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Build a Value Measurement Framework

Focus product delivery on business value–driven outcomes.

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  • Rapid changes in today’s market require rapid, value-based decisions, and organizations that lack a shared definition of value fail to maintain their competitive advantage.
  • Different parts of an organization have different value drivers that must be given balanced consideration.
  • Focusing solely on revenue ignores the full extent of value creation in your organization and does not necessarily result in the right outcomes.

Our Advice

Critical Insight

  • Business is the authority on business value. While IT can identify some sources of value, business stakeholders must participate in the creation of a definition that is meaningful to the whole organization.
  • It’s about more than profit. Organizations must have a definition that encompasses all of the sources of value or they risk making short-term decisions with long-term negative impacts.
  • Technology creates business value. Treating IT as a cost center makes for short-sighted decisions in a world where every business process is enabled by technology.

Impact and Result

  • Standardize your definition of business value. Work with your business partners to define the different sources of business value that are created through technology-enabled products and services.
  • Weigh your value drivers. Ensure that business and IT understand the relative weight and priority of the different sources of business value you have identified.
  • Use a balanced scorecard to understand value. Use the different value drivers to understand and prioritize different products, applications, projects, initiatives, and enhancements.

Research & Tools

Start here – read the Executive Brief

Read this Executive Brief to understand why building a consistent and aligned framework to measure the value of your products and services is vital for setting priorities and getting the business on board.

1. Define your value drivers

This phase will help you define and weigh value drivers based on overarching organizational priorities and goals.

2. Measure value

This phase will help you analyze the value sources of your products and services and their alignment to value drivers to produce a value score that you can use for prioritization.

Guided Implementations

This guided implementation is a four call advisory process.

Guided Implementation #1 - Define your value drivers

Call #1 - Identify the stakeholders who should be the authority on business value.
Call #2 - Identify, define, and weigh the value drivers that will be used in your VMF and all proceeding value measurements.

Guided Implementation #2 - Measure value

Call #1 - Identify the stakeholders who are the subject matter experts for your products and services.
Call #2 - Measure the value of your products and services with value sources, fulfillment, and drivers.

Member Testimonials

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