Thu D - 12.15 - Ole ChristensenP

7/29/2019 Thu D - 12.15 - Ole ChristensenP

http://slidepdf.com/reader/full/thu-d-1215-ole-christensenp 1/42

© SPOCE.DK - 20111

Introduction toManagement of Value

(MoVTM)

ved

Ole Sten ChristensenRegistered PRINCE2 Practitioner

Approved PRINCE2 trainerRegistered MSP Practitioner

MoVTM is a Trade Mark of the Office of Government Commerce

The Swirl logo™ is a Trade Mark of the Office of Government Commerce

© Crown Copyright 2010



© 2011 SPOCE PM Ltd 2

SPOCE Project Management Ltd.

SPOCE is an Accredited Training Provider and a

pioneer in Project, Programme and RiskManagement Best Practices.

SPOCE holds APMG accreditation certificate

001. In January 1997 SPOCE delivered theWorld's first PRINCE2® course, and in March2000 delivered the World's first MSP® course,followed by many a firsts in PRINCE2 eLearning

and Blended learning, MSP Practitioner self-study, etc >>




MoV introduction ...

MoV Background

Value definition

What is? Why use? When to use?

The MoV elementsHow to use

MoV, PRINCE2 and MSP

MoV training couse and exam




Management of Value – background

There has properly never been greater pressure onindividuals and organizations, in both public and privatesector, to do more and more with less and less.

Management of value (MoV) has evolved from the triedand successful practice of value management acrossmany sectors and over many years.

The method describes in MoV are not new, but their use

is often overlooked or misapplied.


http://slidepdf.com/reader/full/thu-d-1215-ole-christensenp 5/42© 2011 SPOCE PM Ltd 5

What is MoV?

The fundamental question that MoV isintended to answer is:

“Are we maximizing the value of our essential

investment such that we are getting optimalbenefits, at an affordable cost, with a known and

acceptable level of risk”.

Business Case



What is Value?

VALUE

Use of resources (Money, people, time,energy & materials)

Satisfaction of needs (Monetary and non monetary)

VALUE

Use of resources (Money, people, time,energy & materials)

Satisfaction of needs (Monetary and non monetary)

Alternative forms of the Value Ratio:

Value = Benefits / Expenditure

Value = Function / Cost

The Value Ratio



What is MoV?

MoV Maximises value in line withProgramme and Project objectives and keystakeholder requirements – Not simplyminimising costs

MoV include a collective terminologyembracing many processes to maximisevalue

MoV supports decision making based onmaximising value for money



Why use MoV?

MoV enhances competitiveness,

productivity and profitability Maximising return on investments Making optimum use of resources Providing value for money for customers Streamlining production and improving delivery of services

Eliminating wasteful practices

It also provides a way to

Deliver cost savings with minimum impact on essential quality

of products and services Cut non essential projects or services



Where can MoV be used

MoV is applicable to hard and softprojects in all sectors

MoV should be used throughout theinvestment decision



When should it be used?

More opportunities early in project lifecycle

© Crown Copyright 2010. Reproduced under license from OGC.

Time

Potential to

add value

Resistance to

change

Cost of

change

Delivery stagesInitiate projectStart up In service

Q u a n t u m



The MoV elements

Based on 7 principles

Underpinned by 7 processes

The use of some unique techniques

And some commonly used techniques

Applied in a structured manner

Supported by sound management and asupportive culture



MoV Principles ...

1. Align with organizational objectives2. Focus on functions and required outcomes

3. Balance the variables to maximize value

4. Apply throughout the investment dicision

5. Tailor to suit the subject

6. Learn from experience and improve

7. Assign clear roles and responsibilities and

build a supportive culture

MoV activities must be aligned with theorganization’s objectives or portfolio

strategy to ensure a consistent andcontributory approach across all

programmes and projects.




MoV Principles ...








