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Value management

Value management is about the ability to understand clearly and communicate where value is being created. Value in this sense is a tangible function, something that the client will receive benefit from, be it commercially, emotionally or physically. Nagle and Holden (1995) define it as the total savings or satisfaction that the customer receives from the product. Economists refer to this as the use value or utility gained from a product. In consulting terms, it might be defined as the benefit or gain that the client receives following the change engagement. Although your contract will clearly indicate the change that must be made to satisfy the commercial or social relationship, it might not include a specific focus on the value that will accrue on conclusion of the change.

Although there will be commercial consulting engagements that fall outside this limited boundary, the vast majority of programmes will realize value from this area. As an example, the typical consulting actions have been listed in Table 12.1. Although some action will fall outside these four areas, by allocating them to simple headings it allows a consistent message to be communicated to the client and consumers. Although your engagement might be highly complicated and detailed, unless you are able to offer the end consumer (and other stakeholders) a clear and succinct reason for the change, then your action might fade into history along with all the other change programmes.


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