Written by: Amy Townson

Demonstrating Value

One of the core tenets of the work we do is that we want to deliver value. But what is value? Once you know what it is, how do you measure it? How do you prove that a project provided value? These are questions that organizations frequently struggle with, and our clients and consultants alike are no different.

What is Value?

The answer to this question is simply “it depends.” It literally depends on who you are asking – value is defined by the individual. The International Institute of Business Analysis (IIBA) defines value as “the worth, importance, or usefulness of something to a stakeholder in a context.” In short, it depends!

There are some common trends in value, though, that can be useful when assessing whether a given initiative is delivering value:

• Financial savings – Many projects and initiatives are designed to save the organization money.
• Streamlined processes – Other initiatives focus on streamlining processes, perhaps with a Lean approach, to simplify work or incorporate automation.
• Time savings – Closely linked to streamlined processes, some initiatives focus on improvements that will save time in the long run.
• Improved customer satisfaction – Happy customers generally lead to more business opportunities and growth.

How Do You Measure Value?

The methods you use to measure value should always relate back to the provided type of value. Since “value” is always defined by the stakeholder, you may need to measure value in multiple ways to appeal to all your stakeholders.

Regardless of how you measure value, you will need to establish a baseline. Value is essentially a comparison – something is better now than it was before. To accurately assess value, then, you need to know what the before state, or baseline, was.

How Do You Show Value?

Simply having measurements of the value isn’t enough. You need to share those results with key stakeholders to demonstrate to them that the initiative provided value. One of our consultants struggled with these questions and came up with a template that could be used to tell the value story.

The project was an 18-month effort with multiple moving parts and many stakeholders. This was a highly visible, priority project for our client, a large state government entity. The team needed to show the total value that the project brought to the organization.

They started by documenting all the business process improvements that occurred because of the project. Business representatives were able to provide estimated time savings for each improvement. The team then built a spreadsheet that conveyed all this information. The spreadsheet considers quality improvements, which can be difficult to measure, and more traditional quantitative measurements.

The spreadsheet was shared during a project governance meeting and received rave reviews. The organization’s executive leaders liked the approach so much that they refined the spreadsheet for enterprise-wide use. Since that initial effort, all new projects have used this spreadsheet to track improvements, categorize those as qualitative or quantitative, calculate quantitative savings, and report results back as part of project governance.

Tell Your Value Story

Showing the total value of a project, no matter how simple or complex, is a vital part of today’s business operations. Whether in the government sector, a non-profit organization, a private company, or anywhere in between, organizations are under more scrutiny than ever before to justify spending and demonstrate value.

You might know a project or initiative is delivering value, but how do you demonstrate this so executives and stakeholders can see the benefits? How do you tell the value story? Our consultants are experienced in working through these questions and helping clients show the tangible results of their successes. Let us help you, too!

Amy Townson – Senior Advisor

Amy is a certified project manager with over 20 years of experience and expertise in the health and human services industry, transportation, state government sector, contract management, and project management techniques. She has successfully managed over fifty unique projects and multiple portfolios of projects. In addition, Amy has provided training for state and federal clients on a variety of topics. She has strong facilitation skills with the ability to tailor messages to fit the audience’s experience level and role. Amy is a skilled leader of in-person, virtual, and combination teams.