Development of a Soft VM Model

Taking into account psychological value, organizational behavior and system theory, an integrated soft value management is modeled using a value-goal-outcome cycle to evaluate the value management on a construction project. The model (see Figure 1) consists of a goal setting system (Value–Decision Making–Goal) and an implementation system (Goal–Action–Outcome).

Illustrated in the figure, Value management (VM) is influenced by internal and external environmental factors, which are analyzed in a decision-making process. Decision outcome(s) from the discussion go on to define the project goal(s). The Output of this preceding value management system becomes an input to other (subsequent) systems, e.g., a decision outcome of value management (goal) acts as an input to further the project management process.

In the VM model, a goal is considered as a cognitive representation of value, and decision making as the cognitive transformation of that value into a goal. The transformation of values into goals – as a decision making process – requires objective setting, objective analysis (including determining an objective hierarchy) and evaluation of alternatives. The setting of these project goals will then initiate the required actions that lead to project realization, i.e. aggregate behaviours of participants (which lead to aggregate performance) to produce the outcome.

Feedback provides a basis for assessing the project outcome (e.g. project success and participant satisfaction). Satisfaction, which is related with a pleasurable emotional state, depends on one’s expectation and the actual outcome (Locke 1969). In this research model, satisfaction can be measured based on the discrepancy between the actual goal-value (A) and the expected goal-value (E). Goal-value is used in the context of quantifying satisfaction and value-goal specificity refers to the transformation of a specific value into a project goal. In combining Katzell’s (1964) research (content and intensity of job satisfaction) with Locke’s (1969) process theory (discrepancy between actual goal-value and expected goal-value), satisfaction can be expressed in two levels: relative satisfaction (sx) and absolute satisfaction (Sx) (see Figure 1).

Major Characteristics of VM

The basic concept of value management is looking for the ‘best’ value (and turn it into a goal) through participative decision making (e.g. in a value engineering workshop) where latent conflict can be stimulated/solved and specific values/goals can be devised with higher participant commitment. Hence, value/goal specificity, participation, conflict and commitment, all play important roles in the VE process. For example, a specific value is presented by the client at the first stage (information phase), then debated upon and concluded by the participants at the final stage (presentation phase). The intermediary stages of functional analysis, idea creation, choice evaluation and proposal determination, stimulate and resolve the latent and manifest conflict of the participants – with the aim to transform value specificity to goal specificity – so that the participants’ commitment at the last stage of the workshop will have increased from that of the commencement stage (see Table 1).

Participation (Leung and Wong 2000; Leung and Chu 2003)


In recent years, the applicant conducted a pilot study (Leung and Wong 2000) and found that effective participation and goal commitment throughout the various management processes are the most essential characteristics of VM. These influence quality of professional performance and product and, subsequently, the final outcome (participant satisfaction) (Leung and Chu 2003). The construction industry involves various parties in decision making, e.g., a director of a company (representative participation), internal consultants (participation in work decisions), external consultants (consultative participation), specialists (short-term participation) and end-users (informal participation). In order to control a complex construction organisation and structure, goal-setting theory (Locke and Latham 1994) using the ‘participation’ mechanism (i.e. participative goal specificity) can improve VM processes on construction projects (Leung 2003a).

Specificity (refer Leung 2001a; Leung and Liu 2002)

In construction projects, a common complaint is that the client’s brief is inadequate as a means for communicating the goals to the project participants. A primary purpose of value management, therefore, is to specify the clients' and participants’ values and goals explicitly through a decision making process. However, values and goals may be implicit and largely unspecified, quantitatively or qualitatively, or they may be quite explicit and detailed through the use of targets and quotas.

The established model (see Figure 1) postulates that the client’s requirements represent the assigned ‘value specificity’ in the decision process, while the project goal is considered to represent ‘goal specificity’ which is arrived from the participation of project members during the decision making process. Results from the research study (Leung and Liu 2002) provide a positive endorsement that goal specificity is influenced by primary value specificity and the client’s requirements. In addition, goal specificity and conflict resolution are associated with the final outcome (satisfaction) in construction projects. This means that a higher degree of value–goal specificity and greater conflict resolution (integration) improve the final outcome (satisfaction) and influence the following task subsequently. The primary purpose of value management is to specify the participants’ values and goals through the conflict stimulation and conflict resolution processes.