MoV focuses on what things do to

contribute to the required outcomesbefore seeking to improve them. Thisapproach clarifies expectations and

stimulates innovation.




MoV Principles ...








MoV balances the variables to maximizevalue, taking account of reconciling theviews of all key stakeholders, the use of

resources and the overall ratio of benefits

to expenditure.




MoV Principles ...






7. Assign clear roles and responsibilities andbuild a supportive culture

MoV should be planned and appliedthroughout all stages of a programme or

project to reflect the evolvingrequirements in order to maximize value.




MoV Principles ...







The scope and scale of MoV activity

should be tailored to reflect the size,complexity and strategic importance of

the programme or project




MoV Principles ...



4. Apply throughout the investment dicision5. Tailor to suit the subject



MoV performance should be continuallyimproved by learning from previous

experience




MoV Principles ...



4. Apply throughout the investment dicision5. Tailor to suit the subject


7. Assign clear roles and responsibilities andbuild a supportive cultureMoV should be actively supported by senior

management, clear roles and responsibilities, and asupportive culture throughout the organization.




MoV Processes

1. Frame the programme or project.

2. Gather information

3. Analyse information

4. Process information

5. Evaluate and select

6. Develop Value Improving Proposals

7. Implement and share outputs




How do we perform a MoV study?

Th i M V P j t Pl




The generic MoV Project Plan


6. Identify the necessary functions to fulfillthe objectives completely (Value Drivers)

8. Identify how to measure performanceagainst the Value Drivers

9. Set targets for benefit improvementand use of resources

7. Priorities Value Drivers and developvalue profile

5. Gather and analyze information

10. Apply processes and develop valueimproving proposals

11. Agree implementation plan

12. Monitor and measure implementationof proposals

1 3 .

R e c o r d o u t c o

m e s a n d f e e d b a c k l e s s o n

s f o r c o n t i n u o u s i m p r o v e

m e n t

1. Define the study objectives

3. Identify the processes to be used 2. Identify who needs to be involved, define

their roles and assess their knowledge/skills

4. Provide training as necessary to enablethe participants to contribute effectively

Key Technique MoV Specific




Key Technique – MoV Specific

Function AnalysisWhat things do rather than what they are

Better understanding of programme or project

Informs decisions based on value

Generates innovative value improvingproposals

Several types:Function Analysis System Technique (FAST)

Value TreeHow/why logic

Function Analysis System Technique




Function Analysis System Technique(FAST)

Three types:

Traditional or classic FAST – for general useTechnical FAST – for analysing technical situations

Customer FAST – for analysing Customer requirements

For Portfolio, Programme, Project and Operational MoV studies

use Customer FAST

Function Analysis System Technique (FAST)

HOW?

Basic or higherorder Function

Primary Function Second level Function Third level Function




WHY?


A customer FAST diagram




Shows the relationship of functions and their hierarchy

A customer FAST diagram

Value Trees




Value Trees

Similar to FAST and particularly versatile

Provides a progressive logic to measuringmonetary and non monetary value takingaccount of differing stakeholder priorities

W H Y ?

Value Tree Project

Objectives

Primary ValueDriver

Primary ValueDriver

Primary ValueDriver

Primary ValueDriver

SecondaryValue Driver




DesignConsiderations




H O W ?

Products orelements

Products orelements

Products orelements

Products orelements


Use of Value Trees to articulate value priorities




pand measure value – Hospital example

Statement of Objectives - Specific,

Measurable, Achievable, Realistic and Timebound (SMART)

Create a new 856 bed district hospital within a

capital budget of £xxx and operating budget of £yyy by June 2012

Primary ValueDriver 1

Treat general and

acute care

patients


Rehabilitate

patients and treat

sub-acute patients


Facilitate easy

access to hospital

and between units


Satisfy the

requirements of

third parties


Attract and retain

first class

consultants and

staff


Optimise

performance and

utilisation of

hospital resources

W h y ?

H o w ?

