The investment life cycle is the process of planning, proposing and delivering investments. The Investment Life Cycle Management is a best‐practice approach applied over the life of an investment that aims to maximise the investment by reducing the risk of failure, provide greater value‐for money and drive better outcomes.
Until recently, the tools of project management have been used to support investment management. The project management tools primarily concern with running the project to planned time and on budget. Project management tools were not intended to be used to help shape an investment or make decisions about which investments should be funded.
Investment thinking, on the other hand, focuses on an enterprise creating or buying benefits to address a problem by the use of projects or programmes and the ultimately delivering these benefits. Project management thinking does not generally help the investor in answering the question: ‘Will my investment deliver the expected benefits?’, whereas investment management thinking does.
Investment management considers a proposal, program or project from the viewpoint of the investor rather than the project manager.
Good project management is critical to the success of an investment. However, investment management focuses beyond the time-limited parameters of project management. It does not diminish project management in any way but instead complements it.
MakroNorm provides training and consultancy in the best-practice investment lifecycle to companies and enterprises and practical guidance, tools and implementation service that assist in the investment process that helps to achieve the best investment outcomes.