THE VALUEMETRIX APPROACH

It is part of human nature to form an Overall Evaluation of a product, service, or a supplier in general before buying something, accepting a job, or investing in a company's shares:
  • What's the general impression of the company? 
  • How well has the company performed on earlier occasions? 
  • How attractive are existing alternatives?
The ValueMetrix Approach quantifies these relationships. It estimates how changes in impressions, experiences, and alternatives are likely to impact on stakeholder behavior. In a value simulator, the likely changes in net revenue can be compared with the added costs in order to arrive at the net financial value of the actions under evaluation.

The approach is an extension of the macroeconomic methodology originally developed for national Customer Satisfaction indices. While keeping surveys to capture perceptions, the ValueMetrix Approach also incorporates financial facts into the cause-and-effect analyses and focuses on the drivers of the desired behavior rather than on what drives a predefined overall evaluation.

Here is a short description of the steps to take:

Who do you want to influence?

The first step is to define the stakeholder category that you want to influence...

What is their Desired Behavior?

... then you need to decide which behavior you want to influence...

What could be the drivers of their behavior?

... and list all the potential drivers of the Desired Behavior, preferably by interviewing face-to-face representatives from the selected stakeholder
category...

Find out which facts are available

... to draw conclusions about the Value of Actions, the input from internal databases about actual facts on stakeholder level is key for the cost/benefit analyses...

Organize a tentative Analysis Structure

... to facilitate building a good questionnaire, use the input from the stakeholder interviews plus your own experience to draw a tentative analysis structure and draft the questions that you think would catch the stakeholders' attitudes correctly... 

Build a questionnaire

... then specify in detail the questions that you want to use in the questionnaire but don't include too many questions - respondents may be reluctant to answer more than just those questions that they really care about themselves, otherwise they may quit as soon as they feel that the questions don't concern them personally...

Collect the data

... once the questionnaire has been finalized, use the data collection firm of your preference - ValueMetrix' analytical software can apply predefined macros in such a way that the data are converted to the format that ValueMetrix' software has been built to handle...  

Do the cause-and-effect analyses

... when you have responses, the ValueMetrix software uses factor analysis to confirm that the assumptions about the behavior drivers are correct and then it uses structural equations and so called Partial Least Squares (PLS) for the optimization of the results to arrive at scores and the impacts of score changes that are as reliable and correct as possible...

Include Quality Certificates

... and to prove the validity of the cause-and-effect analyses, ValueMetrix' software also calculates and presents quality measures and presentd them as Quality Certificates to document how well the data in the analyses describe the situation...

Quantify the strength of the links

... with special attention paid to the estimates including the confidence levels of the impacts on the Desired Behavior that are the likely consequences of score changes in the various behavior drivers