AXELOS MoV® - Management of Value - Glossary (EN)

abstraction :  The level of a function in a hierarchy.
activity :  A process, function or task that occurs over time, has recognizable results and is managed. It is usually defined as part of a process or plan.
agile methods :  Principally, software development methods that apply the project approach of (often) using short time-boxed iterations where products are incrementally developed. PRINCE2 and MoV are compatible with agile principles.
approval :  The formal confirmation that a product is complete and meets its requirements (less any concessions) as defined by its product description.
assumption :  A statement that is taken as being true for the purposes of planning, but which could change later. An assumption is made where some facts are not yet known or decided, and is usually reserved for matters of such significance that if they change or turn out not to be true, there will need to be considerable re- planning. These are normally specifically challenged in MoV studies.
attribute :  A characteristic or inherent feature.
authority :  The right to allocate resources and make decisions (applies to project, stage and team levels).
authorization :  The point at which an authority is granted.
baseline :  A reference level against which an entity is monitored and controlled.
basic function :  The primary purpose of an output, the one function that never changes unless the product or service itself does. If it is not satisfied, the output is worthless. For example, the purpose of a bus stop is to provide a point where people waiting are easily visible to the bus driver, so they can hail the bus. If it doesn't meet this need, it might as well not be built.
benchmark :  A product or process against which other products or processes may be compared.
benefit :  A measurable improvement resulting from an outcome perceived as an advantage by a stakeholder.
benefits distribution matrix :  An illustration of the distribution of benefits against dis-benefits across the organization, i.e. the winners and losers in a change.
benefits management :  The identification, definition, tracking, realization and optimization of benefits, usually within a programme which can incorporate benefits identified via an MoV study.
benefits realization :  For projects, the practice of aligning the outcome associated with the project with the projected benefits claimed in the business case.
Best Management Practice :  A defined and proven method of managing events effectively.
briefing meeting :  A meeting at the outset of an MoV activity where the study leader or participants in an MoV activity receive information on the subject under review.
business as usual :  Abbreviated to BAU, this is the way the business normally achieves its objectives.
business case :  The justification for an organizational activity (strategic, programme, project, operational) which typically contains costs, benefits, risks and timescales and against which continuing viability is tested.
business unit :  A discrete component of an organization.
capability :  A service, function or operation that enables the organization to exploit opportunities.
change manager :  A person who may operate at any level to support benefits realization, focusing on the realization of a particular benefit.
communications plan :  A plan of the communication activities that will be established and maintained during the organizational activity (strategic, programme, project, or operational). It typically contains when, what, how and with whom information flows.
competence :  The ability of an individual to do something well.
constraints :  The restrictions or limitations that a project is bound by. These may be challenged during an MoV study.
contingency :  Something that is held in reserve, typically to handle time and cost variances or risks. PRINCE2 does not advocate the use of contingency because estimating variances are managed by setting tolerances; risks are managed through appropriate risk responses (including the fallback response that is contingent on the risk occurring).
cost driver :  An activity that results in a cost.
critical path :  The line connecting the start of an activity network with the final activity in that network through those activities with zero float; i.e. those activities where any delay will affect the end date of the entire plan. There may be more than one such path. The sum of the activity durations on the critical path will determine the end date of the plan.
critical success factor :  An event or measure of activity defining successful delivery by a project, business unit or organization.
cross-cutting :  A term used in the public sector to describe issues that affect more than one policy department.
customer :  The person or group who commissioned the work and will benefit from the end results.
decision point :  A point in the progress of a programme or project at which significant decisions are made.
deliverable :  See output.
delivery :  The act of implementing a process.
dis-benefit :  An outcome perceived as negative by a stakeholder. A dis-benefit is an actual consequence of an activity whereas, by definition, a risk has some uncertainty about whether it will materialize.
earned value analysis :  A method for measuring project performance. It indicates how much of the budget should have been spent in view of the amount of work done so far and the task.
embedding :  When applied to MoV, it is the consolidation of skills and concepts in a given organization.
end user :  The person who uses the final output of a project or delivered service.
esteem value :  An attribute of an article or service that is desired for reasons of purely personal interest or preference, or for the social cachet it bestows.
