Way towards Strategic Management for

Business Focused Mangers

Value Creation for Competitive Advantage
 Executive Summary

Document provide gist of broad framework of Value creation process thereby empowering Managers in decision process.

This documents can be used for ready reference for any further value addition in respective BAU.

Value chain in relation to Diversifications and SWOT Analysis

What to analyze ( internal and Vendors or Competitors )

Framework for Customer Experience

Process of value creation and Value Management / Organizational Project Management

Key Important points for Leaders such as Throughput accounting, constraints, bias etc

Sample Process for effective Project Management

Reference

Feedback

Keywords : Strategic, Strategy , Competitive advantage , Value Management, PMBOK, Change Agent , Change Management , Value
Creation, Customer Experience , Customer Satisfaction, CSS , IT, Program Management, PMO, Project Management Office,
Organization Structure, Value Chain, Diversification, Project Manager , Program Manager, Leaders, Constraints, Transformational
Leadership , Project Initiation, Project Planning, Project Execution, Project Monitoring and Control , Project Closure, KPIs.
 Value Chain

In order to effectively / economically utilization of Organizational Asset we need to understand PITH Core Competencies of the
Organization and the same for our Competitors.
For Remembrance: Core Competencies (PITH) leads to IPO and Market Share

Procurement / Processes Infrastructure Technology Human Resources / Hardware and others

Input Process Output Marketing and Sales & Services

Diversification : It is Corporate Strategic Action for Competitive advantages, there may be Related or un related diversification helping
corporate to create values.
Arenas Staging Vehicles Differentiators Economic Logic
Where will we be active and how What will be our speed How will we get there ? How will we win ? E.g. How will we obtain ROI? E.g Lowest cost through scale of
much emphasis ? E.g Market and sequence of E.g. Internal development Images ? , Customizations advantages?
segment, Category , Core Moves? E.g. Speed of , Joint Venture, licensing , ?, Price ? , Styling ?, Lowest costs through scope and replication advantages ?
technology and Position in Value expansion and franchising, acquisitions Product reliability ? Premium price through un matched services ?
creation stage sequence of initiatives or borrow service Creating Perceptions ? Premium price due to proprietary product features
 What to Analyze?
Few Important Points On Organization Structure and Human Resources,
which in turn help managers in Value Creation
1. Whole purpose of the Organization is to perform Coordination Function, which will fulfill the Organization Need and Individual Need so the
Org structure need to be designed keeping
Coordinated Capabilities : division of Labor
Coordinated Activities : Hierarchy, Supervision, Formal Rules Processes and Procedures.
Coordinated Goals : Decision making Authority in relate to Values
Coordinated Boundaries : Do and Dont and whom to Hire.
2. Analyzing the Structures on the basis of below points and accordingly align the changes in the coordinated functions ( this can be also used
to analyze the vendors ecosystem )
Efficiency : Are we using most economically Capital, Labor and Other Resources
Responsiveness : Satisfying the demand coming from changes in Domain, Innovation and Market?
Adaptability : Ability to innovate and to change dynamically over time to stay ahead of computation
Integrity : Org. Structure acts as a glue towards individual motivation and external demand.
3. Need to identify actual Unemployment- According to Macro Economic theory
1. Frictional unemployment results from imperfect information and the difficulties in matching qualified workers with jobs
2. Cyclical unemployment refers to unemployment that is a product of the business cycle. Based on Demand.
3. Structural employment refers to unemployment that occurs when workers are not qualified for the jobs that are available. Workers in
this case are often out of work for much longer periods of time and often require retraining.
4. It is advisable to have Corporate Cloistral Test on regular frequencies to understand health of Corporate system and accordingly suggest
recommendations basis on Organization re-structuring, Rotation plan, Merger and Acquisition , diversification etc
5. At the end review the Company Policies (SOPs) and evaluating them against the org. Culture , current org. values (on shop floor) and Ethics.
 Framework for perpetual Customer Experience and way to identify
the Impediments in achieving the same
Framework for all the
stakeholders under Value Chain ;
one can analyze the impediments
associated with department /
business and there by helping
organization in Organic Growth
through Mouth Publicity.

