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Value Management Incentive Program Innovations in
Delivering Value 2001st Edition Nigel Standing Digital
Instant Download
Author(s): Nigel Standing
ISBN(s): 9780727730305, 0727730304
Edition: 2001
File Details: PDF, 1.18 MB
Year: 2001
Language: english

Value management incentive programme

Value management
incentive programme
Nigel A. Standing

Published by Thomas Telford Publishing, Thomas Telford Ltd, 1 Heron Quay, London
E14 4JD. URL: http://www.thomastelford.com
Distributors for Thomas Telford books are
USA: ASCE Press, 1801 Alexander Bell Drive, Reston, VA 20191-4400, USA
Japan: Maruzen Co. Ltd, Book Department, 3-10 Nihonbashi 2-chome, Chuo-ku,
Tokyo 103
Australia: DA Books and Journals, 648 Whitehorse Road, Mitcham 3132, Victoria
First published 2001
A catalogue record for this book is available from the British Library
ISBN: 0 7277 30304
# Nigel A. Standing and Thomas Telford Limited 2001
All rights, including translation, reserved. Except as permitted by the Copyright,
Designs and Patents Act 1988, no part of this publication may be reproduced, stored in
a retrieval system or transmitted in any form or by any means, electronic, mechanical,
photocopying or otherwise, without the prior written permission of the Publishing
Director, Thomas Telford Publishing, Thomas Telford Ltd, 1 Heron Quay, London
E14 4JD.
This book is published on the understanding that the editor(s)/author(s) is/are solely
responsible for the statements made and opinions expressed in it and that its
publication does not necessarily imply that such statements and/or opinions are or
reflect the views or opinions of the publishers. While every effort has been made to
ensure that the statements made and the opinions expressed in this publication
provide a safe and accurate guide, no liability or responsibility can be accepted in this
respect by the editor(s)/author(s) or publishers.
Produced by Gray Publishing, Tunbridge Wells, Kent
Printed in Great Britain by MPG Books, Bodmin, Cornwall

Contents
List of tables and figures ix
Acknowledgements xi
Abbreviations and definitions xiii
1. Introduction 1
2. The project value chain 2
2.1 Introduction 2
2.2 Basis of the project value chain 2
2.3 The project value system 2
2.4 The project value chain (strategic phase) 3
2.5 The client value system (strategic) 5
2.6 The decision to construct 9
2.7 The multi-value system (tactical phase) 9
2.8 The characteristics of the client organization 14
2.9 Designer characteristics 17
2.10 The project value chain and the value incentive clause 17
2.11 Summary 20
3. Procurement and contractor-led value engineering 21
3.1 Introduction 21
3.2 Value engineering by the contractor within traditional
procurement 22
3.3 Value engineering by the contractor within design and
construct procurement 24
3.4 Value engineering by the contractor within management
contracting 26
3.5 Value engineering by the contractor within construction
management 26
3.6 Value engineering by the contractor within PFI 27
3.7 Value engineering by the contractor within partnering 28
3.8 Other procurement forms 29
3.9 Procurement and the project value chain 34
3.10 Summary 38
4. Contractor involvement in value engineering 39
4.1 Introduction 39
4.2 The current industry position 39
v

4.3 Contractor’s involvement in client’s value
management/engineering workshops 41
4.4 Contractor pre-contract performance in client’s value
management/engineering workshops 41
4.5 Client value management/engineering workshops
(change circumstances) 42
4.6 The promotion of contractor-led value engineering 43
4.7 Contractor-led value engineering – the current situation 43
4.8 The client’s right 44
4.9 Contractor-led value engineering at the
pre-contract stage 44
4.10 Barriers to contractor-led value engineering – the client 45
4.11 Barriers to contractor-led value engineering – the
consultant/designer 46
4.12 Barriers to contractor-led value engineering – access to
information 46
4.13 Contractor-led value engineering workshop 47
4.14 Summary 49
5. Existing value incentive programmes 51
5.1 Introduction 51
5.2 The development of value engineering change
proposals in the USA 51
5.3 US government value engineering requirement 52
5.4 The use of value engineering incentive clauses in the USA 52
5.5 USA methodology for value engineering incentive clauses 53
5.6 Federal Acquisition Regulations (FARs) 54
5.7 Statement of work 55
5.8 Submitting the value engineering change proposal 56
5.9 Other contract considerations of a value engineering
change proposal 57
5.10 Evaluation of value engineering change proposal 57
5.11 Summary of the US value engineering incentive
programme 58
5.12 The Australian value management incentive
programme (VMIP) 59
5.13 Value management change proposal 60
5.14 The preparation of a value management change proposal 61
5.15 Submission of the value management change proposal 62
5.16 The rejection of the value management change proposal 62
5.17 Intellectual rights 63
5.18 Summary of the Australian value management incentive
programme 63
6. Value management and value engineering incentive clauses 64
6.1 Introduction 64
6.2 The change in risk for the contractor 65
6.3 The use of intellectual capital 66
6.4 Value management incentive programme 67
6.5 The requirements of a value management
incentive clause 69
6.6 The types of value incentive clause 69
6.7 Value incentive clause at post-contract 70
Contents
vi

6.8 Management and co-ordination of VECPs in
a reactive clause 76
6.9 Value incentive clause at pre-contract 79
6.10 Incentive sharing of value engineering proposals
(contractor’s view) 80
6.11 The cost saving evaluation of a value engineering proposal 82
6.12 Design liability for the value engineering proposals 83
6.13 Client benefits of a value incentive programme 83
6.14 The contractor benefits of a value incentive programme 85
6.15 Management and co-ordination of VECPs 86
6.16 Roles and responsibilities in the management
and co-ordination of a VECP 87
6.17 Value opportunities register 90
6.18 The submission of the value engineering report 92
6.19 Summary 93
7. Contractor’s value engineering policy 94
7.1 Introduction 94
7.2 Contractor’s policy on value management/value
engineering 94
7.3 Value engineering policy within contracting organizations 95
7.4 Value engineering policy – management style 96
7.5 Value engineering policy – the effectiveness of a
contractor’s organization 96
7.6 Value engineering policy – organizational planning 98
7.7 Summary 99
References 100
Appendix 101
USA DoD Form A1 Value engineering change proposal action and processing 102
USA DoD Form A2 Value engineering change proposal form 103
Value engineering incentive clause (contractor–client) (Based on USA
Department of Defense Contracts) 111
Form 3 Value opportunities register 113
Form 4 Value opportunity notice 114
Form 5 Value engineering proposal idea development 115
VMIP within modified NEC-2 Edition November 1995 flowchart 116
VMIP within modified chart 53 NEC-2 Edition November 1995 flowchart 117
Procurement and selection of a contractor or other service provider 118
Index 125
Contents
vii

List of tables and figures
Tables
3.1 Client-led design – value management and value engineering
of the client’s design 24
3.2 Contractor-led design – value management and value
engineering of the contractor’s design 24
4.1 A comparison of the contractor’s value engineering study
plan/job plan on three different projects 50
5.1 Value engineering requirement matrix 55
5.2 Contractor’s share of the nett acquisition savings 55
Figures
2.1 The project value chain 4
2.2 The project value chain (strategic phase) 5
2.3 The client’s value system (strategic phase) 6
2.4 Characteristics of the strategic and tactical phases 8
2.5 The project value chain (tactical phase) 10
2.6 The client’s position in the time, cost and quality triangle 11
2.7 Project value chain (operational phase) 15
2.8 The value management process re-aligning the project and
associated project value chain 16
2.9 The injection of intellectual capital at each value management/
value engineering intervention 18
2.10 The alignment between the project value chain and the
value management incentive programme 19
3.1 A partnering selection and target cost-setting procedure 30
3.2 Integrated partnering and value management process for a
client at an early stage of a project 31
3.3 A comparison of the procurement systems relative to the
project value chain 36
3.4 A schematic comparing the cost and expenditure during
phases of a construction project 37
6.1 The management of risk by value engineering 66
6.2 Details of a reactive value incentive clause 71
6.3 Schematic of value project management 72
6.4 Details of a pre-planned value incentive clause 73
6.5 Value management incentive programme implemented
during construction within traditional procurement 74
ix

