Value Management Phases - Coursework Example

Management Name Course Tutor Institution State and Country Date: Value management Value management is a service that aims to maximize the functional value of a given programme or project through the management of the project development from the starting point through to its completion (De Leeuw 2001). It is a structured approach to the provision of certain functions at the minimum cost possible. Value is the benefit that the project gives to the client. It is what the project is worth and if it can be quantified in business terms. Value = function or what one wants/ whole life cost Value management can also be said to be an approach aimed at the development of innovative as well as holistic solutions to problems that are complex. The key characteristics of value management include; its focus on what it must do, project learning, attaining value-added solutions. This methodology bases upon integration and involvement of key stakeholders. There is a principle that is underlying with value management that is there are several ways to attain the objectives of a project. Examining the various alternatives will ensure reaching a concrete conclusion. The core of value management is function analysis of the whole system. This is the point where value management distinguishes itself from other methods used to improve value. However, value management is not, a cost cutting exercise, an exercise aiming at standardization and a review of a conflict-oriented design. Value management is significant because it provides stakeholders with an opportunity to achieve their requirements. This is ensured through facilitated workshops that promote team work, participation and end user satisfaction. Value management activities include; establishment on what value means, identification and agreement on business needs, identification and evaluation of options, selection and agreement on the option that is best to meet business needs, definition and agreement on the objectives of the business and redefining design for the purpose of value maximization. Value management phases: Information phase This is the first stage aimed at understanding the project or programme in question. Information about the project is obtained. Key stakeholders provide a presentation aimed at making the entire group involved aware of the target of the project. The amount of time needed for preliminary work as well as planning is stipulated. Before the workshop commences, an information pack is issued to the value management team that is to deal with the refurbishment of the court. Objectives phase In this phase, data obtained from the information phase is used. It involves a detailed analysis of the programme or project that is to be done. In this case, the team will analyze the information obtained concerning courts and what one expects in the new court under development. It also involves the definition of the constraints that will lead to solutions. This is done only after common ground has been created. Those involved in the project are asked to spell out the assumptions, objectives, risks and performance during the induction of the project. Also, the team is required to explore opportunities and constraints regarding the regions to be considered. The intended focus should be established so that recommendations and specifications are developed. Functional analysis phase Here, the functional attributes of the project are analyzed. The participants will work to identify the procedures that if followed, will provide the intended results. The aim in the case is to modernize information handling, and hence the team will aim to identify the items needed to meet the need and improve the services of the new court. Creativity phase After the functions and objectives have been identified, suitable methods employed to provide assistance to the team in the generation of various ideas that can be used to obtain the set outcomes. Here, the main aim is to generate a pool of ideas. This is achieved through discussions and assessment of situations presented. This stage is very significant since brainstorming is done, analysis and exchange of information and ideas carried out. This stage is expected to flow to the next phase as it allows free flow of information and ideas. Evaluation phase In this phase, a thorough evaluation of various alternatives available is done. The alternatives are those already identified in the creativity phase. Examination of ideas is done ranging from the cost, costs of maintenance, functionality, impact on service delivery and the target performance. Innovation and ideas necessary for investigation or implementation is identified. The participants are also made responsible for investigations carried out. Development phase This is the stage where the team members or participants technically develop and analyze the alternatives and ideas that were identified in the evaluation stage. This phase is not carried out in the field, which is the new court house in this case, but, the office, where the whole project is being planned. Reporting and recommendation phase This is the point where the team members come to an agreement concerning the recommendations and outcomes flowing from the project. Here, activities are identified that will ensure that the project in question is kept on track and the milestones are kept. Advantages of value management The following are benefits that can be realized when value management is included or utilized in a project. • The spirit of the participants is enhanced • It recognizes the presence of issues, constraints and problems which could either be obvious or not. • It identifies unnecessary costs, omissions and deficiencies • It enables the stakeholders get an overall view of the project • It maximizes the value for money and leads to improved functionality of the project Value management in essence pays for itself; this is to say that it results in large benefits for a minimal investment. Value management considers the complex interrelationships that could result. It focuses on the priorities and objectives and also helps in the generation of alternative solutions that could be useful in the achievement of project outcomes. The application of value management varies both in the outcome and intention of the whole process provided timing is considered. Opportunities for value management Value assessment driven by opportunity enables the management of an organization to do a definition of the requirements to achieve its objectives. It enables the management to select a strategy that is most profitable and align strategic objectives with improvement initiatives. Integrated risk and value management When implementing a project, there are techniques chosen which will eventually be absorbed into the value management already in existence. The choice made