Value and Risk Management: A Guide to Best Practice

Value and Risk Management......Page 6
Contents......Page 8
Foreword......Page 14
Preface......Page 16
About the Author......Page 20
Acknowledgements......Page 21
1.2 Delivering success......Page 24
1.3 Summary......Page 30
2 Principles of value management......Page 32
2.1 Essential attributes......Page 33
2.2 A brief history......Page 34
2.4 Concepts......Page 36
2.5 The family......Page 38
2.6 Value management through the project cycle......Page 40
2.7 The generic process......Page 42
2.8 Value or cost – balancing benefits and investment......Page 45
2.9 The value of time......Page 48
2.10 Quality......Page 49
2.11 Measuring value......Page 52
3 Principles of risk management......Page 56
3.1 Essential attributes......Page 57
3.2 Evolution......Page 58
3.4 Concepts......Page 60
3.5 The family......Page 63
3.7 A generic risk management process......Page 64
3.8 Risk to quality......Page 66
3.9 Measuring risk......Page 67
3.11 Time risk......Page 72
4 An integrated approach to value and risk management......Page 75
4.1 Why integrate?......Page 76
4.2 The integrated process......Page 80
4.3 Timing......Page 81
4.4 Project stages and study types......Page 84
4.5 Understanding the client\'s business......Page 89
4.6 Programmes of projects......Page 92
4.7 Project launch studies......Page 93
4.8 Summary of value and risk study types......Page 95
4.9 Critical success factors......Page 99
4.10 A framework for introducing value and risk management into an organisation......Page 100
4.11 Embedding value and risk management in an organisation......Page 104
4.12 Drawing on experience......Page 106
4.13 Selecting the appropriate level of activity......Page 109
5 People......Page 111
5.2 Collaboration versus confrontation......Page 112
5.3 Stakeholder analysis and management......Page 114
5.5 Partnering......Page 115
5.6 Communications......Page 118
5.7 The supply chain......Page 120
5.8 Selecting the study team......Page 123
5.9 The study leader......Page 126
5.11 A study structure based on logic......Page 128
5.12 Overcoming difficulties......Page 130
5.13 Using conflict to advantage......Page 133
5.14 Gaining consensus......Page 134
5.15 Developing value and risk culture......Page 135
5.16 Language......Page 137
6 Concepts, standards and  qualifications......Page 140
6.1 Understanding value and risk......Page 141
6.2 Understanding value......Page 142
6.3 Understanding risk......Page 163
6.4 Training and certification systems......Page 173
7.1 Practice in other sectors......Page 177
7.2 A value and risk approach to project development......Page 178
7.3 Soft value management......Page 184
7.4 Value management in manufacturing......Page 187
7.5 Value management for public services......Page 191
7.6 Risk and enterprise......Page 197
7.7 The impact of partnering on value and risk......Page 206
7.8 Just how mature are your organisation\'s processes?......Page 211
8 Study types......Page 216
8.2 Value management studies......Page 217
8.3 Risk management studies......Page 241
8.4 Combining value and risk reviews......Page 249
8.5 Project reviews......Page 250
8.7 The project cycle......Page 253
8.8 Building on experience......Page 254
9 Techniques for value and risk......Page 257
9.2 Preparation before a study......Page 258
9.3 Invitation to participate......Page 267
9.4 The workshop......Page 268
9.6 The wrap-up meeting......Page 273
9.7 Reporting......Page 274
9.8 Reviewing progress......Page 275
9.9 Whole-life costing......Page 277
9.10 Stakeholder analysis......Page 282
9.11 Partnering......Page 286
9.13 The Delphi technique......Page 292
10.1 Value management techniques......Page 294
10.2 Function analysis......Page 295
10.3 Function analysis system technique......Page 297
10.4 Cost/worth......Page 305
10.5 Multifunctionality......Page 307
10.6 SMART methodology......Page 308
10.7 Value drivers......Page 310
10.8 Value profiling (or value benchmarking)......Page 314
10.9 Option selection......Page 315
10.10 Weighting techniques......Page 316
10.11 Generating ideas for adding value (creative techniques)......Page 318
10.12 Selecting the best ideas (evaluation)......Page 323
10.13 Developing implementation proposals......Page 328
10.14 Scenarios......Page 329
10.15 Target costing......Page 330
10.16 Function performance specification......Page 331
11.2 Risk analysis and management......Page 334
11.3 Identifying risks......Page 337
11.4 Assessing risk......Page 342
11.5 Managing risk......Page 349
11.6 Optimism bias......Page 358
11.8 Risk breakdown structures......Page 361
11.9 Failure modes and effects analysis......Page 363
11.10 Hazard and operational studies (HAZOP)......Page 364
12.2 Briefing checklist......Page 366
12.3 Information checklist......Page 367
12.4 Study toolkit......Page 368
12.6 Recording information generated during the workshop......Page 369
12.7 Reports......Page 371
12.8 Value management categories/prompt list......Page 372
12.9 Risk identification prompt list......Page 374
12.10 Value profiling proforma......Page 377
12.13 Paired comparison proforma......Page 378
12.14 Proforma for whole-life cost estimating......Page 379
12.17 HAZOP analysis sheet......Page 380
12.18 Room layouts......Page 381
Appendix A: Bibliography......Page 385
Appendix B: Glossary......Page 388
Index......Page 399