Value Delivery System is an all-inclusive approach through which
projects accomplish business value.

Corporate value is typically associated with tangible and intangible advantages received by users, employees and other business professionals. Projects are considered the key vehicle that delivers business value by reaching corporate objectives. The 7th Edition put forth an effective strategy for intended business value. This is primarily achieved by defining corporate strategies and identifying objectives that later turn into practical initiatives. The Organization system, strategies, missions or objectives decide the next portfolios or investments

A collection of strategic business activities aimed at building, sustaining, and/or advancing an organization. The Standard for Project Management, within the PMBOK Guide 7th Edition
Project Management Institute (PMI), 2021

These enterprises produce deliverables that improve the competencies of the organization and offer tangible and intangible outcomes. Eventually, these benefits are transformed into business value. The system allows a smooth flow to the value delivery system in the organization. This is particularly important by effectively propagating information and feedback through predefined channels. The value delivery mechanism mainly comprises of programs, operations, and portfolios to allow workflow and support decision-making.

Ways that projects produce value include, but are not limited to:

• Creating a new product, service, or result that meets the needs of customers or end-users;
• Creating positive social or environmental contributions;
• Improving efficiency, productivity, effectiveness, or responsiveness;
• Enabling the changes needed to facilitate organizational transition to its desired future
• state; and
• Sustaining benefits enabled by previous programs, projects, or business operations.

VALUE DELIVERY COMPONENTS

The “system for value delivery” refers to the comprehensive framework through which organizations deliver value to their stakeholders. This system encompasses portfolios, programs, projects, and operations, all of which work together to achieve organizational goals and generate value.

A system for value delivery is part of an organization’s internal environment that is subject to policies, procedures, methodologies, frameworks, governance structures, and so forth.

Here are the key aspects of the system for value delivery as outlined in PMBOK 7:(This response is powered by PMI’s KnowledgeBase.)

• Integration of Components: The system includes portfolios, programs, and projects, which may be interconnected. These components influence each other and are influenced by operations and other business functions such as payroll and supply chain management.
• Governance: A governance system is used to manage issues, facilitate workflow, and support decision-making within the value delivery system. This ensures that the system operates smoothly and predictably. A governance framework can include elements of oversight, control, value assessment integration among components, and decision-making capabilities
• Internal and External Environments: The system for value delivery exists within an organization’s internal environment, which includes policies, procedures, methodologies, frameworks, and governance structures. This internal environment is influenced by the larger external environment, including economic conditions and competitive landscapes.
• Creating Value: Projects within this system are designed to produce value for the organization and its stakeholders. This involves translating organizational strategies into executable initiatives, such as programs and projects, which result in final products that enhance the organization’s capabilities.

Value delivery information flow

In the Value Delivery System, each function plays a specific role when it comes to communication and information flows both down and up the chain.

Strategic Alignment: Senior leadership ensures all organizational components align with the overarching strategy, sharing goals from the top down.

Portfolio Communication: Portfolios translate strategic goals into actionable outcomes, ensuring every level understands its role in achieving broader objectives.

Programs and Projects Execution: Programs and projects turn portfolio guidance into deliverables, providing updates and maintaining a feedback loop for adaptability.

Operations Integration: Deliverables come with support information for seamless operational integration, maximizing value.

Feedback and Continuous Improvement: Operations provide feedback for continuous improvement, creating an iterative loop that enhances future projects.

Performance Evaluation and Strategy Advancement: Programs and projects update portfolios on performance, enabling strategy refinement. Operations offer insights into strategy execution, aiding senior leadership’s overall assessment.