The Value Toolkit

Driving better Social, Environmental

and Economic Outcomes

Ron Lang – Impact Director, Value

February 2021

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Overarching Aim

To drive better social, environmental and economic

outcomes through value-based decision-making.

This means better outcomes from what we deliver

and how we deliver it, leading to a more sustainable

built environment and a more sustainable model for

our industry.

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“Develop an industry wide definition of value”

“Embed ‘procure for value’ approach”

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“The principle of value beyond lowest cost is

already enshrined in Government investment policy

– through the Treasury Green Book…but its

implementation lacks consistency and there is a

gap between policy and performance.

…Our objective is to produce a practical tool which

supports a change of behaviour in the procurement

process and will lead to much greater alignment

between policy and procurement behaviour. It will

make procurement an enabler of value delivery.

…A tool should be developed which will enable

clients to make comparisons between very different

options and exercise real choice in how they spend

their money.”

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The Value Toolkit will provide a common, structured approach

to delivering on the ambitions and requirements of existing and

emerging policy and process.

It should not add additional complexity but help clients to

navigate an increasingly complex policy environment.

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“The government has launched the trial of a new

Project Scorecard to identify from the outset how

projects will contribute to government’s priority

outcomes. This will give decision-makers better

information about the extent to which different

investment options deliver their objectives”

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What is the Value Toolkit?

The Value Toolkit is a suite of tools which empowers

clients and policy makers to make more informed,

value-based decisions.

It sets out a series of integrated activities - supported

by digital tools and clear guidance – which should be

undertaken by a client over the lifecycle of a project or

programme to support value-based decision-making.

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Collaboration

Over the last 6 months, we have brought together more

than 150 experts from across the sector to build the

Value Toolkit.

We are working closely with the IPA, Government

departments, devolved nations, regional frameworks

and private sector clients to ensure the Value Toolkit is

optimised for widescale adoption.

The Value Toolkit will be launched in beta form in April.

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Currently actively engaged with: (including but not limited to)

Delivery Partners

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Core Elements:0

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Client & Market ApproachValue Definition Evaluation & Measurement

The Value Definition module facilitates

clear and consistent articulation of the

value drivers that will underpin client

decision-making.

This empowers the market to respond

with business models and solutions

focused on the creation of value rather

than minimisation of cost.

Key Steps:

• Identify Strategic Value Drivers

• Develop Outcome Statements

• Prioritise & Rationalise

• Generate Value Profile

With a Value Profile established, the

Client & Market Approach module

facilitates optimisation of delivery models

and commercial strategies to maximise

value and outcomes.

Delivery Model:

• Establish Client Profile

• Establish Risk Profile

• Identify Market Factors

Commercial Strategy:

• Develop Commercial Model

• Set Payment Structures

• Set Contract Incentives

The Evaluation and Measurement

module helps clients to develop a robust

approach to the evaluation of options and

measurement of performance to support

informed decision-making.

Key Steps:

• Develop Measurement Principles

• Select Performance Metrics

• Set Performance Targets & Constraints

• Establish Value Indices

Supporting:

• Options Comparison

• Performance Monitoring

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Need Optioneering Design Delivery Operation

Value

Definition

Client

Approach

Evaluation &

Measurement

Is there a case for

change?

What value has

been created?

Is the solution

optimised & viable?

Is there a feasible

option?

Core Elements:

Decision Support

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kValue DefinitionValue Definition Framework

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Link to pdf here.

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kValue DefinitionTranslating Policy into Action

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Project / Programme

Sphere of Influence

Organisational

Strategy

(Example)

Regional Plan

(Example)

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Three Modes of Application 0

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Applied to individual projects, the

Value Toolkit maximises the outcomes

that can be achieved by embedding

value-based decision-making across

the project lifecycle. Where applied to wider programmes of

work, the Value Toolkit drives

consistency across multiple projects

while allowing flexibility to account for

local needs and priorities. The Value Toolkit can also be used to

support strategic planning and

capability development within an

organisation, embedding and

continuously improving value-based

decision-making across a portfolio.

Projects

Programmes

Portfolios

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Project Phases

PHASE 1

Rapid development of core value

toolkit concepts / tools

Drive client demand through

government departments and large

regional frameworks

Begin to socialise concepts with

target practitioners and seek

feedback from wider market.

PHASE 2

Integration of core

concepts to form

integrated process.

Completion of beta Value

Toolkit and early

supporting framework for

learning

Increase practitioner

testing and begin

controlled deployment via

deployment team

PHASE 3

Launch beta version of toolkit and

digital ecosystem, along with

awareness training/resources

6months of controlled deployment

on live projects (free to clients) via

deployment team

Development of training regime and

marketing materials ready for

industry diffusion

PHASE 4…

Training of

practitioners/organisations to allow

industry diffusion

Industry diffusion of Value Toolkit on

wide range of projects and

programmes

Ongoing direction, development and

championing by legacy ‘body’ (TBA)

including support for practitioners

and clients and gathering of

feedback and data.

Jul ‘20 Oct ‘21Apr ’21Dec ‘20

We are

here!Beta Launch Scale Diffusion

Rollout Aligned with Construction Playbook / CLC R2R

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Phase 2 Project Structure

Management Board

Progress review, sign-off and next steps

Strategy Board

Overarching strategic direction and championing.

Representatives of Industry and Gov.

Development Team 1:

(Value Def, & Meas’mnt)

Content Development

User Testing

Training Content Support

Development Team 2:

(Client Approach)

Content Development

User Testing

Training Content Support

Industry Advisory Group Industry Advisory Group

Skills, Training &

Competency Strategy

Framework for Learning

Training Standards

Communications &

Engagement

Client Engagement

Internal Communications

Marketing Material

Media & PR

Industry Advisory Group Client Advisory Group

Project Management

Testing Team

Team of industry super-

users for controlled

testing

Integration Team

Continuous dialogue to

develop integrated

Value Toolkit process

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