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TOPIC: Revenue management in PMBOK

Revenue management in PMBOK 2 years 7 months ago #16402

  • Andrea Curra
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Dears,
I am preparing the PMP exam and of course I'm studying hard on the PMBOK.
I am very surprised that PMBOK is citing the word "revenue" only 2 times and always in an indirect way. There is any best practice nor guideline for revenue management. Moreover there is no direct reference to the cassh flow analysis.
I understand that not all projects are dealing with revenues (especially internal projects) but in my opinion in the majority of cases, revenues and cash flows are important parts of a project.
Can anybody explain why PMI does not handle this topic?
Thanks
Andrea

Revenue management in PMBOK 2 years 7 months ago #16403

  • Cornelius Fichtner
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Interesting question and I never thought about it really. So... I wrote to the project manager of the PMBOK Guide Sixt Edition team and asked her. Let's see what we can learn from the people in the know.
Until Next Time,
Cornelius Fichtner, PMP, CSM
President, OSP International LLC

Revenue management in PMBOK 2 years 7 months ago #16404

  • Andrea Curra
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Thank you very much. I am really interested in this topic. I look forward to read and understand her reply.

Revenue management in PMBOK 2 years 7 months ago #16439

  • Cornelius Fichtner
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Here is the response I received:

=============================

In addition to internal projects, governments, non-profits and not for profits are more likely to look at benefits and value rather than just revenue to evaluate projects. Here are some examples where the Guide discusses value and benefits:

Page 7 Value Creation
Page 10 Business Value
Page 11 Effective and efficient project management should be considered a strategic competency within organization. It enables organizations to

Tie project results to business goals
Compete more effectively in their markets
Sustain the organization
Respond to the impact of business environment changes...

Pages 30 - 35 Section 1.2.6 Project Management Business Documents. This section specifically addresses the business case and benefits management

=============================

Not sure if this addresses your concern, but this is the best we have at this time.
Until Next Time,
Cornelius Fichtner, PMP, CSM
President, OSP International LLC

Revenue management in PMBOK 2 years 7 months ago #16467

  • Andrea Curra
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Thank you for the feedback.
To be honest I was expecting a bit more, but ok I accept it.
Best regards

Revenue management in PMBOK 8 months 2 weeks ago #25614

  • Imad Al Saydeh
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Your question is really valid, I read an article for someone requesting the addition of Revenue Management as a new project knowledge area.
Based on my opinion and my reading, i think that revenue management is kept intentionally outside project management to be addressed under portfolio management (which include operation as well), revenue is something more related to product life cycle, for example a construction company will deliver the building, but selling the units will be handled outside the project scope (under the realestate organization/portfolio), i think adding revenue management to project scope will add complexity (and value). I think we may see this in the future editions of pmbok
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