Making Value-Based Decisions: Seems Obvious, But Is It?By Barry Quart
How do you make decisions? Well, it’s a tough question to answer. Most people will say they make decisions based on what they think will deliver the best outcome.
When a business decides how to spend its money, it generally will invest in the things that will return the greatest value to the organization. Seems obvious, but is it?
It all depends on how you define “value”? Is it reduced costs? Increased revenues or financial benefits? Better products and services? Happier customers? Reduced risk of an environmental or safety incident? The answer is YES! All of these things represent value, but they do so in very different ways.
The trick to making true “Value-based Decisions” is being able to identify all of the ways an investment delivers value, and align that value with the goals of your organization. For example, a company that wants to invest for future growth, might value things differently than a company that needs to optimize performance for efficiency!
To make these decisions consistently—while also ensuring the organization is not exposed to unacceptable risk—requires a “Value Framework”. Have a look at our second video to see the continuing adventures of Coop and C55.
Our cast of characters is back to explain what a value framework is, how it is created, and how it can help you make more informed and more objective decisions that are aligned to the priorities of your organization—or in this case, the galaxy!
If you missed the first movie, where Coop discovers ISO 55000, meets his hyper-intelligent sidekick C55, and saves the galaxy from dire consequences using Asset Investment Planning & Management, view it here.