The importance of making decisions based on value
It does not matter what you do or work with - if you are a professional soccer player, area manager of an manufacturing business or are the CEO of a Fortune 500 - focus on value will always be of major importance and in order to focus on value the right prioritization needs to be made.
A soccer player will have the option to pass the ball to a team mate or advance through the field with the ball him or herself, the area manager needs to evaluate which projects to run, which segments to focus on and what products to take to market and a CEO needs to decide on strategic direction. All are faced with options and these options need to be prioritized and decisions have to be made...
Delivering the ball to the team mate can be the difference between World Cup gold or not, picking projects without knowing connection to value can have a significant impact on the area and making wrong decisions in regards to strategic direction can brake an organization.
Our everyday is filled with situations where prioritization has to be made - to make these decisions with a focus on value is in many occasions of vital importance. Although we might think that every decision we take has a value based approach behind it. many decisions today are often based on gut feel or loudest voice (from someone that does not have the value hat on).
From a IBM Rational perspective I can see the importance to have a value hat on and making the correct decisions around software delivery. This does not start with a prioritization exercise, this starts much earlier then that - with the customer and innovation phase. Thoughts and ideas from stakeholders needs to be collected handled and structured, it needs to be brought into the process to be communicated and controlled....but in this process before a project is initiated and the software delivery process is initiated a decision has to be made on which project, which idea, which activity, which product the organization should deliver and this brings us back to the importance of value based prioritization or decision making.
I would love to know your thoughts on this. Should we put this much focus on value? Or is it a waste of time? Leave your comments below!
About the authorJohan Hedström is a Business Planning & Alignment (PPM/EA) GTM market manager in IBM Rational software. Johan has several years of experience working in collaboration with customers and partners around projects relating to portfolio management and product management. He also holds a masters degree in marketing and if you need to reach him it will have to be in Sweden where he lives but can of course also be reached at e-mail: joha