We must involved in Throughput analysis, which will help in

1 Requirement Development SIT UAT
(10 /day) (8 /day) (6 /day) (12 /day) optimization on resources and Improvements opportunities.
System Throughput Cost cutting Improvement (Automation , Using tools etc)
Requirement Development SIT UAT 1 6 Dev & UAT SIT
2 (10 /day) (8 /day) (6 /day) (4 /day)
2 4 Dev & SIT UAT
Requirement Development SIT UAT 3 6 NA Maintain Dev, SIT, UAT ( Ideal Case)
(6 /day) (6 /day) (6 /day) (6 /day)
3
4 6 Dev, SIT & UAT Requirements
Net Profit = Throughput Operating Expenses Return on Investment = Net Profit / Investment
Requirement Development SIT UAT
(6 /day) (7 /day) (8 /day) (9/day)
4 Productivity = Throughput / Operating Expenses Investment Turns = Throughput / Investment
 Value Creation and Linking with Project Management
Processes for E2E Implementations
Constraints ( Internal / in Our
Control )
Resources, Financials ,
Competence, infrastructure,
Processes and POLICY (SOP)
Constraints ( External
Uncertainty)
Technology , Government
Policies, changes in economy,
Market , Suppliers / Vendors
Sensemaking : function(al) analysis and can use a variety of techniques like scenario planning, soft systems analysis, gap analysis,
and others, is used to understand the situation and come to a shared agreement about
Stakeholder Analysis and their ranking
Need / Functional / benefits - Benefit Breakdown structures
CSFs Critical Success Factors and Prioritization in align with Strategic road map and Value creation.
Identifying KPIs to measure benefits / effectiveness of the CSFs
Ideation is the creative generation of alternatives that enables the process to be truly innovative best to use Design Thinking
frameworks
Osborn brainstorming technique ( Facilitate by SMEs)
Stepladder, or Nominal Group Technique ( when the is deficit of SMEs)
Elaboration , eliminate all non-viable alternatives generated during the ideation followed by combine, modify, or develop the viable alternatives
further to generate options; the third step is to compare the options between them, based on their relative alignment to the stated benefits (CSFs
and KPIs) considering the CSFs specifically identified for the change process or generic benefits such as revenue, client satisfaction, or market share.
This is the phase where Manager has to evaluate core PITH factors to implement, or achievability.
Financial factors: Capital cost, expected return delay, source of funding, using Mathematical model such as NPV, DCF etc.
Parameters and constraints: Resource availability, timeframe, project authority, etc.
People factors: Competence (skills and expertise), spread of resources, availability, etc.
Complexity factors: Innovativeness, interdependencies, clarity of objectives/scope, etc.
Decision this is the phase where OPM recommend the alternative and Sponsors evaluates the associated values and take
decisions. is the action of selecting/prioritizing the best options, in regards to the critical success factors.
Mastery this is the phase where PM Process utilized, Initiation, Planning, Execution, Monitoring and Control and Closure. Where CSFs
and KPIs measure for progressive elaboration through In-house / Diversification / BBB Modal Build , Borrow or Buy
Governance and Change management
Gateways for approval of deliverables
Regular reviews of stakeholders needs and expectations along with EVA Analysis.
Value criteria (CSFs and KPIs) are to be the basis for change requests evaluation;
Details of the PMBOK Processes are mentioned in the supporting slides
 Key Important Points

