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Investment Management Standard (Victorian Government)

Department of Treasury and Finance, Version 2.0, 19 April 2007.

For decades businesses and governments have been developing different approaches and methodologies that all aim to make sure that their investments deliver the best possible business outcomes at the lowest cost.

The complexity this has engendered in project management has not increased the likelihood that investments will deliver benefits that align with business outcomes. Project management disciplines have become more robust and have been adopted by most organisations; these disciplines are then used as a default for investment management practices.

The result is that good project management practices have given organisations much greater certainty that projects are properly structured and will be completed on time and within budget, but the language and tools they use often serve to alienate the investor. Even where projects are managed to the best project management standards, few investors are able to clearly articulate why an investment was made or can feel confident that the benefits sought by the initial investment were actually delivered.

This change in thinking is characterised by a 'back to basics', common sense approach to planning for and tracking investment outcomes. It has made the distinction between investment management and project management.

The Victorian Government's Investment Management Standard:

Is a fresh look at how an analysis of projects that focuses on the logic of investments and benefits can create more value for government and the community
Identifies those points in the investment lifecycle that are critical to shaping investments and tracking their outcomes. At each of these points there is a simple guideline with tools that will enable the investor to shape, monitor, control and evaluate the investment.
Uses a series of facilitated, structured two-hour workshops that bring together those people responsible for shaping critical aspects of the investment
Does not replace project management standards, but rather compliments and enhances them.
Is a series of tools that could add value to project management or benefit management at any stage of a project. However, the standard focuses on the initial stages of planning a project, and on tracking benefits long after a project has been completed. that continues to evolve.

This new Victorian Government Standard has been used on hundreds of potential and actual investments. It is a common-sense, low-cost/high-impact approach the continues to evolve. Adoption of the standard is not usually an additional overhead in project management. Properly implemented, it speeds up business case preparation and investment management decisions, more than fully compensating for the effort it requires.

Investment Management and Project Management