In Infrastructure Australia’s latest priority list, they identified at least 16 projects of significance, either at threshold level or ready to proceed in a budget range in excess of $20bn. The majority of these projects have strong business cases and positive economic impacts.
Yet too often large projects fail to deliver. According to The Review of Project Governance Effectiveness, almost half of all projects fail to meet time, cost and quality objectives. The report suggests that KPI’s around project value clearly belong in the domain of project governance.
The value-driver concept extends basic cash-flow analysis to allow companies to make both major strategic and everyday operating decisions. This article outlines the significant benefits of using a value driver approach.