Gain Value Management Rewards
The two most critical factors are management commitment and a competent value practitioner. The European Value Management standard describes strategic and planning frameworks to realise the benefits. A competent value practitioner can support their application at a strategic, programme or operational level can to achieve organisational needs, making the best uses of internal capabilities both in teams and individually.
Within a normal value creation process VM will generally address…
- Defining problem context
- Developing and structuring objectives with multiple stakeholders
- Establishing targets, trade-offs and SMART objectives
- Establishing a value proposition
- Creating a value based measurement framework
- Developing briefs and specifications
- Designing, developing and reviewing options
- Concept, detail design and stage gate reviews
- Assessing outputs and outcomes
- Individual and organisational learning
Benefits of The Institute of Value Management
VM can be applied incrementally, delivering returns on investment of between 20 -40 times the cost, plus significant soft benefits with low risk.
VM generally delivers…
- Value improvements in excess of 20%; including savings between 10 – 25%
- Tangible returns on investment between 20 and 40 times the resource commitment are not untypical
- Significant benefits in terms of improved working relationships and organisational learning.
- Recognisably better decisions based on relevant and balanced information
- Improved performance of products and services that better reflect stakeholder needs
- Increased efficiency through team based activity with a common focus
- Enhanced competitiveness by facilitating and realising latent creativity
- A common value culture, with shared understanding of the organisations goals and associated success factors
- Organisational learning, and improved capability to embed change.