evaluation criteria :  A means by which to assess relative value or performance of different options.
exchange value :  The value of a particular article or service considered as its worth in exchange for another item, such as gold.
executive :  The single individual with overall responsibility for ensuring that a project meets its objectives and delivers the projected benefits. This individual should ensure that the project maintains its business focus, that it has clear authority and that the work, including risks, is actively managed. The executive is the chair of the project board. He or she represents the customer and is responsible for the business case.
expected value :  Expected value is calculated by multiplying the average impact by the probability percentage.
expenditure :  Consumption of resources.
facilitation :  A technique by which a study leader takes a team through a series of processes or techniques in a collaborative manner, resulting in their taking ownership of the outputs.
feasibility study :  An early study of a problem to assess whether or not a solution is feasible. The study will normally scope the problem, identify and explore a number of solutions and make a recommendation on what action to take. Part of the work in developing options is to calculate an outline business case for each as one aspect of comparison.
function :  What something does, expressed as an active verb and a measurable noun (as closely as possible). It may be tangible (e.g. bears weight) or intangible (e.g. operates intuitively).
function analysis :  A method of analyzing functions to show appropriate linkages.
Function Analysis Systems Technique :  Abbreviated to FAST, this technique uses a hierarchy of functions, expressed in one direction to address 'how' they are delivered, and in another to address 'why'.
function diagram :  A diagram expressing a hierarchy of functions.
given :  A precondition on the scope of an MoV study, which must be satisfied.
government policy :  The translation of a government's political priorities and principles into programmes and courses of action to deliver desired changes.
handover :  The transfer of ownership of a set of products to the respective user(s). The set of products is known as a release. There may be more than one handover in the life of a project (phased delivery). The final handover takes place in the Closing a Project process.
hard value analysis :  A subset of value engineering for a project that seeks to maximize the value of a physical output. See value engineering.
health check :  A quality tool that provides a snapshot of the status of a project, programme or portfolio. The purpose of a health check is to gain an objective assessment of how well the project, programme or portfolio is performing relative to its objectives and any relevant processes or standards. A health check differs from a review in that it is a tool used for assurance purposes by the P3O to inform specific actions or capability maturity development plans, whereas a review is part of formal governance arrangements.
ICT :  Information and communications technology.
initiation stage :  The period from when the project board authorizes initiation to when they authorize the project (or decide not to go ahead with the project). The detailed planning and establishment of the project management infrastructure is covered by the Initiating a Project process.
investment decision :  The decision to proceed with a programme or project. Also describes the entire lifecycle of a programme or project from inception (pre-start-up) to use (closure).
issue :  A concern, query, request for change, suggestion or off- specification raised during a project. Project issues can be about anything to do with the project.
key performance indicator :  Abbreviated to KPI, this is a metric (either financial or non- financial) that is used to set and measure progress towards an organizational objective.
leadership :  The ability to direct, influence and motivate others towards a better outcome.
Lean :  A management process aimed at eliminating waste in the supply chain.
lower-order function :  A function contributing to the delivery of a basic function. These are often important to a successful product or service.
management board :  A generic term used to describe either project management boards, programme management boards or portfolio management boards, or any combination based on the P3O context.
management of value :  A systematic method to define what value means for organizations, and to communicate it clearly to maximize value across portfolios, programmes, projects and operations.
maturity level :  A well-defined evolutionary plateau towards achieving a mature process (five levels are often cited: initial, repeatable, defined, managed and optimizing).
maturity model :  A method of assessing organizational capability in a given area of skill.
milestone :  A significant event in a plan's schedule, such as completion of key work packages, a technical stage or a management stage.
MoV board :  A group of senior managers who advise the MoV senior practitioner on the delivery of the MoV implementation plan.
MoV implementation plan :  The plan for delivering the MoV strategy.
MoV programme :  A series of interrelated MoV studies across a major project or large organization's service review.
MoV programme plan :  The plan for applying MoV to a programme.
MoV progress report :  A regular report describing the current progress that has been made in delivering the benefits of a value-improving proposal.
MoV project plan :  The plan for applying MoV to a project.
