DEMYSTIFYING VALUE

Kevin Brennan
 2 MODEL ©2020 JULIAN SAMMY, LICENSED UNDER CC-BY 4.0

THE SAMMY
VALUE MODEL
Person Thing
▪ A Person is any stakeholder who
uses or interacts with something
we’re concerned about (a “thing”).

▪ A Thing can be a solution, product,

service, process, application or
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Value
Kevin Brennan

system.

▪ The context represents any

circumstances that are relevant to the
interaction.

▪ Value is subjective and exists for a

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particular person under specific

circumstances.
Demystifying Value

▪ A “need” is a gap between perceived

and desired value. “Change” can Context
affect people, things, or the context..
 3

Value is measured at a
moment in time. When
the situation changes, so
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Kevin Brennan

does value.
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Demystifying Value
 4 DEVELOPED BY DANIEL KAHNEMAN AND AMOS TVERSKY

PROSPECT
THEORY Value

When assessing outcomes, we start by

mentally setting a baseline based on
the status quo and our expectations.

Expectations, not current reality,

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Losses Gains
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determine whether something is Outcome

viewed as a gain or a loss. People will
take greater risks to avoid a loss than
they will to gain a benefit.

This is a constant danger with projects

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that run over, where pot commitment

Demystifying Value

and the sunk cost fallacy come into

play.
 5

Value is inherently
subjective. People’s
perceptions of value will
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Kevin Brennan

change.
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Demystifying Value
 6
3 PERSPECTIVES
OF VALUE
Stakeholder
Value
A major reason we find it hard to
understand where value comes
from is that there are at least three
different perspectives on what is
valuable at play. Business
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Kevin Brennan

Value
Any one of these perspectives can
be the dominant one for a given
organization, and drive
interpretation of the other two. Customer Value
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Demystifying Value
 7

Don’t assume that the

business is aligned to
the customer, or that
people you work with
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Kevin Brennan

are aligned to the

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business.
Demystifying Value
 8 ADAPTED FROM SANDLER SALES TRAINING

STAKEHOLDER
VALUE
Surface Problems
▪ Internal stakeholders want to be
successful in their job role.

▪ They usually welcome improvements

that help them do their job better.
Business
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Kevin Brennan

▪ However, they also are often not Reasons

highly motivated to change.

▪ Pain is what motivates change. The

desire to change is emotional.
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Personal
Demystifying Value

▪ If decision-makers don’t personally

feel some kind of pain from a Impact
problem, they won’t care about
fixing it.
 9

Stakeholder Value is created

by helping co-workers
succeed.
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Kevin Brennan

It’s lost when we make their

jobs harder or less attractive.
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Demystifying Value
 10
BUSINESS VALUE
Environment

Business Value is generated by:

▪ a change in customer behaviour Information

resulting in a desired outcome;
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Culture &
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▪ improved efficiency in creating Capability Process Products

customer value; Methods

▪ improved capabilities enabling future

options; Technology
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▪ increased situational awareness.

Demystifying Value

The first two are more tangible, but the

latter two matter more in the long term.
 11

Business Value is
created by delivering on
an organization’s
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Kevin Brennan

purpose and strategy, or

keeping the lights on.
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Demystifying Value
 12 DEVELOPED BY STRATEGYZER INC.

CUSTOMER VALUE

Gain Creators
Gains
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Kevin Brennan

Customer Jobs
Products &
Services
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Demystifying Value

Pains
Pain Relievers

Value Proposition Canvas, http://businessmodelgeneration.com

 13

Customer Value is
created when your
products and services
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Kevin Brennan

help them achieve their

goals.
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Demystifying Value
 14 EVAPORATING CLOUD, ELI GOLDRATT

WHEN VALUE Requirement Prerequisite

CONFLICTS
B D

Shared Goal
A

Customer, business, and

stakeholder requirements can
conflict. If this happens: Requirement Prerequisite
C D’

1. Define the conflicting

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Kevin Brennan

requirements and set them out.

Deliver on time, scope, Strictly limit time
2. Identify the underlying reason and budget spent on requirements
that each group is insisting on a
particular requirement.
Deliver valuable
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business outcomes
3. Find a shared goal that both through projects.
Demystifying Value

reasons support.

4. Look at assumptions underlying Deliver the right Take the time to get
these statements for one you solution the requirements right
can break.
 Value is created when
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we enable people to
make progress towards
their goals.
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Kevin Brennan

This is a guideline, not a

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Demystifying Value

definition.
 16
KEVIN BRENNAN
Principal Consultant
Product MVP Consulting

Kevin Brennan played a leading role in the launch of the

International Institute of Business Analysis and the Canadian
Federation of Library Associations, led the creation and
development of the BABOK® Guide, and has taught new
product development, business analysis, and process
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Kevin Brennan

improvement and on every continent (except Antarctica).

Kevin is currently engaged on a part-time basis as the

Cybersecurity Professional Development Practice Lead at
TECHNATION. The content of this workshop does not
necessarily reflect TECHNATION’s views.
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Demystifying Value

He can be reached for consulting and training engagements, or

for other reasons, at kevin@newba.com.