Measuring the Value Added of Management: A Knowledge Value Added Approach

摘要

That management adds value to organizations is one of the unquestioned truisms of business, government, military, and any other multi- member organization. The question left largely unanswered is, 'How much value does management add to an organization' The central focus of this study is to establish a method for objectively measuring the value management adds to an organization. Determining the value added by management becomes particularly important as Navy acquisition managers deal with increasingly complex, open business models that engage many more participants in the development and implementation of products and services to support warfighters. There is a recognition that emerging, increasingly complex acquisition environments require more direction, collaboration, and control to achieve the reductions in costs as well as the increases in warfighting effectiveness that initiatives, such as the Open Architecture (OA) system acquisition and development framework, promise. The increasing burden on management in such an environment largely derives from the amount of complexity managers must deal with by attempting to mitigate risks, improve predictions, and exercise the control and oversight necessary to be successful. Determining the value added by management is important because managers need to know how well they are performing in more complex and demanding environments such as OA and open business models; those who evaluate management performance need a common metric to gauge the degree to which managers are succeeding or failing; poor performance by management threatens delivery time, acquisition costs, and capability of acquired products and services; a consistent and objective way to evaluate management provides historical performance data that leads to more precise risk estimates; and including management performance in the overall assessment of organizational performance provides a more complete picture of how well an organization is performing.