Value Management

The value Management itself if derived from the company’s Strategic Business Objectives (SBO) as formulated by top-management within the business sphere "Corporate Governance". These SBOs are systematically decomposed into Critical Success Factors (CSF) from a value perspective. The Value Management plays an important role within "Corporate Governance" by providing the basic criterias for portfolio management as well serving as the anchor for programme blueprints.

With a starting point within Value Management, we will also find the discipline of Risk Management. With the strategic context clear and the organisational objectives set the basis is also there for establishing the so called “risk appetite” and formulate a risk management strategy. The identification of risks will logically follow the mapping of business processes.

BPM aims at maximizing business value and the essence of a business process is a “value chain”. Logically, the strategic starting point for BPM should also be found within Value Management. The way this in the Value Driver Model© is reflected as the Value Driver Field “Value Management” is a clear recognition of Value Management as a precondition for getting the full effect from BPM – and vice versa.

What this Value Driver Field also highlights is that Business Governance must recognize BPM as an element in value realisation plans and as part of strategic planning. Without properly implemented BPM the Corporate Governance has no platform for doing Value Management. According to the logic of the Value Driver Model

Value Management is, just like BPM, something that has been on the agenda for a number of years and with which companies struggle to benefit fully from.

Linking value management closely up with BPM like the Value Driver Model© does by identifying the value driver field “Value Management” as the strategic bridge from BPM to strategic governance, makes great sense.

From a line management point of view production targets are set routinely along the lines of “what” and “how much”. Value Management complements this by breaking down the Business Model from a value perspective and together with BPM sets the scene for asking “why” and “how”.