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\nWhat is Value? ...or Project Value?\n

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\nValue has come right up the Project Management agenda recently, with pride of place in 2021’s 7th edition of the PMBOK guide.But it has always been an important concept. The problem is that defining it is difficult. So, what is Value?My...\nValue has come right up the Project Management agenda recently, with pride of place in 2021’s 7th edition of the PMBOK guide.

But it has always been an important concept. The problem is that defining it is difficult. So, what is Value?

My favorite dictionary says:
Value: the worth , importance, or usefulness of something to somebody.

Another says.
Value: the desirability of a thing, often in respect of some property such as usefulness or exchangeability.

PMBOK 7 definition
Value: The worth, importance, or usefulness of something.

APMBoK definition
Value: A standard, principle, or quality considered worthwhile or desirable. In value management terms, value is defined as the ratio of ‘satisfaction of requirements’ over ‘use of resources’.

To paraphrase this, Value = what you get / total cost
…or as an equation:
V = B/C

PMBOK 7 – second definition
PMI’s PMBOK Guide has another definition…
Business Value: The net quantifiable benefit derived from a business endeavor that may be tangible, intangible, or both.

To paraphrase this definition, value = net benefit = Total benefit – Total cost
… or as an equation:
V = B-C

So, we have two ways you can calculate value:
1. As net benefit: V = B-C
2. As the ratio of benefit to cost: V = B/C\n
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Resource Details

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Educator Rating
Not yet Rated
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Media Length
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4:42
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Grade
10th - Higher Ed
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Subjects
Career & Technical Education
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Media Type
Instructional Videos
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Source:
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\nOnline PM Courses\n\n
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Date
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2022
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Language
English
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Audiences
For Teacher Use
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Fine Print: Educational Use
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Concepts

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business, cost, resources
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