Value Management of Construction Projects, 2nd Edition

9Managing Value in Portfolios, Programmes and Projects

9.1 Introduction

Value management (VM) in construction is predominantly seen as an intervention within a single project paradigm. However, this chapter explores and argues for the use of VM within single projects, within Programmes and Portfolios, and at different levels in an organisation. In this chapter, the following definitions are adopted:

• Projects are a vehicle to deliver an investment, supported by a business case, and have a set of requirements and objectives, are managed through a life cycle from concept to handover, and deliver a service, product or physical asset.
• Programmes are designed purposefully to create, group, coordinate and manage substantive change-related initiatives to deliver an organisation's strategy, set of capabilities and/or physical assets to attain a strategic goal or objective. Programmes deliver investments through related projects, create value for stakeholders and as a consequence secure a step change in organisational performance.
• Portfolios are groupings of Programmes and projects that may or may not be interdependent or related. Portfolio Management operates at a higher organisational level than Programmes and projects. It forms part of the higher levels of a corporate governance system and provides the linkages between the strategic level, Programmes and projects.

It is crucial for a Value Study Leader (VSL) to have an understanding of the organisational context within which a value ...