The purpose of the presentation is to provide an initial introduction to the Management of Value approach launched by the OGC

1. OGC Frameworks Example
Management of Value
What is it?
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2. Purpose of this presentation is to:
 Provide an introductory overview to MoV
 Explain what MoV is and what it sets out to do
 Position the MoV structure in terms of its principles, processes, techniques, the
approach to implementation, Environmental factors (responding to external and
internal influences), and how MoV can be embedded within an organization
 Provide an indication of how MoV can be applied in practice
 Position the benefits that can be realised by embedding MoV
 Clarify MoV’s relationship with other Best Practice Frameworks
 Provide a generic high level project plan for conducting an MoV Study
 Position the inter-relationships between MoV Policies and Plans at the
Organisation, Programme, Project and Operational levels
 Explain the MoV Value Cascade and the importance of aligning all activities
with the organisational objectives
 Position the approach to embedding MoV within an organization
“PRINCE2®, MSP® P3O®, MoR®, P3M3®, are all Registered Trade Marks of the Office of Government Commerce in the United Kingdom and other
countries. MoP™, Agile Project Management™, Earned Value™, MoV™ are Trade Marks of the Office of Government Commerce in the United Kingdom and
other countries
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3. MoV Overview
 MoV is about maximising value in line with the programme, project
and operational objectives and key stakeholder requirements
 It is NOT simply about minimizing costs
 Key Question MoV tries to address is - Are we maximising the value of our essential
investments such that we are getting optimal benefits, at an affordable cost with a
known and acceptable level of risk?
 MoV seeks to achieve the optimum balance between all stakeholders needs
 MoV is a collective term embracing many processes that are aimed at maximizing value,
which are explained or signposted within the MoV guide book.
 MoV focuses on function i.e. what things do to contribute to the outcome of an activity
 This functional approach can be taken at the portfolio, programme, project or
operational levels
 Only when the functions are specified and outcomes are clearly defined in terms of
expected benefits does MoV explore different ways of doing these things to maximize
value
 This approach enables MoV to improve benefits and (usually) to reduce expenditure
and speed up delivery without impacting essential project scope or service quality
“PRINCE2®, MSP® P3O®, MoR®, P3M3®, are all Registered Trade Marks of the Office of Government Commerce in the United Kingdom and other
countries. MoP™, Agile Project Management™, Earned Value™, MoV™ are Trade Marks of the Office of Government Commerce in the United Kingdom and
other countries
3

4. MoV Overview
Essentially MoV,
 Enables more efficient delivery by employing fewer resources and using these
resources to better effect
 Provides a means to define objectives and scope clearly in terms of the organisation’s
and end users’ short and long term needs
 Supports decision-making based upon maximizing value for money
 Encourages innovation that is well-aligned to the organizations goals
 Facilitates optimal balance between investment and long-term operating expenditure
 Provides a means of measuring and auditing value, taking account of monetary and
non-monetary benefits and achieving optimal balance between them, thus
demonstrating that optimal value has been achieved
 Enables effective consultation and engagement of stakeholders and end users and
reconciles their differing needs
 Promotes sustainable decsion-making, based on adding value, by addressing both
monetary and non-monetary factors
 MoV enhances, rather than competes with, other management methods that also
seek to achieve value., based on 7 sound principles (listed on next slide)
“PRINCE2®, MSP® P3O®, MoR®, P3M3®, are all Registered Trade Marks of the Office of Government Commerce in the United Kingdom and other
countries. MoP™, Agile Project Management™, Earned Value™, MoV™ are Trade Marks of the Office of Government Commerce in the United Kingdom and
other countries
4

