What is business value? Examples of business value and explanation

Business value is a popular term in business and economics. Although the concept of business value has economic and theoretical roots, it is already used in product organizations. Software development that uses Scrum and BVOP practices uses the concept of business value every day. Reference: MuzoNet, Management and Business

In the article, we present examples of business value created by BVOP in 2018. We share additional explanations for each example.

Human Resources

We have already mentioned that this is the department that mediates between directors and employees. They are also in a higher position for me because they are the people who support understanding in the team. They care not only for the good name of the boss but also for the good of the employees. They prepare people, regardless of position, for various possible pros and cons. They are the people who greet each candidate and leave a good or bad impression on the applicant. Reference: A Management Educational Library

Behavior, skills, and maturity of employees

It is important to mention here that when many people work in one place, we cannot avoid a clash of different characters. We came to work, not to like each other. For me, everyone must maintain a good tone of communication. It is not right to make inappropriate jokes about someone, no matter what their nature.

It is also important to “feel” the strength of each employee and entrust him to take care of that part of the company or project in which we see that he is strong and has potential for development.

Trust too. We need to trust our colleagues and not be afraid to seek help from the various units if necessary. Reference: “What is business value: examples and explanations“, https://agileprogramming.org/what-is-business-value-examples-and-explanations/

Human relations

There is nothing more important in a team than understanding and willingness to help each other. Relationships between people are important to me because if people don’t understand each other, things don’t work out. It is important, if there is a conflict between employees, to find a quick solution.

Relationships between business and people

Any idea or something left unclear must be presented in accessible language. Whether it’s a prospective customer, a regular customer, or an employee. Reference: “Business value explained with examples“, https://www.kosovatimes.net/business-value-explained-with-examples/

Organizational culture

If there is no consistency in one action, the result can be detrimental to a person or business. There must be clearly defined deadlines and a clear explanation of what and when needs to happen.

Additional examples of business value

Work processes.
Total contribution.
Reduction of surpluses in the organization and among the teams (time, money, labor).
Shortened production processes.
Innovation.
Time to reach the market.
Usability, usefulness, and value of the products.
Consumer and customer satisfaction. Reference: “How a project manager increases the business value of his project“, https://newia.info/how-a-project-manager-increases-the-business-value-of-his-project/

Customers, of course, are of particular importance. If there are no satisfied customers, a business cannot exist. This point is last, not because they are not important. It is the last because if there is no good organization and a well-trained team (behind it), good and quality service cannot be provided.

Explanation of examples of business value

Organizational culture provokes people to be proactive, to contribute, to share, and to be aware of the business goals of the organization.

Clear definitions and a clear and accessible action plan. Ideas can be added to further stimulate employees if the goal is achieved.

Modernization and innovation.

We live in a world of technology. By striving to offer the latest digital devices to employees (and customers), we facilitate the work process and consumption. Reference: “Business value for managers – How to increase it“, https://medfd.org/business-value-for-managers/

People in the organization show respect for each other and work productively.

We don’t need to talk to you. At least not when we work in a team (department). If we manage to achieve a friendly atmosphere, employees will feel more comfortable. My personal experience shows that if a person does not feel hostility toward the people he works with, he adapts faster and shows much better results.

The number of people leaving the organization is kept to a minimum.

When we apply for a job, one of the things we are interested in is the turnover in the company. When employees change frequently, and there are constant new ads for the same position, this tells us that in the company in question, employees are either not a priority or work under great pressure. If we manage to minimize the tension, giving normal deadlines and distributing the work among employees evenly, we would keep each employee, as long as he is not looking for new ground. Even then, we could ask the directors to send the employee in question and train him in the new field in which he wants to develop. Reference: “Adding business value in organizational project management and product development practices“, https://www.kievpress.info/adding-business-value-in-organizational-project-management-and-product-development-practices/

Conflicts and negative environments are minimized.

Different people have different characters. Some are softer, others heavier and harder. It happens that these characters collide. In such a situation, in case of a dispute, it is very important to listen to each other. If we are in a managerial position, it is important to maintain a neutral position and, as far as possible, to offer the “golden mean” to the parties to the dispute. We can always send the team on various vacations and/or training to unite. Reference: “Examples of business value and business value added“, https://wikipedia-lab.org/examples-of-business-value-and-business-value-added/

The image of the organization is increasing.

