PRINCE2 Value Management Guide, Trainings and Certifications

PRINCE2 Value Management (formerly Management of Value - MoV®) is all about maximizing value in line with the programme and project objectives and key stakeholders requirements.

PRINCE2 Value Management gives universally applicable guidance to enhance and maximize value for organizations, taking account of, and reconciling, differing stakeholder priorities, their wants and their needs, organizational priorities, and the optimum use of resources. In short, it provides the means for delivering the best value for money possible, within the constraints of the environment within which the organization is operating.

PRINCE2 Value Management joins the PRINCE2 Best Management Practice suite of guides aimed at improving performance for those involved in managing portfolios, programmes and projects in the public and private sectors, known as the PPM (Portfolio, Programme and Project Management) guides. It is equally relevant to improving operational efficiencies.

The Context and History of PRINCE2 Value Management

When delivering projects, whether as part of a wider programme or stand alone, the key objective is to ensure that the expected outputs are delivered in full and realization of expected benefits is achieved. However, this cannot be allowed to occur at any cost. The resources needed to deliver the project outputs have to be used as efficiently as possible. This is an expectation for all types of project, whether those are in public or private sector. At the programme level, the overall strategic outcome needs to be delivered most effectively within an acceptable timeframe. Similarly at the portfolio level, it is essential that an organization is able to express its priorities in terms of what will add most value to the organization, so that the programmes and projects can be aligned to deliver according to these priorities. These demands essentially translate into having the ability to deliver value for money at all levels.

This is where value management plays a critical role in facilitating organizational survival and growth – by better coordinating investment (of resources) in programmes and projects, improving the management of risk, encouraging collaborative working and by providing accurate, timely information that enhances management decision-making.

MoV brings together a set of principles, processes and techniques to enhance and deliver best value for businesses and end users alike. Ernest Shackleton once said ‘Superhuman effort isn’t worth a damn unless it achieves results.’ With this in mind, it is important to distinguish between wants and needs. One must be clear of the results one need as opposed to those one only want. It must be ensured that energy is expanded on the needful and not on the wish list. Only then will we truly derive the best value for the resources expended.

The first MoV guide was published in 2010 and was primarily aimed at senior executives and decision makers. The current version of MoV Guide published in 2015 has since become a widely accepted guidance for implementing Value Management within public and private sectors successfully and is aimed at:

• Management and staff in an organization wishing to acquire an understanding of MoV, whether MoV is already embedded in their organization or not.
• The PPM community, for whom the guide is aimed at those involved in directing, managing, supporting and delivering portfolios, programmes and projects. This includes senior management, programme managers, project managers, change managers and Project and Programme Office staff and their sponsors.
• Those who apply the methods in other PPM guides to build on and enhance the activities to maximise value and delivery of benefits.

PRINCE2 got elevated as a brand in 2024 by PeopleCert and PRINCE2 Value Management is the new name of Management of Value (MoV).

What is Value?

• PRINCE2 Value Management defines value as:
  • The benefits delivered in proportion to the resources put into acquiring them.

The Management of Value (MoV) Handbook

• The MoV® Study Guide (2015 Edition)
  • Defines full content of PRINCE2 Value Management
  • Is definitive source for all PRINCE2 Value Management exams
  • Supports training and exams
  • Can be used only in Practitioner exam (open book exam)
• Structure of the handbook:
  • 7 Chapters
  • 4 Appendix
  • 153 Pages

PRINCE2 Value Management and PRINCE2 Portfolio Management

• Both address the concern of how to:
  • do the ‘right’ projects, in programmes, in the context of organization’s strategic objectives.
  • do the projects and programmes ‘correctly’ in terms of achieving delivery and benefits at a collective level
• PRINCE2 Portfolio Management encompasses consideration of the principles upon which effective portfolio management is based:
  • The key practices in the portfolio definition and delivery cycles
  • Guidance on how to implement portfolio management
  • Sustained progress in a wide variety of organizations
• PRINCE2 Value Management provide a means to articulate and organization’s value priorities to inform decision-making. It also informs the development of strategy.