Statements

describing design

considerations

Receive and treat x

No outpatients daily

Enhance quality of

inpatient environment

Statements

describing design

considerations

Facilitate patient

exercise

Support clinical

services

Statementsdescribing design

considerations

Enable parking for y

No cars

Facilitate vertical

pedestrian flow

Statements

describing design

considerations

Minimise traffic

congestion

Conform to urbanplanning requirements

Statements

describing design

considerations

Enable

comprehensive

training

Support 24 hour operations

Statements

describing design

considerations

Facilitate meeting

appointments withinguidelines

Minimise waiting

times

Products or design solutions

Outpatients reception

area

Natural ventilation anddaylight

Products or

design solutions

Gym

Administration Offices

Products or

design solutions

Underground Car Park

Covered corridors

between buildings

Products or

design solutions

Designated slip road

of highway

Maximum four storeysheight

Products or

design solutions

Shared Training

suites

Staff and Doctors rest

areas

Products or

design solutions

Designated outpatient

clinics

Multiple reception

facilities






Treat general and

acute care

patients


Rehabilitate

patients and treat

sub-acute patients


Facilitate easy

access to hospital

and between units


Satisfy the

requirements of

third parties


Attract and retain

first class

consultants and

staff


Optimise

performance and

utilisation of

hospital resources

W h y ?

W h y ?

H o w ?

H o w ?

Statements

describing design

considerations

Receive and treat x

No outpatients daily

Enhance quality of

inpatient environment

Statements

describing design

considerations

Facilitate patient

exercise

Support clinical

services

Statementsdescribing design

considerations

Enable parking for y

No cars

Facilitate vertical

pedestrian flow

Statements

describing design

considerations

Minimise traffic

congestion

Conform to urbanplanning requirements

Statements

describing design

considerations

Enable

comprehensive

training

Support 24 hour operations

Statements

describing design

considerations

Facilitate meeting

appointments withinguidelines

Minimise waiting

times

Products or design solutions

Outpatients reception

area

Natural ventilation anddaylight

Products or

design solutions

Gym

Administration Offices

Products or

design solutions

Underground Car Park

Covered corridors

between buildings

Products or

design solutions

Designated slip road

of highway

Maximum four storeysheight

Products or

design solutions

Shared Training

suites

Staff and Doctors rest

areas

Products or

design solutions

Designated outpatient

clinics

Multiple reception

facilities


A Value Profile for a hospital




A Value Profile for a hospital






Treat general and

acute care

patients


Rehabilitate

patients and treat

sub-acute patients


Facilitate easy

access to hospital

and between units


Satisfy the

requirements of

third parties


Attract and retain

first class

consultants and

staff


Optimise

performance and

utilisation of

hospital resources

Relativeimportance of

value driver 1

30%


value driver 2

10%


value driver 3

10%


value driver 4

5%


value driver 5

20%


value driver 6

25%

Articulates the Organisation’s or Project Stakeholders’ Value Priorities

W h y ?

H o w ?






Treat general and

acute care

patients


Rehabilitate

patients and treat

sub-acute patients


Facilitate easy

access to hospital

and between units


Satisfy the

requirements of

third parties


Attract and retain

first class

consultants and

staff


Optimise

performance and

utilisation of

hospital resources


value driver 1

30%


value driver 2

10%


value driver 3

10%


value driver 4

5%


value driver 5

20%


value driver 6

25%

Articulates the Organisation’s or Project Stakeholders’ Value Priorities

W h y ?

W h y ?

H o w ?

H o w ?


