Best Practices: Strategy and Leadership - Value Proposition
You must develop a clear value proposition as part of developing your CoP. A value proposition is a statement of the benefits or value of the CoP to your organization. It should focus on how value may be created the CoP. In considering the benefits to be realized by the project, benefit must be understood as including the expected result and the associated cost, both financial and non-financial.
Key elements to consider as you develop a value proposition are:
What benefits, financial and otherwise, will the project provide?
Who is the intended recipient of the benefits?
What has to be done to obtain the benefits?
When will the benefits be realized?
What is the likely cost to the client of realizing the expected results?
A clear understanding of how the CoP will add value helps ensure that the delivery organization does not propose for work that is likely to disappoint the client and thus damage the delivery organization's reputation. A value proposition can be phrased in terms of anecdotal or quantified, monetarized terms. Anecdotal evidence can be developed during the forming, storming, and norming process. Quantifiable efforts are more difficult. The downloadable presentation below shows how staff could go about developing a quantifiable value proposition.
