How do you define and scope value stream projects?

1 Identify the value stream

The first step is to identify the value stream that you want to improve. A value stream is a sequence of activities that deliver value to a customer or stakeholder. You can use various techniques to identify value streams, such as interviewing customers, analyzing business goals, reviewing existing documentation, or conducting workshops with cross-functional teams. The key is to focus on the end-to-end flow of value, not on individual functions or departments. You should also define the scope and boundaries of the value stream, such as the start and end points, the inputs and outputs, the customer segments, and the value proposition.

2 Map the current state

The next step is to map the current state of the value stream. This means capturing the current reality of how the value stream operates, including the steps, roles, resources, information, systems, metrics, and issues involved. You can use various tools to map the current state, such as value stream maps, swimlane diagrams, flowcharts, or sticky notes. The goal is to visualize the current state and identify the sources of waste, inefficiency, variability, and risk that affect the value delivery.

3 Analyze the gaps and opportunities

The third step is to analyze the gaps and opportunities in the value stream. This means comparing the current state with the desired state, and identifying the root causes of the problems and the potential solutions. You can use various methods to analyze the gaps and opportunities, such as gap analysis, root cause analysis, benchmarking, or brainstorming. The goal is to prioritize the improvement opportunities based on their impact, feasibility, and alignment with the business strategy and customer needs.

4 Define the future state

The fourth step is to define the future state of the value stream. This means designing the ideal state of how the value stream should operate, including the steps, roles, resources, information, systems, metrics, and standards involved. You can use various tools to define the future state, such as value stream maps, swimlane diagrams, flowcharts, or storyboards. The goal is to illustrate the future state and communicate the vision, benefits, and requirements of the value stream improvement.

6 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?