Value

Whenever I’m involved in a project, it’s about change. Something has triggered the desire to change the status quo. Commonly I see one of these drivers being used:

• reduce risk
• reduce cost
• increase revenue

I know that’s fairly universal and hardly world breaking news. So, I don’t dwell on what that means in general. However I do want to look into what it means for the stakeholders in the change. As we discussed a few days ago people have an investment in the status quo. This investment manifests itself how much the status quo is valued by every individual. It certainly must have advantages or benefits or it would have never become the status quo. Identifying the individual value is of great importance for a successful change because the stakeholders want to know what of their investment is NOT changing. This will provide much more commitment to the change as the investment the stakeholders have is valued by the change manager or change process.

2 value factors

Value is not only described the benefits of the current investment, no, it is also described how much it is valued by the change itself. This process can make a project succeed or fail.

Everybody is committed to the change once every stake holder has decided the change is necessary and beneficial.

Allow for time and individual consultation on both sides of the change coin. Talk about the benefits of the status quo and the benefits of the goal. Highlight what stays the same and what stays behind.

People or KPIs

This leads to the next element. Why. Why are we leaving things behind and changing them. I hear you, reduce risk, reduce cost, increase revenue. Right and we measure that by having a benchmark, the metric for the status quo, the anticipated objective, and the actually achieved metric. Fantastic. That solves the problem, doesn’t it?

Sort of, I think. This is a great quantitative measure. It’s easy to achieve and satisfies the original criteria. So why I’m saying “sort of”? Because of this value is an abstract one, it doesn’t tell you if the people are behind it. It doesn’t tell you if the stakeholders are committed to the result. Hence I believe the value of a successful change need to be measured differently. Yes, it need to deliver on why we do the change. Although, we want it to be an enduring change and even more we want people to add value to it, to invest in it, to own it. So, we need to measure how people feel about the change before and after. That qualitative value is longer term much more important than a KPI.

Looking forward to some comments!

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One comment on “Value

  1. […] my last post about values I […]

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