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Improving Value Focus Amidst Uncertainty
Challenge #1 – Lack of Transparency
- Setting priorities involves complicated evaluation
- How do we define ‘Value’?
- What variables and assumptions are part of the evaluation?
Action #1 – Make the Hidden Visible
- Build a mind map construct to visualize the key drivers to achieve strategic goals
- Identify the key drivers to use in the prioritization model
- Weight how important each criteria is relative to the others
Result #1 – Alignment & Transparency
- Aligned organization
- Clarity of focus
- Empowered teams
- Ability to ‘tune the dials’ as conditions change
Challenge #2 – Hyper-focus on the Result
- Initiatives labeled with the result from the business case (i.e. the “$10M new revenue” project)
- Leaders focused on schedule and cost (i.e. We need to launch by July 1!)
Action #2 – Focus on Value Variability
- Shift the POV to focus more on the value drivers
- Test key assumptions / hypotheses early and often
Result #2 – Stop Doing the Wrong Thing Sooner
- Learn quickly when the “$10M net new revenue” project is actually the “$2M net new revenue” project
- Learn quickly when cost to deliver grows to a point where a different option should be pursued
Challenge #3 – Certainty Bias
- “We know what is needed”
- Executing “the plan”
- We don’t know what we don’t know
Action #3 – Frequently Vet Assumptions
- Where are your assumptions most likely to shift?
- Ensure execution includes ‘early and often’ check of assumptions to minimize end result variability
Result #3 – Improved Value Delivery
- Ability to optimize focus
- Evaluate and pivot to work on the most valuable options