Business process re-engineering

Business process re-engineering takes a ‘clean-slate’ approach to processes and redesigns them for greater effectiveness. Its strength and its weakness both lie in its single focus on process: interfaces with other factors need to be explored for this technique to allow costs to be reduced, or quality, service and speed to be increased without reducing the organization’s overall value.

www.training-management.info/BPR.htm offers an outline of how to carry out BPR.

Conjoint analysis

Offers customers choices of different combinations of features or service levels to compile preferences.

Useful in situations demanding a prediction of respondent choices, it is usually conducted on the basis of a questionnaire.

Cost estimation

Methods of estimating capital and whole-life costs.

Useful information is contained at www.dfpni.gov.uk/eag_principles of_cost_measurement and also www.ogc.gov.uk/implementing_plans introduction_life cycle_costing_.asp

De Bono P/M/I

The ‘P/M/I’ in this technique stands for ‘Plus/Minus/Interesting’. Put each of these headings at the top of a column, then for each idea, put all the positive effects its implementation will have (the pluses), in the next the negatives (the minuses) and any other effects whose impact is uncertain in the third column.

A technique to ensure that the idea being proposed is actually likely to lead to improvement. See www.mindtools.com for further information.

Delphi

A method of getting groups of individuals to arrive at consensus without face-to-face discussion. A panel of contributors is asked for their opinions in a series of questionnaires by the study leader, but none of them knows the opinions of the others.

Avoids groupthink (where dissent is suppressed by peer pressure), although this method can suffer from poor questioning or analysis. Can also be used to gain consensus from a set of disparate data.

See www.unido.org/fileadmin/import/16959 DelphiMethod.pdf

Dots

A simple method to get the team to gauge relative importance is for the study leader to specify the number of favourite ideas that each team member can select (ideally, this will be about 20–30% of the total) and give them sticky dots to put against each of these ideas. The number of dots against each idea selected is totalled, with the one with the most dots being ranked most important and so on.

Whilst hardly scientific, this can be a very effective method to assign relative importance. It can be used to select ideas for further development.

Earned value analysis or management

Method of assessing whether a project is on track for completion within agreed time and cost targets. Despite its name, it is not a specific MoV technique, but a project control method.

www.apmg-international.com/ home/Qualifications/ EVMQuals.asp

A detailed explanation is given at www.projectsmart.co.uk/earned-value management-explained.html

Elementary skills gap analysis

Comparing the skills that are needed for a task with those available in the project or study team with a view to filling any gaps by training or inviting additional members.

This can be detailed and costly on an organizational level. However, for the purposes of an MoV study or programme thereof, it should be sufficient for the study leader to consider, with the steering group, what skills are required. Then, as each individual team member is recommended, ask how their skills fit with this. Alternatively, ask the team member. Eventually, a list of weaknesses that need to be addressed will be formed.

It is worth noting that training only addresses lack of knowledge. Mentoring and coaching may be preferable for improving competence and attitude. Other ideas can be found in http://skill-assessment.suite101.com/ article.cfm/ skill_gap_analysis

There is also extra information at www.ehow.co.uk/about_5451842_skill-gap-analysis.html

Excursions and metaphors

Taking delegates offsite (excursion) to an area where creativity flourishes. The return journey often generates a great many ideas.

Can be very effective, especially as a precursor to brainstorming or idea generation tools.

Facilitation

This is specialist mix of knowledge and intuition. It is the subject of much MoV training.

www.executivebrief.com/blogs/10-tips-to-boost-your-facilitation-skills has some useful tips. For those who feel in need of detailed information, try www.iaf-world.org/i4a/pages/index.cfm?pageid=3280 (for members only).

Five Ws and an H

Extends the depth of questioning when exploring a problem. Simply asks a series of questions for each process, starting with:

  Who?

  Why?

  What?

  When?

  Where?

  How?

Deceptively simple, this technique forces a more organized challenge to existing processes and product designs and can generate much innovation. It also has the great virtue of being readily understood.

www.scribd.com/doc/3666200/5W1H-Who-What-Where-When-Why-How has other comments about this technique, which are useful for further exploration.

