www.apmg-international.com

APMG-International Webinar

MoV – The New Buzzword in PPMWednesday 18 January 201214:00 GMT (London, UK)

www.APMG-International.com

Welcome to this

Welcome & Agenda• Welcome & Introduction• About APMG-International• About your presenter, David Roberts• What is Value?• MoV Principles and Processes• When to use MoV and Project Plan• MoV Benefits• Questions & Answers• How to find out more• Close

About APMG-International

• Global Examination & Accreditation Institute• Official accreditation/qualification body for Cabinet Office (formally OGC) PPM portfolio

• Full portfolio of professional management qualifications

• Accredit ATOs & ACOs (250)• HQ in UK; Operational offices in 9 countries• Over 15,000 examinations sat every month• Full details at www.APMG-International.com

Presenter

• David Roberts, Director, CUPE Projects, CUPE Projects, MoV ATO• Has 30 years’ strategic management and business development experience.

• MD @ CUPE; and delivers Value, Portfolio, Programme and Project Management client consultancy & training.

• David’s experience in service reviews and re-organisation and first accredited APMG trainer to deliver MoV training.

• Available on LinkedIn,

INSERT IMAGE OF PRESENTER

How to deliver better value using four integrated CONCEPTS

•Principles7 fundamentals •Processes& Techniques7 Apply throughout Project Lifecycle

•Approach(7 Study steps)

•Environment(7 : I + PESTLE)

What is MoV?

MoV delivers 3 E’s within PPM Best Practices

What is Value? More for less, or a question of balance

S.T. vs L.T.

Whobenefits?

Cost?

When should MoV be used?More opportunities early in project lifecycle

Quantum

Time

Potential to add value

Resistance to change

Cost of change

Quantum

Time

Potential to add value

Resistance to change

Cost of change

Delivery stagesInitiate projectStart up In service

Quantum

Time

Potential to add value

Resistance to change

Cost of change

Quantum

Time

Potential to add value

Resistance to change

Cost of change

Delivery stagesInitiate projectStart up In service

MoV Principles

1. Align with organisation’s objectives

2. Focus on functions and required outcomes

3. Balance the variables to maximise value

4. Apply throughout the investment decision

5. Tailor to suit the subject

6. Learn from experience and improve performance

7. Assign clear roles and responsibilities and build a supportive culture

A missing link? : MoV Principles vs Benchmark Report 2010.MoV Failure Issue % Contribution 1. Align with organisational objectives

b. Incomplete requirements 13% e. Project/ organisation not aligned 10%

24

2. Focus on functions and required outcomes

c. Expectations not met or set 12% 12

3. Balance variables to maximize value

j. Poor planning 5% 5

4. Apply throughout the investment decision

d. Scope creep 12% 12

5. Tailor to suit the subject

g. Technology issues 7% h. Other 6%

13

6. Learn from experience and improve

k. Inexperienced PPM people 4% j. Lack of user involvement 6%

10

7. Assign roles/responsibilities & build a supportive culture.

a. Lack of executive support 17% f. Lack of resources 7%

24

- Arras People: PM Benchmark Report: Project Failure 2010(findings a-k)

Best Practice Impact on Research findings

Jurong Hospital, Singapore – Gateway approval study

• The challenge: – New 500 bed community and 780 bed general

hospital– New concept to increase general hospital

capacity by transferring patients to community hospital for recovery and rehabilitation

– Buildings separated by new six lane highway!

– Need to demonstrate Value for Money as well as robust controls over cost, change, programme and risk

• The process:• Detailed preparation and meetings,

followed by two day workshop involving all key stakeholders

• The outcome:– Detailed Value Profile developed as basis

for decisions– Additional expansion capacity added to

minimise future disruption– Issues around access and improving (air

conditioned) connectivity resolved– Change control and Cost management

processes demonstrated and agreed– Master programme and milestone dates

agreed – Key risks and mitigation actions

identified and agreed

• What the client said: This will give us a better hospital and provides the case to pass the upcoming gateway review

Environment : Hospital project-funding study

MoV Studies – Best Practice into ActionPRINCIPLES (essentials)

ENVIRONMENT ( Internal and External)

APPROACH (MoV in PPM & Operations )

EMBEDDING(MoV Policy & Capability)

PROCESSES

Understand ‘As Is’

Plan ‘To Be’TECHNIQUES

MoV Study (Givens, Scope , Objectives &

Outputs)

MoV Study (Givens, Scope , Objectives &

Outputs)

