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Value Optimization for Project and Performance Management

ISBN: 978-0-470-55114-1
336 pages
April 2010
Value Optimization for Project and Performance Management (0470551143) cover image
Discover the proven process for maximizing the potential value of any project.

Showing readers how to apply value optimization techniques to project and performance management, dramatically increasing results and efficiency, Value Optimization for Project and Performance Management is written to compliment the Project Management Body of Knowledge, the guidance published by the Project Management Institute (PMI), making it readily applicable for any project manager.

  • Presents methodology applied with hundreds of clients across a range of industries
  • Filled with practical facilitation and implementation tips
  • Presents a cohesive theory, structured framework, and diverse toolset
  • Walks you through the value optimization process, showing you how to transform the way a product or process is perceived

Brimming with examples, Value Optimization for Project and Performance Management provides a link to a free software demo for you to get started in applying value optimization in your own organization.

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Preface ix

About the Cover xiii

Acknowledgments xv

CHAPTER 1 Introduction 1

Today’s Challenges 2

Value Methodology 4

Why Use Value Methodology? 5

Project Management and Value Methodology 7

Value Methodology and Teamwork 8

History of Value Methodology 10

SAVE International 13

Current VM Applications 14

Summary 19

CHAPTER 2 Value 21

The Concept of Value 22

Value Theory 24

Reasons for Poor Value 36

Summary 46

CHAPTER 3 Value Methodology Job Plan 47

The Value Methodology Job Plan 48

Value Metrics 56

Summary 58

CHAPTER 4 Preparation 59

Preparation Phase 60

The Value Team 78

Summary 79

Appendix 4A: Case Study 80

CHAPTER 5 Information 87

Information Phase 88

Gather and Analyze Project Scope Information 89

Gather and Analyze Project Schedule Information 91

Gather and Analyze Project Cost Information 94

Life Cycle Costing 99

Gather and Analyze Project Risk Information 108

Conduct Value Study Kick-Off Meeting 111

Conduct Site Visit 130

Summary 130

Appendix 5A: Case Study 131

CHAPTER 6 Function 145

Function Phase 146

Defining Functions 146

Classifying Functions 150

Evaluating Functions 155

Summary 179

Appendix 6A: Case Study 180

CHAPTER 7 Speculation 183

Speculation Phase 184

Creativity 184

Roadblocks to Creativity 186

Creativity Techniques 191

Summary 196

Appendix 7A: Case Study 198

CHAPTER 8 Evaluation 199

Evaluation Phase 200

The Evaluation Process 200

Evaluation Techniques 207

Selecting Ideas for Development 211

Summary 213

Appendix 8A: Case Study 213

CHAPTER 9 Development 217

Development Phase 218

Develop Value Alternatives 218

Review Value Alternatives 232

Summary 233

Appendix 9A: Case Study 233

CHAPTER 10 Presentation 247

Presentation Phase 248

Selling Change 248

Assess Value—Value Metrics 251

Conduct Exit Briefing 256

Prepare and Submit Value Study Report 260

Summary 260

Appendix 10A: Case Study 261

CHAPTER 11 Implementation 269

Implementation Phase 270

Managing Change 270

Review and Assess Value Alternatives 273

Resolve Value Alternatives 274

Develop Implementation Plan 277

Track and Audit Results 278

Summary 278

Appendix 11A: Case Study 279

CHAPTER 12 Value Leadership 281

Value Leadership 282

Characteristics of Value Specialists 291

Value Methodology Professionals 293

Professional Standards of Conduct 295

Summary 296

Notes 299

Suggested Reading 305

About the Author 307

Index 309

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ROBERT B. STEWART,CVS, FSAVE, PMP, is President of Value Management Strategies, Inc., a consulting firm specializing in the application of value methodology to projects and business processes. He has led over 300 value studies for clients in private and public sectors and trained thousands of individuals worldwide in value optimization techniques. He is a Fellow of SAVE International and serves as a Director on the Lawrence Delos Miles Value Foundation, a nonprofit organization established to promote and fund the development of educational programs, new applications, and a research library for the study of Value Methodology (VM).
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