Value Assurance Reviews

The Value Assurance Review process

Projects are often doomed to fail before they are even sanctioned, and the root cause for failure is often found in the early phases of the project. To remedy this, the Value Assurance Review (VAR) was created, an integrated and independent challenge carried out at key decision gates prior to sanction. VARs executed early on in a project address the question “Are we doing the right project?”, whereas reviews around sanction time focus on the question “Are we doing the project right?”. After project sanction similar type reviews are conducted.

The VAR process recognizes that reasons for cost and schedule overruns more often than not are found in Non-Technical aspects. Hence the integrated TECOP (Technical, Economic, Commercial, Organisational and (Socio)-Political) approach is used.  The Reviews focus on the higher level as experience shows that more project fail from flaws in project fundamentals then in flaws in the details.

The concepts of VAR are widely applicable. VARs are applied with success to acquisitions and divestments and, over time, have extended to non-technical projects such as office refurbishments, setting-up shared service centers, IT support etc.

Delivery of VARs

The VAR typically takes one week and is delivered  by a team of some 5 senior and experienced staff. Project team presentations on the first day, followed by two days of interviews, then the synthesis and analysis of the integrated picture within the VAR team, and finally the delivery of insights and recommendations to the customer:  senior executives governing the project and those responsible for delivering the project.

Two characteristics of the process are fundamental: Integration and Independence. Integration is achieved by having an experienced team lead and a team of subject matter experts. Independence is achieved by being external and impartial to the project team. 

Benefits

In almost all cases significant value is gained by the discipline and communication required to prepare for the integrated review.

In many cases the review has enhanced project value through changes to concept, alignment between project elements or advise to stop, suspend or accelerate work.

Better understanding of the full range of aspects impacting project success that results from the VARs assists in better management of risks and opportunities and better prepares the organization for surprises.

Another valuable aspect is organizational learning, across projects, that builds better insight in what drives project success and what can be done to mitigate risks.