6 analysis criteria to avoid decision errors in project management and contract management
Consider the ways project management complement contract management with the following tables of criteria that relate their characteristics in multidimensional modeling of risk management:
y-axis- benefit
Intangible
Spectacle
Tangible
How result and outcomes used along low to high (bottom to top) continuum
Project
Event
Contract
x-axis- internal to external
Investment category
How investments will be measured along internal or external organizational continuum
X axis is how success of the results and outcomes will be framed and the y axis is how investments will be measured
Profit/fees well defined for ROI purposes – Contracts
Benefits and Costs well defined for quality and risk purposes- Projects
Rank and File
Democratic
Hierarchy
Distributed
x axis relates to how risks are controlled and y axis relates to how strategy is created
Performance management baseline is well defined and not subject to change in an agile manner – Contracts
Management reserve is flexible and wiling to take risks when opportunities present themselves – Projects
y-axis- how ROI is translated within and outside the organization
Control Accounting
ROI Investment Accounting
Low ROI to high ROI (bottom to top)
Work Packages
Planning Packages
x-axis – How ROI is developed within teams
Left – low ROI, Right – higher ROI
x axis relates to the level where ROI is calculated in teams and y axis relates to the level to which ROI is translated within the organization
The change control readiness is low and only calculated at the work package and planning package level – Contracts
Change control readiness is high and is able to be translated at the accountant levels of the organization in real time and over many years – Project
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