OGC Frameworks ExampleManagement of ValueWhat is it?                         1
Purpose of this presentation is to:         Provide an introductory overview to MoV         Explain what MoV is and what...
MoV Overview          MoV is about maximising value in line with the programme, project           and operational objecti...
MoV Overview      Essentially MoV,          Enables more efficient delivery by employing fewer resources and using these ...
MoV Structure                                                                                               Embedding MoV ...
MoV - How does it do this?      Essentially MoV,          Involves taking a team representing the key stakeholders in a p...
MoV Benefits          Optimize resources          Enhance the delivery of essential benefits          Improve value for...
MoV’s Relationship with other Best Practice Guides                                                                        ...
OGC Frameworks ExampleManagement of ValueHow does it work?                         9
Generic MoV High Level Project Plan                                                          1. Define the study objective...
MoV Integrated programme & project plans                                                              MoV Policy          ...
MoV Value Cascade                                                                  Portfolio Vision &                     ...
How to introduce and embed MoV                                                                                            ...
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Mo v overview presentation 1.0

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The purpose of the presentation is to provide an initial introduction to the Management of Value approach launched by the OGC

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Mo v overview presentation 1.0

  1. 1. OGC Frameworks ExampleManagement of ValueWhat is it? 1
  2. 2. Purpose of this presentation is to:  Provide an introductory overview to MoV  Explain what MoV is and what it sets out to do  Position the MoV structure in terms of its principles, processes, techniques, the approach to implementation, Environmental factors (responding to external and internal influences), and how MoV can be embedded within an organization  Provide an indication of how MoV can be applied in practice  Position the benefits that can be realised by embedding MoV  Clarify MoV’s relationship with other Best Practice Frameworks  Provide a generic high level project plan for conducting an MoV Study  Position the inter-relationships between MoV Policies and Plans at the Organisation, Programme, Project and Operational levels  Explain the MoV Value Cascade and the importance of aligning all activities with the organisational objectives  Position the approach to embedding MoV within an organization“PRINCE2®, MSP® P3O®, MoR®, P3M3®, are all Registered Trade Marks of the Office of Government Commerce in the United Kingdom and othercountries. MoP™, Agile Project Management™, Earned Value™, MoV™ are Trade Marks of the Office of Government Commerce in the United Kingdom andother countries 2
  3. 3. MoV Overview  MoV is about maximising value in line with the programme, project and operational objectives and key stakeholder requirements  It is NOT simply about minimizing costs  Key Question MoV tries to address is - Are we maximising the value of our essential investments such that we are getting optimal benefits, at an affordable cost with a known and acceptable level of risk?  MoV seeks to achieve the optimum balance between all stakeholders needs  MoV is a collective term embracing many processes that are aimed at maximizing value, which are explained or signposted within the MoV guide book.  MoV focuses on function i.e. what things do to contribute to the outcome of an activity  This functional approach can be taken at the portfolio, programme, project or operational levels  Only when the functions are specified and outcomes are clearly defined in terms of expected benefits does MoV explore different ways of doing these things to maximize value  This approach enables MoV to improve benefits and (usually) to reduce expenditure and speed up delivery without impacting essential project scope or service quality“PRINCE2®, MSP® P3O®, MoR®, P3M3®, are all Registered Trade Marks of the Office of Government Commerce in the United Kingdom and othercountries. MoP™, Agile Project Management™, Earned Value™, MoV™ are Trade Marks of the Office of Government Commerce in the United Kingdom andother countries 3
