, evidence, objectives, time horizon, and measures so the comparison is transparent.

Why separate project-caused effects from outcomes that would happen anyway?

Separate effects caused by the project from outcomes that would have happened anyway; this identifies the project’s contribution.

How should a baseline be handled when assumptions or circumstances change?

Preserve the original baseline and document approved revisions. Otherwise, changes in the comparison point can look like project improvement or deterioration.

How is project cost different from project value?

Cost is the money and resources required, including relevant ongoing and opportunity costs. A cost change affects the value calculation but does not by itself prove value changed.

What do risk and uncertainty describe, and what are they not?

Risk and uncertainty concern how outcomes may differ from estimates and how likely or consequential those differences are. They are not the same as a realized loss.

How are feasibility and project value distinct?

Feasibility asks whether a project can be delivered and operated within its constraints. Attractive potential value does not ensure feasibility, and feasibility alone does not make a project worthwhile.

What kinds of outcomes can create project value?

Value can include financial returns and nonfinancial outcomes such as safety, service quality, compliance, resilience, and customer satisfaction.

What should a business-as-usual baseline represent?

The baseline should describe the credible business-as-usual outcome, including what is likely to happen without the project.