Explain why Benefit measurement method model is important in

Explain why Benefit measurement method model is important in project management?

Solution

Benefit Measurement Method or model is used extensively in the project selection by senior management or PMO to select the appropriate project based on the strategic goals alignment. It is based on the current state of the cost and benefits for decision making. This model compares the one project with the other competing project. Through this method it is easy to review group of activities to make sure the changes across various projects are managed well with the realized benefits. These reviews result into the assessment about the future estimates and what has been realized till date and suggests remedies to overcome any barriers for the expected benefits. Hence, the various techniques used in benefit measurement methods are such as Benefit Cost Ratio, EVA (economic value added) NPV (net present value), IRR (internal rate or return), discounted cash flow etc. Also, benefit measurement methods are comprising of different project selection models such as peer review, scoring models, murder board and economic model. Hence, due to the comparative nature the benefits measurement methods are easy to use.