The envisioning session for the value workshop typically consists of the following 5 exercises. These are usually fast-paced and take anywhere between 90 and 120 minutes. In virtual design thinking workshop settings, I find that the fast pace cannot be sustained for more than two hours without a break. I cannot stress enough the importance...
Over the next three blog posts, I will describe a recipe that I often follow with great success when I am conducting value envisioning sessions. They are: Pre-work that is an important part of the prep for the sessions. The exercises that are central to the workshop sessions. Following up with a value framework as...
One of the issues of Value model development is the fact that it takes too long to develop consensus. Different stakeholders have different agendas with different perspectives on value and cost benefits. Also, risks are not easily understood and accounted for in the value equation. Given the above, it is no wonder that business stakeholders...
The sponsor is constantly looking to endow the initiative and gain acceptance from other stakeholders. As part of the value “pitch”, she will need to not only present the factual information but also appeal to the individual perspectives of the key stakeholders. The factual information comes from the value measurement exercise. Appealing to the stakeholders’...
Here is a stepwise approach to developing a quantifiable value model for your program vision. Establish the Vision of the Business Imperative. Why is it being considered? Research the corporate executive vision to see how this project or initiative may meet that goal. Tie it to industry developments where applicable. Identify Business Drivers emanating from the...
There are different value recipient personas who imbibe value in their own unique way. The following are some of the personas that are typically found when narrating the value story: Bean Counter: The bean counter persona is essentially one who likes to “nickel and dime” financial transactions. They are extremely detail-oriented and are typically mired in...
Risks (or probable risk) is an integral component of the value equation. Any project or initiative worth something has an inherent risk factor associated with it. So how do you calculate the financial impact of risk? Simply put: Financial Impact of Risk = Probability of Risky Event Occurrence * Financial Impact (Cost) of the Risky...
Unlike the quantification of benefits which may end up in meandering discussions, the quantification of costs is generally easier. Costs of tangible goods or services are easier to measure as they are usually the direct cost of the service/good. Indirect costs such as training, hiring/firing, adoption, process re-engineering should also be taken into account when...
I have seen several times where projects are described in terms of only their benefits. No mention is made of costs and/or risks. This is just plain wrong. Any project or initiative has a cost associated with it. Perhaps the cost is sunk or sometimes implicit but there is always a cost. Just like there...
The quantification of benefits is where most valufiers become gun shy. They are afraid of putting themselves or their organizations on the line by projecting benefits based on their calculations. If there is an industry-standard way of calculating benefits, there is generally no hesitation. So how does one quantify benefits? Let’s walk through two examples....