The following article covers a topic that has recently moved to center stage--at least it seems that way. If you've been thinking you need to know more about it, here's your opportunity.
If you find yourself confused by what you've read to this point, don't despair. Everything should be crystal clear by the time you finish.
My last two articles talked about some of the strategies needed for PPM to be effective. In this article, I'd like to discuss the third strategy: contribute to a positive cash flow.
1. Be aligned with the firm's strategy and goals
2. Be consistent with the firm's values and culture
3. Contribute (directly or indirectly) to a positive cash flow for the enterprise.
4. Effectively use the firm's resources-both people and resources
5. Not only provide for current contributions to the firm's health but must help to position the firm for future success.
Contribute (Directly or Indirectly) to a Positive Cash Flow for the Enterprise
In finance, there's a term called Net Present Value or NPV that is often used to determine whether or not a project will be profitable. NPV is defined as "the present value of a project or an investment decision determined by summing the discounted incoming and outgoing future cash flows resulting from the decision." In other words, take all of the revenues and costs of the project and assign a dollar value in today's market.
Wikipedia gives a good example of how it works - Let's suppose that a corporation must decide whether to introduce a new product line. The new product will have startup costs, operational costs, and incoming cash flows over six years.
Those who only know one or two facts about Project Management Software,Web Based Project Management Software can be confused by misleading information. The best way to help those who are misled is to gently correct them with the truths you're learning here.
If you find yourself confused by what you've read to this point, don't despair. Everything should be crystal clear by the time you finish.
My last two articles talked about some of the strategies needed for PPM to be effective. In this article, I'd like to discuss the third strategy: contribute to a positive cash flow.
1. Be aligned with the firm's strategy and goals
2. Be consistent with the firm's values and culture
3. Contribute (directly or indirectly) to a positive cash flow for the enterprise.
4. Effectively use the firm's resources-both people and resources
5. Not only provide for current contributions to the firm's health but must help to position the firm for future success.
Contribute (Directly or Indirectly) to a Positive Cash Flow for the Enterprise
In finance, there's a term called Net Present Value or NPV that is often used to determine whether or not a project will be profitable. NPV is defined as "the present value of a project or an investment decision determined by summing the discounted incoming and outgoing future cash flows resulting from the decision." In other words, take all of the revenues and costs of the project and assign a dollar value in today's market.
Wikipedia gives a good example of how it works - Let's suppose that a corporation must decide whether to introduce a new product line. The new product will have startup costs, operational costs, and incoming cash flows over six years.
Those who only know one or two facts about Project Management Software,Web Based Project Management Software can be confused by misleading information. The best way to help those who are misled is to gently correct them with the truths you're learning here.
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