It’s impossible to measure the financial value of all HR focused projects.While there may be exceptions like reducing annual leave liability or reducing insurance premiums, overall HR projects fail to have a real dollar benefit associated to them. Often this means that the HR projects are approved because decision makers intuitively feel that there will be benefits but they do not believe in actual business case.Instead of using intuition to approve HR projects you can you Value Driver Modelling (VDM) to assess the real financial benefit of a project. Using a VDM-based tool, like the Value-Driver Psychological Assessment Tool (VD-PAT), you can specifically assess which parts of the project are going to affect which areas of the organisation and so in turn make an assessment as to the financial improvement possible from the project.

• How To Create Value Statement

Not only does this allow you to assess the value of the project by its self, but you can also assess the value across a whole portfolio of interrelated projects The diagram below provides an overview of how information flows into and through the VD-PAT:Organisational inputs provide the information required to understand how an organisation currently operates.Inputs are collected from surveys, interviews, observations and enterprise data. The inputs may be for a single point in time or could be collected regularly over a period of time to track changes. Inputs may be collected for a specific team or unit within the organisation. Inputs may also be collected for certain aspect of an organisation, for example, job characteristics only. Organisational Improvements are the improvements made to specific psychological factors within the organisation as part of a HR project.An improvement may impact one or more psychological factors. It’s then possible to follow the impact that these changes have on organisation through empirically proven correlations and relationships.

There are two external inputs that provide information to the tool. Peer organisational data is used to compare organisational performance as well as provide information for further research.

Research from peer-reviewed, empirical studies is used to find the inter-relationships between different organisational psychological factors. This informs the development of the Value Driver Model, which in turn drives the formation of the Value Driver Engine.Within the tool there are three main modules of processes that take inputs and transform them into valuable outputs. Consolidation is the module that takes raw data and transforms it into information that can be feed into the Value Driver Engine. This ensures that the outputs are meaningful and accurate. The Value Driver Model is the framework of causal relationships and correlations that determine how organisations actually function.

The Value Driver Engine is the powerhouse of the tool that combines the input information with the Value Driver Model to produce valuable outputs.There are 5 valuable outputs from the VD-PAT. InsightInsight is the culmination of the value available through all the outputs of the tool. Specifically, insight takes the current state of the organisation and identifies a portfolio of improvements and strategies that match the organisation’s need. Additionally, it also produces a thorough business case based on the costs of implementation and the resulting benefits expected from the change.

A decision tree is an approach to predictive analysis that can help you make decisions. Suppose, for example, that you need to decide whether to invest a certain amount of money in one of three business projects: a food-truck business, a restaurant, or a bookstore. A business analyst has worked out the rate of failure.

BenchmarksThe engine can benchmark the relative performance of the organisation against peers in the same sector or geography, or compare them against the entire population of data available to the tool. DiagnosticsResults can be used to define the nature of the organisation allowing decision-makers to understand the main factors currently contributing or detracting from the organisation’s performance. Results can also be used to compare different organisational units to understand what contextual or psychological factors are impacting their relative performance. Lastly, results can be used to reinforce or dismiss anecdotal theories describing what is affecting the organisation’s performance. Benefits TrackingWhen a change has occurred in an organisation to improve its performance, the resulting change can be compared to baseline figures as well as tracked overtime. This can provide evidence as to the success of the improvement, or act as an early warning that additional intervention is required to ensure that the improvement meets its expected improvement goals.

ValueUltimately, the purpose of the tool is to equip decision-makers with the information and insight they require to improve how the organisation performs. Try it yourselfI’ve built a very limited prototype of the VD-PAT based on. You can download a copy of the prototype in Excel.The first spreadsheet (1. Research) provides you with an overview of the Job Characteristics Model (JCM), which sets the structure for the second spreadsheet (2. The model transforms the JCM into a VDM. The third spreadsheet (3.

Survey) provides some external input data for our model while the fourth spreadsheet (4. Consolidation) takes the results and make them readable to the 5. This engine calculates the results from the survey so we can see how satisfaction, growth satisfaction, and motivation are affected. The spreadsheet ‘7. Benchmark’ combines the peer organisation data from ‘6.

Peer Organisation Data’ to allow you to benchmark your own performance.To follow the process from start to finish, start with Research spreadsheet. Note that the collective relationships are carried across to the Model spreadsheet. Next the Survey collects key information from the participant (this can be aggregated to be more than one person). Next the survey data is combined into a structure that can be read by the VD-PAT on spreadsheet Consolidation (this is generally a more important step for when you’re not using excel). Then Engine combines the survey results with the framework of the JBC theory to tell us what benefits we’d expect to receive.