Function Analysis System Technique (FAST)

A diagrammatic representation of functions and their hierarchy, FAST works by asking how the functions relate to each other. There are three main forms:

  Traditional: designed to describe what the component parts of the study subject must do. It can be applied at any level.

  Technical: similar to traditional FAST, aimed mainly at products and widely used in manufacturing. It is generally used at subsystem or component levels.

  Customer: focuses on customer requirements. Functions describe what the customer expects to get, rather than exactly what it does.

See www-users.aston.ac.uk/~gus/notes/lect8.pdf

Function priority matrix

Method of keeping the simplicity of conventional function analysis, whilst minimizing the time it takes, by sorting functions according to whether they are strategic or tactical and how essential they are to the organization.

The original article on this topic can be found at www.value-solutions.co.uk/Function%20Priority%20Matrix%20v2.pdf

HM Treasury’s Green Book

MoV provides the means to maximize benefits and minimize waste and resources needed to deliver to expectations. MoV utilizes many of the methods described in the Green Book and thus provides consistency of approach.

See www.hm-treasury.gov.uk/data_greenbook_guidance.htm

Information-gathering methods

There will always be large volumes of data available to a study, but time will be at a premium. Therefore, you need to understand the purpose of the study before you start, and this is normally set by the briefing meeting. It is useful to correlate some information from this important source (as with others) against other sources to ensure a full picture for the study team.

When consulting, the best way is generally to talk to people one–to-one, or in groups. Questionnaires are also extremely useful if large numbers of people are involved.

A checklist of questions for use at the strategic briefing meeting is held in Appendix A.

Useful (if rather thorough) lists of considerations can be found at www.lboro.ac.uk/service/ltd/campus/ infouser.pdf – this is aimed predominantly at students, but the principles contained are equally applicable to other settings.

See also www.eastdevon.gov.uk/plg-pp-consultation.pdf for a neat paper that describes methods of consultation with the general public, if this is relevant to your study.

www.statpac.com/surveys gives a good deal of information about compiling questionnaires and surveys.

Issues generation and analysis

Team members write down their issues on sticky notes and display them on a wall grouped under appropriate headings, e.g. Assumptions, Constraints, or Opportunities. Team members then vote for their top 10 and can explore ways to address these issues.

This has the virtue of narrowing focus to a relatively small area, but the consequence is potentially to overlook a major opportunity elsewhere.

Kano quality model

An improvement philosophy showing continuous evolution of performance and quality, whereby yesterday’s innovations become today’s performance differentiators and tomorrow’s essential attributes.

May be used in conjunction with the MoV knowledge database.

An article demonstrating application of Kano can be found at www.isixsigma.com/index.php?option=com_k2& view=item&id=1116:&Itemid=206

Knowledge capture and dissemination

Data is a collection of words or numbers. Information is data placed in context. Knowledge is using information and applying it to your organization. Knowledge capture involves recording information (following an MoV study or programme of studies) that can inform future learning and performance improvement. Methods of dissemination will vary according to the organization.

This is an enormous topic. A good grounding can be found at http://eprints.aktors.org/44/01/valuation-methods.pdf (there are also many books). A more advanced understanding can be had from Information Technology for Knowledge Management by Uwe M Borghoff and Remo Pareschi (Springer, 1998) (this publication assumes familiarity with the basics).

For application of Nonaka’s Socialization, Externalization, Combination and Internalization (SECI Model (separating explicit and tacit knowledge by tacit and explicit methods of acquiring it) to programme management, go to www2.warwick.ac.uk/fac/soc/ wbs/conf/olkc/archive/oklc4/ papers/oklc2003_wickes.pdf

Guidance on assessing trends is given at http://trendwatching.com/tips, although its focus is on external consumer data and some tailoring is required. Additional information on PEST (political, economic, social and technological) analysis (and related ideas) is given at www.jiscinfonet.ac.uk/tools/scenario-planning/trend-analysis.

Lean principles and Lean Sigma

Lean methodologies have become very popular, owing to the inherent attractiveness of their focus on the customer. However, they do require total commitment from an organization, as they cannot be implemented effectively at a local level owing to the need to interface with other areas. This makes them high risk in comparison with MoV, although they deliver high reward if they pay off.

www.valuestreamguru.com/?p=108 is interesting.

