"Making sense of value" by Michel Thiry

Creatively Balancing Benefits Realization with Risk Mastery to Deliver Value

In this presentation, we will show that Value is the foundation of successful change initiatives which include all the actions that an organisation’s management undertakes to transform it. They may include, programs, projects, innovation and continuous improvement.

The concepts underlying value management have been established by Lawrence (Larry) Miles when he developed Value Analysis and Value Engineering for General Electric in the late ‘40s and early ‘50s. Many disciplines have stemmed from those initial concepts, for example: TQM (Total Quality Management); Lean Management; Six Sigma; Value Management and others.

Initially, value analysis was used to reduce purchasing costs of products by finding cheaper alternatives that would perform the same functions as the original, more expensive product. In the ’60 and ‘70s, Value Engineers defined value as a ratio between quality and cost and later between the satisfaction of the needs of the customer and the resources used to satisfy them.

The VM concept is a basis for many business domains like the ROI (Return vs Investment); SWOT analysis; the Balanced Scorecard; the project management’s Scope and Quality vs Time and Cost; or the program management’s Alignment vs Achievability. We will aim to make sense of these by explaining how value can be defined and mastered.

To support this approach, Benefits Realization Management will be considered as one aspect of the value ratio and Risk (or Achievability) Management as the other aspect of that ratio. The presentation will discuss how:

Benefits must be identified, agreed, delivered and sustained; benefits realization is subjected to high ambiguity and is a creative team process.
Risks thresholds define the achievability of a change initiative; are subjected to uncertainty and require an analytic process.
Value integrates both concepts to give managers a means to identify the solutions that will align best with the organization’s strategy and offer the best achievability factor: The Value Index.

Sponsors, portfolio, program and project managers will be able to draw practical methods to define, measure and deliver value to the business.

About Michel Thiry

Michel THIRY, PhD, FAPM, PMI Fellow, Managing Partner Valense Ltd.

Fellow APM, PMI Fellow, MSP Advanced Practitioner (2007), PhD Middlesex University, London.

Michel has an extensive worldwide experience and has worked in many cultural environments. He specialises in strategic applications of project, program and value at organizational level and has supported the development and implementation of several strategic programs for major corporations in numerous fields.

He is a regular Keynote Speaker for major International events, both at the Academic and Practice levels. He is the author of “A Framework for Value Management Practice” and of the best-seller “Program Management”.

In 2006 he was elected PMI Fellow for his continued contribution to project management and in 2007 he became Fellow of the Association for Project Management. In 2008, he was awarded a Life Achievement Award by the Canadian Society of Value Analysis. In 2014, he was awarded the PMI Eric Jenett Project Management Excellence Award for outstanding contributions to the practice of the profession, and leadership in advancing PM concepts, techniques, practices, or theories.

This event is supported by CSAP Mastering Program, University of Piraeus

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