ČSN EN 1325 - Hodnotový management - Slovník - Termíny a definice

2.1.1 value

measure which expresses how well an organization, project, or product satisfies stakeholders’ needs in relation to the resources consumed

Note 1 to entry: Value informs assessment (or judgement) of solutions: it is an index of relevance, constituting a decision-making support. The concept is relevant to all possible scenarios and can also include a decrease of negative impacts with constant services, through an increase of services, innovative approaches, and integrating an increase in the services with the reduction of negative impacts.

Note 2 to entry: Value is relevant for any type of object: tangible or non tangible product, service, process, organization.

Note 3 to entry: All the combinations of increase / reduction of the provided services and the consumed resources are possible, subject to yielding an improvement of the general result. An approach of « cost reduction » does not improve value when it entails a reduction of the provided services which is not controlled or an increase of the negative consequences.

Note 4 to entry: Satisfaction of need can be assessed only with regard to reference functions which define the supposed needs or provided services and constraints to be met. This logic fundamentally distinguishes the value management approach from any other approach of optimisation, design or more generally of problem solving.

Note 5 to entry: According to the subject of the project, it is relevant to consider satisfaction (or contributions) from a point of view wider than the reference functions defining the provided services, and being possibly linked to:

— positive effects for the environment, social, or broader economy;

— gains and advantages for the parties involved in the project;

— uncertainties as to what benefits, foreseen or not (upside potential) may be required or achieved; and

— uncertainties in the balance of risks and opportunities.

Note 6 to entry: According to the subject of the project, such as where the environment comprises human beings the notion of “consumption of resources”, due to its more general meaning, can bring a relevant way to evaluate a proposal. It is possible to consider, as for the perceived advantages, the consequences from more global points of view and from various timescales, comprising:

— the consequences on the environment of the subject or of the stakeholders (economic, social, ecological consequences, etc.);

— the identification and the assessment of the resources at stake to cover risks and opportunities associated with choices (market scenario risks and opportunities, possibilities and constraints of the fulfilment of the requirements, project risks and opportunities, risks and opportunities of evolutions of the environment, even of the needs, etc.);

— the uncertainties as to resources which may be consumed, constrained, or present, foreseen or not, balancing upside potential and risk;

— uncertainties in balance of risks and opportunities.

Note 7 to entry: When making an assessment of value some organizations may examine the global perspective as well as the organizational perspective. This implies that, in addition to stakeholders need and consumption of resources, positive and negative impacts beyond the interests of the stakeholders should be considered.