Managing the Field of Variance
Managing the Field of Variance follows the notion that when you change the baseline of a business structure, install a new major system, or through a reorganization or refocus, a new product introduction, or market strategy, or through the adoption of a new set of values, three key factors will influence the successful outcomes. These key factors are value, cost, and gain.
The Ryan Group’s approach to managing these factors is through a process of defining the
- Field of Variance Inhibitors
- Field of Variance Drivers
- Field of Variance Benefits
Field of Variance Inhibitors
Reluctance to Systems Integration
Lack of Adoption and Internalization
Continuation of Duplication and Redundancy
Push-Back, Maintaining “Phantom” Systems
Field of Variance Drivers
Field of Variance Benefits
The Field of Variance and The Realization of Value
The formula for calculating total value is
Baseline + Value + Cost + Synergy = Total Combined Value where value, cost, and synergy are the fields of variance. Or TCV = B+V+C+S.
Application. What are the typical uses?
Merger and acquisition
New IT system install
Reorganization or refocus
New product introduction
(B) Baseline. What is the baseline?
Baseline value of present business, system, etc.
(V) Added Value. What value will the opportunity add?
(C) Cost. What will the opportunity cost?
(S) Synergy Gains. What will be gained?
Why conduct a project like this?
Provides information not otherwise known.
Serves as a go/no-go decision influencer.
Helps set a course for success.
Brings understanding of potential gains.
Highlights possible road blocks.
Crystallizes areas to focus.
Gets everyone on the same page.
The project deliverables are in the form of conducting an assessment of the fields of variance to identify and determine a means to eliminate or neutralize inhibitors, enhance drivers, and deliver value-added benefits.
Costs vary according to the scope of the client’s project, Typically, these projects require active participation from the client organization.
The Ryan Group, Inc.