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
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