How can a project manager improve the profitability of his/her project thus increasing the profitability of the department


Questions by AM_GEEK   answers by AM_GEEK

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  • Jun 7th, 2008

Profitability is the result of measuring the value received for the deliverable, less the cost to produce that deliverable. If the project is chartered to deliver a new software product, what is the value of the end product delivered to the enterprise / customer? Is it quantifiable, and if so keep that value in mind when calculating the ROI and the desired payback period. The life of the project will depend upon having that monetary relationship impressed upon the project team from the start.

How to provide a metric to gauge the profitability will be determined by how well defined the project statement of work and|or work breakdown structure is constructed. The time spent in discovering the project requirements and building a solid estimate of effort needed to produce the goods is the best place to start.

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