MoV steering group :  See MoV board.
MoV study :  A combination of activities including preparation, analysis workshop(s), decision building, reporting and implementation.
MoV study handbook :  A collation by the study leader of all the information required for successful team participation in an MoV study.
MoV study team :  The people who actively contribute to an MoV study.
MoV workshop :  A gathering of stakeholders and disciplines relating to a particular study, facilitated to guide participants through the MoV approach.
needs :  The benefits that are either essential or desired from the resources applied to a given project.
objective :  The intended outcome or goal of a programme, project or organization.
off-project specialist or expert :  Someone with knowledge and experience in the subject of the MoV activities who is not involved in the programme project. May be invited to contribute to an MoV study to challenge the MoV study team members and improve the objectivity of their proposals.
OGC Gateway Review :  A review of a delivery programme or procurement project carried out at a key decision point by a team of experienced people, independent of the project team.
operations :  Business as usual in an organization.
opportunity :  An uncertain event that could have a favourable impact on objectives or benefits.
order :  The relative level of a function in a hierarchy (higher or lower).
outcome :  The result of change, normally affecting real-world behaviour and/or circumstances. Outcomes are desired when a change is conceived. Outcomes are achieved as a result of the activities undertaken to effect the change. In a programme, the outcome is the manifestation of part or all of the new state conceived in the blueprint.
output :  A specialist product that is handed over to its user(s). Note that management products are not outputs but are created solely for the purpose of managing the project.
P3M3 :  The Portfolio, Programme and Project Management Maturity Model that provides a framework with which organizations can assess their current performance and put in place improvement plans.
P3O sponsor :  A senior manager with appropriate authority who champions the establishment and evolving operation of the P3O. They will ideally be a member of the main board. See also Portfolio, Programme and Project Offices.
Pareto principle :  Also known as the '80/20 rule', which states that 80% of gains will come from 20% of study activity.
peer review :  Specific reviews of a project or any of its products where personnel from within the organization and/ or from other organizations carry out an independent assessment of the project. Peer reviews can be done at any point within a project but are often used at stage-end points.
performance targets :  A plan's goals for time, cost, quality, scope, benefits and risk.
PESTLE :  Political, economic, social, technological, legal and environment - a technique used generally in organizational change management to undertake an environmental scan at a strategic level.
plan :  A detailed proposal for doing or achieving something which specifies the what, when, how and by whom. In PRINCE2 there are only the following types of plan: project plan, stage plan, team plan, exception plan and benefits review plan.
plastic project :  A project in which dependencies have been minimized (often by creating a shared platform) so that decisions can be taken at the last responsible moment.

Often used under fast-changing conditions, or where the problem and/or solution spaces are subject to a high degree of uncertainty.
policy :  A course of action (or principle) adopted by an organization. A business statement of intent, setting the tone for an organization's culture.
portfolio :  The totality of an organization's investment (or segment thereof) in the changes required to achieve its strategic objectives.
Portfolio, Programme and Project Offices :  Abbreviated to P3O, this is the decision-enabling and support business model for all business change within an organization. This will include single or multiple physical or virtual structures, e.g. offices (permanent and/or temporary), providing a mix of central and localized functions and services, integration with governance arrangements and the wider business such as other corporate support functions.
post-implementation review :  The process of determining the nature and value of benefits achieved and lessons learned from the project. This would need to be repeated at intervals to collate full results.
PPM :  An abbreviation for the Portfolio, Programme and Project Management series of guides aimed at improving the performance of those involved in portfolio, programme and project management. PPM is the accepted term in the industry and covers portfolio as well as programme and project management issues.
practitioner :  Someone who is competent in and regularly leads MoV activities.
primary function :  A function with a close and direct link to the study objectives. See also value driver.
procedure :  A series of actions for a particular aspect of project management established specifically for the project — for example, a risk management procedure.
process :  A structured set of activities designed to accomplish a specific objective. A process takes one or more defined inputs and turns them into defined outputs.
product :  An input or output, whether tangible or intangible, that can be described in advance, created and tested.
