Improved Value & Decision Mak ing: CSVA Conference 2006, To ronto, Canada 1 CSVA 2006 – Improved Value and Decision Making ACHIEVING HIGH VALUE PROGRAMS AND PROJECTS BY MANAGING THE WHOLE VALUE IMPROVEMENT CYCLE Michael Thompson for Martyn Phillips The TEAM FOCUS Group
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ACHIEVING HIGH VALUE PROGRAMS AND PROJECTS BY MANAGING THE WHOLE VALUE IMPROVEMENT CYCLE
ACHIEVING HIGH VALUE PROGRAMS AND PROJECTS BY MANAGING THE WHOLE VALUE IMPROVEMENT CYCLE. Michael Thompson for Martyn Phillips The TEAM FOCUS Group. Purpose. - PowerPoint PPT Presentation
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Improved Value & Decision Making: CSVA Conference 2006, Toronto, Canada
1
CSVA 2006 – Improved Value and Decision Making
ACHIEVING HIGH VALUE
PROGRAMS AND PROJECTS BY
MANAGING THE WHOLE VALUE
IMPROVEMENT CYCLE
Michael Thompson for Martyn Phillips
The TEAM FOCUS Group
Improved Value & Decision Making: CSVA Conference 2006, Toronto, Canada
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CSVA 2006 – Improved Value and Decision Making
Purpose
To encourage use of Value Management as a systematic long-term process of analytical and innovative explorations that culminate in firm, tested proposals for business improvement.
To describe a VALUE ASSURANCE approach to achieving high performance and value
Improved Value & Decision Making: CSVA Conference 2006, Toronto, Canada
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CSVA 2006 – Improved Value and Decision Making
Topics of Discussion
Need for Change Background Context Performance and Value Different VM Approaches Value Assurance Conclusion
Improved Value & Decision Making: CSVA Conference 2006, Toronto, Canada
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CSVA 2006 – Improved Value and Decision Making
Questions
How many value practitioners find themselves being involved in a project from cradle to grave?
How many project teams consider it necessary to involve an external party to assist them with ensuring that high performance is achieved?
Improved Value & Decision Making: CSVA Conference 2006, Toronto, Canada
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CSVA 2006 – Improved Value and Decision Making
Need for Change
Alternative needed to “Get Fixed Quick”
“Continuum” approach rather than “Intervention”
Improved Value & Decision Making: CSVA Conference 2006, Toronto, Canada
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CSVA 2006 – Improved Value and Decision Making
Background
Management staff trapped in a world of tight timelines and high expectations
Dealing with fuzziness and uncertainty of needs and costs
Value supposedly built in – no formal processes
No universal agreement on value delivery
Improved Value & Decision Making: CSVA Conference 2006, Toronto, Canada
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CSVA 2006 – Improved Value and Decision Making
ContextStakeholders
•Widely differing needs and expectations
•Return on investment and expected value not
in line with business case
Project Team•Well intentioned
undertakings often lead to costly overruns,
disruptions to service•Often unaware of
value expected from them
Improved Value & Decision Making: CSVA Conference 2006, Toronto, Canada
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CSVA 2006 – Improved Value and Decision Making
Context Return on Investment
criteria not evident, and therefore not necessarily attained
Key knowledgeable people are lost to the next critical project
Information may not be passed on and many assumptions may have to be made by the next wave of project personnel (no continuity)
Some examples of where it can go wrong: Business people
often absent during project development
Improved Value & Decision Making: CSVA Conference 2006, Toronto, Canada
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CSVA 2006 – Improved Value and Decision Making
Performance & Value Value determined not
solely by the producer / promoter, but in concert with the customer / user.
Not solely money
Value includes: Aesthetics Functionality Ease of O&M Fastest time to market Sustainability
Clients seeking to buy overall performance improvement, not just sequence of traditionally practiced project development activities
Improved Value & Decision Making: CSVA Conference 2006, Toronto, Canada
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CSVA 2006 – Improved Value and Decision Making
Performance & Value
Think outside comfort
zone
Receptive to new ideas
Less defensive, broader thinking
End result not just
more of the same
Ownership to ensure change
process delivers expected results
Improved Value & Decision Making: CSVA Conference 2006, Toronto, Canada
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CSVA 2006 – Improved Value and Decision Making
Different VM Approaches There is often confusion over the several,
various value terms, e.g.
It is of no surprise that expectations of value improvement and what it can do can differ considerably
The traditional VM process does not always fit comfortably within the mode of operation of 21st century business activities
Value AnalysisValue AssuranceValue Control
Value EngineeringValue ImprovementValue Planning
Improved Value & Decision Making: CSVA Conference 2006, Toronto, Canada
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CSVA 2006 – Improved Value and Decision Making
Focus Quite often, a key piece is missing but the
project proceeds regardless……..
Improved Value & Decision Making: CSVA Conference 2006, Toronto, Canada