Maximizing Value Propositions to Increase Project Success Rates

Importance of Value Propositions
Introduction
     Definitions
Summary

The Opportunity Center: A New Approach to Capture Ideas and Concepts
Introduction
How Does the Suggestion Program Work?
     Japanese Suggestion Activities
          Why Is the Japanese Suggestion System So Much More Effective than the American System?
Role of the Opportunity Center
     Typical Objectives of the Opportunity Center
     Knowledge Management as Part of the Opportunity Center
     Reinforcing the Opportunity Environment
Summary

The Value Proposition
Introduction
Four-Stage Approach
Three Levels of Improvement
Three Performance Issues
Summary

Stage I—Identifying New or Revised Product or Improvement Proposals
Introduction
Stage I. Activity 1—Conduct a Benchmarking Process Study
     Input A. Processes/Products/Services Targeted for Benchmarking
     Planning for Benchmarking and Secondary Research
     Consulting Internal Sources
     Conducting Secondary Research
          Benchmarking Resources
          Surveying Secondary Resources
          Use Available Benchmarking Resources
          Evaluate the Quality of Information Obtained and Modify the Search
          Identifying Benchmarking Partners
          Benchmarking Arrangement
          Refine Benchmarking Data Collection Plan
          Pretest the Data Collection Plan
          Refine the Benchmarking Data Collection Plan
          Obtaining Sign-Off on the Benchmarking Data
          Collection Plan
          Collect Benchmarking Data
          Identify Performance Issue Best Practices
     Conduct a Formal Review of Benchmarks and Leading Practices
Stage I. Activity 2—Performing the Gap Analysis
Stage I. Activity 3—Is There Sufficient Gap to Take Action?
     Focus on Performance Gaps and Their Causes and Benchmarking Reports
     Prepare a Research Paper Related to a New or Modified Product
     Communicate the Organization’s Actual Position and Performance to the Executive Team
          Business Process Redesign
     Conduct Formal Review of Performance Gap Analysis—Is This Viable?
     Stage I. Activity 4—No Action Is Required if There Are No, or Very Minimal, Gaps
     Stage I Comment
     Input B. Research Projects Previously Identified
     Stage I. Activity 5—Prepare Research Paper Related to New/Modified Product
     Stage I. Activity 6—Conduct Market Analysis Study
     Stage I. Activity 7—Is This a Viable Product?
     Stage I. Activity 8—If It Is Not a Viable Product, Terminate the Study
          Input C. Random Ideas/Concepts Generated Inside or Outside the Organization
Stage I. Activity 9—Document Idea or Concept Change Proposals
Summary

Stage II—Opportunity Analysis
Introduction
Stage II. Activity 10—Collect New or Revised Product/Service or Improvement Proposals
Stage II. Activity 11—Does the Proposal Meet the Ground Rules to Prepare a Value Proposition?
Stage II. Activity 12—If the Answer Is No, Then Take Appropriate Action
Stage II. Activity 13—Assign a VPP Team and Familiarize It with the Proposed Project Management Documents
Stage II. Activity 14—Collect Required Data
     What Are the Benefits of Implementing the Opportunity?
     What Are the Possible Adverse Effects If the Change Occurs?
     How Will the Change Affect the Overall Business and Is the Business Prepared to Accept Those Changes?
     Evaluate the Opportunity
     Gathering the Opportunity Analysis Information
Summary

Stage III—Preparing the Value Proposition
Stage III. Activity 15—Prepare the Value Proposition Document
     Executive Overview 
     List of the Key People Associated with the Value
     Proposition
     Financial Calculations
     Details Related to Other Value-Added Results
     List of Risks and Exposures
     List of Assumptions
     Other Solutions That Were Considered
     Implementation Plan
     Three-Year Impact If Proposed Change Is Not Approved
     Net Value Added
     Detailed Recommendations
     References
     Review of the Value Proposition Document
     Proposed Process Modification Value Proposition Example
     Example of New Product Value Proposition
Summary

Stage IV—Value Proposition Presentation
Introduction
Stage IV. Activity 16—Present Value Proposition to Management
     Assemble Value Proposition
     Review Value Proposition
     Obtain Management Direction Related to the Value Proposition
     Publish the Value Proposition
Stage IV. Activity 17—Management Review Outcome
Stage IV. Activity 18—Hold for Business Case to Be Prepared
Stage IV. Activity 19—Rejected/Activity Dropped
Stage IV. Activity 20—Implement Using Current Resources
     Assess Stage Results
     Reconcile with Organization’s Knowledge Base
Summary

Biography

H. James Harrington, Brett Trusko

The best time to stop a project that will not add value to the organization is before it starts. An effectively prepared value proposition will help you make these difficult decisions.
—Dr. Ron Skeddle, former CEO of LOF, Inc., a Fortune 500 glass, plastics, and hydraulics company