6.6 Value management incentive programme implemented after
award construction within traditional procurement 75
6.7 Value management incentive programme implemented after
planning within turnkey procurement 76
6.8 Value management incentive programme implemented within
a PFI scheme 77
6.9 Methodology for using a value management incentive
programme at the pre-contract stage 81
6.10 The management and co-ordination of a value engineering
change proposal 86
6.11 A generic structure for the management and
co-ordination of a value engineering change proposal 88
6.12 The management of value opportunities 91
7.1 A model of motivation change within an organization in the
development of a value management/engineering policy 97
List of tables and figures
x

Acknowledgements
The author would like to thank the following people for their help and assistance in
producing this book. I am grateful to my wife Pabittra and daughters Ariane, Camilla
and Liana for bearing with me throughout the period of writing this book. I am also
indebted to Professor S. Male for the support and guidance he has given me. I would
also like to thank Charles Penny of Balfour Beatty Limited.
The book is based on research undertaken by the author at the University of Leeds.
N. A. Standing
xi

Abbreviations and definitions
Abbreviations
CAD Computer aided drafting
CAPEX Capital Expenditure
CBPP Construction Best Practice Programme
CIRA Construction Industry Research Association
CII Construction Industry Institute
DoD Department of Defence
EU European Union
FAR Federal acquisition regulation
FPLS Fixed price lump sum
KPI Key performance indicators
M4i Movement for Innovation
MIL-STD Military Standard
OPEX Operating Expenditure
PFI Private Finance Initiative
RIBA Royal Institute of Building Architects
SOW Statement of Work
TQM Total quality management
VECP Value engineering change proposal
VEI Value engineering incentive
VEIC Value engineering incentive clause
VEPRC Value engineering programme requirement clause
VESA Value engineering supplemental agreement
VEVO Value engineering variation order
VMIP Value management incentive programme
xiii

Definitions
Value management. A structured approach to the identification and evaluation of
project objectives and a mechanism by which these may be achieved in order to
provide value for money
Value engineering. The systematic and creative process for the provision of the
necessary functions of a project at the lowest cost by efficient identification and the
elimination of unnecessary cost without detriment to:
safety;
quality;
reliability;
performance;
delivery.
Contractor led-value engineering. The development of value engineered proposals
by the contractor’s team, which are then presented to the client within a framework
of a value incentive clause.
Constructability. The optimum integration of construction knowledge and experi-
ence in planning, engineering, procurement and field operations to achieve overall
project objectives.
Rolling front brainstorming. The use of small synergistic teams in the workshop assist
the dynamics such that a state of continuous improvement exists, which makes
everybody wants to put forward their suggestion for improvement of the idea. The
improvement occurs by registering the idea and sketching the improvement if
possible in this manner the process develops the idea and the team improves it by
iteration to form a working solution. Once the team has decided that the idea
development is sufficient they continue in a normal brainstorming manner until an
idea is generated, which triggers the team. It is then immediately seized and
developed further in the same manner.
Value thread. The value criteria which is established at the project’s inception,
weaves a path through the project value chain. At either side of each transition
within the project value chain the value thread should have continuity and
consistency with no loss of value.
Project value chain. The project value chain highlights the management flow of
value in a project from strategic value to operational value. It consists of three
value systems and these are client-strategic, multi-tactical and user-operational.
Abbreviations and definitions
xiv

1 Introduction
Since the early 1990s, there have been many publications in the UK on the subject of
value management and value engineering. These have all been written from the
client’s viewpoint, but only two of publications have any mention of value
management/engineering incentive arrangements, and both of these have had input
from the author. It is advisable that those unfamiliar with value management and
value engineering should read one of the publications before reading this book.
The Egan Report, other construction industry initiatives, ‘The Movement for
Innovation’ (M4I) and Construction Best Practice Programme (CBPP) are all striving
for improvement and ‘best value’ and endorse value management/engineering.
However, none of these initiatives consider value management/engineering incentive
programmes and clauses.
There have been many reports and publications that consider alliancing and
partnering will be the panacea for all the construction industry’s problems and there is
no requirement for clauses or conditions as mutual trust will exist. However, the
mechanism for reward advocated within alliancing/partnering, is a pain/gain share
arrangement fixed against an agreed target cost. But this is a cost-based and not a
value-based incentive. In the UK there are no formal value management/engineering
incentive programmes or existing clauses that allow the contractor to participate,
under agreed terms, within a contract or form of procurement. There is a distinct lack
of knowledge within the UK on the subject of value management/engineering
incentive programmes.
This book reviews the current value incentive clauses that exist in the USA and
Australia. It also examines the procedures that are undertaken in their application
within the project environment. As no formalized UK value incentive clauses exist,
the book will also consider the criteria that should be met, and how they should be
implemented. The impact of a value incentive clause on the various parties involved
in a project will also be investigated.
1

2 The project value chain
2.1 Introduction
To understand the need for the use of value management incentive programmes
(VMIPs) it is important to establish the transfer of value in a project. The principal
processes such as the procurement form, client and designer characteristics, all
contribute to the impact on the use of the value process by the contractor. The
project value chain is a methodology which highlights why a contractor should
undertake formal value management/engineering incentive programmes on projects.
The important features which form, frame and assess the interaction of the
organizations involved in the ‘value process’, are discussed as the project value chain
is developed. The key concept within the project value chain is that it defines the
management flow of value in a project from strategic value to operational value.
2.2 Basis of the project value chain
The project value chain developed here will not examine the whole construction
industry, but only those elements that are considered necessary to understand the
problem or those aspects with which it interacts. The problem has been identified as
providing a mechanism for the contractor to operate value management/engineering
early, within a project’s development, with security of intellectual capital and for
receiving an incentive for liberating that innovation. The project value chain provides
a framework to understand the project in its environment. The normal project
delivery system notation, similar to the Royal Institute of British Architects (RIBA)
plan of work, would allow project interventions to be shown, but it cannot relate to
organizational interfaces. However, in order to establish links with organizations,
procurement and value-added activities within the project value chain, the
framework was used to provide the ‘backbone of the skeletal model’ (Porter, 1985).
The project value system will be discussed in the following section.
2.3 The project value system
2.3.2 The project
A construction project is unlike many other manufactured products. It is a unique
event stemming from a demand, requiring a specified location and constrained by the
numerous internal and external factors imposed on it. The requirement of the end
product should also meet the needs of the demand that first started it off. The impact
of these factors on the project has other wider implications than just the complex
corporate, legal, financial and regulatory environment of the organization. The wider
2

