Value-Based Management in Government

CHAPTER TWOGenerating Value in a World of Uncertainty

FROM THE MOMENT WE enter this world as a baby until the moment we depart, we are constantly faced with choices. Those choices may range from the inconsequential to those having tremendous, life-long impacts. Those impacts can extend from us individually, to those immediately around us, and in some cases to many others around the world. Choices also differ from those that are very simple to make to those that are exceedingly complex and multifaceted. Choices can be focused on high-level, long-term objectives such as the selection of a professional career or interest, a more near-term selection of a university degree or educational program that will enable the choice of professional career, or even more near-term choices such as which classes to take, which professor to sign up with, or how much to study for an upcoming exam.

In all cases, however, individuals seek one general outcome for all choices: to maximize the value of that choice, whether in the short term or the long term. For example, if asked whether a two-seater sports car or an SUV offered greater value, a family needing to transport children to after-school activities might logically view the SUV as offering greater value while the bachelor or bachelorette might choose the sports car as offering greater value. Value as used here does not refer to which costs more. Instead, it is related to the perceived return on investment. Only in cases where resources are unconstrained ...