Value Stream Management for digital transformation: A new maturity model

New research ¹ underscores the common challenges many enterprises face in advancing their Value Stream Management (VSM) maturity levels for digital transformation, emphasizing the crucial need for effective guidance. Recognizing this need, we have created a cutting-edge VSM maturity model. Drawing upon our extensive experience facilitating successful VSM initiatives within large-scale enterprises, this model serves as a compass, offering insights into their current VSM maturity and providing practical direction to advance and reap the additional benefits.

Here’s a brief introduction to the five phases of VSM maturity.

Within organizations at this phase, teams are delivering products and services, but they’re not managing those deliverables as end-to-end value streams. Generally speaking, teams work in silos, and there’s a lack of alignment and cooperation between leaders of different groups. Many at this level have embarked on digital transformation initiatives to improve efficiency and agility. However, without a clear understanding of value streams, teams can only work to make improvements in a largely piecemeal fashion.

At this level, teams have started identifying and mapping their value streams. Pilot initiatives have been initiated, and new approaches are being tested and evaluated. Teams have also started working to collect more data for measuring customer value, which is a vital foundation for tracking progress. However, at this phase, groups aren’t fully harnessing these metrics to guide holistic process improvements.

Within organizations at level three, there is a strong focus on alignment and collaboration across entire value streams. Groups are starting to make progress in identifying bottlenecks, reducing inefficiencies, and streamlining operations. Teams have effectively broken down the silos that had persisted between business and technology groups, which is helping to fuel improved collaboration and alignment.

When teams reach this level, they’ve established a high degree of data maturity throughout all value streams. Teams can start using data to fuel ongoing improvements. Technology teams and business managers are working with unified data sets, which enables a high degree of collaboration. Further, they can stop relying on efforts like quarterly status reports and instead leverage real-time dashboards that keep all stakeholders consistently apprised.

When organizations reach level five, they gain the ability to excel in VSM, which means they can make significant gains in efficiency, visibility, and alignment. Groups across value streams and throughout these organizations have achieved full visibility and transparency in their operations, and work is visible at all times. Ultimately, important decisions are based on objective data rather than subjective opinion or guesswork.

By helping VSM leaders better understand the five levels of VSM maturity, we hope to aid them in boosting progress and maximizing results. To learn more, access the full white paper, “Value Stream Management Maturity Model: Navigating Progress and Achieving Excellence.” This paper helps readers gain a better understanding of their current state of maturity and determine which steps are required to advance to the next level.

¹ Global Report on Value Stream Management Maturity, Key Findings and Analysis.

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Whether you’re just about to embark on your VSM journey or you’re looking for ways to get the most out of your current initiatives, this event will provide a lot of insights and value.

To learn more, be sure to visit our VSM Summit On-Demand page.