implication of the project within its environment involves many parties having a stake
in the project. Adding to the constraints will be a whole network of internal and
external interested parties who also have a stake in the project decisions made.
A project has a defined beginning and end with a specific pre-ordained goal. In trying
to achieve this goal the project will go through a series of complex or interrelated
activities. The project may have a limited budget within which to operate, but
internal and external stakeholders all impose constraints on it. To complete the
project within the budget and time period there will be a number of different
resources and disciplines that will be working on it. The interrelationship between
these disciplines will affect the value that can be added as the project is developed,
designed, constructed, commissioned and operated. This could occur throughout the
project lifecycle. For these very reasons each project is a unique event.
2.3.2 The value chain
Porter (1985) developed the concept of the value chain and its various method-
ologies to review the competitive advantage of organizations or companies. Value
chain activities are the building blocks with which the organization creates value
for the purchaser of products or services. Each one of these value chain activities
has the possibility of creating differentiation. Therefore, the value chain provides a
methodology that systematically analyses all the activities or cost reduction within the
organization and how they interact. The activities carried out within the organization
constitute its value chain. This value chain is part of a system known as the value
system, which can be made up of the following:
— an organization’s value chains;
— supplier value chains;
— other business unit value chains;
— customer value chains.
In most circumstances the concept of the value chain has only been considered
applicable to an organization or company’s activities. However, these principles can
equally be applied to a project. The project value chain forms an integral part of the
organization’s value chain as project activities are superimposed on the organization’s
normal operating activities. This leads to the concept that a project adds value to the
organization through its own processes. Kelly and Male (1992) put forward the
concept of the use of the value chain as a means for a value management team to
understand the organization’s requirements, at the strategic stages of a project.
The project value chain must be reviewed in its entirety, not just examining the
organization’s value chain for the project in isolation. By examining this entirety it
can be seen whether the aspirations of other stakeholder value chains have been
fulfilled. The external and environmental factors that impact on the project value
chain will affect the project operationally. These same factors will affect the
organizations involved in the project, and the reaction and pressures brought to bear
by them can change the way the project is managed. These external factors, if they
occur, can also put considerable strain on any partnership or alliance between the
organizations involved in the project.
2.4 The project value chain (strategic phase)
The project value chain forms the backbone of the skeletal framework that highlights
the transition of value. The traditional approach would be to show these as the normal
The project value chain
3

project stages, such as RIBA plan of work, however, this would not relate to the flow
of value through the project (value transition).
The project value chain passes through a number of value systems and phases.
These are:
— the client value system – strategic phase;
— the multi-value system – tactical phase;
— the user value system – operational phase.
The basic project value chain is shown in Figure 2.1 depicts the following value
transitions:
— corporate value;
— business value;
— feasibility value;
— design value;
— construction value;
— commissioning value;
— operational value.
The focus of the discussion at this stage will be corporate value and business value,
the other value transitions will be discussed later in Section 2.7.
2.4.1 Corporate value
Corporate value within the project value chain is part of the client’s corporate value
chain and this facilitates the analysis of the corporate objectives and the strategic
direction of the project. At this stage a portfolio of projects may exist within the
client’s value chain. This will reflect the value objectives at a corporate level in the
organization. The project, which is in its embryonic stage and may not even get
developed, but will remain within the strategic investment plan until the need is
either realized or not. The project may sit within one or more programmes that form
the overall strategic investment plan ready to be triggered once the corporate need
has been developed and the funding is made available.
The use of the value process and its associated techniques can focus the corporate
objectives which provides the project with its mission statement. If it is not used then
the alignment of the corporate objectives may not be achieved. One of the key
strengths of using the value process is the alignment of objectives (Kelly et al., 1998).
This mission statement provides the inertia to form the conceptual project from the
client’s strategic brief and objectives. At this stage it is the client’s strategic direction
Project Value Chain
Corporate
Value
Business
Value
Feasibility
Value
Design
Value
Construction
Value
Commission
Value
Operational
Value
Figure 2.1 The project value chain.
4

and ‘needs’ that are the items that require focus. At the strategic phase the
conceptual project may still be seen as still a problem yet to be resolved. The project
will go through a series of phases and iterations before it is delivered, since numerous
decisions have to made by the client project stakeholders. They will be assessing how
this project will provide corporate value. Refer to Figure 2.2.
2.4.2 Business value
The business value within the project forms part of the client’s business value chain,
which sets up the project portfolio and the integration of projects. Depending on the
client, the project may be a one-off or be part of a portfolio of projects, to meet
corporate or external drivers. The project is delivered in the context of a business
need that has been defined earlier. Within this value transition there is interaction
with other value chains from organizations such as financiers and bankers to start
evaluating the funding issues. There can also be interaction with other external value
chains such as regulatory authorities. The project at this stage can still be shelved, but
it is usually more difficult as money has been spent.
The basic plans for a specific objective for the project are being defined, and these are
constantly compared with the investment plan and corporate/external drivers. The
concept brief for the project is developed into a working document and must be all-
embracing, since it will be challenged many times by the client project stakeholders
involved in the project’s development. This brief provides the mission statement of
the client’s needs and requirements (value criteria) for the project development. As
the client’s project stakeholders resolve decisions, align strategic goals and values, the
project is tailored to these needs or requirements (value criteria). At this stage there is
the realization that a project exists and the solution provides business value. At the
final stages of the business value it has to be decided if the project is viable or not. In
both the corporate value and business value the project is in the control of the client’s
value system. If the decision is to construct, then the project enters into the multi-
value system and becomes the primary focus.
2.5 The client value system (strategic)
The strategic phase of the project has been introduced to provide the complete
overview of the project value chain. The contractor can give no tangible input to the
client at this stage in the project development because the process does not permit it.
Figure 2.2 The project value
chain (strategic phase).
Project Value Chain
Client’s Value System (Strategic phase)
Corporate
Value
Business
Value
5

The contractor’s involvement at this phase of the project’s development would not
benefit the process, unless the project was for their organization. A brief synopsis of
the strategic phase will be undertaken. At the end of this phase the project should
have its value criteria aligned, as uncertainty is being filtered out.
However, the client’s value system also operates in the strategic, tactical and
operational phases, but to varying degrees and that is client dependent. At this point
the discussion will focus on the client’s value system at the strategic phase. The
influences within this phase come from internal and external value chains which
operate within the client’s value system. Figure 2.3 shows typical value chains that
could be operating in the strategic phase. These are as follows:
— client value chain;
— regulatory authorities value chain;
— financier/banker value chain;
— internal stakeholders value chain;
— external stakeholders value chain;
— customer value chain;
— supplier value chain.
2.5.1 Client value chain
In this phase the client’s organization value chain was corporate driven, they would be
looking at the business case for this project. The organization would also be looking at
the future completion of the project so they could realize revenue from the asset.
Figure 2.3 The client’s value
system (strategic phase).
Client’s Value System
Financier/
Banker
Value Chain
Customer
Value Chain
Suppliers
Value Chain
Client
Value Chain
Regulatory
Authorities
Value Chain
Project Value Chain (Client stage only)
Decision
to
Construct
Single
Value System
(Strategic)
Corporate
Value
Business
Value
Internal
Stakeholders
Value Chain
External
Stakeholders
Value Chain
6

During this phase the organization would ensure that the project is the correct
investment to make. The project may be one of a portfolio of projects within the
investment plan, so resources, development and procurement impacts on the
organization must be considered.
2.5.2 Regulatory authorities value chain
For utility companies the regulatory authorities value chain has a significant impact
on the client’s value chain since they may apply constraints on the funding
mechanism for future the strategic investment. Within asset management plan 3
(AMP3), April 2000, the water utilities had their funding submission significantly
altered by OFWAT. The strategic plan for projects within water utilities over the next
few years is now under review. This has affected the client’s internal value chains.
2.5.3 Financiers/bankers value chain
This value chain impact is very similar to that of the regulatory authorities in the
sense of looking for a return on capital invested. On some projects the release of
funding can only be achieved when the client has received acknowledgement that
planning consents have been given. These funding issues can have a major impact not
only on the client’s value system but on the whole project value chain.
The first and second phases of the Channel Tunnel Rail Link are examples where the
client value system and the project value chain were completely disrupted due to
funding problems.
2.5.4 Internal stakeholders value chain
As discussed earlier, OFWAT’s decisions on the budget (AMP 3) for the water
utilities companies has had a major impact on internal value chains. Expectations of
projects that would give operating units greater business efficiencies may have to be
shelved to concentrate on basic asset management which does not give a revenue
return, but satisfies OFWAT’s objectives.
2.5.5 External stakeholders value chain
The external stakeholders are groups, such as shareholders, the parent company, etc.,
which can all have an impact on the project.
2.5.6 Customer value chain
This could be grouped with the external stakeholder. However, it is sometimes
extremely hard to identify who is the actual customer in some projects.
2.5.7 Supplier’s value chain
The supplier’s value chain does not get involved within the corporate value unless
major framework agreements are being negotiated over a portfolio of projects. Major
framework arrangements are made by clients for key components/units, which
strategically impact into both the individual project value chain and client’s portfolio
of projects. An example of this has been sludge dryers for the urban waste water
schemes within the water utilities.
7

