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VALiD (Value in Design) is a new approach to value delivery that integrates stakeholder value judgements into the project process.
VALiD is based on six principles:
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value delivery is the goal of all projects |
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value is subjective and based upon stakeholders’ underlying values |
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successful projects deliver value for all stakeholders |
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project teams have provider and customer stakeholders, each with their own understanding of value and expectation for its delivery |
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value is judged by each stakeholder from their own perspective and aggregated to provide a project view |
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effective project value delivery requires an ongoing dialogue between all stakeholders to negotiate appropriate compromises and balance stakeholder views |
This short brochure summarises the key principles
of VALiD: |
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These two case studies illustrate the benefits
arising from previous uses of VALiD: |
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“Value delivery is the key goal of all projects”
This construction industry mantra is familiar
but do all stakeholders in today’s complex project relationships
share a common vision and understanding of “value”?
This is a difficult but often unanswered question, despite the many
value related capabilities offered today. We must become better
able to reflect the priorities and values of our customers if value
is to be meaningfully delivered. We need ways to help stakeholders
understand and express value in their own terms, then share and
align these expectations for value delivery by making assessments
during design, construction and use. In this way we ensure customer
value is improved.
VALiD (Value in Design) is a new approach to value delivery that integrates stakeholder value judgements into the project process.
VALiD was developed in response to the construction industry’s growing need to demonstrate value.
The approach comprises a suite of simple, practical methods that can be customised to engage stakeholders throughout the delivery process. It takes people’s judgements and uses them to understand stakeholder value and to demonstrate project performance. |
Consider a scale of 1 to 10 on which
the value of a building or project is expressed. The architect thinks
that the building offers a value of 8, while the facilities manager
and client think the building’s value is 5 and 6, respectively.
A person walking by on the street, meanwhile, thinks that the building
has 4 units of value, yet his friend alongside him considers the
building’s value to be 5.
Why are these opinions so different when
the building is the same? Which one (if any) is right? How can the
differences be explained, reconciled and used to inform project
provision? How can project management accommodate these different
points of view?
VALiD can help you answer these questions. |
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stakeholder values and expectations can be integrated into the project’s business case |
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a clear definition of value to each project stakeholder can be agreed |
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design decisions are made from the perspective of stakeholder value |
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understanding of stakeholder value is maintained through design, construction and use |
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value delivery performance is clearly documented in project and stakeholder dashboards |
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a transparent approach builds confidence and trust in stakeholders’ views and focuses providers on key areas requiring attention |
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value in use is predicted during delivery |
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VALiD has proven effective in construction projects and building management in the pharmaceutical, education and project management sectors |
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The framework provides a logical structure to help project teams understand the issues that must be discussed among stakeholders if value, and the drivers for its delivery, are to be fully understood. It links stakeholders’ values with their definitions of value and ongoing assessment of project performance.
The framework has three elements which guide stakeholders through the discussion of their values to assessing project performance in delivering value. |
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Values describe stakeholders’ beliefs, attitudes and the principles that drive their actions. VALiD includes a method to help stakeholders understand, express and share their values. A project team can establish common purpose through a shared set of project values formed from the values of each stakeholder and influenced by the project’s nature and objectives. Each stakeholder’s business strategy should be informed by their organisational values.
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A representative of each stakeholder group expresses a set of value criteria and targets in a dashboard. They are responsible for what their group gets (beneficial and sacrificed outcomes) and the resources they give up.
These targets, together with traditional project objectives, inform the team’s development of the concept design solution that defines the value proposition.
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Stakeholders judge the value proposition offered by the emerging solution at key points in the process. They assess their own benefit, sacrifice and resource criteria and the results are summarised in their dashboards. These enable an informed discussion of performance so that the providers can take appropriate actions. Judgements are based upon product qualities – the physical and functional characteristics of the built product and the business it facilitates. Value delivery is focused on the knock-on effects of decisions on long term operating costs and business performance.
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Value is the trade-off between what each stakeholder gets and what they have to give up. It is essential that we understand value from each stakeholder’s perspective. This view of value helps stakeholders appreciate that, while the bottom line is about improving efficiency (our traditional focus), the top line is concerned with increasing effectiveness (a tougher problem all together).
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VALiD offers a series of activities that align with relevant stages of a project. An appropriate set is selected for a particular project and linked to its delivery process. The nature of VALiD activities changes as the project progresses to reflect its shifting focus.
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VALiD offers a series of activities that align with relevant stages of a project. An appropriate set is selected for a particular project and linked to its delivery process. The nature of VALiD activities changes as the project progresses to reflect its shifting focus. |
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