Business value is a concept of economics and business disciplines that gives an abstract explanation of essential activities in business processes.
Today, however, BVOP has created real-world examples that add real business value to organizations and their projects. This topic is aimed at project managers, human resource managers, and product managers, but every employee in a company needs to know these modern ideas and examples.
This article explains some of the key examples of business value from BVOP’s original publication.
The company staff is understood above all as the most important resource, one of the important elements of the whole system, which is necessary for its normal functioning. People make decisions about the future strategy of the company, and they implement the strategies themselves.
The success of the strategy chosen will depend on how those decisions are implemented by the people working within the organization. People are involved in the creation of added value in the management of the company, but they can also cause great material damage to the company by making serious mistakes.
Therefore, this topic requires a special, well-thought-out approach and attention. (Even with the advent of Industry 4.0, there must be competent, specialized, and intelligent people to operate the machines, it is artificial intelligence is another topic)
Employee behavior, skills, and maturity
This value can be described as an extension of the former. It is of great importance to how many competent and reasonable people you have in the company and the relationships between them. Because the profitability of the company depends directly on the results of the employees.
Value creation in every company is based on the business processes that take place in it. Their rational organization is a decisive factor in turning them into a competitive advantage for the company.
Consumer and customer satisfaction
One of the most important values of the business simply because the satisfaction of the consumers and clients directly depends on preserving and increasing the income of the company and improving its image and reputation.
For any organization, leading or starting, the ability to see prospects in their field, to realize them, and most importantly – to compete successfully with others, is largely dependent on the implementation of change. Innovation is a necessary and indispensable condition for continued success because they make the required changes to survive the company and thus prevent instability.
The most important thing for the leader is the growth of the company through innovation. Each of them is well aware that without innovation, companies run the risk of stopping their development and losing profits in the long run.
Each company has a set of established beliefs and behaviors that allow employees to interact effectively with each other. As the effectiveness of staff work depends to a large extent.
There is a strong link between project management structure, organizational culture, and successful project management. Project managers must be able to work in several different corporate cultures. First, they need to interact with the culture of their primary organization, as well as with the subcultures of different departments. Second, they need to interact with their customers’ organizations. Finally, they need to interact with many other organizations involved in the project to varying degrees.
Project managers must understand and be able to speak the language that is accepted in the cultural environment in which they find themselves, must be able to develop strategies and plans in such a way that they are understood and accepted.
Organizational culture provokes people to be proactive, contribute, share, and be aware of the business goals of the organization.
It is important to give leeway to proactive employees because total control by the leader can ruin everything. A proactive team needs a flexible leader. To stimulate team activity, be open, ask colleagues for opinions, conduct regular brainstorming sessions, and motivate employees to be active.
Modernization and innovation.
Adopt a strategy for renewal, elimination of backwardness, the achievement of a modern level of competitiveness comparable to advanced companies, constant pace of technical development, high standard of working conditions, expanded development of human potential, respect for nature, protection of workers’ rights and others.
People in the organization show respect for each other and work productively.
Well-selected team with intelligent and competent specialists. Well formulated the goals and values of the company and well-thought-out work processes. Provided a comfortable working environment.
The number of people leaving the organization is limited to a minimum. Provided a comfortable work environment with decent pay.
Conflicts and negative environments are minimized. Creating a culture where everyone respects and works well together is the best prevention of conflict. By speaking honestly and with respect for our employees, we create an environment that encourages honesty and communication. When we are open and honest, employees are more likely to follow the example.
Much of company culture is based on how everyone interacts with one another. And if managers and CEOs respect each other and their subordinates, conflicting behavior will occur less and less.
The image of the organization is increasing.
Providing quality products or services to the customer and end-user. Ensuring stability within the organization. Good PR campaign.
Everyone in the organization is constantly improving their personal and professional skills: training and motivating employees.
Team members look for and remove obstacles without waiting for management to do so.
Attracting subordinates to work in such a way that they feel their ability and strength.
Management and team members work together to streamline processes and accelerate development time. Respecting and understanding a well-considered organizational culture.
