The VMO Star: how to create a Value Management Office

1. Definition of the FLEKS Model

FLEKS is a model to manage Business Transformations and Operations initiatives that allows for fast adaptation to context changes and a sustainable value creation flow.

The model was designed for a wide range of applications, including product development, project, portfolio, and process management, as well as process enhancement. It's also effective for implementing strategies, driving organizational changes, and leading other managerial initiatives. The primary idea of FLEKS is to maximize all approaches to managing organizations, enabling infinite value delivery and continuous improvement.

2. Definition of the VMO in the FLEKS Model

The VMO (Value Management Office) is the brain of value creation within the FLEKS model.

The VMO is a strategic organizational structure responsible for coordinating and maintaining a sustainable value creation flow. Based on organizational identity, a defined strategy, and strategic goals, the VMO integrates Business Transformation and Business Operations initiatives by defining processes that optimize the way value is delivered to stakeholders in a continuous flow.

It is important to emphasize that the VMO in the FLEKS model is different from a traditional PMO (Project Management Office), which primarily focuses on transformation initiatives such as projects, programs, and portfolios. The VMO in FLEKS also addresses organizational process management and, above all, ensures integration between business transformation and operations.

3. Introduction to the VMO Star Framework

The VMO Star is a framework designed to guide the creation and operation of a Value Management Office. Its eight-step process ensures that organizations maximize their ability to deliver value consistently and sustainably.

Key Points

• Simplicity and adaptability for diverse organizational contexts.
• Emphasis on clarity and alignment with strategic goals.

4. The Framework Composed of 8 Steps

Step 1: Strategic Goals

• Explanation: This step involves using the organization’s existing strategic goals to define how the VMO can contribute to achieving them as part of the organizational structure. Only after this alignment should specific objectives for the VMO be created.
• Key Points: Clarity, Alignment
• Importance: Ensures the VMO aligns with the organization's strategic initiatives.

Step 2: VMO Clients

• Explanation: Identifies the primary stakeholders and beneficiaries of the VMO, ensuring focus on their needs.
• Key Points: Stakeholder mapping, engagement planning
• Importance: Aligns VMO efforts with stakeholder expectations for maximum impact.

Step 3: Jobs to Be Done

• Explanation: Focuses on understanding what clients need to accomplish daily to achieve their goals, rather than simply identifying their desired outcomes.
• Key Points: Customer-centric approach, operational clarity
• Importance: Ensures alignment with clients’ needs and expectations.

Step 4: Pains and Gains

• Explanation: Identifies the pains clients face while performing their jobs and the gains that would help them work better.
• Key Points: Pain identification, gain mapping
• Importance: Helps the VMO prioritize efforts that alleviate significant challenges and amplify meaningful benefits.

Step 5: Relievers and Boosters

• Explanation: Defines possible organizational functions the VMO should execute to alleviate pains and maximize gains for clients. This is not about delivering outcomes directly but identifying how the VMO can create value.
• Key Points: Possible functions to be executed by the VMO
• Importance: Ensures the VMO delivers maximum value to its clients.

Step 6: Value Proposition

• Explanation: In collaboration with senior management, this step defines the priorities for the functions the VMO will undertake and the value it will deliver as an organizational structure.
• Key Points: Definition, Relevance
• Importance: Establishes the VMO’s role and strategic significance within the organization.

Step 7: Value Delivery

• Explanation: Focuses on operationalizing the strategies and ensuring that the value defined in the previous step is delivered effectively.
• Key Points: Execution, Monitoring
• Importance: Ensures the VMO consistently delivers value.

Step 8: VMO Assessment

• Explanation: Emphasizes the need to re-evaluate the VMO’s functions to ensure they remain relevant in the face of contextual or strategic changes.
• Key Points: Continuous improvement, adaptability
• Importance: Maintains the VMO's effectiveness and alignment with evolving organizational goals.

5. Comparison of the VMO Star with Other Frameworks

The VMO Star differs from other frameworks by combining simplicity with strategic depth. Unlike complex models, it is designed to be easy to implement while maintaining adaptability and a focus on value creation.

Why VMO Star Stands Out

• Simplicity: Reduces barriers to implementation.
• Comprehensive Approach: Covers all aspects of value management, from strategy to delivery.

6. Conclusion

The VMO Star framework offers organizations a clear, actionable path to establishing a Value Management Office that drives sustainable value delivery. By focusing on value delivery, it ensures alignment with strategic goals and the needs of stakeholders, empowering organizations to achieve continuous improvement and long-term success.