MoV Processes

1. Frame programme/project. Robust Business Case/studies

2. Gather information Study Team/stakeholders

3. Analyse information Function & cost/benchmarking

4. Process information Handbook & ideas/innovation

5. Evaluate and select Idea/option selection

6. Value Improving Proposals Balance VIPs/scenarios

7. Implement & share outputs How to include in PPM/Ops.

Process Action

Developing MoV Project Plan (Approach) 1. Define the study objectives

3. Identify the processes to be used 2. Identify who needs to be involved, define their roles and assess their knowledge/skills

4. Provide training as necessary to enable the participants to contribute effectively

6. Identify the necessary functions to fulfil the objectives completely (Value Drivers)

8. Identify how to measure performance against the Value Drivers

9. Set targets for benefit improvement and use of resources

7. Prioritise Value Drivers and develop Value Profile

5. Gather and analyse information

10. Apply processes and develop value improving proposals

11. Agree implementation plan

12. Monitor and measure implementation of proposals

13.

Re

cord

ou

tco

me

s an

d fe

edba

ck le

sso

ns

for

con

tinu

ous

imp

rove

men

t

1. Define the study objectives

3. Identify the processes to be used 2. Identify who needs to be involved, define their roles and assess their knowledge/skills

4. Provide training as necessary to enable the participants to contribute effectively

6. Identify the necessary functions to fulfil the objectives completely (Value Drivers)

8. Identify how to measure performance against the Value Drivers

9. Set targets for benefit improvement and use of resources

7. Prioritise Value Drivers and develop Value Profile

5. Gather and analyse information

10. Apply processes and develop value improving proposals

11. Agree implementation plan

12. Monitor and measure implementation of proposals

13.

Re

cord

ou

tco

me

s an

d fe

edba

ck le

sso

ns

for

con

tinu

ous

imp

rove

men

t

Evaluate Current Value (‘As is’ VFM) Value Drivers Weight

1-100%Metric Perform-

ance1-10Value Score- Weight XPerformance

Cost VfM

Value Index Cost VFM Ratio

© Crown Copyright 2011 Reproduced with permission from OGC

High Impact/Savings

LowImpact/Savings

Easy to do Hard to do

A B

C D

‘To Be’ IDEA SELECTION MATRIX

Demonstrate Value for Money

2.18280610

Value Index

125

120

35

40

50

240

Weighted Value Score

Cost

13

24

20

30

60

133

Cost of delivery

(£m)

Value for Money Ratio

Totals

9.62(highest value for

money)

5Management procedures,

adjacencies and operating costs

25Optimise performance and utilisation of hospital resources

5.006Quality of facilities

20Attract and retain first class consultants and staff

1.807Obtaining statutory and

other consents

5Satisfy the requirements of third parties

1.334Time to access hospital and

between units

10Facilitate easy access to hospital and between units

0.83(lowest value for

money)

5Time to appropriate discharge

10Rehabilitate patients and treat sub-acute patients

1.808Capacity for treating patients

successfully

30Treat general and acute care patients

VfM ratio

(= value score or

index/ cost)

Performance (scale of

1 to 10)

MetricRelative importance weight %

Value driver

2.18280610

Value Index

125

120

35

40

50

240

Weighted Value Score

Cost

13

24

20

30

60

133

Cost of delivery

(£m)

Value for Money Ratio

Totals

9.62(highest value for

money)

5Management procedures,

adjacencies and operating costs

25Optimise performance and utilisation of hospital resources

5.006Quality of facilities

20Attract and retain first class consultants and staff

1.807Obtaining statutory and

other consents

5Satisfy the requirements of third parties

1.334Time to access hospital and

between units

10Facilitate easy access to hospital and between units

0.83(lowest value for

money)

5Time to appropriate discharge

10Rehabilitate patients and treat sub-acute patients

1.808Capacity for treating patients

successfully

30Treat general and acute care patients

VfM ratio

(= value score or

index/ cost)

Performance (scale of

1 to 10)

MetricRelative importance weight %

Value driver

QUESTIONS & ANSWERS

How to find out more...• APMG-International – www.APMG-International.com• CUPE Projects – www.cupe.co.uk• MoV LinkedIn discussion group. http://linkd.in/wckBnT

• MoV– www.mov-officialsite.co.uk– http://www.best-management-practice.com/Value-Management-MoV/

• Best Practice Portfolio – www.best-management-practice.com

• MoV Toolbox - http://www.best-management-practice.com/gempdf/MoV_Toolbox_Nov2011.pdf

www.apmg-international.com

Find out more at our website:

www.APMG-International.com

Thank you for attending!