The following are frequently asked questions about Value, Value Management and The IVM. To reveal the answer just click on the question.Is Value Management deployed at Strategic, Programme and Project levels?
The greatest benefits from application of VM 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 VM in Strategic decision making. Similarly, Business objectives, benefits, risks and uncertainties 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 VM applied at the early stages of the life cycle will identify hard objectives to address a variety of topics.
To review an article on this published in the VALUE magazine, IVM Members only can see: Value- the line of sight between Projects, Programmes and Portfolios, Thomas Andersson and Inger Bergman, VALUE Magazine, February 2008
Yes, contact your local Branch Chair to find out what is taking place in your immediate area.
The European Standard 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 VM 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 European Standard see here:
Or seek advice from qualified professionals in value management:
A VM Manager could be appointed to coordinate VM work centrally and support facilitators, communicate with Senior Management and nurture cross functional support. Some organisations appoint a Director of Value. Some organisations locate their VM Manager in a central function such as the Project Management Capability or Finance. A VM structure can be set up to deliver the workshops, studies, training and give support to the VM 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 VM studies to be mandatory at discrete times on all major investments, led from a central VM Function. There are benefits and dis-benefits to various approaches. A VM Manager is essential at the launch of any VM initiative to nurture the approach and champion the thinking, methodology and training. As the VM approach develops and grows compilation of statistics on study details, outcomes, value achievements, customer, business results, etc. may be required to gauge the performance of the approach and deployment of VM. Integration of VM with management /operating processes and practices can be overseen by the VM Manager.
Many organisations have a Safety, Environmental, or Quality Policy. Does your organisation have a Value Management Policy as well? To practice VM an organisation should have a Value Management Policy which will address all aspects of VM 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 and Stakeholders by Top Management, and the the internal issues under consideration by Middle Management which deliver the top management outcomes.
The time spent doing VM Studies delivers benefits to all parties involved and can accelerate the work by getting agreement for the way forward from stakekolders. Value can best be delivered if the methodology is embedded into your processes and procedures to ensure universal adoption across the organisation as and when appropriate. VM 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.
Typical techniques deployed at which stage can be found in the Applications page of the IVM Website:
VM studies and workshops should be facilitated by trained individuals. VM Facilitators will lead workshops within the business at appropriate phases of your business operations to integrate teams and follow the VM 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 trained facilitators through the IVM. Alternatively you could use existing professionals.
You could undertake VM studies 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 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 VM Methodology is put into practice. They can be applied in studies to the soft and hard aspects of the application in question (Project, Product, manufacturing, Service, Procurement, etc.).
To get more information about a structured approach to decision making and creative problem solving using the VM Study Plan go to the bespoke Route Maps for different applications Click Here
To see some typical Tools and Techniques which can be used during a study using the VM Study Plan go to Here
The concept of Value is based on the relationship between satisfying needs and expectations 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 VM reconciles differing priorities to deliver best value for all stakeholders.
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 VM what systems are you using?)
To become qualified in Value Management please review the Certification Routes under the Training and Certification sections of the Website. For further information please contact the Secretary.
To get involved in the activity of the IVM please contact the Secretary in the initial instance.
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