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PMLogic’s November PM Mixer invited Emad Shublaq who is a Certified Value Specialist (CVS) and President of the ANZ + 4 Chapter for SAVE International, Mostafa Marey (Program Manager at Sydney Water), Ken Cameron (Senior Lecturer at USYD School of Project Management) and Esti Cogger (Senior Director at JLL - Account Lead and Innovation Lead) as expert panellists to speak about value management.
What is Value Management?
The Value Management process identifies and develops value and innovation to optimise project outcomes and resources. Both the private sector and government agencies have benefited using this process to decrease costs, increase profits, improve quality and performance, and enhance customer satisfaction.
The Value Management process begins with a collaborative definition of a ‘value statement’, emphasising an understanding among stakeholders on the function of each element in a project. There is also an evaluation of each element on fulfilling its intended purpose. The value management workshop is focused on stakeholder collaboration to ensure comprehensive understanding of project requirements and allows the team to challenge assumptions. Creativity is also encouraged in these workshops.
“Don’t have to be innovative just creative” - Mostafa Marey
1. Value is subjective
Value Management originated in the USA from the need to manage scarce resources post World War II during economic reconstruction. The approach gained popularity for collaborative problem solving in the design and construction industries. But in today’s era, value is not determined solely by cost reduction but also performance, quality and risk.
2. Cost Control not Cutting it down
Emad Shublaq finds that there is a misconception about Value Management around that it’s all about cutting down cost. Value Management aims to control cost while balancing function and quality, overall improving the value of a project. Controlling cost is about delivering the project functions at the lowest possible cost without compromising performance.
3. Value Management as a process
The Value Management process is limited by time constraints. Since Value Management workshops and evaluations take time, it may not always fit into tight project timelines. It is essential to build the Value Management process into the setup of the project’s structure, ensuring considerations for Value Management at all stages.
“Following the process not cutting corners will produce a solution that is better than the status quo” - Mostafa Marey
There is a systematic way to undertake the Value Management process. Preparation is a critical step to the process, ensuring the right information and right people are engaged. Allocating more time at the start will save you time in the execution. By applying value management in a sensible way, there will be savings out of the process.
4. External Facilitator
The panel agreed that an independent outsourced facilitator is necessary to pick up blind spots that are not seen by the internal team. If the value management process is done internally, the team are biased towards their work and are just going through the motions to tick boxes. While the facilitator's critical distance from the problem is necessary, there still needs to be someone who understands what they’re doing in the group.
Resistance to change is also a challenge to the Value Management process. Teams may be resistant to adopt new processes, and an external facilitator can ensure existing assumptions are challenged.
Ready to dive deeper into project innovation?
Join us at PMLogic's December Mixer!
Don’t miss the chance to engage with industry leaders, share insights, and explore transformative strategies that drive project success. Save the date and elevate your project management game.
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