Value-Centered Decision Making
This concept refers to the approach where decisions are made based on the value they would generate for the business rather than being guided merely by costs or schedule. Factors such as customer satisfaction, revenue potential, strategic alignment, and risk mitigation also come to the fore. It advocates making the best use of available resources and directing them towards the most valuable aspects of the project. This ensures that the project stays aligned with the overall business goals and objectives, and can deliver real value to all stakeholders involved.
Guide: Value-Centered Decision Making
Value-Centered Decision Making falls within the larger framework of Value-Driven Delivery, one of the seven domains within the Project Management Institute - Agile Certified Practitioner (PMI-ACP)®.
Why it is important: Value-Centered Decision Making emphasizes on making decisions that seek to optimize total project value rather than focusing solely on traditional aspects like cost, schedule and scope. It plays a significant role in the success of agile projects and is crucial for maximizing the value of the product.
What it is: It involves making project decisions with an idea of enhancing value to the project. This means deciding based on the anticipated impact on the project's Outcome, ROI, stakeholders' satisfaction, and overall product value.
How it works: Value-Centered Decision Making is about emphasizing qualities that bring the most value to your customers or stakeholders and making decisions that align with this value. This involves prioritizing deliverables based on their value, understanding how to adjust the scope to maximize value, and guiding teams to make decisions that align with delivering the highest value.
Exam Tips - Answering Questions on Value-Centered Decision Making:
1. Always keep value at the center of your decision-making process.
2. Understand that not all customer requirements are of equal importance. Some are of higher value and should be prioritized.
3. Be ready to adjust the scope based on changing value requirements.
4. Familiarise yourself with these concepts and examples, as understanding the theory is important for correctly answering the related exam questions.
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