How To Create Value Statement

This information can then either be benchmarked against other organisations or can be used to value, in terms of dollars, the likely benefit ( Intervention). My previous posts have discussed the.

The purpose of this post is to explore a practical implementation of VDM through a value calculator.I’ve seen the introduction of value calculators transform the way organisation’s think, plan, track and report on the benefits of their projects. One of the clearest examples I’ve been involved in was developing a value calculator to model the benefits of combining two coal mines located next to each other.The challenge facing the owner of these two coal mines was how do they decide if they should combine two multi billion dollar mines based on the potential value of 74 different but interrelated benefits. To provide certainty for the owner all the different benefits were explicitly mapped through a. These relationships were then combined with the 74 benefits, modeled through a sequence of value driver trees resulting in a report that showed which benefits best worked in combination with each other, what the different permutations of options were and did it all without double counting interrelated benefits. In this particular project, we identified $1.4 billion dollars in profit over 20 years.While I have seen this tool be useful in the mining’s operations, I’ve also seen it used successfully in other sectors like retail and other functions like procurement. I’m currently developing a VDM tool based on elements of organisational psychology to value the benefits of human capital investments – an area that has when building robust business cases for change.

What is a value calculator?A value calculator is a tool that uses VDTs to dynamically calculate the benefits arising from improvements. A value calculator is the tool that allows VDM to be used across all stages of the benefits realisation process. It is particularly useful during when quantifying and prioritising benefits. Early in my career as a management consultant, a colleague and I were working on a project for a large gold mining company.

The mine had more improvement opportunities than they had funding for and so wanted to ensure that they spent their limited capital on the best possible combination of opportunities. They needed four months worth of modelling completed in two weeks to meet budget deadlines. So, we locked ourselves away in tiny, windowless room with a steady supply of coffee and ingenuity and two weeks later we had created two value calculators identifying 35 million tonnes in increased productivity.I’ve taken what I learnt from that project, and many like it, to identify 15 principles that allow you to successfully use value driver modelling and avoid many of the pitfalls that can derail a project.These principles group into three broad categories:. Building a model. Using correct logic. Working with dataBuilding a model 1.

Prioritise the model’s featuresOften on a project you will have more requirements expected of you than time to deliver them. Prioritisation will help ensure that the most important features are completed within time and budget. It also allows you to understand the broader purpose of the model and not get distracted by minor problems or features.There are many ways to prioritise a model’s requirements. I’ve used the matrix below which is based on the factors of “importance” and “ease of implementation”. An alternative approach is the. This is particularly useful if you have a client who has a clear understanding of what they want.2. Model in a single directionTo avoid confusion, VDT elements should only exchange inputs and outputs from with other elements of the same level or one level above. This ensures simplicity and reduces any unforeseen interactions between entities. To illustrate why this is important, picture a factory making widgets. The manufacturing process moves forward from delivery of raw resources, processing, manufacturing, packaging and delivery. The creation of value (in this case, the widgets) goes from one stage to another; widgets never go ‘back’ through the process.3.

Build and test a prototype model as soon as possibleIt’s rare to have a model perfectly and completely documented at the start of a project. Additionally, you may have a client who doesn’t really know what they want until they see and use it. To avoid spending time and money developing a completely polished product that the client does not want, instead produce a working prototype as soon as possible. This will quickly highlight the actual requirements for the model and allow you to focus your efforts for the rest of the project.

Even if the entire prototype is discarded, so long as it contributes towards progressing the project, it was still worth producing.4. Develop the model as a series of interrelated modulesOverly complicated models are difficult to troubleshoot which creates the risk of inaccurate or unpredictable outputs. It also becomes difficult to expand if new features need to be added. It’s best to design the model into modules that can be developed and tested independently. It also allows you to reuse similar modules for other models that require similar features.5. Structure the model flexibly so that it is responsive to changeA potential risk with models is that they become quickly out-dated because of changes over time. If the model’s context is likely to change, identify those sections most at risk, and spend additional time building in flexibility.

Typically changes that you will need to anticipate include expanding the scope and number of inputs (e.g a new call centre is added), create in new inputs and outputs (the model is expanded to include ‘delivery activities’ for a factory) and new data is updated (e.g a new set of cost figures). Use assumptions to ensure the model is both deliverable and usefulNot all of a client’s operations can be understood to the level of detail required to model it. However, often complex issues can be resolved through making reasonable assumptions. For example, does the model need to output daily figures, or can results be aggregated by month.When making assumptions, there are some key issues you should consider:. Has the client and/or the subject matter expert signed off on the assumptions?. Are the assumptions clearly recorded along with their value and rationale?.

