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Value Cycles for Development Outcomes

Olivier Serrat2014

On ValueFor consumption or use, every organization strives to provide works, products, services, processes, or methods of delivery that clients, audiences, and partners value.

Value is the relative worth, utility, or importance of something; it is created by solving a problem, upgrading performance, or reducing risk and cost.

I conceive that the great part of the miseries of mankind are brought upon them by false estimates they have made of the value of things.

—Benjamin Franklin

On Value CyclesValue cycles are a conceptual framework for continual evolution and learning: eschewing linear processes, they help organizations build a momentum for value addition, based on internal (comparative advantage, competitive advantage, and measures of organizational performance) and external perspectives (value proposition, customer-perceived value, and market-based measures of performance).For effect, values cycles must be integrated in strategy—in most organizations, that is commonly articulated by a vision, governing objective, priorities, performance scorecard, commitment to sustainability, etc.

Applying Knowledge in Development Work

International development work is a knowledge-intensive process: it is fueled by knowledge solutions and knowledge services.

On the whole, projects (and programs) are the primary mechanism by which changes in state and behavior are brought about.

Projects and knowledge are thus mutually dependent: to deliver development outcomes, projects must be enriched by knowledge; by the same token, new knowledge (that should then be leveraged) must in turn be generated by projects.

The Project CycleIn development work, the seven major stages of a project are (i) identification, (ii) preparation, (iii) appraisal, (iv) approval, (v) implementation, (vi) completion, and (vii) evaluation.

1. Identificati

on

2. Preparation

3. Appraisal

4. Approval5.

Implementation

6. Completion

7. Evaluation

On Value Cycles in ProjectsFrom identification to evaluation, projects offer a wealth of opportunities for identification, creation, storage, sharing, and use of knowledge. Other value cycles that can exploit their potential for benefit exist: the Five-C Value Cycle is one of them.

1. 5. Communicate

2. Connect

3. Collaborate

4. Capitalize

The Five-C Value CycleAt each of the seven major stages of a project, the Five-C Value Cycle offers a way to enhance benefits with constant small wins in works, products, services, processes, or methods of delivery. Communication engages stakeholders and their resources. Once engaged, they are encouraged to connect and build relationships to ensure a high level of collaboration. As desired outputs are accomplished, the project team make certain they are capitalized—that is, the promised benefits are delivered to the intended beneficiaries. Successes are shared by communicating widely. (Shortcomings are revealed too, respectfully, to draw lessons, highlight possible solutions, mitigate potential risks, and reduce future errors.)

The Five-C Value Cycle

Further Reading• ADB. 2009. Value Cycles for Development Outcomes. Manila. Available: www.adb.org/publications/value-cycles-development-outcomes

• ADB. 2010. Showcasing Knowledge. Manila. Available: www.adb.org/publications/showcasing-knowledge

• ADB. 2010. Harvesting Knowledge. Manila. Available: www.adb.org/publications/harvesting-knowledge

• ADB. 2010. Seeding Knowledge Solutions Before, During, and After. Manila. Available: www.adb.org/publications/seeding-knowledge-solutions-during-and-after

Further Reading• ADB. 2012. Managing Knowledge in Project

Environments. Manila. Available: www.adb.org/publications/managing-knowledge-project-environments

• ADB. 2012. Communications for Development Outcomes. Manila. Available: digitalcommons.ilr.cornell.edu/intl/266/

Olivier SerratPrincipal Knowledge Management Specialist

Regional and Sustainable Development Department

Asian Development Bank

knowledge@adb.orgwww.adb.org/knowledge-managementwww.facebook.com/adbknowledgesolutionswww.scribd.com/knowledge_solutions

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