Value as how it is defined, means something that is treasured and needed. If our own perceived value does not coincide with what the other party perceived, is it still considered as value?
Value creation at its best
Value as perceived will only be appreciated when both party sees the importance of it. It can also be viewed into two perspective:
1) The giving party sets the value and it all depends on how they sell the idea of value. It can be according to how the market is currently working and how the value supersede what is currently offered in market.
2) The receiving party already has a perceived value that is deem a need and of high importance. Only thing left is how the giving party can change its ways to meet the receiving party’s need, creating that perception that the giving party does offer good value in its things to offer.
Value management is a method to identify the best way of meeting a client’s business needs taking into account time, cost, quality and risk constraints. In business, high importance usually will be on the cost however, it all depends on how the ‘relationship’ is going to move forth if the element taken into consideration is changed. The value management process involves collaboration with the team responsible for design and delivering the project, and ideally includes end-users and other stakeholders.
The Steps
Identify
Clearly identify value for the client in terms of need, business benefits and priorities. Naturally, customer’s value would not coincide with the giving parties perceived value. This however will allow the next step of action to take place.
Options
Evaluation of options, having a set of options that the giving end perceive as value and at the end of it, lay it down to the customer (receiving end) a set of option to choose from. It is also a form of flexibility that one can portray to others – this forms part of the value engineering process. This is then followed up on selecting the options as it will be assessed in terms of their cost, risk and extent to which they contribute to satisfying the client’s business needs.
Process
This next step is crucial as it will be used to determine whether better value alternatives or solutions are available.The process represents a systematic approach to generating and evaluating options to satisfy client requirements and/or what the giving party has to offer.
All in all, value is what is set from the company. It is a tangible way of labeling the company because with value that is treasured by their receiving end, it will certainly bring benefits to the relationship that is on-going. Value does not necessarily be set by the customer, as we all understand from this article, value can be set by the company and it all depends on how one manage to make the receiving end understand what has been offered and how it can still be a solution to their problem.
With a correct process that is adopted to generate value in for the customer, value will make a relationship go a long way even IF the economy turns sour and price could always be the deciding factor for choosing a partner to work with. With an already good relationship built previously, the value add service that was offered would make a customer return and render the service again because within that value added service, things like trust has been built.
Till Then. God Speed.
(img source: yourstory.com)
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