Individual
Project
Value
Chain
Corporate
Value
Business
Value
Strategic/Tactical
delineation
Feasibility
Value
Design
Value
Construction
Value
Commission
Value
Operational
Value
Project
Portfolio
Corporate
Value
Business
Value
Client’s
Value
System
(Strategic
Phase)
The
strategic
phase
of
project
process
to
integrate
projects
with
the
corporate
strategy
Multi-Value
System
(Tactical
Phase)
Tactical
phase
of
project
process
to
integrate
the
project
value
chain
and
organizations
value
chains
Figure
2.4
Characteristics
of
the
strategic
and
tactical
phases.
8

2.6 The decision to construct
At demarcation point between the strategic and tactical phases, there is a shift from
problem orientation to solution orientation; the point at which the conceptual
solution has been agreed. The outcome of the strategic phase may be not to construct,
since the value of the project, when related to the corporate strategy, may
show that it is not the optimal solution. The decision to construct is actually a
business commitment that a project is the right solution and capital funding is
being made available for further investigation. The first time the project has been
sanctioned corporately is termed the demarcation point, which is the decision to
construct.
If the decision to construct has been made a number of different organizations will
then come together to construct the project. Each participating organization has its
own values and these may be conflicting, but they must be managed. Although the
decision to construct has been made the early decisions still reside in the client’s
organization on the alignment of project and business values and objectives.
Figure 2.4 shows the portfolio of projects that are managed within the strategic phase.
The tactical phase manages the individual project value chain to meet the corporate
objectives. At this stage it is important that the client project stakeholder’s value
criteria permeates through the project and do not become a boundary or a barrier to
information flow. The term ‘value thread’ is the client project stakeholder’s value
criteria, which should weave through the project and maintain its continuity and
consistency. What happens at the decision to construct has a bearing on the future
development of the project, and this is down to the characteristics of the client’s
organization. At the decision to construct demarcation point the project is effectively
outsourced. As the project passes into feasibility value, it starts to operate in a multi-
value system in which the client’s value system forms an integral part.
In conclusion, the strategic phase has reviewed the corporate value objectives,
strategies and future investment plans and determined that a project might be the
solution. These corporate value objectives are compared with the business value
objectives and the decision could be to sanction the decision to construct and
release budgetary funding for the project to proceed. The important issue is that as
the embryonic project leaves the strategic phase with the installed value of the
‘value thread’, its continuity and consistency should be maintained in the tactical
phase.
2.7 The multi-value system (tactical phase)
As discussed in Section 2.4, the project value chain passes through a number of
phases and value transitions. The formation of the project value chain is by a series of
value transitions linked to add value to a project as it develops. The value transitions
are interrelated to ensure the flow of information and the value thread through the
project development. Prior to the decision to construct, the conceptual project was in
a single value system, namely the client’s. However, as the project crosses that
demarcation point, it enters a multi-value system and one of the components is the
client’s value chain. The tactical phase of the project takes the output from strategic
and translates into a construction scheme to meet the objectives. Figure 2.5 shows the
project value chain within the multi-value system (tactical phase). To conserve value,
the flow of work from one value transition to another must be smoothly and efficiently
transmitted without delays or imperfections.
9

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L
CHAPTER XIV
WHEN THE WORLD WAS YOUNG
ITTLE Spot, the wilful young reindeer, trembled as he crowded up to his
mother. He couldn’t get close enough to her. He no longer wanted to be out
in the Great World by himself. He wondered that his mother did not run.
Every moment or two he looked back to see if those wolves were coming up
over the hill. But Big Spot seemed in no hurry at all. You see, she was wise
with the wisdom of experience. She didn’t want Little Spot to get over his
fright so soon that he would forget the lesson he had learned. Then, too, she
wanted him to get rested a little and get his wind back.
At last, she quieted Little Spot’s fears. “Those wolves did not chase you,
my son,” said she. “They chased the young caribou, and it is very fortunate
for you that they did.”
“I’m sure I could run faster than those wolves,” said Little Spot
boastfully.
“Yes, you could,” replied his mother. “You could run faster than they
could for a while, but you do not know the patience of wolves, my dear. You
would have run so hard and so fast that presently you would have tired
yourself out so that the wolves would have had no trouble in catching you.
Ever since you were a little fawn I have told you about the wolves, and that
they are our worst enemies; but I don’t think you ever have believed it. Now
you have seen them and you know what they are like. The wolves are very
smart people. They watch for a deer to stray away. Then they get between
the herd and that deer. When this happens, that deer will not live long.”
“Have the deer always been afraid of the wolves?” asked Little Spot.
“Ever since the days when the world was young,” replied his mother.
“Tell me about the days when the world was young,” begged Little Spot.

For a few moments his mother said nothing. Gradually, into her big, dark
eyes there crept a far-away look. “Once upon a time,” she began at last, “the
world was mostly water, like the salt water that you saw in the summer.”
“But where did the deer live then?” interrupted Little Spot.
“There were no deer then,” said his mother. “There were no deer and
there were no wolves and there were none of those two-legged creatures
called men. You see, Old Mother Nature had not made them yet, for there
was no land for them to live on. But by and by there was land and then for a
very long time Old Mother Nature was very, very busy making the different
kinds of people to live on the land. Some of these people she made to live
where it was summer all the year round.”
You should have seen Little Spot’s big ears prick up at that. “Is there such
a place?” he cried.
His mother nodded. “Yes,” said she, “I am told there is a land where it is
summer all the time. How do you think you would like that?”
Little Spot thought it over for a moment. “I shouldn’t like it,” he decided.
“Why, if it is summer all the time, there can be no snow! What a queer land
it must be without the beautiful snow. I shouldn’t like it.”
His mother again nodded her head approvingly. “Neither should I, my
son,” said she. “But it seems that in those days when the world was young,
all the people, big and little, wanted to live where it was summer. So after
awhile it became difficult for all the people to get food enough. It was then
that the hard times began, and some of the big people began to hunt the little
people for food.
“Now, it happened that Mr. and Mrs. Caribou, the first of all the caribou,
had wandered beyond the land where it was summer all the time. They had
come to the land where it was summer for half the year and winter for the
other half. When the winter came, they moved back, because you see they
were not fitted to make their living when snow covered the ground, and they
were not clothed warmly enough to stand the bitter winds. But they always
stayed as long as they could before moving south, for they loved the
Northland. Then, too, they felt safer there, for there were fewer to hunt them.

“It was on the edge of the Northland that Old Mother Nature found Mr.
and Mrs. Caribou looking longingly at the land they must leave because of
the coming of the snow and ice. ‘How would you like to live in the
Northland all of the time?’ asked Old Mother Nature.
“Mr. Caribou looked at Mrs. Caribou, and Mrs. Caribou looked at Mr.
Caribou, and then both looked at Old Mother Nature. Mr. Caribou spoke
rather hesitatingly. ‘We could not eat when all the ground is covered with
snow,’ said he.
“ ‘There is always plenty of food beneath the snow,’ replied Old Mother
Nature. ‘You could dig away the snow with your feet and find plenty.’
“ ‘But we should freeze,’ protested Mrs. Caribou, and shivered; for in
those days the coats of the caribou were thin.
“ ‘But supposing I gave you warm coats and fitted you to live in the
Northland; would you do it?’ Old Mother Nature asked.
“Again Mr. Caribou looked at Mrs. Caribou and Mrs. Caribou looked at
Mr. Caribou, then both nodded.
“So Mother Nature gave them warm coats. She gave them each a thick
mantle of long hair on the neck, so that it hung down and the wind could not
get through it. She fashioned their feet so that they were different from the
feet of any other of the deer family, and they could walk in snow and on soft
ground, where others could not go. Then she sent them into the Northland,
and there the caribou have been ever since.”
“But what about the reindeer?” cried Little Spot.
“I am coming to that,” replied his mother.