Costs are managed and planned carefully.
Finding the most optimal approach to using resources to provide high-quality products and services and maximize profits
The tools and the environment are constantly improving.
Application of methods and philosophies for continuous improvements, such as Kaisen-Continuous Improvement, etc.
Unnecessary documents, processes, and communications are avoided. Identifying opportunities for improving processes – shortening unnecessary steps, easing workflows, redistributing responsibilities, and more.
The main causes of problems, defects, and obstacles are analyzed, tracked, and eliminated. Implementation of quality management systems, benchmarking of processes.
Quality standards are followed and implemented without significant waste of time and resources — compliance with the established requirements of a quality management system.
The fatigue is managed, and teams do not spend too much time on trivial tasks. Properly distributed workload between relevant employees with a well-defined assignment and providing the necessary material. Prioritize tasks in the correct order.
The documentation and requirements are created and maintained in an easy and convenient style so that everyone understands them easily and saves time from unnecessary discussions and misunderstandings. Concentration on only important details and description of easy-to-read language
Product development focuses on the most important goals and needs. Follow a strategic product development plan.
All product results, concepts, and versions are validated with real users and the risk of an undesired product is limited — well-developed customer and customer relationship management strategy.
Customer and customer satisfaction is steadily increasing. Create quality products or services on time, meeting all criteria and requirements.
Business value is a popular term from the economic and business sciences. BVOP transformed this idea and created a modern and practical approach for adding real business value to projects…
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The PolicyMatters.net magazine has a detailed publication on the same topic: Managing business organizations and adding business value. An Agile Manager’s Guide to the Theory of BVOP.org You definitely need to read it.
Qualities of the teams that add business value to the project
Experienced and highly qualified team. Having an experienced and highly qualified team in the organization will help add business value to the project and avoid adverse situations.
In Waterfall everything is consistent, the requirements must be clear at the beginning of the project, everything is documented, each step is planned, discussed, approved by many people. Any change in anything costs a change in documentation, budgets, deadlines. This can be quite annoying for all parties.
A team in which everyone shares a common goal supports each other and trusts each other.
It has been found that psychological safety and a sense of trust are the determining factors that distinguish successful teams from unsuccessful ones.
Organizational culture of the team. A team in which the level of “waste” is minimized. For example, switching between tasks too often, countless breaks from colleagues, unnecessary meetings or extra effort to find information, etc. This can lead to errors during project implementation, as well as non-compliance with deadlines.
Senior management actions that add business value to the project
Tracking the mood in the team and quickly resolving conflicts, eliminating things that interfere with work. Tension in the team should not be allowed, because it will affect the speed and quality of development. A pleasant and calm working environment, comfortable working conditions are always essential.
Control of the project implementation.
Careful control of how all stages of the project go, compliance with the documentation and deadlines, because most parameters of the project are pre-defined, approved, and signed – costs, budget, etc. Due to the concept of Waterfall, there is no debugging mechanism. Developers should not be wrong. To correct a mistake, the chain of stages is restarted and costs money and time.
The motivation of the team.
Motivation is always important, no matter how a project is developed using Waterfall, Scrum, Kanban, etc. A team that is interested in the result, wants to be useful to the company, is willing to make a breakthrough in the market will certainly add business value to the project.
Improving the “external” image of the organization. This will determine whether you will be perceived as a reliable partner.
An organization must constantly work on its image, must create its own unique and special image. This attracts customers to trade in goods or services and helps to compete successfully in the market. Each company has its image, which has managed to develop in the minds of consumers.
Improving the “internal” image of the organization. This is how employees see the company. The attractiveness of the company as an employer depends on the “internal” image. That is working conditions, social guarantees, internal corporate traditions, management style, competencies of the company’s employees and their professional level, social parameters, internal interaction, etc.
Organizing events where everyone gathers, including management, in an informal setting. Teambuilding, a celebration of the day based on the organization, etc. This helps to build a good team because among the factors that directly affect business value are human relationships, business-to-people relationships, fatigue management, and the absence of too many trivial tasks.