(VCW Lab version: 21/10/2019)
WHAT ARE THE FIVE PHASES OF THE VCW METHOD?
The VCW-Value Creation Wheel® method is composed by 5 phases which are simultaneous sequential and agile:
1) Discover Value, 2) Create Value, 3) Validate Value, 4) Capture Value, and 5) Consolidate Value.
“A feast to which many contribute is
better than a dinner provided out of a single purse.”
The five phases of the VCW Method are:
1-Discover Value (Define/Tap): Key Decision Makers (KDMs) present a diagnostic and the challenge/problem. They define the 3Ms available for the VCW project (Manpower, Minute & Money), and establish the Key Performance Indicators (baseline KPIs & desired KPIs); Different stakeholders might be involved on the discussion.
2-Create Value (Increase/Induce): Stakeholders generate numerous ideas and criteria/filters to solve the challenge; KDMs might also generate ideas/filters. They should not influence the opinions of the different stakeholders. In this phase, there are no good/bad ideas and criteria/filters.
3-Validate Value (Assess/Analyze): KDMs select ideas, select and rank the criteria/filters to solve the challenge; Different stakeholders might be invited for the discussion.
4-Capture Value (Narrow/Ground): The selected ideas go through a funnel of ranked filters (or MCDA) until finding the final solution(s), which will then be conceptualized and/or prototyped; KDMs and/or different stakeholders might be involved on the discussion.
5-Consolidate Value (Act/Operate): KDMs validate the 3Ms & business model, the implementation of the final solution(s), assess achieved KPIs, monitor the execution, and develop a sustainability plan. Different stakeholders might be involved on the discussion.
The VCW is constituted by DIANA theoretical and TIAGO practical framework completely customizable to each specific case and problem. The tools of the 15 Is of innovation and the input provided by internal and/or external stakeholders help to customize TIAGO meta-framework (Lages 2016).
VCW METHOD: WHY, WHAT & HOW
An in-depth examination of the material available in this site, VCW publications, and videos available at www.OpenVCW.com, are critical for a proper understanding of the VCW method as well as to develop a VCW project which is simultaneous effective and efficient.
VCW METHOD: FIVE SUPPORTING PILLARS
The VCW method should only be applied by leaders who are willing to build on five decision-making pillars:
- sustainability: e.g., balance between short- and long-term goals, and alignment with sustainable indicators (e.g., 17 SDGs and its 232 indicators, 8 MDGs, TBL, circles of sustainability),
- common good: fairness and justice for all internal and external stakeholders;
- collaboration: openness to collective intelligence and co-creation to find the best solution(s) (e.g., by engaging different stakeholders, angels’ and devils’ advocates on the decision-making process)
- wisdom: proper analysis and judgement, namelly when facing complex problems and paradoxes (e.g., how to manage global vs. local perspectives, structure vs. agility, value creation vs cutting costs);
- transparency: clarity about a) the decision making process, b) ideas and criteria supporting the final solutions, c) who are the real key decision makers, d) internal and external forces, among many others.
As such, after concluding each VCW project, we encourage the KDMs and the VCW team to look at the mirror. This will ensure that the VCW project was developed in a conscious manner and is supported by a World Development Vision, while considering the 5 VCW pillars mentioned above.
WDV Certificate- Certificate for a World Development Vision
Any individual, team, and/or organization developing a VCW project is expected:
a) at the beginning of the project, consider the five VCW pillars;
b) at the end of the project, to do an auto-diagnostic and validate to what extent the final results are aligned with the five VCW pillars.
The “WDV Certificate” is a recognition given by the VCW Lab at Nova SBE to all the projects which are clearly supported by the five VCW pillars (see above).
Individuals, teams, and/or organizations which desire to apply for a “WDV Certificate”, please send an email to the Director of the VCW Lab at Nova SBE (Professor Luis Filipe Lages: lflages @novasbe.pt) and attach the complete VCW project for further analysis. Constructive feedback on each project will be provided.
“VCW is an enabler of decisions which are more considered (allows a broader range of alternatives), more focused and supported (allows the incorporation of filters), and more structured (allows to follow a process).
So, it makes decision-making more efficient and effective.”
Paula Hortinha, ex-CEO of JMD-Jerónimo Martins Distribuição,
who was highly involved in two VCW projects in Strategy and Marketing/Innovation at JMD
“The VCW helped to manage the consortium, definitely. In the NextGEOSS, the most important part of the project was to be able to convey the message of the project to the client services. We wouldn’t have such a targeted value proposition and public image for the project without the VCW. (…) The VCW had a huge impact. If it was not for the VCW, we wouldn’t have passed the message and make the decision pass. ”
Nuno Catarino of the Elecnor Deimos Group was in charge of
managing the 10M€ H2020 project NextGEOSS, involving 27 partners across 13 countries.
“Nowadays, organizations have lots of good ideas or initiatives, but they don’t have the resources to pursue all of them. Having a clear, transparent, and collaborative process for choosing the right actions is crucial for the success of the innovation initiatives. When looking for solutions to address this problem, I came across the VCW framework, that incorporates an excellent decision-making process, which allows an informed decision by the decision-maker with transparent and clear reasoning for the decision.”
Paulo Malta, Innovation Expert and Managing Partner of Innovsky
“I started as a skeptic in relation to this methodology and I confess, that in the first stage, I didn’t expect the results we obtained. At the end of the process, we found very practical solutions, and we achieved the objectives that we had set. Indeed, it was a very pleasant surprise to me.”
Paulo Pires, CEO of WhyMob (IT Solutions) and Board Member of Oramix (Digital Transformation & Cloud Adoption)
“The wheel that creates value for companies.