M
CHAPTER XV
THE FIRST REINDEER
R. and Mrs. Caribou were the first of all the caribou to make their
home in the Far North, and they loved it. Old Mother Nature had told them
truly that they would find plenty of food. So they and their children and their
children’s children took possession of all the great land where the snow lay
most of the year. “They found the moss, which you like so well, my son,”
said his mother. “They found the moss, and they found that it was best in
winter. It isn’t true moss you know, but is called reindeer moss by
everybody. In the summer they lived on grass and other plants, just as we do.
So in time there became very many caribou, and they lived in peace, for it
was long before others came to live in the Land of Snow.
“But there came a time when these two-legged creatures called men
appeared. They were hunters, and they hunted the caribou. They needed the
meat for food and the skins for clothing and to make their tents. So the
caribou became necessary to men. Then one day the hunters surrounded a
band of caribou and captured alive all the fawns and young caribou. These
they kept watch over and protected from the wolves and the bears, which

had by this time come to live in the Northland. And because there were no
wise old deer to protect these young deer, the young deer did not try to run
away. They were content to graze near the homes of the hunters. In time,
they grew and had fawns of their own, and these grew, and the herd
increased. And these, my son, were the first reindeer. They were necessary to
man if he would live in the Far North, and they found that man was
necessary to them.
“They furnished man with food and clothing. From their antlers he made
tools. Man furnished them protection and found the best feeding grounds for
them, so that they lived better and more contentedly than their cousins, the
wild caribou, for the latter had always by day and night to be on the watch
for enemies.
“Then one day a boy fastened a halter to a pet deer and fastened him so
that he could not stray away. In time that deer became used to the halter and
to being fastened. Then the boy built a sled. It wasn’t such a nice sled as the
sleds of to-day, because you know this was the first sled of its kind. Then he
fastened the deer to the sled and, with a long line fastened to the halter on
each side of the deer’s head, so that he might guide him, the boy climbed on
the sled. Of course, that deer was frightened and he ran. By and by the sled
upset. But the boy still held the reins. That was the first reindeer to be driven
by man. The boy’s father had seen all that happened. He built a better sled,
and he and the boy trained that deer and other deer. Then with these deer
they made long journeys. So it was that the reindeer became of still more use
to man.”
“But I don’t want to be harnessed and driven and have to drag a sled,”
said Little Spot.
“That shows your lack of wisdom, my son,” replied his mother. “The deer
who best draw the sleds are the deer that are cared for best, and will live
longest. Other deer are killed for food and for their skins, but not the deer
who draw the sleds. Those are the deer that are thought most of, and it is my
hope that you will one day be the finest sled-deer in all the herd. Who
knows? Perhaps you may be chosen in the Valley of the Good Spirit to be
one of the eight deer who once in the early winter of each year carry the

Good Spirit on a wonderful journey out into the Great World, that he may
spread Love and Happiness. Do you remember, my son, how on the day we
left the Valley of the Good Spirit, all we mother deer and all you youngsters
stood while the finest bucks in all the herd milled around us? And how every
once in a while they stopped?”
Little Spot bobbed his head. “I remember,” said he.
“Each time they stopped,” replied his mother, “the Good Spirit chose one
of their number to be added to his team for that wonderful journey out into
the Great World. They become magic deer just for a little while, at a time
that men folk call Christmas. They become magic deer, and all the children
of the Great World love them, though they never have seen them. So, my
son, be wise in the wisdom of the deer folk. Be not unruly, should it be that
you are chosen to draw the sled of a man, for it is only the best sled-deer that
are chosen by the Good Spirit and become the Christmas deer for that magic
journey into the Great World. Now, we must be getting back to the herd, or
those wolves may get upon our trail.”
Little Spot trotted beside his mother, Big Spot, over the snow-covered
prairie, and as he trotted he thought deeply of all his mother had told him.
And as he thought, his eyes were opened, so that by the time they reached
the big herd, Little Spot was no longer a wilful young deer. He no longer
thought that he knew all there was to know, but he did his very best to try to
learn all there was for a wise deer to know. And you know when one tries to
learn, it is surprisingly easy.
So, from being the most wilful and unruly of all the young deer, Little
Spot became the most obedient and the best-mannered.

D
CHAPTER XVI
LITTLE SPOT AND TUKTU DREAM
O you ever have day-dreams? If you do, you know that they are made
up partly of wishes, partly of plans and partly of the same sort of stuff that
sleep dreams are made of. Tuktu was very busy these winter days. She was
very busy indeed, as were all the Eskimo girls and their mothers. What do
you think she was doing? You never would guess. She was chewing. Yes, sir,
she was chewing. And it wasn’t gum that she was chewing, either, although
she dearly loved to chew gum when she got the chance. She was chewing
skins.
What’s that? You think I am fooling? I’m not. Tuktu was chewing skins.
Tuktu was making boots for her brother and her father. They were made of
skin, and Tuktu was chewing this in order to soften it and make it workable.
But as she chewed, and later as she sewed, making the skin clothing for
herself and for her brother and father, she did a great deal of dreaming.
Perhaps you can guess what she dreamed of. It was Santa Claus. She didn’t
call him Santa Claus even to herself. She still called him the Good Spirit. I
think myself that is rather a beautiful name for Santa Claus.
And it wasn’t of things that she wanted Santa Claus to bring her that
Tuktu dreamed. It was of helping Santa Claus. It seemed to her that nothing
in all the Great World would be so good, or make her so happy, as to help the
Good Spirit spread the message of love and good cheer and happiness to all
the little children less fortunate than she. Now, this is going to surprise you.
Tuktu actually thought that she lived in the finest part of all the Great World,
and she was sorry for little boys and girls who lived where there were no
reindeer and where snow and ice were seldom found. She was sorry for boys
and girls who had never ridden behind a fast-trotting deer. Yes, Tuktu
thought that she lived in the very best part of all the Great

Tuktu making boots with her mother
World, and she loved it. And she wished somehow that she could help
Santa—the Good Spirit—when he carried happiness and joy to all the Great
World. Sometimes when she dreamed, she would forget to chew the skin that

she was at work on, and her mother would gently remind her that the boots
were needed.
She wondered if she could make a pair of boots for the Good Spirit, and
then her face grew warm with shame at her boldness. How could any one
even think of doing anything for the Good Spirit? For could not the Good
Spirit have all things he desired? And then she remembered something. She
remembered that the Good Spirit had said that those chosen deer ought to be
good sled-deer because of the time he spent training them. Supposing she
and Aklak could get the deer trained so well beforehand that the Good Spirit
would not have to spend time in training them. Perhaps then he could start
earlier. Then she sighed, for how could she be sure the Good Spirit would
choose the deer she and Aklak trained?
And while Tuktu dreamed her day-dreams as she worked, Little Spot, the
finest young deer in all the herd, was dreaming day-dreams. And the queer
part of it is, his dreams were very like the dreams of Tuktu. He dreamed of
being a magic deer. He dreamed of being one of that team of magic deer
with which the Good Spirit made his wonderful journey out into the Great
World each Christmas. And because he remembered what his mother had
said, he tried very hard to be what a young deer should be, for he hoped that
in time he would be chosen for a sled-deer. Perchance if he were chosen for
a sled-deer and became the best sled-deer in all the great herd, he might
some day be chosen in the Valley of the Good Spirit. So he did his best to
grow strong and handsome, and to be the swiftest-footed, for he had
discovered that it was the strongest, handsomest and swiftest deer that were
chosen to draw the sleds of the herders.
But there was one big difference in the dreaming of these two young
dreamers. Tuktu had no thought of self, whereas Little Spot was thinking
chiefly of his own glory. He had no thought of others, but only great
ambition for himself. There are many people like Little Spot in this Great
World.
Now, I don’t want you to think that Tuktu spent all her time chewing and
sewing skins. That was work which could be done when the great storms and
the bitter cold kept her indoors. She had her play time, as well as her

working time, and there were many happy hours spent with Aklak, helping
him herd the deer, for she dearly loved the deer people and they loved her.
Even the wildest of them and the most unruly would allow Tuktu to
approach and even to pet them. Aklak was growing to be a very fine herder.
His father, Kutok, said that Aklak would one day be the best herder in all the
Northland. But not even Aklak understood the deer as did Tuktu.

