Value

September 11, 2025
« Back to Glossary Index

What is Value?

Value refers to the measurable benefit that a project, product, or service delivers to stakeholders. In project management, project managers often tie value to how well a project’s outcomes align with the business’s strategic goals. This includes financial returns, improved efficiency, customer satisfaction, and social and environmental impact. Value is not always monetary—it can also be intangible, such as brand reputation or team morale. Understanding value enables project teams to prioritize tasks, allocate resources effectively, and make informed decisions that support long-term success.

Key Points

  • It can be tangible (such as profit or cost savings) or intangible (such as employee engagement or brand recognition).
  • Stakeholders determine it based on their needs and expectations, which may change over time.
  • Projects must be aligned with business goals to ensure they deliver meaningful outcomes.
  • Measuring it requires clear metrics, such as return on investment or customer retention rates.
  • Maximizing it often involves balancing scope, cost, time, and quality.

Related Terms

  • The concept of benefits realization refers to the process of identifying, planning, and tracking the benefits that contribute to project value.
  • Stakeholder analysis helps determine which outcomes will be valued by each group involved in or affected by the project.
  • Value engineering focuses on optimizing project functions to deliver the best possible outcome at the lowest cost.
  • A well-defined business case justifies a project by outlining the expected value and how it supports strategic goals.
  • Project prioritization frameworks use value as a key criterion when choosing between competing initiatives.

Value: Example

A city launches a public transit improvement project aimed at reducing traffic congestion and lowering carbon emissions. While the project costs $50 million, its value includes reduced commuting times, improved air quality, and increased public satisfaction. The city measures value through commuter surveys, environmental data, and economic indicators. Over time, the benefits justify the initial investment and align with broader urban sustainability goals.

Value: Best Practices

  • Define clear criteria for what it means to your stakeholders before the project begins.
  • Establish measurable goals and track them throughout the project lifecycle.
  • Reassess and adjust value metrics as project conditions or stakeholder needs evolve.
  • Engage stakeholders regularly to ensure that project outcomes remain aligned with expectations.
  • Use lessons learned from past projects to improve future value delivery.

Additional Resources

Value - A Guide to the Project Management Body of Knowledge (PMBOK Guide) – Seventh Edition and The Standard for Project Management     Value - The Project Manager's Guide to Mastering Agile: Principles and Practices for an Adaptive Approach

Preparing for a PMI certification?

« Back to Glossary Index