Practical sheet | REF: FIC0254 V1

Value-based management

Author: Olaf DE HEMMER

Publication date: September 10, 2011 | Lire en français

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AUTHOR

  • Olaf DE HEMMER: International Business Manager Purchasing , LowendalMasaï , Chairman , AFAV - Value Management

 INTRODUCTION

As a manager or director, you are the guarantor of your company's performance and innovation. The "value-based management" (VB) approach will enable you, for each decision or choice of solution :

  • guide your decisions, justify them and give them meaning;

  • meet the needs of stakeholders;

  • limit the resources used.

Its specificity lies in the application of "value" reasoning, which aims to increase the utility and/or reduce the resources deployed for stakeholders:

  • "What's the point? Facilitate and guide the expression of stakeholder needs, independently of solutions;

  • "What does it cost? link the costs of the current solution to the needs to identify unnecessary costs or needs that are too costly and prioritize changes;

  • "What to change? to facilitate targeted research and the choice of optimal solutions with stakeholders, meeting needs at the lowest possible cost.

Value-based management is a decision-support method whose implementation we propose in five stages. For each stage, we will present the specific elements of the application of the Value Analysis (VA) approach to management issues.

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