I
CHAPTER XVII
TUKTU AND AKLAK HAVE A SECRET
T was while Tuktu was watching Aklak training a young deer to the sled,
the great idea came to her. It just happened that the young deer was none
other than Little Spot. And because he wanted to be a sled-deer, and because
he was very proud over having been chosen, Little Spot was making no
trouble at all. He was not yet old enough to be a real sled-deer, and Aklak
had started to train him just for fun. He was looking forward to the day when
Little Spot should be fully grown. He wanted to see if he would be a better
sled-deer for having begun his training early.
“Aklak,” cried Tuktu. “I know you don’t really believe that I saw the
Good Spirit, but you know that the deer visit the Valley of the Good Spirit
every year; and you know that every year some are chosen and do not return
with the herd; but are found the next year.”
Aklak nodded. “Yes,” said he, “I know all that.”
“Then listen to me, Aklak,” said Tuktu. “Those deer are chosen because
they are the finest in all the great herd. They are chosen to be the sled-deer
of the Good Spirit when he makes his great journey to carry the message of
love and happiness to the children of the Great World. Why couldn’t we train
those deer for the Good Spirit, that he may not have to do it himself?”
Boylike, Aklak laughed. “How,” he demanded, “can we train the deer
when we do not know which deer the Good Spirit will choose? You say that
this year he has chosen one from our own herd, but it is the first time it has
happened even if it be true. The other deer were chosen from other herds. So
how can we know what deer the Good Spirit may choose?”
“We cannot know,” replied Tuktu. “That is, we cannot know for a
certainty. But we can do this, Aklak: we can pick out the finest and the
handsomest, the swiftest and the strongest of the deer in our herd, and we

can train them—I mean, you can train them, Aklak, and perhaps I can help a
little. Then, perhaps, when the herd visits the Valley of the Good Spirit next
summer, he will discover that these deer are already trained. I just know that
he will know. Just think, Aklak, how wonderful it would be to help Santa,
the Good Spirit.”
Now, Tuktu’s thought was all of helping the Good Spirit, but Aklak,
though he thought of this, was more selfish in his thoughts, though he said
nothing to Tuktu. To himself he thought, “If Tuktu should be right and the
Good Spirit should choose the deer I have trained, it would be the first time
that all the magic deer have been chosen from one herd. If the owner of one
or two chosen by the Good Spirit is blessed, how much greater would the
blessing be if the eight deer should be chosen from one herd.”
The more Aklak thought over Tuktu’s plan, the better it seemed to him.
So, a few days later when they were out together, he promised to try it.
“But we must keep the secret,” said he. “No one must know what we are
doing, for the herders would laugh at us and make fun

Tuktu watching Aklak train a young deer
of us. They will see me training the deer, but they will not suspect that they
are being trained for a special purpose. Let us go out now and pick out those
to be trained.”

Now, Aklak was a splendid judge of deer. He knew all the fine points, for
he had been well taught by his father. So it was that often when Tuktu would
point out what seemed to her a particularly fine animal, Aklak would shake
his head and would point out to her that it was not as fine as it seemed. There
would be some little blemish. Now and then he would find a deer that suited
him. Sometimes the deer would be wild and difficult to approach. Then
Tuktu would help. Sometimes the deer would struggle after it had been
roped, and every time that Aklak came near would strike with its forefeet, as
only a reindeer can. Then Tuktu would pet it and soothe it, until in a few
days it would be gentle and easy to handle.
At first, Aklak would look only among his father’s deer. He wanted those
eight deer to be from his father’s herd. And so he would not look at some of
the finest deer of the great herd, which his father did not own, but of which
he had charge. That was the selfishness in Aklak. But when Tuktu refused to
have anything to do with these deer, because there were finer ones in the
great herd, he admitted after a while that she was right. He didn’t want to
admit it, but he was honest. He knew that Tuktu was right. He knew that the
Good Spirit would not choose less than the best.
All that winter Aklak worked with his eight deer. Every day he drove one
or another of them. The other herders began to take notice, and some of them
became envious. But he was the son of Kutok, the chief herder, and there
was nothing they could do about it. As for Kutok, he became very proud.
“Said I not that Aklak would one day become a great herder?” he would
demand, as he watched the boy driving a deer as none of the other herders
could drive it.
And all that winter Tuktu and Aklak kept their secret.

S
CHAPTER XVIII
THE ROUND-UP
PRING came, and before the snow was gone, the fawns were born. It was
a cold, cold world that those baby deer came into, but they did not seem to
mind it. Those were busy days for Tuktu and Aklak, for they spent much
time looking up the mother deer to see that their babies were properly taken
care of. Now and then they would find a fawn that had lost its mother and
then would begin a search for the mother. Little by little the snow
disappeared and the big herd began to move toward the sea. It was heading
toward the summer range.
Tuktu and Aklak looked forward eagerly to the summer visit to the coast
—Aklak for the hunting and fishing, and Tuktu for the delight of watching
the sea fowl and hunting for their eggs. Then there was the great round-up.
That was always exciting. Tuktu took no part in it, but Aklak was big enough
now to help. The round-up would occur soon after the herd reached the
coast. Some of the herders had already gone ahead to prepare the great
corral. This was simply a huge pen of brush and sticks with wings to it, so
that as the grazing herd came on, it got between these wings without
knowing it at first, and then kept on going until the whole herd was in the
great pen, called the corral. The herders would follow and shut them in.

The families of the herders who had gone ahead were taken with them, so
that the camp was made and everything ready before the arrival of the deer.
The latter had not been driven, but had been allowed to take their own time,
grazing as they went. But they too were eager to get to the shore, and so they
had moved forward quite rapidly.
One morning Aklak came hurrying in with word that the great herd was
approaching. Everybody went out to see the round-up and to help by seeing
that none of the deer were allowed to get outside of the wings of the corral.
The leaders of the big herd unsuspiciously came up over the brow of a little
hill. It was beyond this hill that the great corral had been built, so that the
deer would not see it until they were over the hill. At first, the herd was
widely spread, but as they came within the wings of the great corral, the
fences forced them nearer together, until as they entered the corral they were
closely packed. Once inside, they began to mill, which is, as you know, to go
around and around. It was a wonderful sight. It would have been still more
wonderful had they had their antlers, but these had been shed and the new
ones had but just started. On the farther side of the corral was a gateway
opening into a very narrow passage, which grew narrower and narrower until
it was just wide enough for one deer to pass through. Into this the herders

turned the milling animals as fast as they could be handled. As the deer came
through this narrow passage, they were counted and the ear-marks were
noted. Of course, there were the ear-marks of several owners in that great
herd and each kept a record of the deer bearing his ear-mark, as they came
through this narrow passage called the “chute.” The fawns going through
with their mothers were roped as they came out of the chute and ear-marked,
each one being given the ear-mark of its mother. It was very exciting.
Now, could you have sat on the corral fence and seen that great herd of
animals milling within the corral, I am sure you would have held tight to
your seat. You would have been quite sure that no one could go down inside
without being trampled to death. But the deer people are a gentle people.
More than once Tuktu or Aklak, wishing to be on the other side of the corral,
walked right through the herd, the deer making way for them as they walked.
Perhaps you can guess how eagerly Tuktu watched to see if Speedfoot,
that deer of her father’s, which she was sure the Good Spirit had chosen,
would appear in the herd. She was sure he wouldn’t, but there would be no
convincing Aklak until the last deer had passed through the chute. Aklak was
so busy helping in the marking of the unmarked deer, that he could not
watch all the deer that passed through, but you may be sure he kept as good
a watch as he could.
At last, the round-up was over. All the fawns had been ear-marked. Each
owner had counted his deer and knew just how much his herd had increased.
As soon as there was a chance, Tuktu whispered in Aklak’s ear, “I told you
that Speedfoot was not in the herd. Wait now until the herd moves up to the
Valley of the Good Spirit, and you will find him there.”
Of course Kutok had been watching for that particular deer. It had been
the pride of his heart the year before, and its disappearance had worried him.
He had thought that somehow it might have been overlooked on the winter
grazing grounds, but when the round-up was over, he knew that the animal
was not in the herd. Then he was torn between fear and hope. His fear was
that the animal had strayed from the herd and been killed by wolves. His
hope was—I do not have to tell you what his hope was. It was that this
summer they would find Speedfoot bearing the ear-marks of the Good Spirit.

