Why does a company need it?
For small companies that want to grow, the methodology will provide a guideline in development, allowing to keep the goals of the company's owners in the focus of employees.
For medium and large companies, applying the methodology will correct any errors in prioritizing projects and tasks, reorganize the company's business processes, improve communication between departments and increase the transparency of employees' work.
Each division in the company will be able to evaluate its contribution to the final result, and the methodology will help to focus on the most critical tasks.
Why do CEOs and top managers need this?
The division or company performs many functions. Each employee performs the tasks assigned or achieves specific goals. However, do they always understand the real significance of their work for the business? A lack of transparency or ignorance of why employees perform this or that work often leads to errors, a decrease in quality, or a lack of speed in any area.
The cascade of organizational goals will allow operating expenses to be considered in tactical plans and tactical plans to be synchronized with strategic ones.
Getting an organization accustomed to measuring business value will inevitably create the additional expense of evaluating, measuring, and reporting the generated business value. At the same time, losses associated with inconsistencies in the activities of departments and misunderstanding of the required result will disappear.
Aeilus is a general indicator of the usefulness of each employee or team, where one does not have to look for a compromise between the actual tasks of employees and a set of formalized goals. The KPI system does not provide the breadth of opportunities as Aeilus because employees will not be able to keep many indicators in the focus of their attention. If we severely limit the number of indicators, then there will always be tasks that will be important but will not be taken into account in KPI.
Set business value points or delegate these rights, and nevertheless, the responsibility will stay on your side. On the one hand, this is an additional burden; on the other hand, a better performance of management work, which in turn entails more productive work for the entire enterprise.
Why does the head of the department or team leader need this?
The criteria of the effectiveness of a unit in the form of achieved business value will allow evaluating the effectiveness of used business processes. The improvement of business processes will be subject to the maximization of one criterion.
A team gets feedback on how well or poorly they perform by looking at the charts. Just like inaction, slow responses or mistakes cause damage to the company, which causes negative business value. A team itself finds additional ways to increase its efficiency, understanding what actions will bring benefits to the company.
The manager can track trends with the team and look for problem areas, but most importantly, the team can have much autonomy. A team knows what is suitable for the company and what is wrong and will choose those actions that will bring the maximum effect.
A team understands what value other departments bring, and it can be measured; the significance of their work is no longer underestimated; moreover, based on the tasks being solved, their value can be higher. When a team solves the problems of other teams, the question often arises, whose tasks are more important? Furthermore, there will be a clear answer to this question. Also, this answer is essential for those whose tasks remain in the queue in favor of solving more valuable tasks.
Why does every employee need this?
The methodology does not specify the level of detail for measuring value streams. One can measure a team's value or drill down to an employee.
If each employee's contribution can be measured, this will allow them to get more job satisfaction, so this will allow them to understand their value in the process.
Detailing the measurements to the team will indicate the great value of the joint result and the work of the team itself. Merging results into the company's overall result should be aimed at improving the overall result in the first place.
In any case, each employee will benefit from understanding how the cyclical value stream works, of which they are a part. This benefit is not in self-esteem but in understanding what else they can do to increase this benefit.