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Value Management addresses the increasing economic, social, political and environmental imperative to create wealth from fewer resources by targeting, timing and aligning change programmes to maximise value outcomes for stakeholders.
Value Management is about delivering more for less and tackles the poor record of change programmes, in both private and public sectors, to realise intended benefits to stakeholders, such as customers, shareholders and staff. The term programme refers to all change initiatives spanning continuous operational improvements to strategic business transformations.
Value Management ensures delivery of value from programmes through two stages:
The two stages are undertaken in six steps, the first five in Stage 1 and the final step in Stage 2, which form the IMPACT Value Management framework:
Intention: Specify the overall purpose and intended stakeholder value outcomes
Model: Define critical cause and effect relationships through which outcomes will be achieved
Programme: Link the outcomes explicitly to specific programme deliverables and phases
Alignment: Align the business and programme to ensure that all aspects are working congruently and optimally towards achieving the intended outcomes
Certainty: Define precise criteria for success and destruction test the Business Case in order to determine the practical bounds of certainty within which delivery of intended outcomes is assured
Track: Monitor actual status and value delivered, correcting negative variances and exploiting positive changes to ensure that the programme remains on purpose and on value