should not only embrace value management but also risk management. There is no meaning in trying to achieve value without considering the risks involved (Green & Simister 1998). All value management exercises conducted should take into consideration the risks and whether the risk is explicit or not. It is evident that value management and risk management cannot be considered as being separate entities. Participative information management strategy Another vital opportunity for value management is in the implementation of IT. Before, considering IT on a strategic level decisions have to be made concerning the methods to be used in the integration of the IT systems into any given organization (Green & Simister 1998). If the organization chooses to integrate IT into their systems, the management should consider moving from their traditional norm to value management. Modeling business processes When developing a project, it is vital to understand business processes. This ensures that soft systems methodology is properly applicable. Soft systems methodology enables participants to understand the business processes of an organization (Green & Simister 1998). This will ensure acquisition of the correct information about the organization, which will enable achievement of the target objectives. Leading value management practices include business processes in their list of activities. Systematic approach to the SCS value system Scottish court service is an organization that deals with the court system administration in Scotland. The service employs over 1000 members of staff in the high court judiciary, Court of Session, justice of the peace courts, service headquarters and the sheriff courts. The value system of the court ensures that the following are achieved; that there is integrity and impartiality, providence of high quality service, directing work towards improvement of the justice system, commitment and professionalism and use of all resources effectively. The systematic approach involves: Quick estimate – the potential value of the project should be checked before any activity is commenced (Garvald & SCS 2010). Before commencing the project, one checks and understands the initiatives worth. This is a way of reducing wastage of resources. This will also enable calculation of the outcomes expected and returns. Aims, impacts and measures – the participants have to be clear about the aims, how achievement of the aims will impact the organization and how measuring of significance and accountability of individuals (Garvald & SCS 2010). In this case, the project or programme aims at refurbishing the courts in order to address IT issues in the modernizing of court information handling. For example, video evidence seen by all attending court and remote child evidence shows how it will affect the organization. It follows a process that shows how the aims will be achieved. This will prevent from setting too high or too low targets. Outline business case Here, the question whether the initial thinking makes sense should be considered. An outline of a business case should be created through the combination of aims, impacts and measures, indicative costs and quick estimate (Garvald & SCS 2010). If, by doing this, the project still looks viable continue with it if not, do away with it in order to save on time and money. Option appraisal Here, solution options are weighed to choose the best one (Garvald & SCS 2010). Here, a comparison between values for money, strategic fit affordability, achievability and risk done in order to obtain the best solution. Business case validation This involves bringing the participants who will carry out the project on board. The team members should be ready to deliver the plan (Garvald & SCS 2010). The members should discuss and agree on the milestones needed in order to release value. This provides the participants of the project an understanding of the whole process, as well as, autonomy. Value tracking This involves tracking of the values agreed upon. What should be understood here is the value in progress, value delivered as well as value at risk (Garvald & SCS 2010). Priorities should be understood and considered ensuring that the expected is delivered. Relevance of VM to the strategic outline business case Value management in a business case pays off only when the team chosen, works on the programme or project as part of the whole framework. Investment in value management activity and the establishment of relationships is particularly significant. A project or programme becomes an advantage when workshops used, promote both assessment of project savings and skilful team relations. For a business case to be successful, funding has to be provided, from a central point, to ensure maximum usage (Crossley 2002). Inclusion of value management in a business case ensures the achievement of possible outcomes such as; brainstorming solutions, which will, have an impact on the projects. The main relevance of the value management process in business is the establishment of fruitful relations in retaining pertinent knowledge. Major improvements can be derived when people work collectively towards a common goal. Conclusion Value management is an exercise that is worthwhile if only facilitated properly. Value management may even be the most popular issue in the future. It is a powerful strategy used in the implementation of projects. It aims to produce better projects and better value for all its clients. List of References Bovaird, T 2009, Public Management and Governance, Taylor & Francis, New York. Crossley, AD 2002, Value management as a successful project intervention strategy. [online] Available at: http://www.servq.info/Servqweb/vmasprojectintervention.pdf [Accessed 22 March 2012]. Davies, RH & Davis, AJ 2011, Value Management: Translating Aspirations into Performance, Gower Publishing, Ltd, United Kingdom. p.111 De Leeuw, CP 2001, Value Management: An Optimum Solution. International Conference on Spatial Information for Sustainable Development. Garvald (Edinburgh) and the Scottish Court Service (SCS) 2010, SCS Equality Statement, Outcomes and Guidance, < Garvald (Edinburgh) and the Scottish Court Service (SCS) in November 2010. [online] Available at http://www.scotcourts.gov.uk/you_and_us/docs/Equality%20Statement.pdf [Accessed 22 March 2012]. Green, SA 1998, New Directions in Value Management, Whiteknights, UK. Merna, T & Al-Thani, FF 2011, Corporate Risk Management, John Wiley and Sons, New York. Ostrom, BJ & Hanson, RA 2009, ‘Understanding and Diagnosing Court Culture’, Court Review, vol. 45, Issue 4, pp. 104-109. Stuart, DG & Moss, GW 1998, ‘Value management and post-occupancy evaluation: Closing the loop’, Facilities, vol. 16 Issue 1/2, pp. 34-39. Shillito, ML & De Marle, DJ 1992, Value: its measurement, design, and management, John Wiley & Sons, New York. Read More