What is MoV?

Management of Value (MoV) is an OGC product from the Best Management Practice suite of methods. MoV is about maximising value in line with programme and project objectives and key stakeholder requirements. MoV provides a set of universally applicable guidance to enhance and maximise value for organisations. It provides a set of principles, processes and techniques to enhance and deliver best value for product or process owners and end users alike.

Value management is one of the most powerful management tools available. It has particular application where improvement of productivity, service or quality performance is vital and when time or resources are limited. Its focus on "required function" enables decision makers to channel their efforts on the issues and factors that have the most direct impact on outcomes.

When running portfolios, programmes and projects (P3), the key objectives are to deliver the expected outcomes in full, resulting in the expected realisation of benefits. However, this cannot be allowed to occur at any cost. The resources needed to achieve the desired results must be used as widely as possible.

MoV is all about maximising value in line with P3 objectives. It captures key stakeholder requirements for what products or services should do rather than what they are, then develops solution designs that optimise value.

MoV focuses on improving benefits and reducing expenditure to speed up delivery without impacting essential project scope or service quality. It is not simply about minimising costs.

Value management is essential to effective strategy and policy development and delivery via portfolios, programmes and projects, as well as service reviews or product redesigns delivered via continual improvement processes. Therefore MoV is vital in both Business as Usual and P3 environments, providing an audit trail of how optimum value has been achieved.

The 7 Principles

1. Align with organisational objectives - MoV applications are fully aligned with the organisation’s strategic objectives.

2. Focus on functions and required outcomes - MoV focuses on the functions that are necessary and sufficient in order to deliver the required programme and project outcomes and outputs in terms that clarify what value means for the organisation, so providing the basis for making decisions that lead to maximum value.

3. Balance the variables to maximise value - MoV engages with all key stakeholders, reconciling their objectives to balance benefits and their delivery against the total use of resources, thereby maximizing value.

4. Apply throughout the investment decision - MoV is applied through all stages of the total lifecycle of the programme or project. Its focus will evolve as it moves from stage to stage.

5. Tailor to suit the subject - MoV is tailored to suit the project’s environment, size, complexity, criticality and risk.

6. Learn from experience and improve - MoV applications encourage learning from experience and improvement by recording previous experience, creating an audit trail of decisions and actions and sharing lessons across all projects.

7. Assign clear roles and responsibilities and build a supportive culture - MoV applications are supported by clearly defined roles and responsibilities. The organisational structure should engage the business, user and supplier stakeholder interests to build a supportive, value-adding culture.

The 7 Processes

1. Frame the programme or project - This examines how MoV informs the business case, supplementing existing information via specialist techniques.

2. Gather information Includes procuring information relating to the project, collecting the expectations from the MoV study, identifying suitable MoV team members, identifying and understanding stakeholders’ needs and other project-related information.

3. Analyse information Analysing the gathered information to form useful input to the MoV study.

4. Process information - Working with the MoV team to use the above input information to develop innovative and value improving proposals.

5. Evaluate and select - Selecting the proposals that have most potential for practical and beneficial implementation.

6. Develop value-improving proposals - Working up the outline proposals into fully developed recommendations for presentation to decision making management.

7. Implement and share outputs - Developing the plan for implementing accepted value improvement proposals and monitoring progress. Gathering lessons learned and sharing with others in the organisation for continuous improvement.