Initial phase of a project begins with the conceptualization of the purpose of the project and the overall measure of project’s success is known as measurable organizational value (MOV). The measurable organizational value is the objective of the project and it is used to characterize the value that will be delivered to clients through the project. In order to provide a real incentive to the association, the task must be aligned with the organization’s mission, vision, and strategy. MOV is a topic of Project Charter, which is studied by Charles Sturt University.
Measurable Organizational Value (MOV) must:
Be clear: If the measurable organization value (MOV) is acting as a measure of the success, it must be verified at the end of the project. It does not mean that the MOV is immediately fulfilled in the completion direction of the task when the element, service, or system is delivered to the clients. Generally, there will be a period of time that can last seven days, a month or even a year before the full evaluation of MOV. Regardless of this, the association must evaluate MOV to find out if it has received the value that it has expected.
Provide Value: Time and assets should not be delivered to the project, unless it can provide better value to the organization.
Be measurable: an estimate gives reasonable meaning to the achievement of the majority of the project stakeholders.
Focus on: A set of reasonable and established MOV expectations for the stakeholders of the project. MOV must be feasible and worth doing.
Following are the steps, which can effectively define the project’s MOV:
Develop the correct measurement: After understanding the value that the project will provide to the organization, the next step is to build a measurement or a set of metrics that provide a target or order to project teams, methods to evaluate the tasks etc.
Identify desired area of impacts: A project can affect the relationship with organization from many points of view such as client, strategic, financial, operational, and social.
Estimate desired value of project: When the desired area of the effect is identified, the next step is to make a decision on the desired value of the project that will be delivered to the organization.
Criteria of Measurable organizational value
Each project must be made after considering its impact on measurable organizational value. For example, if the option of another site is included in it, it should be included only if the component increases the value of the organization.
Not as an evaluation of a project based on a return on investment, a measurable organization value is used to evaluate the task in terms of its business value.
Project stakeholders must agree on the measurable organization value as a part of the organizational procedure of the company so that they can focus on the required results throughout the life cycle of the project. Each member will have personal participation in the establishment of at least one MOV that best suits their motivation.
All measurable value of the organization should be obvious and reliable. If there is no possibility that the project activities contribute to achieving the perfect result or the acceptance of the benefits then the project is considered as a successful project. The project team confirms MOV at the end of the project and classifies project success and failure.