Why Government Initiatives need Value Chain Analysis

Why am I worked-up today? I dislike competing and politicized narratives; in project management work or in government initiatives. For example, currently in the US there is a rallying cry about income inequity.  It should be eradicated.  Of course we want to have fair and equal opportunities and a vibrant economy that is accessible to all walks of life and services all strata of society. And that is the problem.

When one seems to not support a position of justice, how can we have a rationale and civil discussion on whether it is even the correct initiative?  Thomas Sowell valiantly aims to look at facts around this discussion yet facts continue to be debated.

What is a solution? Value Chain analysis.  Value chain analysis looks at the end to end activities that create a valuable outcome. The outcome that projects, initiatives, programs or governments want are:

  • Better products
  • Faster time to market
  • More agricultural goods available to local consumers
  • Increased wealth for all classes of society.

Value Chain analysis can help leaders navigate through failed development efforts in Silicon Valley, agriculture development in Africa or political decisions.

Sounds like nirvana. One never wants to oversell any concept. Yet value chain analysis is critically important to understand major activities and then look at what is broken and agree as a leadership team or a political party on how to fix it.

Simple. Unifying. Terrifying hard to accomplish.


Please note: I reserve the right to delete comments that are offensive or off-topic.

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3 thoughts on “Why Government Initiatives need Value Chain Analysis

  1. It may be because so many of the challenges facing the world (and corporations, for that matter) are so huge that it’s easier to pound chests, pontificate and yell platitudes that seriously look at the problems and provide viable options for solving them.

  2. Thanks for your wisdom in applying a political issue to business and offering some interesting resources. I always appreciate the intelligence and thought-provoking perspective you bring to your readers.

    • Thanks Rebecca. Every year the African Development Bank, the OECD Development Centre and the United Nations Development Program choose a new theme to study. This year’s theme is Global Value Chains and Africa’s Industrialization. Why? Productivity gains from improving sourcing strategies and value chains have been easier to achieve than employment growth. Read this report for a great overview of a powerful way which Value Chain analysis can impact nations! http://www.africaneconomicoutlook.org/