It is called Value Creation Wheel …”
“Would you like to put your business to innovate and create value?
Use this management tool.”
DN- Dinheiro Vivo
The VCW is an integrative process for leaders to solve challenges and take the right decisions right
“The VCW-Value Creation Wheel® is an innovation and decision-making model which helps KDMs (Key Decision Makers) and leaders to co-create in order to take effective and efficient decisions to solve their challenges and generate organizational/societal value. It is supported by collective intelligence during the participative decision making process, through the involvement of internal and external stakeholders who help to generate ideas, filters, concepts, and solutions (Lages 2016).
The VCW is a method for optimal decision making. First, it supports effective decision making because it produces the intended results while involving the KDMs to achieve the expected outcomes. KDMs find legitimate ideas and valid arguments for their challenges, find support for their reasoning, and agreement on the final solutions. Second, it is a process for efficient decision making because it does things in the right manner, performing well with reduced efforts and resources (time, budget and people). The VCW defines value as the benefits received by KDMs and their stakeholders, minus the required efforts (e.g., 3Ms- Manpower, Minute, Money), after implementing the solutions found by the VCW.“
Luis Filipe Lages, Creator of the VCW-Value Creation Wheel®
Full Professor and Director of the VCW Lab at Nova SBE, Nova University of Lisbon, Portugal
Who has been using the VCW method across the globe?
Large projects sponsored by the EU-Horizon2020 and European Space Agency (ESA) are using the VCW to solve their challenges
During the last five years, the VCW has supported different EU / Horizon2020 and ESA projects. VCW Team members played a critical role in helping to guide the decision making process across the different partners and in the transference of technology to the market. This was the case of the following international consortiums: BETTER, Marine-EO, MyFarm, SenSyF, and NextGEOSS. Currently the VCW Lab at Nova is Finalist in three EU / Horizon2020 Tenders for R&D, innovation, and commercialization in the fields of Aerospace/Security, Oceans/Fishing/Aquaculture, and Farming/Forests. All these projects are aligned with the UN Sustainable Development Goals (SDGs).
Hundreds of organizations in more than 20 countries
For over two decades, organizations of different sizes, from NGOs and start-ups to Fortune 500, have developed multiple VCW projects to address different organizational challenges. Examples of organizations which recently implemented VCW projects include Aga Khan Foundation, Airbus, Altran, AstraZeneca / Santis, AXA, Bank of Cyprus, Cathay Pacific Airways, Claranet, Cyta-Vodafone, Credit Suisse, Crowne Plaza, Eurocopter/Airbus Helicopters, Eurolife Insurance, Elecnor-Deimos, Everis-NTT Data, Flying Tiger, Forbach city, Four Seasons, GDF Suez, Gemalto, GirlMove, InvestLisboa, IPO Porto, INCM-Casa da Moeda, Jerónimo Martins, Liga Portugal, Lufthansa Technik, ITER, Healthcare City, Mastercard, Marseille University, McDonald’s, MIT, Montepio Acredita Portugal, Nova University of Lisbon, Otis, Piraeus Bank, Refood, Renova, Rio Tinto Alcan, Santander, Thomson Reuters, Uniplaces, UPS, Vienna International Airport, among many others.
Thousands of individuals and/or consumers in more than 20 countries
The VCW is a powerful method for personal decision making. Through co-creation, individuals and consumers have been using myVCW in order to find solutions to solve their challenges and problems. Examples of personal challenges include: What is my value proposition for the job-market? What is the right job for me? How can I find a partner? Where shall I emigrate with my family? How can I quit smoking? How to improve the food in my school? Where to go on holidays? What is my life purpose? How can I find an extra income? Which house to buy? Which car to buy? Which school/university to enter? How to design my new house? What is the right dog for my family? etc.
The VCWsprint model
Under limited resources (e.g., time pressure, serious resource limitations), very experienced VCW users might use a VCWsprint, which consists in the application of a very reduced number of tools for each one of the 9 main steps of the VCW method.
Only very experienced VCW users are encouraged to do a VCWsprint. A VCWsprint requires supervision from someone who has deep tacit and explicit knowledge about the VCW Method.
Who owns this webpage?
This webpage is managed by the VCW Lab at Nova, which has its headquarters at Nova School of Business and Economics, Portugal. The VCW Lab has the VCW scientific, tacit and explicit knowledge, as well as databases resulting from over two decades of research. More specifically, it has accumulated experience resulting from VCW partnerships and hundreds of projects in more than 20 countries (Lages 2016).
Luís Filipe Lages is the creator of the VCW-VALUE CREATION WHEEL® and owns the VCW registered trademark. Official VCW Partners might use the information developed by the VCW Lab (e.g., scientific articles, info in this webpage, VCW media coverage, OpenVCW.com) to create their own VCW webpages and VCW products/services.
For whom is this webpage?
The VCW Lab at Nova typically works with universities and partners who distribute VCW products/services across the globe. The main goal of this webpage is to share information with these VCW Partners and Advanced VCW Users.
Different VCW Partners and Advanced VCW Users across the globe and across different industries have ultimately different needs in terms of scientific support, different targets, and aim for different types of impact. This explains why this webpage is an open platform very dense in information. This way, the VCW Lab website aims to keep worldwide VCW Partners and Advanced VCW Users informed about VCW’s most recent developments.
Official VCW Partners are required to have a written approval for the joint business model with the VCW Lab. KPIs are agreed with each partner depending on the type of partnership (e.g., defined by target market) and type of project (e.g., expected impact).