Management of Value

2 Management of Value

Written by Michael Dallas, Director This principle of balancing variables clearly defined in terms of the expected
of APM Group Ltd and Davis to maximize value is illustrated in benefits does MoV explore different ways
Langdon, an AECOM Company. Figure 1 below. of doing these things to maximize value.
The purpose of this brochure is This approach enables MoV to improve
MoV is based around seven principles
to provide an overview of the benefits and to reduce expenditure and
and is delivered through seven key
Management of Value (MoV) guide speed up delivery without impacting
processes that are explained in the main
and how it aligns with the other Best essential project scope or service quality.
guide. Management of Value embraces
Management Practice guides.
many processes that are aimed at MoV is applicable to operational activities
The MoV range of publications includes: maximizing value, which are explained as well as programmes and projects.
or signposted within the core guide. It is
■■ MoV Core Guidance
essentially the same as the widely used
■■ MoV Executive Guide, a quick term Value Management. Essentially, MoV:
reference guide for senior
A key differentiator between MoV and ■■ Enables more efficient delivery by
managers considering the use of
other methods is that MoV focuses on employing fewer resources and using
MoV in their organization.
function – what things do to contribute these resources to better effect
The MoV publications are available in a to the outcome of an activity, rather ■■ Provides a means to define objectives
range of formats to suit users’ needs: than products or what things are. This and scope clearly, in terms of the
■■ Hard Copy functional approach can also be taken organization’s and end users’ short
at the portfolio, programme, project and long-term needs
■■ PDF Single User: offers you
or operational levels. Only when the
immediate access
functions are specified and outcomes are
■■ Handheld eBook: downloadable to
most handheld devices for easy access
on the go.
Balance between stakeholders

What is MoV?
Balance between benefits

MoV is about maximizing value in line Satisfaction of needs

& expenditure

with programme and project objectives (Monetary and non monetary)

and key stakeholder requirements. It
is not simply about minimizing costs.
VALUE 
Use of resources
The fundamental question that MoV (Money, people, time, energy & materials)
addresses is ‘Are we maximizing the
value of our essential investments so
we are getting optimal benefits, at
an affordable cost, with a known and Balance between use of resources
acceptable level of risk?’ Because value
is subjective, MoV must also seek to
achieve the optimum balance between all
Figure 1: Balancing the variables to maximize value
stakeholders’ needs.
 Management of Value 3

■■ Supports decision-making based upon The Principles 5. Tailor to suit the subject
maximizing value for money MoV is tailored to suit the project’s
The seven principles have been derived environment, size, complexity,
■■ Encourages innovation that is well-
from long-standing practice and criticality and risk.
aligned to the organization’s goals
experience and represent the factors
■■ Facilitates optimal balance 6. Learn from experience
most instrumental in delivering success.
between investment and long-term and improve
Whilst not intended to be applied in a
operating expenditure MoV applications encourage learning
prescriptive way, they are obligatory for
from experience and improvement
■■ Provides a means of measuring and good practice in MoV applications.
by recording previous experience,
auditing value, taking account of
1. Align with creating an audit trail of decisions
monetary and non-monetary benefits
organizational objectives and actions and sharing lessons across
and achieving optimal balance
MoV applications are fully all projects.
between them, thus demonstrating
aligned with the organization’s 7. Assign clear roles and
that optimum value has been achieved
strategic objectives. responsibilities and build a
■■ Enables effective consultation and
2. Focus on functions and supportive culture
engagement of stakeholders and
required outcomes MoV applications are supported
end users and reconciles their
MoV focuses on the functions that by clearly defined roles and
differing needs
are necessary and sufficient in order responsibilities. The organizational
■■ Promotes sustainable decision- to deliver the required programme structure should engage the
making, based on adding value, and project outcomes and outputs in business, user and supplier
by addressing both monetary terms that clarify what value means stakeholder interests to build a
and non-monetary factors. for the organization, so providing the supportive, value-adding culture.
MoV enhances, rather than competes basis for making decisions that lead to
with, other management methods that maximum value. The Processes
also seek to achieve value. 3. Balance the variables to
maximize value MoV is delivered in programmes or
MoV engages with all key projects through seven groups of
What are the principal stakeholders, reconciling their processes that are described in more
components of MoV? objectives to balance benefits and detail in Chapter 3 of the Main Guide,
their delivery against the total use of ISBN 9780113312764. The seven main
MoV is based around seven principles resources, thereby maximizing value. headings for MoV processes are:
and delivered through seven key
4. Apply throughout the 1. Frame the programme or project
processes, supported by an array of
investment decision This examines how MoV informs the
techniques, some of which are unique to
MoV is applied through all stages of business case, supplementing existing
management of value.
the total lifecycle of the programme information via specialist techniques.
or project. Its focus will evolve as it
moves from stage to stage.
 4 Management of Value

