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  About Value Networks
  The natural way that work gets done
A value network is any set of roles and interactions that generates a specific kind of business, economic, or social good. Value network modeling provides a human-centric, role-based, network view of any business activity.

Value networks are the way people naturally come together around roles and resources to work together. The value network method of modeling and analysis reflects the true nature of work activity with a systemic human-network approach to managing business operations.

 

Value Network Analysis (VNA)

 

Value network modeling is often refered to as Value Network Analysis (VNA). It was developed by Verna Allee in the 1990s and has been made an open resource through her books and numerous academic articles. Since 1993 the value network approach has been gaining business results in performance across many different industries - from shop-floor work teams to global action networks.

 

VNA uses a basic network modeling approach of nodes and links to show collaborative relationships, analyze value transactions, and visualize critical "flow" sequences. 
 
In VNA, nodes represent contributing roles and participants and are usually shown with ovals.

 

Links are shown with directional arrows that represent transactions, interactions between roles. A label on the transaction arrow represents a specific value deliverable that is being conveyed from one role to another. This simple convention of a one directional arrow for each deliverable makes it possible to sequence each interaction in the value creating activity.
 
An Example
 
In the map below, tangible deliverables (meaning contractual or formal deliverables) are shown with green arrows. Intangible (meaning informal or unstructured) deliverables are shown with blue arrows.
 
The example shows the roles and interactions involved in scheduling procedures in a healthcare clinic. The transactions have been numbered to show the sequence of the activity. By reading the sequence numbers the "story" of the activity is revealed.
In this case the value network modeling exercise revealed that the role of Surgery Coordinator was informally influencing the scheduling procedure. The unstructured nature of her role showed there were too many ad hoc human interactions outside the formal process, resulting in delays and process breakdowns. The work team reconfigured the activity with a new web-based scheduling process where every role, including the Surgery Coordinator, could quickly approve an appointment.
 
VNA readily links to financial and non-financial scorecards, including industry, society, and the environment. This makes VNA a valuable tool for business analysts and industry researchers. It provides a whole new set of performance indicators based on intangibles, network relationships, and value creation.
 

Click on More Resources at the top of this page for links to other Verna Allee websites with whitepapers, articles, books and research.

 
For a deeper explanation of Value Network Analysis check out the free online book Value Networks and the True Nature of Collaboration at www.valuenetworksandcollaboration.com