Perfecting the Value Management Process
In the B2B space, it’s important to ensure that you’re creating, delivering, and receiving maximum value. The value management process is used to compare the value of the services you provide with the value you receive in return.
But why is value management important, and why does it matter in the B2B world?
First and foremost, by accurately measuring value, businesses can ensure that they’re getting what they paid for. No one wants to partner with a vendor that fails to deliver. However, it can also help hold your business accountable for the services you provide to others. Value management is ultimately a great way to monitor value, make progress, and set new targets.
The benefits of value management are extensive, but above all, it helps businesses establish a baseline for what value delivery can and should look like and how they might go about executing on their objectives. Still, understanding the various advantages and disadvantages of value management can point you in the right direction in terms of strategy. There are multiple factors to consider when measuring value, many of which are going to depend on your specific business and those you work with.
It’s also important to understand value management vs. value engineering, as the terms tend to be used interchangeably, but actually refer to different processes. The purpose of value engineering is to increase the value of goods or products and services by improving the function or reducing the cost. Value management, on the other hand, describes the administrative side of value measurement. Unlike value engineering, it’s not as concerned with structure and design as it is with the creation and delivery of sustainable value over time.
MetaCX is a platform that aligns suppliers and buyers on expected outcomes and measures value delivery over time, allowing businesses to manage value in the performance economy. With MetaCX, businesses can implement better value management practices and gain a more thorough understanding of where their money is going and whether or not it’s being put to the desired use.
Using Value Management Techniques
There are many different value management techniques you can utilize to achieve the best results. For instance, when introducing value management to your team, you might consider hosting a value management workshop to appropriately train and educate them on value management, why it’s important, and how it can be measured. Your value management workshop agenda might include topics such as value management principles. Establishing these early on can offer a sort of road map by which your team can base their value management decisions going forward. You might also consider drawing up a value management job plan and designating this to a specific member of your team.
Another useful technique is creating a value management report, as this can provide detailed insight into your value management performance over time and help you understand what could be done differently in the future. Likewise, viewing a value analysis example can give you an idea of where the best value lies. You can also convey relevant information to your team via a value management tools and techniques PDF. The steps in value analysis PDF can demonstrate the required or suggested steps to achieving a solid value analysis framework.
Telecommunications, or telecom for short, describes the electronic exchange of information. CVM stands for customer value management, so when asking the question what is CVM in telecom, it’s important to keep in mind that value management is just as important when it comes to customer value in telecom as it is in any other business or industry. Essentially, it’s used to manage and optimize the various stages of the “value journey” that customers take. For a better understanding of value management techniques, CIMA provides excellent resources to help get you started.
Selecting a Value Management Framework
A value management framework is a formal, repeatable technique for value management. There are various technologies in existence that can help companies operationalize and scale a value management framework. The stages of value management can be clearly outlined within such a framework, making it easier for businesses to define the phases of value engineering and everything involved with it. You might, for example, discover potential opportunities or pitfalls at the information phase in value management that you wouldn’t have otherwise caught if it wasn’t for a predetermined framework.
There are countless value management examples you can look to for inspiration on how to implement value management practices and strategies into your own business. To understand what is value management in project management, you might refer to a value management PDF that explains earned value management and how to accurately track the performance of different projects. This can prove especially beneficial for project managers and those responsible for overseeing the planning and implementation of various company projects.
With MetaCX you can develop a value management framework that’s right for your business. The platform enables users to manage all of their business relationships in one location, connecting with organizations both upstream and downstream in their value chain to ensure the success of their most strategic initiatives. MetaCX allows users to connect with customers to put the value at the center of the customer experience and continuously prove value delivery.
By connecting with your vendors to create accountability and see to it that you are receiving the value promised, MetaCX makes vendor value realization possible. You can also connect with those in your functional area to track your team’s creation of value and impact on company initiatives. Additionally, the MetaCX platform enables users to connect with their business partners through co-owned digital spaces where two or more organizations can come together to align on desired outcomes.
The Importance of Earned Value Management
Earned value management (EVM) is a project management technique for objectively measuring project performance, and so when discussing the importance of earned value management, it’s crucial to place it within the context of project management. An example of earned value management might involve a scenario in which you’ve completed 50% of a project with a budget of $100,000. In this case, your earned value would be $50,000. Typically, earned value is calculated by multiplying the percentage of the project you’ve completed by the total project budget, but there are other factors you may need to take into account, depending on your project and what exactly you’re trying to measure.
You can view an earned value management tutorial or an earned value management PDF for additional instruction on how to determine earned value. An earned value management exercises and answers PDF can provide exercises to help you practice calculating earned value so that you can incorporate those formulas and strategies into your own project management techniques. If you’re aiming to get down and really dig into the numbers, an earned value management example Excel file might do the trick. By solving earned value management example problems, you can gain a better understanding of what earned value means, why it’s important to your business, and how you can determine the value produced by your various projects.
There’s no doubt about it—tracking EVM and the success of projects, in general, can be tricky, especially because there are so many different moving parts. However, MetaCX makes it easy to track the success of your initiatives by capturing data not only from your organization but from those you partner with. With MetaCX you can turn disparate data points into a dynamic view of performance toward the achievement of outcomes and delivery of value.
Value Management By Industry
The way in which value management is defined varies from industry to industry. As such, there isn’t a right or wrong answer in terms of what kinds of productions or actions are considered “valuable.” It all just depends on your business and industry. For instance, value management in construction is different from value management in retail. To understand the importance of value management in construction, you might consider researching value management in a construction case study or value engineering in construction project examples.
Value management in construction examples can include many different things, some of which can demonstrate risk and value management in construction. It may also be useful to get an idea of value management techniques in construction, as well as the application of value management in construction. Some of these concepts might be conveyed through a value management in construction PDF form.
MetaCX offers solutions for a number of industries, including healthcare, technology, and manufacturing, helping organizations optimize the creation of both commercial and social value. With MetaCX you can connect with organizations both upstream and downstream in your value chain to align on expected outcomes and measure value delivery over time. The platform enables you to create accountability with your vendors and monitor whether or not you are receiving the value promised.
MetaCX enables users to create accountability with their vendors and monitor whether or not they are receiving the value promised. You can invite anyone in your business ecosystem to collaborate on the desired outcomes, action plans, and evaluation measures necessary to achieve shared success. With MetaCX you are also able to document and track the key deliverables by which you and your partners can define value and measure success.
You can capture and conceptualize real-time, multidirectional data to create a comprehensive view of performance toward the achievement of outcomes and delivery of value. Creating outcome templates tailored to specific use cases and personas can simplify and scale the prioritization of value in business relationships, and this is all possible through the MetaCX platform. Reach out today to learn more about MetaCX and how the platform can help you perfect your value management process!