I have been doing a bit of study into 'value' and have adopted a meta-triangulation approach - the adaption of components from multiple theories to develop a new or adjusted approaches.
My thinking is still very much a work in progress and I have not yet gone into much depth; I am still developing the framework/structure. Thinking so far:
- Desired Customer Outcome (DCO) the outcome the business is trying to achieve for the customer. Provides a means to provide coherency as these are the objectives of the company and the primary measurement of success. Uses Work Systems Theory and Customer Centricity approaches.
* Customer receives intrinsic value and economic value from transaction (Desired Customer Outcome [DCO])
* Business realises value through the transaction by delivering a DCO
* Executive measures realised economic value (verb) using a model such as Value Based Management which is best measured at the capability or work stream that delivers the DCO. That is we measure the outcome of delivering DCO and the costs associated with delivering the DCO
- Value is transformative, that is it means different things at different levels
* People, process and tools are used to create the 'potential for value' by creating a DCO
* Data, tools, and platform are enablers of the 'potential for value'
# Note: Tools is in both groups and is the point that has the greatest risk for the 'destruction of potential for value'
- Types of value (noun)
* Tools and People create 'intrinsic value'
* Process and Data create 'extrinsic value'
* Tools and Platform create 'instrumental value' (type of extrinsic value)
# Measure the outcome to be achieved rather than the 'economic value'.
As these are added to work streams the costs can be allocated to the 'potential for value' creation work streams.