programme :  A temporary flexible organization structure created to coordinate, direct and oversee the implementation of a set of related projects and activities in order to deliver outcomes and benefits related to the organization's strategic objectives. A programme is likely to have a life that spans several years.
programme board :  A group that supports the senior responsible owner to deliver the programme.
programme management :  The coordinated organization, direction and implementation of a dossier of projects and activities that together achieve outcomes and realize benefits that are of strategic importance.
programme manager :  The role responsible for the set-up, management and delivery of the programme, typically allocated to a single individual.
programme office :  The function providing the information hub for the programme and its delivery objectives; could provide support for more than one programme.
project :  A temporary organization that is created for the purpose of delivering one or more business products according to an agreed business case.
project brief :  A statement that describes the purpose and cost, time and performance requirements and constraints for a project. It is created pre-project during the Starting up a Project process and is used during the Initiating a Project process to create the Project Initiation Documentation and its components. It is superseded by the Project Initiation Documentation and not maintained.
project control tool :  A process or technique for informing management to enable them to maintain control over the progress of a project.
project lifecycle :  The period from the start up of a project to the acceptance of the project product.
project management :  The planning, delegating, monitoring and control of all aspects of the project, and the motivation of those involved, to achieve the project objectives within the expected performance targets for time, cost, quality, scope, benefits and risks.
project management team :  The entire management structure of the project board, and project manager, plus any team manager, project assurance and project support roles.
project management team structure :  An organization chart showing the people assigned to the project management team roles to be used and their delegation and reporting relationships.
project manager or executive :  The person with authority and responsibility to manage a project on a day—to-day basis to deliver the required products within the constraints agreed by the project board.
project office :  A temporary office set up to support the delivery of a specific change initiative being delivered as a project. If used, the project office undertakes the responsibility of the project support role.
project sponsor :  The main driving force behind a project.
project start-up notification :  Advice to the host location that the project is about to start and requesting any required project support services.
project support :  An administrative role in the project management team. Project support can be in the form of advice and help with project management tools, guidance, administrative services such as filing, and the collection of actual data.
project support office :  A group set up to provide certain administrative services to the project manager. Often the group provides its services to many projects in parallel.
proposal implementation plan :  A plan for implementing value-improving proposals to realize their expected benefits.
proposal owner :  The individual responsible for developing a value-improving proposals.
public sector :  Activities undertaken without a profit motive for the greater good and/or for which specific usage cannot be monitored (e.g. street lighting), paid for by the public at large via taxation.
records :  Dynamic management products that maintain information regarding project progress.
requirements :  A description of the user's needs.
risk :  An uncertain event or set of events which, should it occur, will have an effect on the achievement of objectives. A risk is measured by a combination of the probability of a perceived threat or opportunity occurring and the magnitude of its impact on objectives.
risk management :  The systematic application of principles, approach and processes to the tasks of identifying and assessing risks, and then planning and implementing risk responses.
scenario :  A package of value-improving proposals.
schedule :  A graphical representation of a plan (for example, a Gantt chart), typically describing a sequence of tasks, together with resource allocations, which collectively deliver the plan.
scope :  For a plan, the sum total of its products and the extent of their requirements. It is described by the product breakdown structure for the plan and associated product descriptions.
senior management :  Top management responsible for embedding or running MoV activities.
senior MoV practitioner :  The individual charged with leading the implementation of the MoV implementation plan.
senior responsible owner :  Abbreviated to SRO, this is a UK government term for the individual responsible for ensuring that a project or programme of change meets its objectives and delivers the projected benefits. The person should be the owner of the overall business change that is being supported by the project. The senior responsible owner should ensure that the change maintains its business focus, that it has clear authority, and that the context, including risks, is actively managed. This individual must be senior and must take personal responsibility for successful delivery of the project. The SRO should be recognized as the owner throughout the organization. The SRO appoints the project's executive (or in some cases may elect to be the executive).
sensitivity analysis :  A technique for testing the robustness of a calculation or model by assessing the impact of varying the input, to reflect the risk that the calculation or model might not be accurate.