To Kutok and to Aklak it was merely a hope, but to Tuktu it was a certainty.
She hadn’t the least shadow of doubt, and her heart sang for joy.

T
CHAPTER XIX
THE CHRISTMAS STORY
HAT was a never to be forgotten summer to Tuktu and Aklak. A ship
came in the harbor near which they were camped, and they had a chance to
see how the white men lived on the ship and all the wonders that the ship
contained. One of the white men spent much time at their camp asking
through one of the herders, who could speak his language, all sorts of
questions, questions that made Tuktu and Aklak think that he knew very
little. But then when they in their turn began asking questions, he told them
such wonderful things that they began to think that they knew very little.
One day, as he sat watching Tuktu and her mother, Navaluk, making a
coat—with a hood attached, trimmed with a fringe of wolverine fur around
the edge—he told them stories, and the story that he told of Christmas was
the story that Tuktu liked best of all. She told it to Aklak.
“What do you think, Aklak?” she said. “The children outside of our
beautiful Northland have no reindeer. Most of them have never seen a
reindeer.”
“What drags their sleds then, dogs?” demanded the practical Aklak.
“No,” replied Tuktu, “they have other animals called horses. But they
cannot be beautiful like our deer, for they have no antlers. But all those
children have heard of our reindeer, Aklak, and there is a certain time in the
winter called Christmas when in the night after every one is asleep, there
comes the children’s saint and visits each home. And, Aklak, he comes with
reindeer!”
Aklak looked up quickly. “The Good Spirit?” he cried.
Tuktu’s eyes were shining as she nodded. “It must be,” she said, “for who
else would have reindeer? And, listen, Aklak: he is short and round and
shakes when he laughs; and he has a white beard and a fur-trimmed coat and

a fur-trimmed hat; and his reindeer take him right up on the roofs of the
houses; and then he takes a pack on his back and goes right down the
chimney; and he leaves gifts for little children while they are asleep. And if
any little boy or little girl lies awake and peeps and tries to see him, he
doesn’t leave any presents for that little girl or that little boy and they never
do see him. When he has made his visit, he goes right up the chimney again
and jumps in his sleigh and calls to his reindeer and away he goes to the next
stopping place. And he makes all those visits in one night. No wonder he
wants reindeer. No wonder he wants the very best reindeer.”
“But if no one ever sees him, how do they know what he looks like?”
demanded practical Aklak.
“Oh,” replied Tuktu, “it is only on the night before Christmas that he
never is seen. I mean he is never seen coming down the chimney and putting
the gifts for the children where they will find them. But he is seen often
going about before Christmas, for he has to find out who have been good,
that they may receive presents. And the children give him letters and tell him
what they want, and if they have been good, he tries to give them what they
want. So he leaves the Northland early, some time before Christmas, and
goes out into the Great World. Then he returns for the gifts and the night
before Christmas makes that wonderful flying trip with the deer. He loves
reindeer.”
“Of course he loves the reindeer!” Aklak interrupted. “How could he help
loving the reindeer? Aren’t they the most important animals in all the Great
World?”
“That is what I said, but the man said that horses are more important
down there. I asked him if they ate the meat of the horses and he said no.
And I asked him if they made clothing from the skins of the horses and he
said no. He said they were important because they worked for men.”
Aklak shrugged his shoulders. “The reindeer work for men also. They
carry us where we want to go. We do not have to carry food for them, for
they find it for themselves. They furnish us with food and clothing and our

tents. I would not for the world live down there where there are no reindeer.
Did the man tell you anything else?”
Tuktu’s eyes were like stars. “Yes,” said she. “He said that all over that
land at Christmas time they have beautiful green trees covered with lights at
night and many shining things. And sometimes these trees are hung with
presents for the boys and girls; and sometimes the Good Saint appears at one
of these trees and with his own hands gives the gifts to the children. But the
very day after Christmas he disappears and he is seen no more until the
Christmas season comes again; and no one knows where he is. All the
children wonder and wonder where he is all through the year, but they have
never been able to find out.”
“Did you tell the man that we know?” Aklak asked.
Tuktu shook her head. “He wouldn’t believe,” said she. “But we do know,
Aklak, for that children’s saint is the Good Spirit who lives in the Valley of
the Good Spirit. Oh, Aklak, wouldn’t it be too wonderful if he would choose
our deer for that marvelous Christmas journey?”

T
CHAPTER XX
THE GREAT TEMPTATION
UKTU and Aklak loved the summer by the shore. Yet both were
impatient for the coming of the time when the herds would move up to the
Valley of the Good Spirit. The eight deer Aklak had so carefully trained had
been grazing with the herd all summer. The two children had kept their
secret well, but, oh, how eager they were to see if the Good Spirit would
choose any of their deer!
At last the big herd moved and as before Kutok took the two children
with him to watch that the deer should not leave the valley without
knowledge of the herders. When they got there, they found grazing near the
camp Speedfoot, the missing deer, which Tuktu had seen chosen in the
Valley of the Good Spirit. Looking at the ears, they found Kutok’s mark, but
also a new mark, the mark of the Good Spirit, for it was unlike any other
mark in all that region. This splendid deer and seven others were grazing
near the hut, and Kutok and Aklak promptly fastened them, that they might
not go back with the herd. For were not these the blessed deer?
But the herd moved on. Looking over toward the hills around the valley,
the children could see the grazing deer in the distance, but they were too far
away to tell one deer from another.
This year Aklak spent less time hunting than he had the previous year. He
could think of nothing but those eight deer. “If the Good Spirit chooses all of
them, how wonderful it would be! I do hope he will,” said he.
Tuktu hoped so, too, but she didn’t say so. She merely reminded Aklak
that only one of his father’s deer had been chosen the year before.
As the days slipped by, Aklak was less and less certain that his deer
would be chosen. Finally, he confessed to Tuktu that if the Good Spirit
would just take one, he would be satisfied.

“He will. I know he will,” replied Tuktu.
One morning when their father was off hunting, Aklak proposed that they
take the two pack-deer and go over to the edge of the Valley of the Good
Spirit, where they could look down into it. Tuktu shook her head and there
was a startled look in her big eyes. “Oh, no, Aklak,” she cried, “we mustn’t
do that!”
“Why not?” demanded Aklak. “You went down into the valley last year.
Why should you be afraid to do it again?”
“But I didn’t go of my own will,” cried Tuktu. “I was taken there without
knowing I was going, and that is very different. I think the Good Spirit knew
and meant for me to come.”
“Well, anyway,” said Aklak, “let’s go up on the hills where we can look
down on the curtain of beautiful mist. That will do no harm. Besides, I want
to see if those deer I trained are all right.”
But Tuktu would not be moved. “Do you remember the story the white
man told, and that I told you?” she demanded.
Aklak nodded. “What of it?” said he.
“Do you not remember that the children who peek, not only never see the
good saint when he visits them at Christmas, but get no gifts?”
Aklak hung his head. “Yes,” he admitted, “I remember. But this is
different.”
“No,” said Tuktu, “it is not different. Have we not always been told that
the deer people only may visit the Valley of the Good Spirit? If we should
anger the Good Spirit, our deer would not be chosen.”
“Perhaps they won’t be anyway,” declared Aklak.
“Perhaps they won’t,” agreed Tuktu, “but I know the Good Spirit will
know that we trained them for him. And even if he does not choose them for
his Christmas journey, I think he will be pleased. Aklak, we mustn’t do
anything so dreadful as even to seem to be spying on the Good Spirit. If he
wants us to visit him, I am sure he will let us know in some way.”