Resource Commitments Motivational Formula Leadership Take Care of Bias

Continuance Commitments Vroom's expectancy theory works Transformational Self Interested
Affective Commitments
Normative Commitments on perceptions and once contribution towards the Leadership plays a vital
Outcome. Affect Heuristic
Selection of Resources : F= V * E* I
role in creating values
- Analyze Capability, Capacity, Group thinking
Responsibility and Reliability and the most F= Force, V= Strength of Desire (Valence), E= Effort
important is their values must match with (Expectancy), I=Instrumentality Qualities : Humility, Saliency*
Org. Values e.g. B- Business , I- Investment Will performing this act or task achieve a desired Will, Energy, Vision, Confirmation *
, S- Self Employed , E-Employee , so if you outcome?
are looking for Marketing personal prefer If I put in effort, can I expect to perform at the Perspectives, passion, Availability *
to select resources having mindset of Convection and Learning Anchoring *
required task?
Business / Self Employed.
Can I except the outcome will be available and Helo *
Emotional Intelligence : forthcoming?
Assessing Network : Cost Fallacy
Surface Acting: Hiding once inner Key Important Terms Yours -- Seniors endowment effect
Assign - Capable and Responsible Yours -- Peers
feelings and results in Conflict
Delegate Authority + Responsibility ( Yours -- Juniors * Majorly available
emotions, cause of Stress
Functional And Or Ultimate) Yours -- Customers
Deep Acting: Trying to modify Empowerment - Delegation + Motivation Yours -- Previous Org.
true inner feeling + Skill + Buffer of failure Your -- Vendors
Yours -- Family
Project Initiation
Start
Formal
Agreement
exists?
Y Invitation for Reviewing RFP / Creation of Cost Analysis and
Requirement and create Project MIS Templates Kickoff Email / Meeting
Initiate Project Code creation (CRM) and discussion on
under CRM Tools
And Check for RSVP Creation of Governance and Dependencies and take
Communication Plan Buy-in from
Select Project Manager and Business
Analyst Stakeholders (Internal
and External)
Project Definition Phase DMs and TMs to Verify and Sign-
Scrutinize Documents / RFP for off on Schedule
verifying the Requirements Brainstorming and Categorization of Stop
Issues and park aside the list which
is not related to project. Creation of Schedule
Stakeholder Verification Determine project Purpose and
Mission
Determine Objective and Key Program Mgr.
Create RFP/ Project Charter Performance Measures DMs to share the availability of
resources by considering Leave pan PM
Project Approaches
and Rotation Plan, based on the Effort
Elaborate Scope / overall Project Purpose Determine the Deliverable BAs, DMS
estimation identified during definition
Breakdown Structure - DBS
phase,
Priority of the Project relative to others in Establish scope, assumptions, Finance
Note: - All dependencies has to be
Org. Values constraints and limiting criteria
captured in BRD, There Should not be
Determine result milestones and DMs
any dependencies pending with
Extend of project Manager Authority initial time estimates
Stakeholders. e.g Sample Data File , Customer
Determine the responsible entities
Formats
Important dates and estimated Project and project responsibilities
Freeze all dependencies in actuals
Durations and their stakeholders ( Internal /
Externals) UPC Unique Project Code /
Perform Project Risk Analysis Create UPC
What Benefits the project bring to the Approved Budget
Organization Critical Success Factors and Effort Estimation
WBS - Work Breakdown
KPIs Structure
Initiate UPC creation
by Sharing the EE
Any other resource limitations / Build Review and final approval on DOU / Identified in
Borrow Buy Options to workout RFP / Project. Definition Phase
Project Planning
Start Respective DMs to share TM against the
Activities (WBS), based on the Skill and
Rotation Plan as discussed during the Carrier
Planning meeting (Appraisal)
Review Respective DMs should have additional Buffer
Select life Plan for
Estimate Size Resources to accommodate the Leave Plans;
cycle model Resources
& Effort Those Buffer resources will not be part of RC
Identify Tailoring, Deviation, Critical sub processes, and can be utilize for any activities
Metrics and Project specific goal Coding
Tailoring / Deviation on Training Impartment
Milestones Process / Template/ Product Setup for Demonstration
Plan for DR Revisit Risks
Deliverables Compliance Requirements Peer reviews
In case TM went for On-site UAT
DO Cash Flow Analysis Support
Etc.
Determine Control mechanisms, MIS and KPIs
Approval
Perform Time
Analysis Program mgr PMs Audit DMs

Detailed WBS in WBS - Work Breakdown Structure

PPI Checklist
MPP PPI Project Planning Index

SCMP Software Configuration Management Plan

Review Project
Review Plan documents
Prepare Project Dashboard,
MOM Minutes of Meeting

PAL / CM tool Process Asset Library

Conduct Project Kick Off
meeting MPP - Microsoft Project Plan
Prepare MOM & publish Plan Review
to all stakeholders Checklist

Update Project Review & Approval Stop

documents in Digite
Project Monitoring & Control

Monitor and maintain

Project Plans

Digite
Risk Management Critical Path Issue tracker Dependencies
Contractual Commitment Tracker Resource Tracker
Worksheet Milestone Test Strategy
Dependency Dependency tracker
Scope tracker

Earned Value reports

RAG and schedule, Cost
reports, activity PM
DM SM
progress report, KPIs ,
PSR PMR Progress Report and WBS - Work Breakdown Structure
Performance Analysis PMP Project Management Plan
RAG Red, Amber, Green
PSR Project Status Report
Customer Status Report Revise baseline if required
PMR- Project Management Review

Steering Committee meeting

 Measuring KPIs at Phase End
End of Phase - Milestone Analysis Report
Schedule End of Req End of Design End of Coding End of SIT End of UAT
Planned Start Date (A)
Actual Start Date(B)
Planned Finished Date
Actual Finished Date(D)
Schedule variance =((D-C)/(C-A))%
Duration Variance =(((D-B)-(C-A))/(C-A))%

Planned Project End Date

New Estimated End Date
Estimate Schedule Variance at Completion
Size
Initial Estimated Size (FP / LOC)
Size at End of Phase (FP/ LOC)
Requirement Stability
Effort(in Person Months)
Planned Effort for this Phase(PM) as Baseline
Planned Effort for this Phase(PM)
Actual Effort for this Phase
Engineering Effort
PM+ CM
Training
Phase wise effort Deviation
Allocated Effort of the Resources

