Value Management Is Not Cost Reduction
Filed under quality and run during delivery, a value study can only cut cost. Its real question — what is this element for? — has to be asked before commitment.
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Filed under quality and run during delivery, a value study can only cut cost. Its real question — what is this element for? — has to be asked before commitment.
Most organisations judge an investment when success cannot yet be known, against a forecast, by the people who made it. All three are choices.
Every strategy rests on beliefs nobody has verified. Most organisations record them once in an appendix, then never look at them again until something fails.
Every business case appraises the options. None of them appraises doing nothing — which is the only forecast in the paper that nobody is required to defend.
Optimistic forecasts are usually blamed on weak estimating. The more useful explanation is that the number was produced by the party who needed the answer to be yes.