Managing difficult people

This is a large topic to cover here, so a list of texts is offered. Key points to remember are:

  Behaviours are sometimes driven by a desire to get the job done. This isn’t necessarily bad.

  Understand the effects of this behaviour, good and bad, and the personalities that manifest as a result.

  Recognize when what you do triggers adverse behaviour in another.

A concise publication is Dealing with Difficult People by Dr Rick Brinkman and Dr Rick Kirschner (McGraw-Hill, 2006).

http://business.timesonline.co.uk/tol/ business/management/ article6011177.ece is an interesting article on this subject.

The Chartered Institute of Personnel and Development has Handling Difficult People and Difficult Situations by Greg Whitear and Geoff Ribbens, available at www.cipd.co.uk/Bookstore/_catalogue/ Training/9781843981756.htm

Net present value

The final output of a discounted cash flow analysis.

Details of calculation can be found from many sources, including the Green Book.

Pareto

Method of selecting the areas of a subject with most potential for value enhancement. Often called the 80/20 rule, where 80% of the impact is made by the top 20% of ideas.

Maximizes return on time where it is scarce. It has the drawback of sometimes operating on incomplete information, so sometimes missing significant opportunities.

Peer review

Process of seeking objective inputs or comments from similarly qualified individuals who are impartial to the subject or project under study.

This can be an excellent method of gaining feedback on strengths and weaknesses for the subject under study, allowing for constructive challenge and recommended solutions to be made.

Presentation techniques

Hints and tips for preparing and giving presentations (signposts).

www.presentationmagazine.com/ presentationtips.htm contains a massive amount of information.

Report writing

An outline for an MoV study report has been given in Appendix A.

www.samples-help.org.uk/report-writing/index.htm provides a basic list of things to remember (albeit surrounded by adverts), based on use of MSWord.

Risk management

The systematic application of principles, approaches and processes to the tasks of identifying and assessing risks and then planning and implementing risk responses.

See Management of Risk (M_o_R), published by TSO/OGC

or www.hm-treasury.gov.uk/orange_book.htm

or ISO 31000 www.iso.org/iso/catalogue_detail.htm?csnumber=43170

SCAMPER

This is a mnemonic to aid idea generation:

Substitute

Combine

Amend

Modify

Put to other use

Expand

Reverse/reduce

This can help with crossing the bridge from a creative thought to a practicable idea, or to expand the concept behind an idea. It also encourages different ways of expressing the same idea, which can provoke new ones. Further information is available at www.mindtools.com/pages/article/ newCT_02.htm

Scenario building

Analysing the relative effectiveness of value enhancement of various combinations of proposals according to a specified view of future conditions.

A description of scenario-planning and associated techniques can be found at www.jiscinfonet.ac.uk/tools/scenario-planning/scenario-planning.pdf

SMART – Simple Multi-Attribute Rating Technique

A technique for use during the briefing and outline design stages of building developments.

A SMART Methodology for Value Management, Chartered Institute of Building, Occasional Paper No 53, 1992

Soft systems methodology (SSM)

Compares the current situation with the ideal situation to generate acceptable actions for change. It has gained a large following in information systems and is very useful for managing conflicting stakeholder objectives, although its use of jargon is a barrier.

Soft Systems Methodology in Action by Peter Checkland (John Wiley & Sons, 1999)

Stakeholder analysis

Identification of those people or organizations with a vested interest in a project, product, service or process and their attitudes towards it. This analysis also indicates their levels of interest and the influence they may exert.

Explains how best to engage with these people or organizations. It can assist in focusing attention on satisfying key stakeholder interests.

Principles are discussed in this guide. The definitive process is given by Managing Successful Programmes (MSP) and reference to this publication is recommended.

Stakeholder identification

Whilst in many cases the stakeholders are clearly visible, this is not always the case. Some guidance is offered in Chapter 4.

MSP is the leading guide on this subject, and www.guild.demon.co.uk/ProjectSociology.pdf also has some very interesting material on this topic.