Planned effort till this Phase

Actual effort till this Phase
Effort Variance till this Phase
Allocated effort till this Phase
Defects
Estimated # of defects Injected in this Phase
Actual NO. of Defects Dected in this Phase
Defect Attributed to Req
Defect Attributed to Design
Defect Attributed to Coding
DIR/Effort: Defect attributed to this Phase
Re-Estimates for the Projects
Total re-estimated effort from this milestone to completion
Total allocated ( available) effort from this milestone to completion
Difference(Surplus/Shortfall of Effort in PM)
Estimated Total effort at Project completion
Planned Project effort( Baseline)
Effort Variance(Projected) at Project Completion
Estimated Project Size(FP) at start of Phase
New Estimated Project Size(FP) i.e. After Change Requests
Size Variance( Within Phase)
Execute a Program
Start

Prepare BRD Register the Program

Program /Project Initiation
Conduct Project Kick Off Meeting

Program / Project Planning Digite Schedule and Project Dashboard

N Program/Project
Manager (DMs,SM)
Project Y Multiple Stakeholder
Program /Project Monitoring & Program/Project Management
Documents Involvement
Control Review
completed?
Program/Project
Manager ( PM ,
BRD Requirement Documents / DMs,SM)
Scope
SCM Software Configuration Management
RMW At Program / Project level
Risk at Program Schedule WBS - Work Breakdown Structure
Level Issue tracker PMR - Project Management Review
Dependency tracker RMW Risks management Worksheet
Scope tracker
DIT Development Integration Testing
Resource tracker
SIT System Integration Testing
Program/ Project UAT User Acceptance Testing
( Development ) DIT of the identified Projects
Execution
Closure Report (CCB)
Program brief Archival Requirements
UAT Production Key learning
SIT Program Closure Stop
Support Testing Details
Risk details Resource status
Digite SCM
Project Closure Start

N
Customer
Acceptance?

Valid Inference with three things in mind.

Best practices to continue with.
Y What not to do.
Project Closure What to stop doing.
There is need to rephrase the CSS to cover
effectiveness rather then focusing on Efficient
Processes.
Review Performance Criteria

Release resources

Contractual aspects and final

accounting

Complete all documentations

Project Success has to be
Measured; by Measuring the Post Implementation Review
Business benefits (effectiveness)
rather than measuring the KPIs.
Whereas KPIs measure only How DGMs PM DM
CCB Review PAL Process Assets Library
Efficient the Processes are.
PCB Process Capability Baselines
PEG Process Excellence Group
Conduct Project Closure
Meeting MOM Minutes of Meeting

Digite
PAL Project artifacts to PAL(BRD, EE, Publish
Release H/W, MOM
Schedule , Test results , Release Close UPC
S/W, Resource
Notes , Sign off etc.)

PCB
Stop
Measuring KPIs at Project End
Project Closure - Milestone Analysis Report
Schedule End of Project
Project Planned Start Date (A)
Project Actual Start Date(B)
Project Planned Finished Date
Project Actual Finished Date(D)
Project Schedule variance =((D-C)/(C-A))%
Project Duration Variance =(((D-B)-(C-A))/(C-A))%
Size
Initial Estimated Size (FP / LOC)
Final Size(FP/ LOC)
Size Variance
Effort(in Person Months)
Total Planned Effort for the Project
Total Actual Effort for the Project
Effort Variance
Actual COQ Effort %
Cost of Prevention(%)
Cost of Appraisal(%)
Cost of Failure(%)
Actual Phase wise effort Distribution
Requirement Effort %(of Total)
Design Effort%(of Total)
CUT Effort %(of Total)
SIT Effort %(of Total)
AT Effort %(of Total)
PM+ CM% (of Total)
Training %(of Total)
Defects
Defect Distribution(Of Total Defect)
Defect attributed to Requirements %
Defect attributed to Design%
Defect attributed to CUT %
Defect Leaked
Defect Leak in Requirement
Defect Leak in Design
Defect leak in CUT
Defect Density by Effort
Overall defect density (total Defect / Effort)
Defect Density by Size
Overall defect density (total Defect /Size)
Productivity
Delivered FP/ Actual Effort (Person Month)
Delivered FP/Actual Effort (Person Month)
 References

https://www.pmi.org/learning/library/strategic-value-management-business-benefits-8699

https://en.wikipedia.org/wiki/Value_chain

https://hbr.org/2008/07/putting-the-service-profit-chain-to-work

https://hbr.org/2010/06/change-for-changes-sake
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Dated : 24-July-2017