Value is in the eye of the stakeholder!
everything that can be counted counts and not everything that counts
can be counted.
Benefits realization, Value, Governance.
Really Benefits? Value is in the eye of the
only purpose of undertaking any business activity is to create value!
But the realisation of any value proposition is ‘in the eye
of the stakeholder’ and
effective benefits management
requires a clear understanding of what is valuable to the organisation
and its stakeholders. Some
projects generate significant intangible benefits such as reduced risk,
enhanced prestige or in the case of regulatory requirements, the simple
ability to keep trading; others are focused on generating a positive
financial return, most generate a combination of financial and
intangible returns. These outcomes
are rarely constrained by either time or cost, although both can be a
Benefits realisation and value creation are directly linked to
organisational governance, the Organisation for Economic Co-operation
and Development in the OECD
Corporate Governance 2004
define governance as:
set of relationships
between a company’s management, its board, its shareholders
other stakeholders. Corporate governance also provides the structure
through which the objectives of the company are set, and the means of
attaining those objectives and monitoring performance are
Sir Adrian Cadbury summarised the aim
of governance as: 'to align as
as possible the interests of
individuals, organisations and society'.
Within this framework 'value' has a wide range of definitions and
because the value proposition is ‘in
the eye of the stakeholder’
different stakeholders will
value different aspects of the same project. Effective value
management requires an understanding of what is valuable to the
organisation and its key stakeholders and then managing the overall
'value chain' to successfully deliver these values.
Generating sustainable value for an organisation’s
firstly requires the right
to be done for the right
reasons; and yes, they also need to be done right!
Then the organisational
change management processes need to ensure the deliverables are used in
way to create the intended benefits and generate the expected value.
Doing the wrong
The management requirements to achieve these objectives are a value
focused strategic plan linked to a sensible portfolio management
process, supported by a practical 'project/value delivery capability'.
However, the challenge at all stages of the value chain from the
strategic planning phase through to realising the benefits from a
specific project or program is knowing who is important at this point
in time and what constitutes 'value' from their perspective -
value may be ‘in the eye
of the stakeholder’
but you need to be sure you are listening to the right stakeholders and
balancing their competing requirements effectively.
This paper focuses on techniques to understand which stakeholders
really matter and discovering what is really important to
them. From this basis, a realistic and achievable benefits
management plan can be crafted and monitored.