www.vsmconsortium.org The State of Value Stream Management Helen Beal, Chair at VSM Consortium

www.vsmconsortium.org Helen Beal Herder of Humans 2 MISSION: Bringing Joy to Work @HelenHappyBee /helenjbeal

www.vsmconsortium.org 3 The Value Stream Management Consortium is a member association for enterprises and individuals working with value stream management practices and platforms. Our purpose is to advance value stream-centric ways of working in technology teams to lead to higher performing organizations. Our mission is to cultivate and nurture the emerging market for value stream management and to help the community learn, devise practices and standards, and grow through their use.

www.vsmconsortium.org A Short History of VSM 4 1918 1900 1988 1991 2021 1937 1995 1913 2000 1925 1950 1975 2000 2018 Founded 1st VSM Wave Report Published 2004 The internet happened here!

www.vsmconsortium.org What and WHY 5 Delighted customers mean higher organizational performance Optimizing value flow and realization results in sublime customer experience “Value Stream Management is a combination of people, process and technology that maps, optimizes, visualizes, measures, and governs business value flow through heterogeneous software delivery pipelines from idea through development and into production.” Forrester Value stream management optimizes value flow and realization

www.vsmconsortium.org A value stream is an END-TO-END set of activities which collectively creates VALUE for a CUSTOMER. The value stream team is concerned with all the activities, from start to delivery of results, and confirmation of satisfaction. The value-stream designers search for ways of achieving “outrageous” improvements in critical measures such as speed, cost, quality, and service. The value stream team is intensely focused on the customer (an external customer or an internal user) and is concerned with how to delight the customer. James Martin, The Great Transition 6

www.vsmconsortium.org Digital focus: 90% Design + Development, 10% Production + Delivery Manufacturing focus: 10% Design + Development, 90% Production + Delivery Digital Value Streams are Different Example digital value streams: ● Mobile app ● Website ● SAAS solution ● APIs ● Data lake ● COTS e.g., Salesforce ● Talent onboarding ● Continuous learning ● DevOps toolchain ● Cloud platform ● Technical support ● Governance 7 Design + Development (D+D) Production + Delivery (P+D) (D+D) Production + Delivery (P+D) Design + Development (D+D) (P+D) Common activities The DevOps toolchain is doing most of its CICD automation here

www.vsmconsortium.org VSM Implementation Roadmap 8

www.vsmconsortium.org The Duality of VSM VALUE FLOW REALIZATION Outputs (value stream health) Outcomes (customer experience) Flow is the journey of work from idea to realization. Its travel should be friction-free. It’s a continuous steady stream of value for customers. Realization is the fulfillment of desired outcomes. It’s when a customer experiences the value intended. ● Speed of flow ● Frequency of delivery ● Waste in the value stream ● The work types underway ● Customers actively using capability ● Rate at which new customers arrive ● Customers’ description of experience ● Value stream finance health 9

www.vsmconsortium.org VSM & Organizational Performance 10

www.vsmconsortium.org 11 “By 2023, 70% of organizations will use value stream management to improve flow in the DevOps pipeline, leading to faster delivery of customer value.” Gartner

www.vsmconsortium.org What Do You Want to Do? 12 ● Know how long it takes to deliver value to your customers ● Accelerating value delivery to customers ● Gain insights into where waste is ● Collaborate end-to-end on your product lifecycle ● Have data-driven conversations ● Have traceability through your DevOps toolchain ● Estimate the value your work will deliver ● Build hypotheses for the value of your work ● Understand how much value your work realized ● Amplify and shorten feedback loops ● Make better informed business decisions ● Maximise your value stream’s profitability FLOW REALIZATION Flow is the journey of work from idea to realization. Its travel should be friction-free. It’s a continuous steady stream of value for customers. Realization is the fulfillment of desired outcomes. It’s when a customer experiences the value intended.

www.vsmconsortium.org The State of Value Stream Management Report 2021 The Influence of Mapping

www.vsmconsortium.org The Problem with Mapping 14

www.vsmconsortium.org Value Stream Visibility 15

www.vsmconsortium.org CONTINUOUS INTEGRATION Code is created, artifacts incorporated, versions controlled, code is built in a trunk based manner. CONTINUOUS DELIVERY The changes are approved, released and operated in the live environment. CONTINUOUS TESTING Functional and non-functional testing takes place at every commit at every step or gate through route to live. Value Stream Management Processes 16 PORTFOLIO AND BACKLOG Vision and goals are set and aligned to epics, features, PBIs and user stories. INSIGHTS AND ANALYSIS Monitoring and observability provide insights into customer reaction to changes and report on value realization. The Value Cycle

www.vsmconsortium.org Value Stream Management Platform 17 PORTFOLIO AND BACKLOG Vision and goals are set and aligned to epics, features, PBIs and user stories. INSIGHTS AND ANALYSIS Monitoring and observability provide insights into customer reaction to changes and report on value realization. CONTINUOUS INTEGRATION Code is created, artifacts incorporated, versions controlled, code is built in a trunk based manner. CONTINUOUS DELIVERY The changes are approved, released and operated in the live environment. CONTINUOUS TESTING Functional and non-functional testing takes place at every commit at every step or gate through route to live. Value Stream Management Connect planning to delivery Visibility into cross value stream changes Trace user stories as they travel Continuous compliance Manage dependencies while you break them Gain insights into waste; optimize flow Inspect real-time data and adapt

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www.vsmconsortium.org IT IS ‘The Business’ 19

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www.vsmconsortium.org Guidance: The Time is Now 21

www.vsmconsortium.org 22 SNEAK PEEK? Coming September 2022

www.vsmconsortium.org VSMC Learning Value Stream Management Foundation Course & Certification History and Evolution Identifying Value Streams Mapping Value Streams Connecting Toolchains Value Stream Metrics Inspecting the Value Stream Organizing as Value Streams Evolving Value Streams FREE TO ALL MEMBERS

www.vsmconsortium.org 24 agiletoagility20 Go to: https://vsmconsortium.thinkific.com/ USE CODE: For 20% of Annual Influencer Membership to the Value Stream Management Consortium

www.vsmconsortium.org Thank you! Follow us: @vsmconsortium @Value Stream Management Consortium 25