Value Index for the same hospital




Value Index for the same hospital

610Total Value Index

1255Management

procedures,

adjacencies and

operating costs

25Optimise

performance and

utilisation of hospital

resources

1206Quality of facilities20 Attract and retain first

class consultants

and staff

357Obtaining statutory

and other consents5Satisfy the

requirements of third

parties

404Time to accesshospital and between

units

10Facilitate easyaccess to hospital

and between units

505Time to appropriate

discharge10Rehabilitate patients

and treat sub-acute

patients

2408Capacity for treating

patients successfully30)Treat general and

acute care patients

WeightedValue Score

(= weight xperformance)

Performance(scale of 1 to

10)

MetricRelativeimportanceweight %

Value driver

610Total Value Index

1255Management

procedures,

adjacencies and

operating costs

25Optimise

performance and

utilisation of hospital

resources

1206Quality of facilities20 Attract and retain first

class consultants

and staff

357Obtaining statutory

and other consents5Satisfy the

requirements of third

parties

404Time to accesshospital and between

units

10Facilitate easyaccess to hospital

and between units

505Time to appropriate

discharge10Rehabilitate patients

and treat sub-acute

patients

2408Capacity for treating

patients successfully30)Treat general and

acute care patients

WeightedValue Score

(= weight xperformance)

Performance(scale of 1 to

10)

MetricRelativeimportanceweight %

Value driver


Demonstrating Value for Money




Demonstrating Value for Money

2.18280610

ValueIndex

125

120

35

40

50

240

Weighted

ValueScore

Cost

13

24

20

30

60

133

Cost of

delivery(£m)

Value forMoneyRatio

Totals

9.62

(highest value for

money)

5Management

procedures,

adjacencies and

operating costs

25Optimise

performance and

utilisation of

hospitalresources

5.006Quality of

facilities20 Attract and retain

first class

consultants and

staff

1.807Obtaining

statutory and

other consents

5Satisfy the

requirements of

third parties

1.334Time to access

hospital and

between units

10Facilitate easy

access to

hospital and

between units

0.83

(lowest value for

money)

5Time to

appropriate

discharge

10Rehabilitate

patients and treat

sub-acute

patients

1.808Capacity for

treating patients

successfully

30Treat general

and acute care

patients

VfM ratio

(= valuescore or

index/ cost)

Performanc

e (scale of1 to 10)

MetricRelative

importanceweight %

Value

driver

2.18280610

ValueIndex

125

120

35

40

50

240

Weighted

ValueScore

Cost

13

24

20

30

60

133

Cost of

delivery(£m)

Value forMoneyRatio

Totals

9.62

(highest value for

money)

5Management

procedures,

adjacencies and

operating costs

25Optimise

performance and

utilisation of

hospitalresources

5.006Quality of

facilities20 Attract and retain

first class

consultants and

staff

1.807Obtaining

statutory and

other consents

5Satisfy the

requirements of

third parties

1.334Time to access

hospital and

between units

10Facilitate easy

access to

hospital and

between units

0.83

(lowest value for

money)

5Time to

appropriate

discharge

10Rehabilitate

patients and treat

sub-acute

patients

1.808Capacity for

treating patients

successfully

30Treat general

and acute care

patients

VfM ratio

(= valuescore or

index/ cost)

Performanc

e (scale of1 to 10)

MetricRelative

importanceweight %

Value

driver





MoV, PRINCE2 and MSP

MoV and other OGC methods



© 2011 SPOCE PM Ltd31

MoV and other OGC methods

© Crown Copyright 2010

The value cascade



© 2011 SPOCE PM Ltd

32

The value cascade


Reflect the Business Objectives

Value Drivers Deliver the Project Objectives

Design Solutions

Organisational Goals Delivered trough Portfolio

Programme

objectives

Project Objectives Contribute to the Programme

Objectives

Design

Considerations

Reflect the Value Drivers

Interpret the Design

Considerations

Contributing

ComponentsRealise the Design Solutions

Whyare wedoingthis?

Howdo we

dothis

MoV studies in thePRINCE2 j lif l




33

PRINCE2 project lifecycle

Pre-Project

SUInitiation

Stage

IP SB

Post-ProjectConfirm Benefits

Subsequent

Delivery Stages

CS SBFinal

Delivery Stage

CS CP

Do we have aviable project?

