Value Management (VM) is an integrated management framework for maximising Value, where Value is defined as the ratio of benefits to the use of resources (click here for the Institute of Value Management definition). VM is a holisitic approach that combines a number of established techniques with Stakeholder Management, Team Facilitation, Organisational Culture and Strategic Alignment. Applications for VM include:
- Strategic planning
- Capital projects
- Operations improvement
- Product development
Value Engineering (VE) is often used interchangeably with Value Management; one viewpoint VE relates purely to incremental changes that optimise Value after big decisions, such as Strategy or Project Selection have already been taken.
One example of a VM technique is the Functional Analysis Systems Technique (FAST Diagram). This is a method for identifying and assessessing the functions of a project, process, plan or product against the stated objectives. Key to FAST is the focus on what something does not what it is. An example of a FAST Diagram is shown below which was used to by our client to evaluate options for roll out of a corporate risk management process.