Why invest in a Business Value Model
Neil Calvert
Founder | LINQ | Making Change Successful | Digital Twin | International Innovator | CEO
A Business Value Model is a representation of how your organisation enables value. Value for your teams, value for your customers, value for your shareholders.
The 'how you enable value' is the important bit. A Business Value Model (BVM) should provide with enough knowledge to quantify and qualify the work that goes on in your business, providing evidence to support your decision making about which activity should be stopped, supported or invested in to increase the value created.
With this new knowledge you should be able to understand the impact that today's way of working is having on your ability to generate the value you need to be successful. Once that is known, you can respond and take action to move your organisation to a new way of working which creates the value you are looking for.
Examples of the inputs to the BVP are;
2. The people who are doing the work:
3. The tools and systems used by the business:
4. The cost of working:
5. The culture of the business
Once you have this detail in your model, you will be able to understand how change of any aspect of the model can influence the value your organisation generates. You will also see where and how to prioritise actions which will form the basis of your new operating model.
A comparison between where you are today and where you need to be in the future provides the business case to support the change. The BVM ouputs of cost and time, data & information need, system requirements and people expertise show you what is possible and how to achieve the new way of working.
Operational decisions fall out of this process; prioritised implementation programmes of work based in evidence aligned to your strategy and business ambition can be against the context of the value they create.
You may recognise that other business artifacts are needed to ensure the journey is sucessful, such as architecture models, business process models, organisational charts, role descriptions and can capture these based on the change priorities you have identified.
The Business Value Model serves as the director of your business optimisation programme and creates inputs to your process optimisation, your IT strategy, your data or information governance programme and your on-going strategic discussions about what your business is and how it creates the best possible value for your teams, your customers and your shareholders.
TEDx speaker | senior agile BA | Transformation Coach
2 年Business value modelling is a revolution that I never knew I needed before LINQ
Founder | LINQ | Making Change Successful | Digital Twin | International Innovator | CEO
2 年We have resources on our website to help you consider how a Business Value Model can support your operational activities such as process optimisation or reducing the risk associated with change. Head to https://www.linq.it/processoptimisation/ or https://www.linq.it/managingchangerisk/ to find out more.