Projects are undertaken to add value to the sponsoring
organisation. In the private sector this ultimately
means increasing the value of shares to the holders of
equity in the company. One technique, shareholder value
analysis, calculates the value of equity in a company
from eight value drivers. This paper analyses what
impact the three traditional measures of project
success, (time, cost and functionality), have on the
eight value drivers, and hence what impact project
managers have on the success of their companies through
the successful delivery of their projects. It is also
shown how projects contribute directly to shareholder
value, and with respect to a sample project, the
sensitivity of the performance of the project to
performance on time cost and functionality is assessed.
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