As Dynamics 365 and Power Platform consultants, we often find ourselves deeply immersed in the technical aspects of our projects. However, we sometimes struggle to quantify the real value our solutions bring to our clients.
In this post, I will share insights and actionable advice on how to measure the value of your business application projects. You’ll learn about common challenges and practical tips to overcome them.
We’ll explore key concepts from my session at the NZ Business Applications Summit 2024, including how to align project goals with business strategies, define meaningful metrics, and use tools like OKRs (Objectives and Key Results) and the Business Value Toolkit.
Understanding the Importance of Measuring Value
Measuring the value of business application projects can be challenging, but it is essential for demonstrating the impact of our work. Without clear metrics, it becomes difficult to show stakeholders, and project sponsors the return on investment (ROI) of a project, which can hinder future funding and support.
Common Challenges in Measuring Value
Several obstacles can prevent us from effectively measuring the value of our projects:
Lack of Knowledge: Many of us are experts in building solutions but may not be well-versed in business consulting, making it difficult to define and measure value.
Focus on Delivery: Moving from one project to the next without stopping to evaluate the outcomes can lead to missed opportunities for reflecting on ROI.
Unclear Responsibilities: Not knowing whose job it is to measure value can result in this crucial task being overlooked.
Quantification Difficulty: Struggling to quantify the benefits of a project can make it challenging to articulate its value to stakeholders.
Aligning Goals with Business Strategies
One effective way to ensure your projects deliver value that is relevant is to align your goals with the broader business strategy. This involves understanding the company’s strategic priorities and designing your project objectives to support these goals.
One effective framework for understanding business strategy is the Strategy Choice Cascade, detailed in the book Playing to Win: How Strategy Really Works by A.G. Lafley, Roger L. Martin. It helps organisations articulate their strategy by breaking it down into clear, actionable components. The cascade begins with defining a winning aspiration, which sets the overarching vision for success. Next, it identifies where to play, clarifying the market segments and areas of focus. The third step, how to win, outlines the strategic approaches and differentiators that will enable the organization to achieve its aspiration. The cascade then addresses the capabilities needed to succeed and the management systems required to support these efforts. By utilising the Strategy Choice Cascade, and in particular focusing in on the Winning Aspiration and How to Win components, teams can ensure that the metrics for measuring Power Platform or Dynamics 365 success align with business goals.
Defining Meaningful Metrics
Defining clear and measurable metrics is crucial for assessing the success of your projects. The OKR framework is a helpful tool for this purpose. OKRs consist of a few key objectives supported by measurable key results. When setting OKRs, ensure they are specific, time-bound, and aligned with both the business problem and strategic priorities.
One tool that can assist in defining OKRs is Copilot. Copilot can act as a business management consultant sidekick, helping to brainstorm ideas for OKRs. By utilising Copilot, users can input their strategic goals and business problems, and receive a list of potential OKRs tailored to their specific context. This AI-driven approach not only streamlines the process but also ensures that the OKRs are both ambitious and measurable, ultimately driving greater alignment and value in project outcomes.
Here is an example prompt for Copilot.
I want you to act as a business management consultant. A construction company has the following strategy <reference to strategy> and the following business problem <reference to business problem>.
Given this background information, I want you to give me 10 ideas for Objectives and Key Results using the OKR framework. Objectives should be written as [Action Verb] + [What you want to achieve] + [Why], and Key Results should be written as [Action Verb] + [Metric] + [Target, from X to Y] + [Timeframe]
Build Value Measurement into your Solution
Building in the measurement of OKRs into our projects is a critical step that ensures alignment with business goals and provides a clear framework for assessing success. During the project initiation phase, it's essential to identify and document key metrics that align with both the defined business problem and strategic priorities. Incorporating these metrics into your project plan and building solutions leveraging the Power Platform for tracking and reporting can streamline this effort. By doing so, you can ensure that the OKRs are not only well-defined but also actively measured throughout the project's lifecycle, thereby facilitating continuous improvement and demonstrating tangible value to stakeholders.
Using Tools to Measure and Communicate Value
Tools like the Business Value Toolkit can streamline the process of measuring and communicating the value of your projects. This toolkit helps you document the problem, solution, challenges, and realized value of your project. It also allows you to publish your findings in a visually appealing format that stakeholders can easily understand.
Conclusion
By taking the time to measure and communicate the value of your business application projects, you not only demonstrate the impact of your work but also build stronger relationships with stakeholders. This practice can lead to more support and funding for future projects, ultimately helping you and your stakeholders achieve greater success.
Remember, measuring value is an ongoing process. Continue to refine your metrics and methods, and always seek feedback from your stakeholders to ensure you are meeting their needs.
I encourage you to start implementing these strategies in your next project and see the difference they make.
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