Frequently Asked Questions
- What is Value Management?
- What Value Management is not...
- Why did OBM create a Value Management Office?
- Why should the State of Ohio apply Value Management?
- How does this differ from what we have used in the past
- What is the role of the agencies?
- What are the benefits of value management?
- How does value management work? How does it relate to project management and steps in the project implementation process?
- What does an agency get out of participating in the value management process?
- How is an agency affected by the value management process?
- What does an agency need to do to be prepared?
- What can an agency do to help ensure enterprise benefits are realized and the State garners the full benefit of enterprise programs?
- What kind of solutions can an agency expect to be applied to achieve the value of enterprise-wide projects?
What is Value Management?
A structured approach similar to project management. Value management:
- Extends across the lifecycle of an initiative, from conception to implementation and evaluation
- Helps organizations achieve the intended outcome of a program or an initiative.
- Measures financial and nonfinancial benefits of initiatives
- Looks across agencies and silos to identify enterprise results and efficiency.
What Value Management is not...
Value management is not an "add on" to the business process.
- It is integrated and aligned with other change initiatives.
- It requires a results focus
Value management is not a quick fix or a silver bullet.
- It involves sustained change over the long-term
- It entails changes in perceptions, relationships, management principles, and actions.
Value management is not "one size fits all".
Why did OBM create a Value Management Office?
Enterprise programs should be able to demonstrate achievement of expected benefits
- Process improvements and cost savings have not been captured to demonstrate benefits
- Some benefits have not been realized
- Future enterprise programs could improve cost recovery and savings for Ohio tax payers and agency constituents.
Why should the State of Ohio apply Value Management?
- Ensures results are measured and, projected benefits are achieved.
- Helps better define the objectives of a program or project,
- Helps reduce waste and improve operational efficiencies,
- Reduces implementation time for new programs,
- Foster a sense of joint ownership in problem solving,
- Leads to reduced conflicts and risks.
How does this differ from what we have used in the past
- Integrated into project life-cycle, from idea conception through implementation and evaluation
- Includes non-financial measures and intangibles.
- Provides unbiased, data driven feedback on achievement of desired outcomes
What is the role of the agencies?
- Help define and support project goals
- Are assured of an accurate depiction of program impacts and outcomes.
Agency Process Owners
- Help define business needs and success metrics.
- Engage in process re-engineering to achieve benefits
- Leverage technical resources during analysis and implementation
- Report regularly on progress toward outcome achievement during new implementation, adaption and evaluation
What are the benefits of value management?
- Enables agencies to leverage enterprise investments and focus on core mission.
- Ensures results are measured, projected benefits are achieved, and reinvestment is applied as expected.
- Better defines accountability measures and provides more accurate data on the total benefits realized through a program or project.
- Promotes benchmarking and process improvement.
- Improves the selection of projects through better estimates of benefits and formalization of IT investment evaluation methodology.
- Provides a means to report results to stakeholders. /li>
How does value management work? How does it relate to project management and steps in the project implementation process?
- During planning or program definition, the VMO assists agencies and enterprise programs identify KPIs, measures of success, and measurement methods.
- The selected KPIs and measures of success are tracked from the pre go-live baseline, through implementation and adoption to ensure that changes to the business processes achieve desired results.
- If benefits do not occur as expected, KPIs and process changes are revisited to ensure alignment with the desired end-state.
What does an agency get out of participating in the value management process?
- The agency has an opportunity to shape the process change for enterprise-wide initiatives and how it will impact its operations.
- Results in a lower overall impact on operations or improves efficiency resulting from creative solutions generated by the agency for its unique circumstances.
- Provides the agency with assistance in process improvement so that agency personnel donâ€™t have to â€œgo it aloneâ€.
- At the end of the process, the agency will have defined and recognized measures of how the enterprise wide initiative has made an impact.
How is an agency affected by the value management process?
- The agency is expected to implement some degree of process change in order to achieve the benefits projected in the state-wide initiative.
- The process change will be facilitated and monitored to ensure the adoption of new business processes that result in increased efficiency for the state.
What does an agency need to do to be prepared?
- The agency should identify key stakeholders in the process who will participate in the process improvement, including â€œbusiness ownersâ€ (people working in the process).
- It should collect information on level of effort (hours worked) and costs for the process, which may include tracking percentages of time allocated to certain functions.
- It should also create a basic map of the process (to save time during the business process mapping phase).
- Executives in the agency should communicate their expectations about participation in the process and achievement of benefits to those affected by the change.
What can an agency do to help ensure enterprise benefits are realized and the State garners the full benefit of enterprise programs?
- Agency executives should communicate support for the process improvement and resulting benefits. The agency provides process improvement team members with time to participate in revising the process and implementing change. If the agency has a communications department, this resource can be used to help keep employees informed of changes. The fiscal office should also be prepared to participate, as should legal department personnel (if application). Process improvement activities can be facilitated through the agency, if it has this expertise, the VMO, or Lean Ohio. Requesting a Kaizen event through Lean Ohio can help reduce the time involved in implementation by applying process owner-based solutions and generating employee buy-in.
What kind of solutions can an agency expect to be applied to achieve the value of enterprise-wide projects?
- Solutions include process revisions resulting in less waste, reducing cycle time, fewer errors, reallocation of personnel hours to mission-critical activities, a reduction in costs through attrition and redeployment, using full adoption of enterprise-wide solutions to streamline work processes, improve customer services and enhance business intelligence (information for decision-making).