  4. 4. MoV Overview Essentially MoV,  Enables more efficient delivery by employing fewer resources and using these resources to better effect  Provides a means to define objectives and scope clearly in terms of the organisation’s and end users’ short and long term needs  Supports decision-making based upon maximizing value for money  Encourages innovation that is well-aligned to the organizations goals  Facilitates optimal balance between investment and long-term operating expenditure  Provides a means of measuring and auditing value, taking account of monetary and non-monetary benefits and achieving optimal balance between them, thus demonstrating that optimal value has been achieved  Enables effective consultation and engagement of stakeholders and end users and reconciles their differing needs  Promotes sustainable decsion-making, based on adding value, by addressing both monetary and non-monetary factors  MoV enhances, rather than competes with, other management methods that also seek to achieve value., based on 7 sound principles (listed on next slide)“PRINCE2®, MSP® P3O®, MoR®, P3M3®, are all Registered Trade Marks of the Office of Government Commerce in the United Kingdom and othercountries. MoP™, Agile Project Management™, Earned Value™, MoV™ are Trade Marks of the Office of Government Commerce in the United Kingdom andother countries 4
  5. 5. MoV Structure Embedding MoV What is it? 1. Introducing an APPROACH TO MoV Policy IMPLEMENTATION 2. Roles & PROCESSES  Plan Activities Responsibilities PRINCIPLES 1. Frame the Programme or  Understand & 3. Setting up a plan 1. Align with for implementing Project articulate value organizational the policy objectives 2. Gather Information  Prioritize value 4. Introducing 2. Focus on functions 3. Analyse  Improve value Training and required information  Quantify value 5. Study Leaders outcomes 4. Process  Monitor Handbook 3. Balance the Information improvements in 6. Data Capture & variables to 5. Evaluate & Select value Feedback maximise value 6. Develop value-  Learn Lessons 7. Monitoring & 4. Apply throughout the investment improving measuring the decision proposals benefits 5. Tailor to suit the 7. Implement & share 8. Overcoming subject outputs ENVIRONMENT Barriers to 1. External Factors embedding MoV 6. Learn from the experience & 2. Internal Factors improve TECHNIQUES 3. Programme 7. Assign clear roles Considerations & responsibilities 1. MoV-Specific & build a Techniques 4. Project APPENDICES supportive culture Considerations 2. Techniques Document Checklists commonly used in 5. Operational Toolbox MoV Considerations Health Check Maturity & Competence 5“PRINCE2®, MSP® P3O®, MoR®, P3M3®, are all Registered Trade Marks of the Office of Government Commerce in the United Kingdom and othercountries. MoP™, Agile Project Management™, Earned Value™, MoV™ are Trade Marks of the Office of Government Commerce in the United Kingdom andother countries
  6. 6. MoV - How does it do this? Essentially MoV,  Involves taking a team representing the key stakeholders in a programme, or project through a series of processes or techniques (called an MoV Study) at predetermined points, usually coinciding with key decision points throughout the lifecycle of the project  The overall process should be facilitated by an experienced , and preferably qualified, study leader  Most commonly a series of studies (each comprising a period of preparation, a workshop and activities to monitor progress in implementing the value-improving proposals arising from the workshop) will be arranged to inform each key decision point  In application to operational activities, the discrete study format may not be appropriate and a series of consultations will be conducted to take the contributors through the procedures  The processes and techniques listed on the previous slide should be conducted in a logical sequence to help deliver the benefits of an MoV Study“PRINCE2®, MSP® P3O®, MoR®, P3M3®, are all Registered Trade Marks of the Office of Government Commerce in the United Kingdom and othercountries. MoP™, Agile Project Management™, Earned Value™, MoV™ are Trade Marks of the Office of Government Commerce in the United Kingdom andother countries 6
  7. 7. MoV Benefits  Optimize resources  Enhance the delivery of essential benefits  Improve value for money  Help portfolio, programme, and project management (PPM) community to ensure that stakeholder needs are met and the value realised is maximized  Enables risk managers to identify and manage opportunities effectively  Builds on the good practice provided in other PPM guides to maximize value  MoV enhances the main purpose of PRINCE2 (successful delivery of justified business benefits through projects), Managing Successful Programmes (MSP – Transformational Change) and Management of Risk (MoR – reducing uncertainty) with its main purpose of maximizing value  It also shares with Lean (and to a lesser extent Six Sigma) the principles of involving the customer, elimination of waste and greater efficiency. The main difference being that where lean and six sigma aim to achieve efficient delivery, MoV focuses on efficiency, effectiveness and economy.  In summary, MoV helps to deliver more of the right things, reduce the cost of delivery and encourages more effective use of available resources“PRINCE2®, MSP® P3O®, MoR®, P3M3®, are all Registered Trade Marks of the Office of Government Commerce in the United Kingdom and othercountries. MoP™, Agile Project Management™, Earned Value™, MoV™ are Trade Marks of the Office of Government Commerce in the United Kingdom andother countries 7