5. MoV Structure Embedding MoV
What is it? 1. Introducing an
APPROACH TO MoV Policy
IMPLEMENTATION 2. Roles &
PROCESSES
 Plan Activities Responsibilities
PRINCIPLES 1. Frame the
Programme or  Understand & 3. Setting up a plan
1. Align with for implementing
Project articulate value
organizational the policy
objectives 2. Gather Information  Prioritize value
4. Introducing
2. Focus on functions 3. Analyse  Improve value Training
and required information  Quantify value 5. Study Leaders
outcomes
4. Process  Monitor Handbook
3. Balance the Information improvements in 6. Data Capture &
variables to
5. Evaluate & Select value Feedback
maximise value
6. Develop value-  Learn Lessons 7. Monitoring &
4. Apply throughout
the investment improving measuring the
decision proposals benefits
5. Tailor to suit the 7. Implement & share 8. Overcoming
subject outputs ENVIRONMENT Barriers to
1. External Factors embedding MoV
6. Learn from the
experience & 2. Internal Factors
improve
TECHNIQUES 3. Programme
7. Assign clear roles Considerations
& responsibilities 1. MoV-Specific
& build a Techniques 4. Project APPENDICES
supportive culture Considerations
2. Techniques Document Checklists
commonly used in 5. Operational
Toolbox
MoV Considerations
Health Check
Maturity & Competence
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“PRINCE2®, MSP® P3O®, MoR®, P3M3®, are all Registered Trade Marks of the Office of Government Commerce in the United Kingdom and other
countries. MoP™, Agile Project Management™, Earned Value™, MoV™ are Trade Marks of the Office of Government Commerce in the United Kingdom and
other countries

6. MoV - How does it do this?
Essentially MoV,
 Involves taking a team representing the key stakeholders in a programme, or project
through a series of processes or techniques (called an MoV Study) at predetermined
points, usually coinciding with key decision points throughout the lifecycle of the project
 The overall process should be facilitated by an experienced , and preferably qualified,
study leader
 Most commonly a series of studies (each comprising a period of preparation, a
workshop and activities to monitor progress in implementing the value-improving
proposals arising from the workshop) will be arranged to inform each key decision
point
 In application to operational activities, the discrete study format may not be
appropriate and a series of consultations will be conducted to take the contributors
through the procedures
 The processes and techniques listed on the previous slide should be conducted in a
logical sequence to help deliver the benefits of an MoV Study
“PRINCE2®, MSP® P3O®, MoR®, P3M3®, are all Registered Trade Marks of the Office of Government Commerce in the United Kingdom and other
countries. MoP™, Agile Project Management™, Earned Value™, MoV™ are Trade Marks of the Office of Government Commerce in the United Kingdom and
other countries
6

7. MoV Benefits
 Optimize resources
 Enhance the delivery of essential benefits
 Improve value for money
 Help portfolio, programme, and project management (PPM) community to ensure that
stakeholder needs are met and the value realised is maximized
 Enables risk managers to identify and manage opportunities effectively
 Builds on the good practice provided in other PPM guides to maximize value
 MoV enhances the main purpose of PRINCE2 (successful delivery of justified business
benefits through projects), Managing Successful Programmes (MSP – Transformational
Change) and Management of Risk (MoR – reducing uncertainty) with its main purpose of
maximizing value
 It also shares with Lean (and to a lesser extent Six Sigma) the principles of involving
the customer, elimination of waste and greater efficiency. The main difference being
that where lean and six sigma aim to achieve efficient delivery, MoV focuses on efficiency,
effectiveness and economy.
 In summary, MoV helps to deliver more of the right things, reduce the cost of delivery and
encourages more effective use of available resources
“PRINCE2®, MSP® P3O®, MoR®, P3M3®, are all Registered Trade Marks of the Office of Government Commerce in the United Kingdom and other
countries. MoP™, Agile Project Management™, Earned Value™, MoV™ are Trade Marks of the Office of Government Commerce in the United Kingdom and
other countries
7

8. MoV’s Relationship with other Best Practice Guides
Glossary
Guidance
Models
Portfolio,
Management Management Programme &
ITIL
of Risk (MoR) of Value (MoV) Project Office
Portfolio, (P30)
Programme and
Project
Management Portfolio Management (MoP)
Maturity Model
(P3M3)
Programme Management (MSP)
PRINCE2
Maturity Model Project Management (PRINCE2)
(P2MM)
SOURCE: OGC MoV Manual
MoV should be embedded in the management methods used in achieving successful
outcomes rather than regarded as an optional standalone or extra process.
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“PRINCE2®, MSP® P3O®, MoR®, P3M3®, are all Registered Trade Marks of the Office of Government Commerce in the United Kingdom and other countries.
MoP™, Agile Project Management™, Earned Value™, MoV™ are Trade Marks of the Office of Government Commerce in the United Kingdom and other
countries

