Is Value Management deployed at Strategic, Programme and Project levels?
The greatest benefits from application of Value Management can be derived at the very early stages in the life cycle of a business investment, even before it has been decided what the business objectives are. This is done by deploying Value Management in Strategic decision-making. Similarly, Business objectives, benefits, risks, uncertainties and complexity can be addressed to compare and then prioritise investment opportunities very early in the life of new ventures or the development of existing business lines. Project or product development can follow and Value Management applied at the early stages of the life cycle will identify hard objectives to address a variety of topics.
Is there any IVM activity taking place in my area?
Yes, contact your local Branch Chair to find out what is taking place in your immediate area.
Should Value be understood and delivered by everyone in an organisation?
The British and European Standard BS EN 12973 describes a Value Management Culture as “attitude, awareness and knowledge of what value represents for an organisation and its stakeholders; knowledge of available methods and tools and a managerial environment required to enable value management to flourish” The value culture should be present at all levels in the organisation whether they are actively involved in the Value Management process or not and will be reflected in an organisation’s approach to doing business and how its members respond to challenges and opportunities presented to them. In an organisation with a value culture, the main basis for decision-making is value.
To read the British and European Standard see https://shop.bsigroup.com
Should you wish to seek further information you could:
- Look at the IVM website or pay to become a member.
- Then join in member discussions by getting involved in local branches to strengthen your knowledge and skills.
Or contact us.
Would there be any advantage in having a Value Manager?
- A Value Manager could be appointed to coordinate Value Management work centrally and support facilitators, communicate with both Top and Operational Management and nurture cross functional support. Some organisations appoint a Director of Value. Some organisations locate their Value Manager in a central function such as the Project Management Capability or Finance. A Value Management structure can be set up to deliver the approaches including workshops, studies, training and give support to the Value Management qualified Facilitators spread throughout the organisation. Facilitators could achieve their role as part of their main role, part time, or full time as suits the organisational style. Some companies require Value Management studies, as one of their Value Management approaches, to be mandatory at discrete times on all major investments, led from a central Value Management Function. There are benefits and dis-benefits to various approaches. A Value Manager is essential at the launch of any Value Management initiative to nurture the approach and champion the thinking, methodology and training. As the Value Management approach develops and grows compilation of statistics on approach details, outcomes, value achievements, customer, business results, etc., may be required to gauge the performance of the approach and deployment of Value Management. Integration of Value Management with management /operating processes and practices can be overseen by the Value Manager.
Is there any benefit in having a Value Management policy?
Many organisations have a Safety, Environmental, or Quality Policy. Does your organisation have a Value Management Policy as well? To practice Value Management an organisation should have a Value Management Policy which will address all aspects of Value Management in the organisation based on the general management goals at the highest level, since this sets the pattern for all other activities and objectives.
The Value Management Policy should reflect the outward looking views of Customers, Users and Stakeholders by Top Management, and the internal issues under consideration by Operational Management which deliver the Top Management outcomes.
How can there be time for Value Management studies when time available is at a premium?
The time spent doing Value Management Studies, as part of a study-based approach, delivers benefits to all parties involved and can accelerate the work by getting agreement for the way forward from stakeholders. Value can best be delivered if the approach or approaches is/are embedded into your processes and procedures to ensure universal adoption across the organisation as and when appropriate. Value Management interventions can be planned according to the work processes deployed in your organisation. This will allow a systematic approach to be taken to address the soft and hard aspects of project/product definition and design, manufacturing, procurement, services, etc., at the right time.
What do I need to do to get the best out of Value Management studies and workshops?
Using a Value Management study-based approach, Value Management studies and workshops should be facilitated by Value Management trained qualified Value Individuals ie. at least PVMs. Value Management Facilitators will lead workshops within the business at appropriate phases of your business operations to integrate teams and follow the Value Management Job Plan for the specific application, eg. Tools and techniques will be explained and applied, drawing out the rich thinking from the team. Leaders and teams will be given guidance on the overall process and the arrangements to be made to undertake each workshop. You could set up your own group of Value Management trained qualified professionals/facilitators through the IVM.
What can I do to deploy Value Management in the organisation?
You could undertake Value Management studies ie. a study-based approach, to take a fresh look at problems and opportunities. Workshops are tailored for specific stages according to needs and the desired outcomes. You could build a structured framework either formally and/or informally ie. formal and/or informal approach, linked to organisational goals to integrate a value focused management style, a positive approach to individual and team motivation, an awareness of the organisational environment and the effective use of proven methods and tools. Deployment of Tools and Techniques is the visible means by which Value Management methods and tools is/are put into practice. They can be applied to the soft and hard aspects of the application in question (Project, Product, manufacturing, Service, Procurement, etc.).
To find out about the benefits Value Management could deliver view the IVM Corporate Brochure.
What do Value and Value Management mean?
The concept of Value is based on the relationship between satisfying needs and objectives and the resources required to achieve them. The aim of Value Management is to reconcile all stakeholders’ views and to achieve the best balance between satisfied needs and resources. Value Management is concerned with improving and sustaining a desirable balance between the wants and needs of Stakeholders and the resources needed to satisfy them. Stakeholder value judgements vary, and Value Management reconciles differing priorities to deliver best value for all Stakeholders.
Why should Value be important to me and my customers?
Because your Customers need your organisation to fulfill their goals and you need to fulfill yours. Value may be in the eye of the beholder but it is a universal concept which manifests itself in many ways. To gain sustainable competitive advantage these value concepts must be made explicit and visible so that they can be understood and delivered. Do you know what drives value for your customers and your organisation? Do you have systems in place that you know are maximising this value? (If not Value Management, what systems are you using?)
- For a definition of Customer Value, to learn more about an Organisational Value Proposition or to see what is meant by Value Creation click here
How do I become qualified?
To become qualified in Value Management please review the Qualification Pathways under the Training section of the Website. For further information please contact the Secretary, [email protected]
How can I get involved in the activity of the IVM?
To get involved in the activity of the IVM please contact the Secretary, [email protected] in the first instance.