  8. 8. MoV’s Relationship with other Best Practice Guides Glossary Guidance Models Portfolio, Management Management Programme & ITIL of Risk (MoR) of Value (MoV) Project Office Portfolio, (P30) Programme and Project Management Portfolio Management (MoP) Maturity Model (P3M3) Programme Management (MSP) PRINCE2 Maturity Model Project Management (PRINCE2) (P2MM) SOURCE: OGC MoV Manual MoV should be embedded in the management methods used in achieving successful outcomes rather than regarded as an optional standalone or extra process. 8“PRINCE2®, MSP® P3O®, MoR®, P3M3®, are all Registered Trade Marks of the Office of Government Commerce in the United Kingdom and other countries.MoP™, Agile Project Management™, Earned Value™, MoV™ are Trade Marks of the Office of Government Commerce in the United Kingdom and othercountries
  9. 9. OGC Frameworks ExampleManagement of ValueHow does it work? 9
  10. 10. Generic MoV High Level Project Plan 1. Define the study objectives 2. Identify who needs to be involved, define 3. Identify the process to be used their roles & assess knowledge / skills 4. Provide training as necessary to enable the participants to contribute effectively 13. Record outcomes & feed back 5. Gather & analyse information lessons for continuous improvement 6. Identify the necessary functions to fulfil 8. Identify how to measure performance the objectives completely (value drivers) against the value drivers 7. Prioritise value drivers & develop value 9. Set targets for benefit improvement and profile use of resources 10. Apply processes & develop value- improving proposals The generic plan is applicable at any stage in the programme, 11. Agree Implementation Plan and / or project and is appropriate for any MoV activity SOURCE: OGC MoV Manual 12. Monitor & measure implementation of proposals 10“PRINCE2®, MSP® P3O®, MoR®, P3M3®, are all Registered Trade Marks of the Office of Government Commerce in the United Kingdom and othercountries. MoP™, Agile Project Management™, Earned Value™, MoV™ are Trade Marks of the Office of Government Commerce in the United Kingdom andother countries
  11. 11. MoV Integrated programme & project plans MoV Policy If MoV has been embedded Where a project is part of a wider programme it may Set by the board within the organization be appropriate to have undertaking the project, these separate plans for each plans should be consistent project, all linked to an MoV Implementation Strategy with the organizations overall overall programme plan Interprets the policy across the organisation MoV policy and MoV Implementation strategy MoV Programme Plan MoV Programme Plan How to implement MoV across programme (A) of projects How to implement MoV across programme (B) of projectsMoV Project Plans MoV Project Plans MoV Project Plans MoV Project Plans How to implement MoV How to implement MoV How to implement MoV How to implement MoV In project A In project B In project C In project N SOURCE: OGC MoV Manual MoV Operational Transition MoV Operational Transition How to transition MoV operationally How to transition moV operationally“PRINCE2®, MSP® P3O®, MoR®, P3M3®, are all Registered Trade Marks of the Office of Government Commerce in the United Kingdom and other 11countries. MoP™, Agile Project Management™, Earned Value™, MoV™ are Trade Marks of the Office of Government Commerce in the United Kingdom andother countries
  12. 12. MoV Value Cascade Portfolio Vision & Blueprint Organisational Goals delivered through portfolio Programme Objectives How do we Programme do this? Reflect the business objectives Objectives Project Objective Contribute to programme objectives Project Objectives SOURCE: OGC MoV Manual Value Drivers Deliver the project objectives Design Considerations Reflect the value drivers Products Why are we doing this? Design Solutions Interpret the design considerations Underlying principle of MoV is that all activities must be aligned with the objectives of the organisation Contributing Components Realise the design solutions“PRINCE2®, MSP® P3O®, MoR®, P3M3®, are all Registered Trade Marks of the Office of Government Commerce in the United Kingdom and other 12countries. MoP™, Agile Project Management™, Earned Value™, MoV™ are Trade Marks of the Office of Government Commerce in the United Kingdom andother countries
  13. 13. How to introduce and embed MoV For MoV to become fully embedded Develop MoV policy into an organization, it will need a SOURCE: OGC MoV Manual consistent approach over a period of time. To establish the right environment it will be necessary to Assign roles & responsibilities formally introduce the discipline as outlined below Develop strategy to implement policy Build knowledge skills & culture Implement MoV Build positive culture Develop Study Leaders Handbook Train senior management, all employees & study leaders Feedback study outputs Undertake MoV activities Capture & analyse data Publish success 13“PRINCE2®, MSP® P3O®, MoR®, P3M3®, are all Registered Trade Marks of the Office of Government Commerce in the United Kingdom and othercountries. MoP™, Agile Project Management™, Earned Value™, MoV™ are Trade Marks of the Office of Government Commerce in the United Kingdom andother countries

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