9. OGC Frameworks Example
Management of Value
How does it work?
9

10. Generic MoV High Level Project Plan
1. Define the study objectives
2. Identify who needs to be involved, define
3. Identify the process to be used
their roles & assess knowledge / skills
4. Provide training as necessary to enable
the participants to contribute effectively
13. Record outcomes & feed back
5. Gather & analyse information
lessons for continuous improvement
6. Identify the necessary functions to fulfil 8. Identify how to measure performance
the objectives completely (value drivers) against the value drivers
7. Prioritise value drivers & develop value 9. Set targets for benefit improvement and
profile use of resources
10. Apply processes & develop value-
improving proposals The generic plan is applicable at
any stage in the programme,
11. Agree Implementation Plan and / or project and is
appropriate for any MoV activity
SOURCE: OGC MoV Manual 12. Monitor & measure implementation
of proposals
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“PRINCE2®, MSP® P3O®, MoR®, P3M3®, are all Registered Trade Marks of the Office of Government Commerce in the United Kingdom and other
countries. MoP™, Agile Project Management™, Earned Value™, MoV™ are Trade Marks of the Office of Government Commerce in the United Kingdom and
other countries

11. MoV Integrated programme & project plans
MoV Policy If MoV has been embedded
Where a project is part of
a wider programme it may Set by the board within the organization
be appropriate to have undertaking the project, these
separate plans for each plans should be consistent
project, all linked to an MoV Implementation Strategy with the organizations overall
overall programme plan Interprets the policy across the organisation MoV policy and MoV
Implementation strategy
MoV Programme Plan MoV Programme Plan
How to implement MoV across programme (A) of projects How to implement MoV across programme (B) of projects
MoV Project Plans MoV Project Plans MoV Project Plans MoV Project Plans
How to implement MoV How to implement MoV How to implement MoV How to implement MoV
In project A In project B In project C In project N
SOURCE: OGC MoV Manual
MoV Operational Transition MoV Operational Transition
How to transition MoV operationally How to transition moV operationally
“PRINCE2®, MSP® P3O®, MoR®, P3M3®, are all Registered Trade Marks of the Office of Government Commerce in the United Kingdom and other 11
countries. MoP™, Agile Project Management™, Earned Value™, MoV™ are Trade Marks of the Office of Government Commerce in the United Kingdom and
other countries

12. MoV Value Cascade
Portfolio Vision &
Blueprint
Organisational Goals delivered
through portfolio
Programme Objectives How do we
Programme do this?
Reflect the business objectives
Objectives
Project Objective
Contribute to programme objectives
Project
Objectives
SOURCE: OGC MoV Manual Value Drivers
Deliver the project objectives
Design Considerations
Reflect the value drivers
Products
Why are we
doing this?
Design Solutions Interpret
the design considerations
Underlying principle of MoV is that all activities must
be aligned with the objectives of the organisation Contributing Components
Realise the design solutions
“PRINCE2®, MSP® P3O®, MoR®, P3M3®, are all Registered Trade Marks of the Office of Government Commerce in the United Kingdom and other 12
countries. MoP™, Agile Project Management™, Earned Value™, MoV™ are Trade Marks of the Office of Government Commerce in the United Kingdom and
other countries

13. How to introduce and embed MoV
For MoV to become fully embedded
Develop MoV policy
into an organization, it will need a
SOURCE: OGC MoV Manual consistent approach over a period of
time. To establish the right
environment it will be necessary to
Assign roles & responsibilities
formally introduce the discipline as
outlined below
Develop strategy to implement policy
Build knowledge skills & culture Implement MoV
Build positive culture
Develop Study Leaders Handbook
Train senior management, all
employees & study leaders Feedback study outputs
Undertake MoV activities
Capture & analyse data
Publish success
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“PRINCE2®, MSP® P3O®, MoR®, P3M3®, are all Registered Trade Marks of the Office of Government Commerce in the United Kingdom and other
countries. MoP™, Agile Project Management™, Earned Value™, MoV™ are Trade Marks of the Office of Government Commerce in the United Kingdom and
other countries