Methods and concepts for Value Based Management (VBM)
The Value Mapping method by Andrew Jack is a second generation performance management model trying to avoid some of the weaknesses of existing frameworks.
As a result of the performance measurement revolution many organizations have numerous measures of performance but often with significant weaknesses in the way that these measures are identified, integrated, communicated and acted upon.
First generation performance measurement frameworks have partly contributed to this as none of the approaches addresses the full range of criteria important for performance measurement success. Users of these frameworks often become model bound and loose sight of the measures that are most important for the organization and the associated stakeholders.
Couched in the language of value and using visual pictorial maps to integrate and represent the most useful performance measures, Value Mapping can help to overcome management and employee disenfranchisement with performance measures and performance management.
As well as identifying the most important stakeholder needs and using these to inform measures of value outcomes as well as the development of integrated strategy, the Value Mapping approach places great emphasis on the effective communication of the activities and assets that create value, the value drivers, and the measures of their performance. There is a great need for organizations, public and private, to report more effectively on the creation of value for their stakeholders. Value Mapping is an approach that can drive and help structure the reporting of value to all those with an interest in the success of the organization.