Value Management is a style of management particularly dedicated to motivating people, developing skills and promoting synergies and innovation, with the aim of maximizing the overall performance of an organization.

Value Management has evolved out of previous methods based on the concept of value and functional approachThese were pioneered by Lawrence D. Miles in the 1940′s and 50′s who developed the technique of Value Analysis (VA) as a method to improve value in existing products.

Initially Value Analysis was used principally to identify and eliminate unnecessary costs. However it is equally effective in increasing performance and addressing resources other than cost. As it evolved the application of VA widened beyond products into services, projects and administrative procedures.

The Value Management Approach involves three root principles.

• A continuous awareness of value for the organization, establishing measures or estimates of value, monitoring and controlling them
• A focus on the objectives and targets before seeking solutions.
• A focus on function, providing the key to maximize innovative and practical outcomes.

The concept of Value relies on the relationship between the satisfaction of many differing needs and the resources used in doing so. The fewer the resources used or the greater the satisfaction of needs, the greater the value. Stakeholders, internal and external customers may all hold differing views of what represents value. The aim of Value Management is to reconcile these differences and enable an organization to achieve the greatest progress towards its stated goals with the use of minimum resources.