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 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.
Increase digital revenue by 30%560%3.0
Launch new product line online440%1.6
Improve customer satisfaction score320%0.6
Ci = weighted score ÷ highest weighted score in the portfolio × 100. Using the real maximum, not a theoretical one, keeps the differences between assets.
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.
Step 3 · Value (Vi)
Multiply, and the score points to a decision.
Highly critical and well run. Protect it, and close the remaining maturity gap to move it into Sustain.
Multiplied, not added
High criticality with low maturity is urgent. Low criticality with high maturity is waste. Only both together score high.
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.
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.
Ci 80 × Mi 2 = Vi 160
Optimize band. A critical asset run below its importance.
Ci 80 × Mi 4 = Vi 320
Invest band. Same importance, run two levels better.
+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.
monthly
quarterly
half-yearly
yearly
ad hoc
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.
Customer Portal
91 × 3.83 = 349 → 91 × 0 = 0
E-commerce Platform
95 × 4.2 = 399 → 95 × 2.1 = 199.5
Data Warehouse
85 × 3.5 = 297.5 → 85 × 2.45 = 208.25
Priority matrix and target times as given in the Management Guideline. Each organisation sets its own thresholds.
Keep going
The five pillars
Where Ci and Mi come from: goals, asset lifecycles and competencies.
Calculated for you
The value engine keeps Ci, Mi and Vi current for every record in the inventory.
The full method
Every step, table and worked example in the Management Guideline.
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.