How value is measured

One score for every asset, in three steps.

How much your goals depend on an asset, times how well it is run. Simple enough to explain to a board, rigorous enough to audit, and the same for a server, a dataset or a supplier.

The Vi formula
CiCriticality0–100 · from goals
×
MiMaturity0–5 · from assessment
=
ViValue0–500 · one scale

The example on this page follows one asset, a Customer Portal, from goals to a decision. The numbers are the ones used throughout the framework books.

Step 1 · Criticality (Ci)

How much do our goals depend on it?

Map the asset to the goals it serves. Each goal has a priority from 1 to 5; the asset gets a contribution weight for each. The weighted sum is then scaled against the most critical asset in the portfolio.

Map to goals · Customer Portal
GoalPriorityWeightScore
Strategic
Increase digital revenue by 30%
560%3.0
Tactical
Launch new product line online
440%1.6
Operational
Improve customer satisfaction score
320%0.6
Weighted score5.2
Normalise to the portfolio

Ci = weighted score ÷ highest weighted score in the portfolio × 100. Using the real maximum, not a theoretical one, keeps the differences between assets.

Payment Gateway 5.7Ci 100
Customer Portal 5.2Ci 91
Mobile App 3.8Ci 67

Ci is relative: when a more critical asset joins the portfolio, every Ci is recalculated against the new maximum.

Step 2 · Maturity (Mi)

How well is it run?

Each asset type has its own maturity dimensions, scored on the same six-level scale. Mi is the average of the dimensions that apply.

The scale
5Optimizing · continuous improvement, automated
4Quantitatively managed · measured, predictable
3Defined · standard across the organisation
2Managed · documented, repeatable, still reactive
1Initial · informal, depends on heroics
0Non-existent · ad hoc, undocumented
Assess · Customer Portal (Application)
Architecture & design
4
Development process
3
Testing & quality
4
Deployment & release
5
Operations & support
3
Security & compliance
4
(4 + 3 + 4 + 5 + 3 + 4) ÷ 6Mi 3.83

Step 3 · Value (Vi)

Multiply, and the score points to a decision.

91 × 3.83 = 349
RetireOptimizeMonitorInvestSustain

Highly critical and well run. Protect it, and close the remaining maturity gap to move it into Sustain.

Property 1

Multiplied, not added

High criticality with low maturity is urgent. Low criticality with high maturity is waste. Only both together score high.

Property 2

No goal, no value

An asset that serves no goal has Ci 0, so its Vi is 0 however polished it is. The formula forces goal alignment.

Property 3

One bounded scale

Ci 0–100 and Mi 0–5 give Vi 0–500: easy to read, compare and trend across the whole portfolio.

Where maturity pays

Same criticality, different maturity, different decision.

On an asset with Ci 80, each maturity level is worth 80 points of value. Two levels apart is two bands apart. That is why VGF invests in maturity where criticality is high.

Asset A

Ci 80 × Mi 2 = Vi 160

Optimize band. A critical asset run below its importance.

Asset B

Ci 80 × Mi 4 = Vi 320

Invest band. Same importance, run two levels better.

The gap

+160 Vi

The value still to gain on Asset A, and the case for funding it.

From score to portfolio

Five bands, five actions.

Every asset lands in one band. Together they show where to protect, where to invest, and what to retire. The band also sets how often the score is recalculated.

SustainCritical and mature. Protect the investment.400–500
monthly
InvestCritical, maturity gap. Targeted improvement.300–399
quarterly
MonitorModerately critical. Maintain, watch for change.200–299
half-yearly
OptimizeLow criticality. Consolidate or divest.100–199
yearly
RetireMinimal value. Plan decommissioning.0–99
ad hoc
The value map · every Ci and Mi combination
5Mi0
Customer Portal · 349
Ci 0Criticality100

The curves between colours are where Ci × Mi crosses 100, 200, 300 and 400. Only critical assets can reach the top bands.

Value at risk · ΔVi

When an asset fails, the loss has a number.

During an incident the goals still need the asset, so Ci stays the same while Mi drops. The difference is the value lost, and it sets the priority instead of the loudest voice.

ΔVi = Vibaseline − Viincident
Complete outage

Customer Portal

91 × 3.83 = 349 → 91 × 0 = 0

ΔVi 349
P1 · under 1 hour
Half capacity lost

E-commerce Platform

95 × 4.2 = 399 → 95 × 2.1 = 199.5

ΔVi 199.5
P3 · under 24 hours
Performance down 30%

Data Warehouse

85 × 3.5 = 297.5 → 85 × 2.45 = 208.25

ΔVi 89.25
P4 · under 1 week
P1 · CriticalΔVi ≥ 300 · < 1 h
P2 · High200–299 · < 4 h
P3 · Medium100–199 · < 24 h
P4 · Low50–99 · < 1 week
P5 · Minimal< 50 · best effort

Priority matrix and target times as given in the Management Guideline. Each organisation sets its own thresholds.

Score your own top twenty assets.

Start with the assets that matter most and four core competencies. See the bands before you decide how far to go.