An introduction to CoSense and value born of ideas.
PWC’s consultancy ‘Strategy&’ highlight the problem that, although adopted the design-to-value model rarely delivers on what it promises. They emphasis that this shortfall is resultant of silo working and organisational culture. We agree entirely with this, however PWC fall short of addressing what we know to be the key that unlocks the full potential of design-to-value. We call that CoSense.
Every company has a vision of how they might best serve its customers and a mission to succeed in the marketplace.
Vision determines meaning. But if not shared and developed collaboratively the meaning that should flow and build through a project is instead eroded, fragmented and distorted. Without the golden thread of meaning (and subsequent ideas) all involved are impacted negatively and the outcome falls short of vision. Value is lost and extracted as fast as it is created.
This loss of value often does not begin to manifest until design has commenced. Whether that is the design of a product, service or the built environment and infrastructure. All are types of development serving a market.
Companies first adopted a model of design-to-value (DTV) sometime ago. It remains popular today, but more for its promise than its results. DTV theoretically provides a framework for companies to cut costs in certain procurement and design areas that least affect the value of the development while adding features that customers and the market want. In reality, though, at most companies the structure of the organisation – particularly its project development processes – and the corporate culture are not equipped to fully embrace the benefits that DTV potentially provides.
At most companies, design and fabrication or construction is in the hands of isolated silos, separate functions with disparate priorities that are unable to communicate well with each other. Further exaggerated if those are subcontractors. As a result, companies fail to realise the full potential of their developments in terms of cost, features, life cycle, market share, profits, and customer loyalty – and they forfeit critical short- and long-term earnings in the process.
DTV fails in two ways. Firstly it places too much emphasis on process. The belief that a process is a peg on which you can hang other ideas is inverted. Ideas are the very DNA of value creation. Ideas are the catalysts and enablers, process is merely a tool. Secondly over emphasis on DTV and myopic focus on adding value blinds us to the reality of value extraction.
To avoid the shortcomings of DTV implementations, a different approach is needed – a method that Through Ideas call CoSense – holistic-value-by-design (HVbD). This framework for development success emphasises the development and journey of ideas. The catalysts of value. Ideas are core within any DTV process and management of cost and value across the organisation during the development process. Ideas are most critically before that, where they are most often ignored. HVbD is a multidimensional, multifunctional approach to development that offers pivotal pathways for procurement, design, engineering, fabrication and construction teams to collaborate in driving the most effective and valuable outcomes.
To do this, HVbD takes into account a development’s performance, features, and recurring and nonrecurring costs as well as other essential attributes such as life cycle, carbon footprint, and brand value, which helps organisations use appropriate tools tools and make meaningful development decisions. Meaning is the key that unlocks value. The HVbD framework typically leads to higher customer value for the same production costs or sales price, or lower costs and higher profitability for the same customer benefits.
The CoSense approach brings the missing ingredient to DTV. The ingredient that allows DTV to deliver what it promises. That ingredient is Vision. A model that is vision-to-design-to-value (VDTV). Combined with a culture of HVbD, VDTV is distinct in its overarching emphasis on how meaning flows and grows through an entire organisation and its projects. Ideas are the transport for the value. Value is electricity, electrons ideas.
CoSense nurtures a culture of HVbD and empowers VDTV. The affect of adopting CoSense is the ‘meaningification’ of both companies and their developments. Holistic Value by Design.