Portfolio Management Best Practices: Measuring Business Value

Enterprise goals, the portfolio, work, and investment decisions should all be based on measurable business outcomes. Business outcomes generate metrics, the way to measure value. The key is to standardize the way the enterprise measures business value.

Business Value Standards can help guide the right decisions for the portfolio, based on the work that can generate the most value. The standards list in the table provides six primary business value types with the associated examples and metrics.

Table 1

These example metrics help define how to measure the results from prioritization of items within the portfolio. The performance of the portfolio is based on the business value results that are realized by successfully executing on business objectives.