Strategic choice approach

Works through four stages (shaping, designing, comparing and choosing), focusing on the uncertainties inherent in the decision under review. As it is a framework, it works well with MoV. It uses three stages (or modes): shaping a problem, designing alternative responses and comparing these responses to select the best.

Planning Under Pressure (Urban and Regional Planning series) by John Friend and Alan Hickling (Elsevier Butterworth Heinemann, 2005).

Strategic options development and analysis (SODA)

A cognitive and causal mapping tool to aid understanding of strategic options and their consequences; it is especially helpful for messy, complex problems.

An explanation of operational research and SODA’s role in it can be found at http://people.brunel.ac.uk/~mastjjb/jeb/ or/softor.html

Sustainability and triple bottom line

A term coined by John Elkington, the triple bottom line approach ensures that the economic, environmental and social impacts of proposals are taken into account. Methods of doing this will inevitably vary, as do accounting policies themselves. The most important feature of whatever methods are selected is that, like the comment under value metrics, they must be seen to be transparent and objective.

The Durable Corporation: strategies for sustainable development by G Aras and D Crowther (Gower, 2009).

www.johnelkington.com/TBL-elkington-chapter.pdf contains the original article.

www.censa.org.uk/docs/ Wiedmann_Lenzen_2006_ SDRC_paper.pdf gives some insights into reporting methods.

SWOT analysis

SWOT stands for strengths, weaknesses, opportunities and threats. It is an aid to developing MoV plans.

A commonplace tool to focus activities on areas with growth potential and minimize any shortcomings in an organization.

Systems thinking

Most methodologies involve analysing a problem into its constituent parts and their properties to extend understanding. Systems thinking focuses on the relationships between these constituents formed by their combination. It has been used very effectively and works well with MoV.

www.reallylearning.com/ Free_Resources/Systems_Thinking/ systems_thinking.html contains a useful introduction to this subject.

Target costing

Sets target costs based on what the market will pay for something, rather than how much it costs to produce it.

www.cimaglobal.com/Documents/ ImportedDocuments/ Reformingthe NHSfromwithin.pdf treats this subject comprehensively.

T charts

A simple technique which places positive outcomes on one side of a sheet and negative on the other. A statement of the idea forms the top of the T.

Team-building

Much material is available for further study, although it can be difficult to separate the information from the plethora of training courses and team-building games that are publicized. Reference to the material cited will signpost many other resources.

Team Building: Proven Strategies for Improving Team Performance by E Schein and W Dyer (Wiley, 2007).

http://www.tms.com.au/tms12-1i.html presents a research article bringing together work from other professionals.

http://hbr.org/product/managing-teams-for-high-performance/an/2304-PDF-ENG offers a series of articles on this subject.

Theory of constraints

The theory of constraints contends that any manageable system is limited in achieving more of its goal by a very small number of constraints, and that there is always at least one constraint.

A considerable amount of information can be found at www.answers.com/topic/theory-of-constraints

Tracking benefits realization

Benefits arising from MoV proposals may need to be monitored during or after project completion, or as a change to business as usual. Methods need to be able to span a considerable period of time (often years) in order that individual benefits can be tracked, quantified and promulgated within an organization. A plan needs to be constructed to show what is expected, where and when, with a named person responsible for making it happen. Whatever method is used must be sufficiently objective to stand up to independent review.

Sections 7.8, 7.9 and 7.10 in Managing Successful Programmes are very relevant.

Also Benefit Realisation Management by Gerald Bradley (Gower, 2010) is helpful.

Guidance regarding potential pitfalls is held at www.cimaglobal.com/Thought-leadership/Newsletters/Insight-e-magazine/Insight-2010/Insight-March-2010/Realising-benefits-of-business-change--challenge-1

Value metrics

Methods of measuring monetary and non-monetary value enhancements. When setting metrics, it is preferable that they should be as objective as possible and essential that existing reporting systems are capable of producing them regularly.

A breakdown of performance management, which is closely allied, is available at www.businessballs.com/ dtiresources/performance_measurement _management.pdf

Warm-up exercises/ice breakers

Ways to relax participants and encourage collaboration and a sense of ‘team’.

Information can be found at www.mindtools.com/pages/article/ newLDR_76.htm