2. Gather information The Techniques to embedding the mindset of thinking

Includes procuring information “Value” and reducing waste.
relating to the project, collecting A large number of techniques may be
used with MoV. The guide seeks only to This is particularly relevant in the wake
the expectations from the MoV
describe those that are used most widely. of the publication of the Government’s
study, identifying suitable MoV
For ease of reference these are divided Comprehensive Spending Review
team members, identifying and
into two broad categories: released in October 2010.
understanding stakeholders’ needs
and other project-related information. ■■ MoV-specific techniques The feasibility study clearly showed there
3. Analyze information Techniques that are either unique is scope for a generic approach to value
Analyzing the gathered information to or core to MoV. These include management, and that this would be a
form useful input to the MoV study. Function Analysis and the use of useful extension of the current portfolio
Value Trees and derivatives to to support the UK public sector and the
4. Process information
assess value for money. wider community.
Working with the MoV team to
use the above input information ■■ Common techniques used in MoV The emphasis is on ensuring individuals
to develop innovative and value- Techniques that are most understand and are competent in
improving proposals. commonly used with MoV. what value management is and how to
5. Evaluate and select implement it in the workplace.
Selecting the proposals that have most
potential for practical and beneficial
Why was the guide
developed? What does the guidance
implementation.
6. Develop
offer?
A potential gap was identified in
value-improving proposals guidance that is available to There has probably never been greater
Working up the outline proposals support good management practices. pressure on individuals and organizations,
into fully developed recommendations A paper was presented to the Best in both public and private sectors, to do
for presentation to decision-making Management Practice combined more and more with less and less. On top
management. Strategy Board to commission a of this, in the current austerity era, there
7. Implement and share outputs feasibility study on the availability of is huge pressure to reduce spending on
Developing the plan for implementing guidance and qualifications to support all fronts. The big dilemma is how to
accepted value improvement value management was accepted and meet these demands whilst upholding
proposals and monitoring progress. thus the development of the MoV necessary output quality. When times are
Gathering lessons learned and sharing guide began. good the demand is to deliver
with others in the organization for more with less to remain competitive.
The feasibility report which
continuous improvement. In leaner times the demands are for
recommended the development of
cutting costs in a manner that inflicts
guidance and associated qualifications
as little harm as possible. Achieving
in value management.
savings through transformational change
The guide, named Management of programmes can be a lengthy and
Value, should contribute significantly complicated process. There is a need for
 Management of Value 5

an effective method to respond to these examples together with illustrative figures Quotes from Reviewers:
demands quickly. and tables.
“I like the way that MoV fits well
MoV, applied to projects on their
own or as part of wider programmes, MoV, fit for purpose with other methods including
delivers innovative step changes within Management of Risk and Agile. I
a relatively short timescale to improve In order to ensure that MoV was fit for
purpose it went through a number of also like the way it differentiates
performance and use resources more
effectively through the application of a quality assurance processes including between delivering benefits and
set of unique processes and techniques. formal quality reviews:
whether so doing is value for
The guidance describes the key ■■ Quality Reviews - MoV went money. MoV provides a way to
principles, processes and techniques through three review stages,
involving over 20 individuals, drawn demonstrate the value of benefits
that may be used to add value and
reduce waste across any sector, across from experts in value management, to the business”
programmes and projects and to accredited
operational activities. training organizations, authors of
other Best Practice guides and end “MoV provides an effective
The guide is structured around four users from the public and private mechanism to improve existing
integrated concepts: sectors. These people read and
benefits and identify and quantify
■■ Principles – factors that reviewed the guidance to ensure it
was fit for purpose and met with the new ones”
underpin MoV
MoV mandate.
■■ Processes and techniques –
methods and tools used in ■■ Train the Trainer – Representatives “I like the consistency with
application of MoV from around 30 accredited training
organizations attended a training
PRINCE2 and MSP in terms of the
■■ Approach – how to apply MoV to principles, themes and processes”
event based on foundation level
portfolios, programmes and projects
training material and subsequently
■■ Environment – responding to took a sample foundation exam.
external and internal influences. Feedback from the event has been
In addition, the guide contains incorporated in the guide and the
information on how to embed the formulation of the live exam papers.
practice of MoV into an organization,
four appendices covering document
outlines, a toolbox of useful techniques,
how to conduct a health check on
MoV practice within an organization
and finally how to assess and improve
maturity of MoV practice.
The descriptions of how to apply MoV
are supported by numerous real life
 6 Management of Value

Alignment with other ■■ Involving stakeholders and end

users explicitly when describing the
Best Management levels of quality and performance to
Practice guides be achieved
MoV complements the suite of related ■■ Making the most effective use of
PPM guidance developed by Best available resources expended in
Management Practice, which was delivering the benefits
developed to help organizations and ■■ Minimizing waste.
individuals to use Best Practice to By addressing these topics MoV plays
manage projects, programmes and a key role in reducing uncertainty and
services consistently and effectively. informing management decisions based
In common with the other topics on value.
included in this suite, MoV should be
embedded in the management methods Figure 2: Best Management Practice PPM Guidance
used in achieving successful outcomes
rather than regarded as an optional
GLOSSARY
standalone or extra process.
MoV supports many of the core MODELS GUIDANCE
requirements of delivering successful
programmes and projects as well as Portfolio, Management Management Portfolio, ITIL®
operational activities: Programme of Risk of Value programme
and Project M_o_R® (MoV™) and project
■■ Unambiguous definition of the Management Offices (P3O®)
intended outputs, aligned with an Maturity Model
organization’s strategic goals (P3M3®)
■■ The functionality required of the
project overall and its constituent PRINCE2™
products to meet the needs of the Maturity Portfolio Management (MoP™)
end users Model
(P2MM)
■■ Addressing, quantifying and Programme Management (MSP ®)
maximizing both monetary and non-
monetary benefits
Project Management (PRINCE2™)
■■ Maintaining or enhancing quality and
performance, including reliability and
availability of the end products
■■ Providing clarity of the scope of
programmes and projects
 Management of Value 7

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