WIKI SLATEPrecision to Vision
← LibraryValue Delivery SystemProject Management · Principles of Project Management← PrevNext →
POSTER 04
Section 2 · PMBOK 7 — Why Projects Exist

The Value Delivery System

PMBOK 7 reframes projects as part of a system that creates value. Effort moves down as funding & direction; worth moves up as outcomes, benefits and value. The job is not "deliver the thing" — it's realise the value.

Visual Map — the system, end to end

▲   VALUE · BENEFITS · INFORMATION & FEEDBACK flow UP   ▲
Organisational
Strategy▶ Portfolio
right work▶ Program
benefits▶ Project
outputs▶ Product
thing of value▶ Operations
sustain▶ Customer
realises value
▼   STRATEGIC DIRECTION · FUNDING · DECISIONS & MANDATE flow DOWN   ▼

The system is governed as a whole. Feedback loops from operations & customers continually re-shape strategy and the portfolio — value delivery is circular, not a one-way pipeline.

The Value Ladder

Output
The deliverable produced (e.g. an app, a bridge).
▼
Outcome
The change the output enables (people use it).
▼
Benefit
The measurable gain (cost down, revenue up).
▼
Value
Worth to stakeholders — financial or not.

Key Concepts

Value
Worth/importance to stakeholders.
Business value
Net quantifiable benefit to the org.
Internal value
Capability, IP, morale, readiness.
External value
Customer & market worth.
Value stream
The flow that turns need → value.
System view
Optimise the whole, not a part.

Relationships

  • Each component feeds the next; operations sustain the value over time.
  • Portfolio governance steers the whole toward strategy.
  • Benefits are often realised after the project closes — programs/operations own realisation.
  • Customer feedback loops back to reshape strategy.

Exam Concepts

  • Output ≠ outcome ≠ benefit ≠ value.
  • Value can be non-financial.
  • Benefit realisation may sit past closure.
  • Know the term "value delivery system."

Executive View

  • Steer the portfolio by value, not activity.
  • Maintain a benefits dependency network.
  • Ask: "value created — or just deliverables shipped?"
  • Fund realisation, not only build.

Industry Example — Enterprise SaaS

IT
  • Output: a new billing feature ships.
  • Outcome: finance teams adopt it.
  • Benefit: churn down, ARPU up.
  • Value: higher enterprise valuation.

Memory Hooks

  • Build → Use → Gain → Worth = the value ladder.
  • "OO-BV": Output, Outcome, Benefit, Value.
  • Money down ▼, value up ▲ — and it loops.
60-sec Review Draw the system left→right Climb the value ladder aloud Internal vs external value When are benefits realised? Name one feedback loop
PMI Visual Wall · Poster 04 · PMBOK 7 Value Delivery System · original instructional design · A3 landscape