Supercharging Success: The Interconnectedness of Value, Work, and Goals in Value Stream Management

Authors:?Ravi Sawant,?Sharat Kunduru

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Value stream management (VSM) may not be as flashy as cybersecurity or rocket science, but don't let that fool you. Our journey to demystify VSM is already underway, and in this third article, we're diving even deeper into its intricacies. Behind its seemingly dry exterior lies a world of untapped potential and exciting opportunities for businesses. So, buckle up as we continue our exploration of VSM and discover how it can revolutionize your organization.

Imagine a world where business processes are not just mundane tasks and activities, but powerful value streams that deliver exceptional value to your customers. That's the heart of VSM—managing the entire flow of value, rather than getting lost in isolated processes.

By taking this holistic approach, you can unlock hidden efficiencies and skyrocket customer satisfaction.

In the previous articles of this series, we laid the groundwork by exploring the core concepts of 'Value', 'Stream', and 'Management' in the context of VSM. We delved deeper into the origins and evolution of VSM, dissecting its various meanings and definitions, so you can grasp its essence from every angle.

To bring it all to life, we presented a real-life example of a bank that showcased how VSM principles transformed a business. Through value stream mapping, waste identification, and process streamlining, our fictional company achieved remarkable results—faster processing times, improved service, and happier customers.

Now, here's the secret sauce: starting small and focusing on one area can be the key to overcoming the challenges of VSM introduction and adoption. It's not always easy to rally every stakeholder at once. That's why we encourage you to take that first step, make some improvements, and build on your successes. As my boss always tells me, "Success breeds success." Waiting for the perfect moment is like chasing unicorns—entertaining but ultimately futile.

In this installment, we will dive into the heart of VSM—unpacking each key concept and exploring its intricate framework. Get ready to unlock the secrets of value, work, and goals, and discover how they intertwine within organizations.?

The flow of value, goals, and work

The flow of value, goals, and work in any organization is crucial. It moves from the top to the bottom, with the customer at the end of the line realizing the benefits of your products and services and thus generating value for the organization. However, as these elements flow through the organization, their scope, definition, perception, influence, and responsibilities morph to align with the levels and functions of the people they encounter.

This is a crucial distinction which many fail to understand: while everyone is part of the same virtual value stream, the way they perceive and experience it is unique.

To understand the interconnectedness of the various systems, people, and sub-streams or processes, it's essential to recognize how they work across different levels. Goals are set by leadership at the top and communicated down to each level, where teams define their own work items to help achieve those goals. Since each level defines its own work items - the activities, processes, people, and systems that make up their value streams will also be unique. However, value streams can also exist at different levels in an organization, each delivering value to a parent level value stream.

Now, let's delve into a Star Wars analogy to bring this story to life – because who doesn't love Yoda? I am a huge Yoda fan. Now, at the top, we have the CXO, the Master Yoda of the organization. He sets the company objectives and is seen as the all-knowing and all-powerful figure. After all, when Yoda speaks, you don't question it - you just do or do not, there is no try!

Next in line, we have the Portfolio & Strategy Owner, who is like a Jedi Knight. While they may not possess the same level of wisdom as Master Yoda, they're still formidable in their own right. They have a good understanding of what Yoda wants but may still have their own interpretation based on their skills, experience, and influence. They define their goals and work to produce value for Yoda.

As we move down the hierarchy to the Solution Director, the Padawan on the path to Jedi mastery. They plan their work and produce value for the Jedi in the context of their own limitations. The program managers, acting as the Jedi council, translate the goals and objectives set by the solution directors into actionable plans for the teams they oversee. Finally, the engineers, the droids of the organization - much like the iconic R2-D2 and C-3PO - possess exceptional technical skills and construct projects to fulfill the objectives set by the program managers.

Despite the best intentions of Yoda, Jedi Knights, Jedi council, and the droids, there are still turbulence and negative energy in the force – in the form of gaps, misinterpretations, and misalignments.

Humans are not all the same, and their backgrounds, experiences, levels in the organization, and influence shape their understanding and interpretation of goals and objectives. These differences can lead to gaps, errors, and misinterpretations.

To bridge these gaps and minimize misalignments, organizations need a framework - a common language - that enables communication, collaboration, alignment, and transparency across levels. This is where Value Stream Management (VSM) comes in.

VSM serves as the bridge - as the common language - that connects disparate value streams and enables everyone to understand the overall value stream and their contributions to it. It provides a framework that promotes alignment, transparency, and improved trust within and across levels.?

However, achieving this ideal state of interconnected value streams and effective VSM is an ongoing process. Many organizations are far from that ideal state due to organizational silos, lack of collaboration, disjointed processes, misaligned incentives and benefits, and a lack of meaningful insights within and across value streams. But VSM offers hope by providing the tools and principles to guide organizations on their journey towards continuous improvement and becoming a better version of themselves.?

Summary

In summary, VSM allows organizations to bridge gaps, align value streams, and optimize processes to deliver exceptional value to customers. It's a journey of constant improvement and perseverance to reach the ideal state of interconnected value streams.?More importantly it's a journey of mindset change.

In the next installment, we will take a deep dive into the typical layout of value streams in any organization and how the key dimensions of objectives, work, and value flow and change across organizational levels.

May the force of effective value stream management be with you on your organizational journey!