By uniting the team, we manage to predispose them to speak and recommend the company with desire and pleasure. If our employees are satisfied, they manage to advertise the business with desire and pleasure.
Offering the fastest and most efficient customer service, they also remain satisfied and willingly recommend the company. Reference: “13 examples of added business value by BVOP.org“, https://www.vbprojects.org/13-examples-of-added-business-value-by-bvop-org/

Everyone in the organization is constantly improving their personal and professional qualities.

As I said, if we feel a person’s strengths, we can always entrust him to take care of and work on a project/department. It is good to send our employees for training to further develop their knowledge and capabilities. Thus, they will feel more confident, and their self-confidence and mood will be raised.

Team members search for and remove obstacles without waiting for management to do so.

If we manage to predispose the team members to talk to each other, in case of conflict, there will be no need for management intervention. If they feel in their place, they will be able to reach a consensus through talks. They will try to find a solution to the problem themselves, whether interpersonal or working. Reference: “What is business value and how to increase it in our projects and organization“, https://phron.org/what-is-business-value-and-how-to-increase-it-in-our-projects-and-organization/

Management and team members work together to optimize processes and speed up development time.

Each link in the chain must contribute to the final positive result. Everyone, even the government, has a task. Management must support the process of others when necessary. This shows the importance of the team.

Costs are managed and planned carefully.

Every company has costs to deal with. Salaries, additional remuneration, consumables. Each one must be carefully calculated. Unnecessary costs, such as buying paper towels in the bathroom, could be replaced by hand dryers. It is necessary to look for the most simplified budget option so that the company does not go into the red at the end of the year. The more unnecessary consumables can be removed, the easier it will be to plan expenses. This does not include the cost of training employees in new technology or new skills to acquire to be more productive.  Reference: “Business value in organizations and adding business value to projects and products“, https://eduwiki.me/business-value-in-organizations-and-adding-business-value-to-projects-and-products/

The tools and the environment are constantly improving.

We must aim to keep up with new technologies. To train employees on how to use them to make them easier over time. The more we invest in improvements in technology, employees, and the environment in which we work, the better results we will have for each deadline.

Unnecessary documents, processes, and communications are avoided.

If the type of work allows us to use digital services, we will save time searching among piles of documents. The search will be done with two clicks, which will facilitate each process further. Accordingly, if we have a database of documents, each employee will be able to log in with his access code and find what he needs, instead of going through each unit and asking. Reference: “How to add business value to the product, project, and organization according to BVOP“, https://customessaysonline.net/

The main causes of problems, defects, and obstacles are analyzed, tracked, and eliminated.

Communication is very important. In the event of a defect in a product, we must be able to explain exactly what we want to the removal department.

Quality standards are followed and implemented without significant loss of time and resources.

We instruct the Quality and Control Department to check each step by the deadline. In case of a problem, their job is to alert immediately so that it can be fixed as soon as possible.

Fatigue is managed and teams do not spend too much time on trivial tasks.

The tasks for a particular project must be carefully and evenly distributed among the teams. This will reduce the stress of the deadlines imposed by the project and reduce the fatigue from rushing to a minimum. It is important that employees’ holidays are observed and that they are not disturbed on weekends/hours. Reference: “Increasing the business value of projects in the organization“, https://www.mmrls.org/increasing-the-business-value-of-projects-in-the-organization/

The documentation and requirements are designed and maintained in an easy and convenient style so that everyone can understand them easily and save time from unnecessary discussions and misunderstandings.

Everything must be explained in accessible language. This reduces the possibility that colleagues do not understand something about a task.

Meetings and discussions do not waste time and always lead to desired results.

The so-called meetings aim to simplify the work of each employee in the team. The whole thing is to discuss new ideas, again in accessible language. They aim to motivate employees. Reference: “How to add business value to your business organization’s projects“, https://brightonbot.com/how-to-add-business-value-to-your-business-organizations-projects/

Product development focuses on the most important goals and needs.

We have an action plan, we are going step by step. Reference: “Examples of Business value added for organisations, projects and products“, https://mstsnl.net/examples-of-business-value-added-for-organisations-projects-and-products/

All product results, concepts, and versions are validated with real users, and the risk of an unwanted product is limited.

Each product must be tested before it is put into operation. We must strive for the best quality and, where necessary, keep the product up to date.

Customer and consumer satisfaction is constantly growing. Reference: “How to increase the business value of your projects and organization”, https://managerspost.com/how-to-increase-the-business-value-of-your-projects-and-organization/

It is very important that the product is easily accessible and that the steps for using it are in an accessible language. This way we guarantee customer and consumer satisfaction. When they are satisfied, they attract new ones by recommendation.