Conflict (Leung and Liu 2002; Leung, Ng and Cheung 2002; Leung and Yu 2003)

Conflict in a cyclic VM process involves values in the affective/subjective dimension and the cognitive/objective dimension. The first variable of the structural model (motives and ability) represents the individual’s desired value, while the last variable considers the cognitive rules and procedures for the desirable value and decision value (goal) in the value management process (value–goal–action–outcome). Goals are underpinned by an individual’s value system. Involvement of more than one individual during goal setting (as in a construction project) may result in value conflict, and thus goal conflict. The VM workshop is thus beneficial in bringing forth any latent and manifest conflict, supporting participative/creative effort in problem solving (driving towards goal consensus), and stimulating the desire to transform value specificity to goal specificity.

The findings of my study reveal that task and team conflicts exist in construction projects (Leung and Liu 2002; Leung, Ng and Cheung 2002). Both task conflict and team conflict (objectively) plays an important role in the value–goal process of value management, and affects the final outcome (satisfaction). The project participants are mainly concerned about the task objective during the goal setting process. Acknowledging the fact that moderate levels of task and team conflicts could result in higher participant satisfaction, conflict and conflict resolution should be considered and applied during the goal setting process to avoid excessive conflicts being introduced to influence the final outcome (satisfaction). Conflict resolution with integration style is the most desirable approach to solve the conflict in the construction conflict management, as most construction participants concern the relationship amongst other project team members. Quantity surveyors should not underestimate the significance of conflict management (stimulation and resolution) in the goal setting process of construction projects, because conflict stimulation and resolution could provide the answers for resolving many adversarial relationships in the present construction setting.

Commitment (Leung and Wong 2000; Leung, Chan and Yau 2003; Leung, Chong, Ng and Cheung 2004)

However, high performance will only happen when the individual is committed to the goal. Goal commitment relates to the individual’s motive to reach the goal, since motive is defined as a disposition to strive for a particular kind of goal state or aim or kinds of satisfaction. Three forms of commitment have been identified in my research study (Leung, Chong, Ng and Cheung 2004) based on the literature in organizational behavior. Affective Commitment (AC) has the intrinsic characteristics of emotional attachment and involvement in the project, while Continuous Commitment (CC) and Normative Commitment (NC) concentrate extrinsically on the ‘cost’ of leaving the project and the reason (ought) to do the project respectively.

The study clearly supports that AC is the main criteria for project success (good performance and high satisfaction) (Leung, Chan and Yau 2003). Indication shows that a professionals normative commitment depends passively upon the poor market/economic situation to maintain them in the project/organization (i.e. CC), which at the end of the day cannot enhance project performance or increase the participants’ satisfaction. Managers of the construction industry therefore need to stimulate and motivate the desirability and obligation of project participants to maintain/increase their AC or NC to ensure that the project will excel.

In light of the above discussion and current studies in the VM topic, the major characteristics of VM, based on the Soft VM model shown in Figure 1, depends on value–goal specificity, a moderate level of conflict, higher conflict resolution (integration) and affective commitment amongst the professionals in the participative goal setting process (Leung, Ng and Cheung 2002).

Role of Facilitators in the Value Management

The role of facilitators cannot be ignored in the VM management. Facilitators need to guide the entire VM team (participants) to search for the best Value–Goal achievable for the client and also play an important role in influencing the Decision outcome that, in turn, subsequently influences the project Outcome. In order to evaluate the interactions between the facilitator and the project participants in the VM workshop, behavioural facilitation skills are very important for supporting the participants in the whole decision process.

Based on an international survey in USA, UK, Australia, Canada, Korea, South Africa and Hong Kong, the recognized power/charisma of facilitators, specific structural tasks, and the participation and feedback amongst participants were concluded as being the major facilitation variables in the VM process. Recognized power enables the facilitators to lead the team with their trust, support and respect, and thus, builds the charismatic authority of the facilitators. VM is a systematic approach to search for the objectives of design, to discuss problems and gain feedback from other participants in the workshop, to structure the procedures/phases of a task and, finally, in selecting the best value–goal for a particular task. Hence, the VM workshop increases the effectiveness of a decision making process and improves the final outcome (satisfaction) in the goal–behavior–outcome model.

Facilitators have various responsibilities in the decision process, including (1) to manage the teamwork (participation and cohesiveness); (2) to manage the different cultural backgrounds amongst the participants; (3) to stimulate and solve conflict; and (4) to use the most appropriate techniques for information analysis. Facilitators should not influence the participants’ decision, but instead help the participants in analyzing and interpreting the information, so that they can then assist selection of the best value (goal) in the decision making process. Both Facilitators and Participants have to work together as a team for generating and evaluating the alternatives and reaching an agreement (consensus) for the project goal.

In sum, all of my current research projects are mainly being investigated on the basis of a behavioral paradigm and construction knowledge, which enhance the surveying education in the university and assist the quantity surveyors in the industry to manage the construction projects throughout the pre-contract and post-contract stages.

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