User:Sidneirohr/sandbox/Scope Value Management

Scope value management (SVM) is a project management technique for measuring project delivery performance and progress in an objective manner based on scoped work and business priorities.

Overview: Scope value management is a project management technique for measuring project performance and progress. It has the ability to combine measurements of the project management triangle plus benefits realization: •	Scope •	Time •	Costs •	Benefits

In a single integrated system, Scope Value Management is able to provide accurate delivery health indicators, key performance indicators and forecasts of project delivery performance, which is an important contribution for project management.

Essential features of any SVM implementation include:

1.	a project plan that identifies the deliverables that form the scoped work and the schedule to be accomplished;

2.	a weighting method to calibrate the weight of the deliverables in relation to the overall scope;

3.	a valuation of the planned scope, split into two categories: A. Costs, which is split into project operational (opex) and capital (capex) expenses, called Planned Expenses (PE) and Planned Investment (PI) respectively. Both metrics, PE and PI, are then aggregated into Total project costs called Planned Costs (PCT); B. Expected Benefits, called Planned Benefits (PB);

4.	re-defined metrics rules to quantify the completed scope, costs and benefits, called Scope Complete (SC), Actual Costs (AC), and Actual Benefits (AB), respectively;

5.	delivery health and key performance indicators (KPI) for scope and schedule (complete scope ahead or behind schedule), critical path, business alignment, earned costs (over budget or under budget), and earned benefits (over or under realized);

6.	completion estimation forecasts for scope, schedule, costs and benefits;

7.	progress on Investment analysis indicators including Net Present Value (NOV), Return on investment (ROI), Internal Rate of Return (IRR), and Payback;

However, the most basic requirement of an SVM system is that it quantifies progress using planned scope (PS) and scope complete (SC).

History: SVM emerged from the book “Scope Value Management, SVM – A Model to Measure Scope Performance and Drive Value Delivery, or “SVM Guide First Edition ”, authored by Sidnei Rohr and published by TellWell in May 2017.