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Topics: Governance
Capital Value Process - What is it?
Tiong-Soon Kit, PMP Singapore, Singapore
Dear All,
I am interested in the CVP used by BP (I guess), and what it actually is and whats the variation from the conventional PMBOK processes. Appreciate if anyone has any information or literature on the above process.

Many thanks
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Frank Patrick Boonton, Nj, USA
I don't really have time this morning to try to distill all the info on CVP that I found, so you might want to check out this source.
Peter Jones Telford, United Kingdom
CVP = Common Value Process, and is a standardised PM methodology. Breaks project into 5 phases, with the emphasis on a lot of pre-planning done up front (they call it front-end-loading). It is very good, and adaptable to small and large projects, but most good methodologies will have the same elements.
David Murphy Senior Project and Programme Manager| freelance Cromer, United Kingdom
@Peter Jones, the CVP from BP actually stands for Capital Value Process and is something applied to IT projects and non IT projects throughout the business.
David Murphy Senior Project and Programme Manager| freelance Cromer, United Kingdom
It should be further noted that CVP is a governance process above / around a project and is not the management of the project itself. It has 5 stages with a gate at the end of each stage. In that regards its closer to OGC gateway approach than eg PMBOK, Prince 2 etc.

Its hard to get any detail about it, most of the google items were job ads for people with CV expexperience.

Here is an outline based on the limited information I could gather.

Appraise (data gathering): – demand analysis; cost analysis; global model contract review; and resources plan.

Select (strategy development): – scope development; contractor interviews; market research; strengths, weaknesses, opportunities and threats (SWOT) analysis; risk analysis; cost benchmarking;

Define (strategy approval): – state oil company notification; internal contracts committee approval; and production sharing agreement partners approval;

Execute (tender and award): – invitation to tender preparation and issue; bid evaluation; and approvals and contract awards.

Operate (transition and performance management): – transition management; agree key performance indicators; and establish contract performance management process.

Gavin McLeod Auckland, New Zealand
CVP (Capital value Process) was developed initially by Amoco in the USA prior to merging with bp. Its intent was to provide a basis for decision making and governance in relation to assignment of capital to large scale upstream projects.

bp adopted the process in its own upstream businesses and from there it was driven out into downstream activities via the 'Digital Business' of bp (later ICT - Information Communications Technology) function. It is from this support that it became known as a governance process associated with IT implementation.

The 5 stages, outlined elsewhere in this string, are adaptable to the requirements of the case in hand. However in all cases the strong emphasis is on 'fron-end' loading of data and knowledge in order to provide assurance and speedy delivery to any resulting implementation. A feedback loop (final stage) is a cornerstone element to inform future projects however this element, in my experience, was often overlooked.

Another aspect of the process developed in association with what was Arthur Andersen Consulting at the time, was the concept of 'Optioning'.
This was a piece of thinking that attempted from the outset of the project to provide decision makers with an appreciation of the possible impact of the project and the dependencies that said impact was reliant upon.

For example, a systems implementation might make available an increase in market penetration of 20% with a P50, however it may have several unknowns associated with it, hence the 'P50' score. As dependencies and unknowns either become delivered or known, and the true impact becomes known, the 'Option' becomes less variable and the 'P' score increases...say to P80 - the reality or end game becomes clearer therefore the true impact becomes less risk prone. The 'P' is the probability score. projects aim for a P score of 80+ as this indicated a strong likelihood of delivery on the project's promise.

Underpinning the 5 gates are details regarding documentation requirements, governance meeting attendence profiles (which functions need to provide governance input), meeting schedules, buget planning tools etc.

The framework could be as complex or as light weight as required for the funds at risk or the business impact anticipated.
I worked with CVP, often being an apostle, for about 5 years from 1999 to 2004. People often confuse it with process management or should I say people often confuse project management with I hope this helps.

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