How can you model business processes and value streams?

1 What are business processes and value streams?

A business process is a sequence of activities that transforms inputs into outputs to achieve a specific goal or outcome. For example, a business process could be how you handle customer orders, invoices, or complaints. A value stream is a collection of business processes that create and deliver value to a customer or stakeholder group. For example, a value stream could be how you develop, market, and sell a product or service.

2 Why model business processes and value streams?

Modeling business processes and value streams can help you improve your organization's performance, efficiency, and customer satisfaction. By mapping out the current state of your processes and value streams, you can identify the pain points, bottlenecks, waste, and gaps that affect your value creation and delivery. By designing the future state of your processes and value streams, you can optimize your resources, streamline your workflows, and enhance your value proposition.

3 How to model business processes?

One of the most common and simple ways to model business processes is to use a flowchart. A flowchart is a diagram that shows the steps, decisions, roles, and data involved in a business process. You can use symbols, colors, and labels to make your flowchart clear and easy to follow. To create a flowchart, you need to define the scope, purpose, and boundaries of your business process, then identify the actors, tasks, and events that make up the process, and finally draw the flow of activities and decisions using a flowchart tool or software.

4 How to model value streams?

One of the most popular and effective ways to model value streams is to use a value stream map. A value stream map is a visual representation of the flow of value from the customer's perspective. It shows the value-adding and non-value-adding activities, the information and material flows, the cycle times and wait times, and the performance indicators of a value stream. To create a value stream map, you need to define the customer segment, product or service, and start and end points of your value stream, then collect data on the current state of your value stream, and finally draw the value stream map using a value stream mapping tool or software.

5 How to analyze and improve your models?

After you have modeled your business processes and value streams, you need to analyze them and identify the opportunities for improvement. You can use various techniques and tools to evaluate your models, such as SWOT analysis, gap analysis, root cause analysis, benchmarking, and metrics. You can also use frameworks and methodologies to guide your improvement efforts, such as Lean, Six Sigma, Agile, and Business Process Management. The goal is to eliminate waste, reduce variation, increase agility, and align your processes and value streams with your strategic objectives and customer needs.

6 How to communicate and implement your models?

The final step is to communicate and implement your models across your organization. You need to share your models with your stakeholders, solicit feedback, and validate your assumptions. You also need to plan and execute the changes required to transition from the current state to the future state of your processes and value streams. You need to assign roles and responsibilities, allocate resources, monitor progress, and measure results. You also need to ensure that your models are updated and maintained as your organization evolves and adapts to changing conditions.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?