Aklak looked over toward the specks dotting the distant hillside, the deer
feeding above Kringle Valley. He sighed. “Of course you are right, Tuktu,”
said he, “but, oh dear, I should so like to look down in that valley.” His face
brightened suddenly. “Perhaps we will have a fog,” he exclaimed. “If we
have a fog, we will just get on the two pack-deer and perhaps they’ll take us
in there. I’ll ride Whitefoot, because he has been there before.”
“We won’t do anything of the kind,” replied Tuktu decidedly. “That
would be just as bad as going right up in there ourselves. Aklak, I feel it in
my bones that the Good Spirit is going to choose some of our deer. So, let’s
forget all about wanting to see into that valley.”

S
CHAPTER XXI
ATTACKED BY WOLVES
UMMER this year was shorter than usual. As if they knew that the winter
would come early and be long and hard, the deer left the Valley of the Good
Spirit earlier than ever before, and began the slow journey back toward the
winter grazing grounds. At the first movement of the herds, Aklak and Tuktu
had been sent back to the main camp to help break camp and move to their
winter home. So it was not until the deer were back on the home pastures
that they had an opportunity to look for the deer Aklak had so carefully
trained.
An unusually bold family of wolves had attacked the herd on the way.
There are no more cunning people in all the great world than the wolves. For
days they had followed the deer without once being discovered by either the
deer or the herders. Perhaps the latter had grown careless. Perhaps they had
allowed the deer to scatter too widely. Anyway, the attack came when there
were no herders near enough to interfere.
A wary, clever old mother was the leader of those wolves. She knew deer
as not even the herders knew them. She knew just how to cut out a small
band of animals from the main herd and drive them into the hills to be killed
at leisure. She knew how to do it without stampeding the rest of the herd,
and she and her well-grown children did it. It wasn’t until one of the herders
found their tracks in newly-fallen snow that the presence of the wolves was
suspected. Then it didn’t take long to discover what had happened.
Two of the herders, who were also noted hunters, set out on the trail of
the wolves to make sure that the band was not still hanging around. They
also hoped that they might find some of the missing deer.
But those deer had been run hard and fast and all the hunters found were
the cleanly picked bones of several. The others had been so scattered that it
was useless to try to round them up.

There was no way of knowing whose deer the wolves had killed until the
winter round-up. Then when the count was made, it would be discovered
whose deer were missing. But it was a long time to wait for that winter
round-up, so Tuktu and Aklak spent much time going about in the herd
looking for those trained deer. And they were not the only ones who were
looking. Kutok, their father, had been very proud of those deer, and as soon
as the herd was back on the home pastures, he asked Aklak where they were.
Of course Aklak had to tell him that he hadn’t seen them.
Now trained sled-deer are valuable animals, and Kutok at once called the
other herders to him and told them to watch out for these particular deer. He
remembered the attack of the wolves and he feared greatly that the eight
sled-deer might have been the victims. This was the same fear that was
tugging at the hearts of Aklak and Tuktu. There was no way for them to
know whether the Good Spirit had chosen those deer, or whether the wolves
had killed them. There could be no way of knowing until the return of the
herds to the seashore in the early summer. Meanwhile, Aklak was busy
training more deer, and one of these was Little Spot. He was still young for
sled work, but he was such a splendid young deer, so big and so strong and
so willing, that everybody who saw him said that in time he would make the
finest sled-deer in all the Northland.
Of course, Tuktu and Aklak said nothing to their father of their hope that
the Good Spirit had chosen those deer. They suspected that should they tell,
they would be laughed at. Also, they were afraid their father would not like it
that they should have dared to think that they could train deer for the Good
Spirit. So, when the round-up came and none of the deer were found, but it
was discovered that several others of Kutok’s deer were also missing, they
pretended to think as did all the other folk, that Kutok had been unfortunate
and that the wolves had gotten his deer. This was what every one believed
and it was repeated so often that Tuktu and Aklak found it difficult at times
not to believe that it was true. “Had it not been for those wolves, we should
know,” Tuktu kept saying over and over. “I hate those wolves! I do so!”
Kutok also hated the wolves. He hated them for the same reason that
Tuktu did, and he hated them because he knew that if those deer were not

safe in the Valley of the Good Spirit, they most certainly had been eaten by
this time and all his hard work had gone for nothing. So it was that the
wolves brought worry to the home of Kutok.

CHAPTER XXII
THE CHRISTMAS INVITATION

IT had been known to the village since the forming of new ice that the ship
which they had visited in summer had not left for the far-away country from
which it had come, but was now frozen in the ice and would spend the
winter in the Far Northland. So there was no surprise when one day there
arrived two white men and an Eskimo guide, who had journeyed overland by
dog sledge. One of these men was the one who had told Tuktu the story of
Christmas. As Kutok’s house was the largest and the best house in the
village, the visitors were entertained there.
They remained two or three days and when they left to return to their
ship, all the village turned out to see them go. They had brought things to
trade and in return for deer meat and warm clothing of deerskin had left
things which were of equal value to the Eskimos. And they had left the
feeling of goodwill, for in all their trading they had taken the greatest care to
be fair. When they left they had taken with them a promise that those of the
men who could be spared from their duties in watching the deer, together
with some of the women and children from the village, would visit the ship
at a certain time, which the white men called Christmas. There would be
much feasting and merrymaking and strange things to see on the ship.
The white man who had made friends with Tuktu had made Kutok
promise that Tuktu should come. And this her father had been the more

willing to grant, because he had been given a knife he had long wanted. So it
was arranged that unless the weather should be too bad, so there could be no
traveling, Ikok, Navaluk, and the two children, and perhaps some others of
the village, should pay a Christmas visit to the ship.
Tuktu and Aklak could think of and talk about little else. Aklak saw to it
that the sled-deer were in the best possible condition. It would take them at
least two days and one sleep. That sleep would be at the herder’s hut near
Kringle Valley. At least, that is the way that Kutok planned to go. There was
a longer way around by way of another village and this would be the way
that others from the village would go.
Kutok and Aklak went to work on the sleds. They must be put in the best
condition for such a long journey. They would take six, one for each of them
and two extra to carry provisions and things for trade. It would not be
necessary to have extra drivers, for often one driver handles at least three
sleds. He rides on the first one, the deer drawing the second one is attached
to the rear of his sled, and to the rear of that sled is attached the third deer.
So, it would be a simple matter to look out for the extra sleds on this journey.
Kutok was to drive Speedfoot; Tuktu would drive Big Spot; Aklak would
drive Little Spot; and Navaluk would drive Whitefoot.
While her father and brother were busy going over the sleds and seeing to
it that they were in perfect order, Tuktu and her mother were equally busy.
They had promised two pairs of boots and two new suits, for which they had
taken the measurements when their visitors were with them, and there would
be none too much time to get them ready. As she worked, Tuktu kept
thinking of all that she had heard from the white man about Christmas. This
would be her first Christmas and she wondered if she would see the
wonderful Santa Claus. Then she remembered that he would be on his
journey around the great world. Besides, had not she been told that those
who peeked never saw him? But, despite this, right down in her heart, she
couldn’t help hoping that she might get just a glimpse of him. She did want
to see if this Santa of the white man was in very truth the Good Spirit whom
she had seen in Kringle Valley.

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