PRINCE2 Value Management and PRINCE2 Programme Management

• PRINCE2 Programme Management provides a framework to enable the achievement of high-quality change outcomes and benefits that fundamentally affect the way that organizations work.
• One of the core themes of PRINCE2 Programme Management is that a programme must add more value than that provided by the sum of its constituent projects and major activities.
• PRINCE2 Value Management enhances the methods available under MSP to add value across all constituent projects in the programme, so that higher performance is achieved.

PRINCE2 Value Management and PRINCE2 Project Management

• PRINCE2 Project Management is a structured methods to help effective project management via clearly defined products.
• Key themes that feature throughout PRINCE2 Project Management are:
  • the need to deliver measurable benefits that are aligned to an organization’s objectives and strategy
  • the management of cost, and quality.
• PRINCE2 Value Management offers proven methods of maximizing the benefits, maintaining or enhancing quality whilst minimising unnecessary cost.
• PRINCE2 Value Management compliments PRINCE2 Project Management in that while PRINCE2 Project Management focuses on definition and delivery of products, PRINCE2 Value Management concentrate on identification of functions and the required outcomes from programmes or projects and generation of improved solutions, thereby justifying decisions about products and adding value.

7 PRINCE2 Value Management PRINCIPLES

1. Principle-1: Align with organizational objectives
2. Principle-2: Focus on functions and required outcomes
3. Principle-3: Balance the variables to maximise value
4. Principle-4: Apply throughout the investment decision
5. Principle-5: Tailor to suit the project
6. Principle-6: Learn from experience and improve
7. Principle-7: Assign clear roles and responsibilities and build a supportive culture.

The PRINCE2 Value Management Processes

PRINCE2 Value Management activities change as a project evolves from inception, or start-up, to use (business as usual) in line with the issues to be addressed, so that outputs at each stage support the project’s progress.

Here is the list of 7 PRINCE2 Value Management processes:

1. Frame the programme or project
2. Gather information
3. Analyse information
4. Process information
5. Evaluate and select
6. Develop value-improving proposals
7. Implement and share outputs

PRINCE2 Value Management Techniques

PRINCE2 Value Management recommends the use of following techniques in the processes:

1. Function Analysis System Technique
2. Value Trees
3. Value Profiling
4. Simple Multi-Atribute Rating Technique
5. Value Index
6. Value Metrics
7. Value for Money Ratio
8. Function Cost Analysis
9. Cost/ Worth (Cost to Function)
10. Value Engineering/ Analysis

PRINCE2 Value Management Approach To Implementation

PRINCE2 Value Management recommends following step-wise approach to implementation:

1. Plan the MoV activities
2. Understand and articulate value
3. Prioritize value
4. Improve value
5. Quantify value
6. Value Metrics
7. Monitor improvements in value
8. Learn lessons

Why PRINCE2 Value Management?

1. PRINCE2 Value Management:
   1. Enables more efficient delivery by employing fewer resources and using these resources to better effect
   2. Provides a means to define objectives and scope clearly in terms of the organization’s and user(s) short and long-term needs
   3. Supports decision-making based upon maximizing value for money
   4. Encourages innovation that is well-aligned to the organization’s goals
   5. Facilitates optimal balance between investment and long-term operating expenditure
   6. Enables effective consideration and engagement of stakeholders and end users and reconciles their differing needs
   7. Promotes sustainable decision-making, based on adding value, by addressing both monetary and non-monetary factors.

Benefits of PRINCE2 Value Management

By focusing on efficiency, effectiveness and economy, PRINCE2 Value Management delivers following benefits:

1. Deliver more of the right things
2. Reduce the cost of delivery
3. Encourage more effective use of available resources.

PRINCE2 Value Management Trainings and Certifications

PRINCE2 Value Management certification trainings are provided by PeopleCert's Accredited Training Organizations (ATOs) across the globe. Tecknologia is also a PeopleCert Accredited Training Organization (ATO) offering PRINCE2 Value Management certification trainings across the globe and in various formats.

Click on the links for certification levels to explore the pre-requisites, exams and other details.

Frequently Asked Questions (FAQ) About PRINCE2 Value Management