Find SMAP discography, albums and singles on AllMusic. Formed in 1988 by a pool of backup dancers for Hikari Genji (himself a J-Pop star), SMAP (Sports Music Assemble People) was the product of the massively successful Johnny's Music Factory, which specialized. Free rar downloads. SMAP is a Japanese boy band formed by Johnny & Associates. The group's name is an acronym standing for Sports Music Assemble People. I could never find a complete SMAP discography with romaji names anywhere so I decided to make one. Because Im a perfectionist and I want all my music in iTunes to have both romaji and kanji names. And I thought Id share this in case there is someone similar. ^^ The links lead to. The discography of Japanese boy band SMAP consists of 21 studio albums, 5 compilation albums, 23 video albums, and numerous singles. Sports Music Assemble People, abbreviated as SMAP, was formed in 1988 by a group of backup dancers for the boy band Hikaru Genji of Johnny & Associates. The band's initial releases performed poorly on the charts, but the following ones started gaining attention.

Do you understand how the assumptions impact the model’s output?7. Elicit clear requirements for specific end users‘Use cases’ are an intuitive way of working out exactly what a model needs to do. Use cases like the example below explains the relationship between a user, their requirement and the resulting benefits from using your model.Using correct logic 8. Use well conditioned formulasA model could be poorly designed such that its outputs were very sensitive to small changes to its inputs. For example, the diagram below for widgets calculates the Widget Conversion Rate by subtracting the Statistical Rate from the Historical Rate. However, a 1% change in the historical rate drives a dramatic increase in Hourly Widget Production. This is called ill-conditioning and there is no automatic way of detecting the problem nor is there an obvious solution. However, thorough testing should highlight the problem. Then using an assumption, for this example, changing widget conversion rate to a static value may solve the issue.9. Ensure rounding is consistentThe prevailing level of accuracy is limited by your least accurate result. This means that despite having value drivers with various decimals, the highest level of rounding is the most accurate. For example, the widget conversion rate inherits the level of rounding from the historical rate. In turn, the hourly widget production value driver, inherits the level of rounding from sheet productivity.10.

Select the appropriate method for modelling the distribution of your inputsThere are different ways of modelling an organisation’s variability. Simple value driver models use a conventional approach by using averages.

More sophisticated models can use statistical methods to simulate the changes in productivity that real organisation’s face. Additionally, these advanced models can simulate the dependencies between value drivers highlighting the inter-relationship between key parts of the organisation.11. Avoid feedback loopsAvoid inputs that become their own outputs. While this example below is overly obvious, in more complicated models it important to know how your inputs are being calculated and if those assumptions impact the accuracy of your results.Working with dataThis final section deals with a series of universal truths concerning the data you use in your models. You cannot get all the data you needYou can never get all of the data you need. A complete set of the data you require for project will not exist. And the data you do received will most likely have been collected for purpose extraneous to your own. However, you can use the principles we’ve already discussed like use cases, assumptions and prioritisation to overcome this issue.

You cannot use all the data you haveDespite not being able to get all the data you need, you may be overloaded by the data you do have. Picking the information you use is very important, as it will form your model’s point of view. Information from different sources at best will be slightly different, at worse will be contradictory. Ensure that you understand the limitations and assumptions behind your data to ensure that it matches the reasons for you to use it. Lastly, when dealing with massive data sets, you can improve the performance of your model by only loading the data that you need. However, ensure that the model is flexible enough to broaden the scope of the data in case requirements change. You will need to produce your own dataYou always have to develop some of your own data. Not all the data required to build the model will exist in a system already. You will need to work with the client, key stakeholders, subject matter experts. You may even need to go out into the field to ensure that information that is critical to the model is collected accurately and completely.

Hi Nadia,Thank you for posting in Microsoft Community.As far as I know there is no add-in from Microsoft for creating value Driver tree.You may use your favorite search engine and try to search for the add-ins to create driver tree in Excel.If you are looking for graphical presentation in hierarchy manner then you may use smart art graphics in Excel. Refer the link mentioned below to insert SmartArt in Excel:I hope the above suggestions helps to resolve your issue. If you need any further assistance reply and we will be glad to assist you.Thanks.