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Value management

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To state the obvious, value occurs in many types and levels. But it is always context-sensitive. Something that has inherent value may not be equally "valuable" in all circumstances. "Managing value" is done primarily to make available value worth what the recipient wants it to be worth.

Published in: Leadership & Management
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Value management

  1. 1. Managing Value Why and How
  2. 2. Value under Management Seen as a “deliverable”, value is a product. A product is meaningful to a potential user based primarily on its circumstantial relevance, ease of being used, and reliability on demand. Meanwhile it is not surprising that what is worthwhile to one user may not be to another. “Product” management works on identifying the circumstances in which the type of product is most likely to fit the preference and purpose of the user, and then to facilitate the production of the product to those terms, for provision. As such, the model of how to make “value” optimally worthy for the user is not new or unusual. It is important, however, to not confuse the benefit of value (meaningful distinction) with the benefit of management (gainful impact).
  3. 3. Value Solution Opportunity Capability Viability Position Purpose Availability Recognition Preference Relevance Quality Compatibility Source Support convenienceneed choice PresenceWhere Value Comes From ALL “value” is a distinction, created/found in a given set of circumstances, within which its difference has a specified significance (which is the “meaning” of the value). Value can occur (and be found) unintentionally; the purpose of management is to continuously influence the type, range and timing of value in expected or proposed circumstances. Anything deemed “valuable” can be described in the evolving set of variables showing here. All variables lead up to the type of value that is asserted for the recipient. Required alignment to user Real-time user demand Assured timely provision ©2019MalcolmRyder/ArchestraResearch
  4. 4. A Glossary of variables in value delivery VALUE COMPONENT VARIABLE BASIS OF DIFFERENTIATOR Typical Driver of Variability Value Component Relies on… Recognition Awareness of relationship between type and need Marketing or education Preference Opportunity Reasonable expectation of effective use in targeted circumstance Observation or demonstration Relevance Viability Solution Applies to an explicitly known problem Education or observation Capability Availability Preference Perceived fit of value type to user’s standing objective User Priorities Presence Relevance Relationship between value type and circumstance Priority and duration of circumstances Quality Viability Effective circumstantial usability given user’s eligibility and trade-offs Current fit to identified user readiness Purpose Position Capability Type of User Effectiveness User’s current readiness Compatibility Availability Timing of verifiable use Modes of timely receipt Source Support Presence User’s predisposed awareness of the value type, aka mindshare Publicity, memory, education, etc. Communications Quality Suitability to functional purpose at suitable scale of deployment Terms of use Agreement Purpose Target situation of the distinction to be recognized Limits of applicability Function Position Attributes of value, relative to existing alternatives Tolerable trade-offs Features Compatibility Appropriateness to current intended user Education or observation Instruction Source Level of trust/confidence in originator Familiarity Examples Support Expressed assurance of defined type Experience gained from use Trials ©2019MalcolmRyder/ArchestraResearch
  5. 5. Goal of Management The responsibilities of management span a range of ways to align a type and level of value with a current or projected circumstance of need, for highest worth. As seen above, numerous types and depths of success factors can and should be considered as necessary, for confident alignment. Typically these factors have been drawn from lessons learned (failure recoveries), psychology, and user feedback – collectively raising or lower the recognized priorities of consideration. That said, one way to obtain such appropriate value is to find it, requiring research. Another way is to create it, requiring strategic development. And a third way to obtain appropriate value is to “borrow” it, by joining a party already using it with a party that needs it, through “chaining” (including chains of chains, i.e. networks). In short, managing value – in one way or another – creates an intentional relationship between a user’s immediate interest and the available alternatives of recognized values.
  6. 6. Archestra notebooks compile and organize decades of in-the-field and ongoing empirical findings. All presented findings are derived exclusively from original research. Archestra notebooks carry no prescriptive warranty. As ongoing research, all notebooks are subject to change at any time. ©2019 Malcolm Ryder / Archestra Research www.archestra.com mryder@archestra.com Archestra research is done from the perspective of strategy and architecture. With all subject matter and topics, the purpose of the notes is analytic, primarily to: * explore, expose and model why things are included, excluded, or can happen in given ways and/or to certain effects. * comment on, and navigate between, motives and potentials that predetermine decisions about, and shapings of, the observed activity.

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