Martha Ryan and Terry Frazier offered a briefing on how to “Scale by Understanding Your Value Stream” at the Lean Culture Meetup on Feb-25-2021. Here is a recap of the event that includes slides and video.
Scale by Understanding Your Value Stream
Value stream mapping is a lean technique used to document, analyze and improve the flow of information or materials required to produce a product or service. Mapping your value stream encompasses all activities undertaken from beginning to end for a specific product or service in order to provide business value.
Value Stream is a technique:
- Used to analyze the flow of information, people, and materials required to bring a product or service to a consumer.
- To identify and eliminate process waste to increase efficiency, throughput, and effectiveness.
- Martha Ryan, Business transformation leader
- Terry Frazier, Business Tech & Industry Analyst, Competitive Intel & Communication Specialist
Some key take-aways
A value stream map is a visual representation of key inputs, actions, transformations, outputs, and the real reason(s) the customer is paying you. This enables a team to come to a working consensus on process definition, enabling agreement on skills and expertise needed for each task and the financial implications of a particular process design.
- Has made the economic situation a complete gamble and you can’t afford to guess at how things should work when you go after a new opportunity.
- Has also driven working from home which immediately breaks weak processes and inappropriate metrics. At first, everyone was a champion and put in the hours to make it work. The longer it lasts, the more exhausted people are. If your people are tired, you know there is a better way and owe it to your team and the future of your company to take a look at HOW the work is being done.
- Current state of your industry, business and market opportunity or challenge, in broad terms.
- Your long-term goal.
- Any knowledge gaps or obstacles you have identified.
- Can your problem/opportunity be measured?
- How will you know when your problem is solved, or your opportunity is achieved?
- What are your expectations for how long it will take to achieve the objective?
The mapping process always starts with the customer and what they are willing to pay for:
- Who is the customer?
- What do they get?
- Describe how what they get is achieved, what processes are involved?
- What do you need to initiate each process: what are the inputs or prerequisites?
- Who supplies what you need to engage in the process?
This value stream mapping process can also be used to model a business opportunity that may require the creation of one or more new processes. The mapping exercise will allow managers and relevant experts to compare notes on distinct aspects of a new business opportunity to arrive at a working consensus on how best to scale up to meet customer needs.
Related Blog Posts
- Mapping Capability Development to New Product Design and Delivery
- Q: We Have Grown From One Project To Many Projects, How To Manage?
- Are You Using Cognitive Task Analysis for New Market Exploration?
- Enterprise Change Agents Need to Add Process Mining to Their Bag of Tricks
- The Phoenix Checklist for Framing a Problem and Its Solution
- Map Customer Buying Process Before Sending a Proposal
- Constructive Pessimism
- Qualitative Research: Problem Exploration for Lean Startups
- Delegation Needed For Growth
- Scaling Up To a High Reliability Organization
- Combine Clear Goals with Delegation Based on Expertise for High Impact
- Cultivate Formal Controls, Informal Collaboration, and Value Creation Networks