MoV study

focus:Validate needfor the project

Will weauthorize the

project?

MoV studyfocus:

Benefits,outcomes,

resources anddelivery

processes

Will wecontinue the

project?

MoV study focus:Benefits, outcomes

resources anddelivery processes

Did we obtainthe required

output?

MoV study focus:

Benefits andoutcomes

MoV study focus:Benefits, outcomes

andoperation processes

MoV Management Structure




34

MoV Management Structure

Executive Board

MoV Study LeadersCommunicate with Project Teams May be dedicated or part time

Senior MoV Practitioner

(reports to SG)

May be dedicated or part timeCommunicates with Project Teams

and organisation’s MoV

stakeholders

Steering Group (or MoV Board) Not dedicatedProvides guidance for


MoV representative on Executive Board Not dedicatedProvides link with

Executive Board

Support Office(if there is one)


MoV Management Structure and thePRINCE2 P j t M t T




PRINCE2 Project Management Team

Senior MoVPractitioner

(reports to SG)

Executive Board Corporate- / programmeManagement

Project Assurance

Steering Group (or MoV Board) PRINCE2 Project Board

MoV StudyLeaders

Project Assuranceteams

MoV representative on Executive Board Project Executive

Support Office

Project Support

MoV management Structure and theP d/ P j t i ti



© 2011 SPOCE PM Ltd 36V2.0: 5 November 2010

Programme and/or Project organisation

MoV representative on exec board

Executive Board

Steering Group (MoV Board)


Programme Managers

Project Managers/Executives

MoV Study Leaders

Key: Programme/Project Management; MoV Management

Project Team

Members

The MoV Study Team

©

C r own C o p y r i gh t 2 0 1 0 .R e

pr o d u c e d un d er l i c en s ef r om O G C .

MoV management Structure andThe Programme Board




Programme Board

Senior Responsible Owner

Realising BenefitsDelivering Capability

ProgrammeManager

BusinessChange Manager

Programme

Office

The Programme Board

Some portions © Crown Copyright 2007. Reproduced under licence from OGC

MoVManagement

Structure

MSP Transformational Flow




Policy,

Strategy,Vision

MandateIdentifying a

Programme

Defining aProgramme

DeliveringtheCapability

RealisingThe

Benefits

M an a gi n g

T h e

T r an ch e s

Closing aProgramme

Programme Brief

Programme DefinitionControl Framework

Plans and Schedules

Delivery of new or enhanced

operational ability

Completion of programme

final Lessons Learned

Some portions © Crown Copyright 2007. Reproduced under licence from OGC

MoV Study focus:Outcomes and benefitrealization processes

MoV Study focus:Benefits and resources

Delivery processesOutcomes and

benefit realization processes

MoV Study focus:Blueprint, Benefits and resources

Delivery processesOutcomes and benefit realization processes

MoV Study focus:What to be achieved and the desired benefits

MoV Study focus as in thePRINCE2 lifecycle

MoV certification



© 2011 SPOCE PM Ltd 39V2.0: 5 November 2010(c) APMG 2010. Reproduced under licence from APMG 39

MoV training course - 2 days finishing with the APM

Group accredited MoV Foundation exam: 50 multiple choice questions

40 minutes examination

Closed book

Pass mark required is 50%

Training course and exam are based on the“Management of Value - MoV” manual

MoV training course available at SPOCE Q2 2011




Peter Drucker

American (Austrian-born) management writer (1909 - 2005)

There is nothing so useless asdoing efficiently that, which

should not be done at all.




Keep updated on MoV at www.spoce.com

?

http://www.spoce.com/

http://www.spoce.com/




Thank you for your attention

Date post:	04-Apr-2018
Category:	Documents
Upload:	abhegade
View:	225 times
Download:	0 times

Thu D - 12.15 - Ole ChristensenP

Documents