Six Sigma :  A management process aimed at minimizing defects and increasing efficiency.
soft value analysis :  A subset of value analysis for a project that seeks to maximize value of an intangible output. Commonly associated with service delivery. See value analysis.
soft value management :  MoV aimed at messy, strategic and conceptual decision-making, with an emphasis on integrated outcomes from projects (rather than merely coordinated) and a need for wider involvement.
specification :  A detailed statement of what the user wants in terms of products, what these should look like, what they should do and with what they should interface.
sponsor :  The main driving force behind a programme or project.
stakeholder :  Any individual, group or organization that can affect, be affected by, or perceive itself to be affected by an initiative (programme, project, activity, risk).
stakeholder analysis :  A method of assessing the impact of a study on people's concerns and attitudes with regard to a given issue and their influence on its outcome.
stakeholder map :  A diagram, table or matrix showing stakeholders and their particular interests in the programme.
start up :  The pre-project activities undertaken by the executive and the project manager to produce the outline business case, project brief and initiation stage plan.
strategy :  An approach or line to take, designed to achieve a long-term aim. Strategies can exist at all levels —portfolio, programme and project.
study definition :  Clear articulation of objectives.
study leader :  A qualified practitioner who organizes and/or facilitates an MoV study or programme of studies. This term is also used of the individual responsible for planning and conducting a study.
study leader's handbook :  Guidance for study leaders prepared by the senior MoV practitioner.
subject :  The process or product under review during MoV activities.
support office :  A formal or informal group of people who can provide services to support the implementation of MoV within the organization in its application to projects.
tailoring :  The appropriate use of PRINCE2 on any given project, ensuring that there is the correct amount of planning, control, governance and use of the processes and themes (whereas the adoption of PRINCE2 across an organization is known as 'embedding').
team leader :  The person appointed from time to time by the senior MoV practitioner to be responsible for leading and managing a group of people through a process to deliver an output, e.g. a health check.
technique :  A procedure used to accomplish a specific activity or task.
third sector :  The not-for-profit organizations outside the public sector. These include volunteer organizations and charities.
trade-off :  In the context of MoV, transferring from one attribute to another to add more value.
user :  The person or group who will use one or more of the project's products.
utility value :  The utility value of an item is the primary requirement that an individual has of that item, which must be addressed for the item to have any worth.
value :  The benefits delivered in proportion to the resources put into acquiring them.
value analysis :  A method of analyzing value (see also value engineering) within a product, building or process. Commonly abbreviated to VA.
value driver :  A function that must be delivered to contribute to the project objectives. Value drivers must, in aggregate, be necessary and sufficient to achieve the project objectives in full. A primary value driver is equivalent to a primary function.
value engineering :  A method of maximizing value (see also value analysis) within a design. Commonly abbreviated to VE.
value for money ratio :  The ratio of benefits, monetary or non-monetary, to investment made or resources committed. A measure of value for money.
value-improving proposal :  A statement setting out a description of a proposed improvement, the advantages and disadvantages of implementation and its impact on cost, time and performance.
value index :  A measure of how well an option, project or product satisfies an individual value driver or the aggregate of all value drivers. It represents a measure of customer satisfaction.
value management :  Widely used term that is synonymous with management of value (MoV). A systematic method to define what value means for organizations, and to communicate it clearly to maximize value across portfolios, programmes, projects and operations.
value metrics :  Attributes used for measuring performance against value drivers.
value profile :  A representation of the relative importance of the primary value drivers to the client body and end users.
value ratio :  The ratio between benefits, monetary or non-monetary, and expenditure of resources. A measure of value.
value score :  The product of the performance of an option or proposal, assessed on a scale of 1-10, and the weighting of a value driver against which it is being assessed.
value tree :  A diagram that shows the relationship between, and the hierarchy of, value drivers.
version :  A specific baseline of a product. Versions typically use naming conventions that enable the sequence or date of the baseline to be identified. For example, project plan version 2 is the baseline after project plan version 1.
waterfall method :  A development approach that is linear and sequential with distinct goals for each phase of development. Once a phase of development is completed, the development proceeds to the next phase and earlier phases are not revisited (hence the analogy that water flowing down a mountain cannot go back).
weighting :  A method of prioritizing attributes or functions.