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VSM Workshop -‐ Slideshare 1
Running a Value Stream Mapping Workshop
VSM Workshop -‐ Slideshare 2
Sound Familiar?
“Our IT organization develops requirements in silos without considering the end-‐to-‐end business processes”
VSM Workshop -‐ Slideshare 3
Sound Familiar?
“Our IT organization develops requirements in silos without considering the end-‐to-‐end business processes”
“The business requirements for our new IT solutions are not based on current business practices”
VSM Workshop -‐ Slideshare 4
Sound Familiar?
“When we collect business requirements, we don’t really focus on the hard questions.”
VSM Workshop -‐ Slideshare 5
Sound Familiar?
“When we collect business requirements, we don’t really focus on the hard questions.”
What problems are we trying
solve?
VSM Workshop -‐ Slideshare 6
Sound Familiar?
“When we collect business requirements, we don’t really focus on the hard questions.”
What problems are we trying
solve?Will these
requirements deliver our product faster, at a
lower cost, at the quality level our
customer expects?
VSM Workshop -‐ Slideshare 7
Sound Familiar?
“When we collect business requirements, we don’t really focus on the hard questions.”
What problems are we trying
solve?Will these
requirements deliver our product faster, at a
lower cost, at the quality level our
customer expects?
Are we improving our ability to
deliver value and remove waste?
VSM Workshop -‐ Slideshare 8
Sound Familiar?
“When we collect business requirements, we don’t really focus on the hard questions.”
What problems are we trying
solve?Will these
requirements deliver our product faster, at a
lower cost, at the quality level our
customer expects?
Are we improving our ability to
deliver value and remove waste?
VSM Workshop -‐ Slideshare 9
The Solution
If these symptoms sound familiar, you may want to consider asking your IT department to conduct a Value Stream Mapping (VSM) workshop.
Here’s how…
VSM Workshop -‐ Slideshare 10
Definitions
VSM Workshop -‐ Slideshare 11
What Is a Value Stream?
A Value Stream is a sequence of activities an organization performs to address a customer’s request.
VSM Workshop -‐ Slideshare 12
Who Is Impacted by a Value Stream?
A customer may be internal or external to the organization.
VSM Workshop -‐ Slideshare 13
What Is a Value Stream Mapping Workshop?
A VSM workshop maps the current flow of information and materials, generates an ideal future state and puts forth a high-‐
level plan to achieve the future state.
VSM Workshop -‐ Slideshare 14
The Key Elements of Value Stream Mapping
VSM Workshop -‐ Slideshare 15
Customer Focus
The customer is the most important entity for each organization.Start with the customer and see what can and should be improved for their benefit.
Customer Focus
Strategic Level
Holistic View
Waste Detection
Metrics
VSM Workshop -‐ Slideshare 16
Strategic Level Approach
A VSM workshop should focus on strategic direction and not get bogged down in the weeds.
Customer Focus
Strategic Level
Holistic View
Waste Detection
Metrics
VSM Workshop -‐ Slideshare 17
Holistic Organizational View
Most organizations are a coalition of silos. VSM breaks down barriers between functional silos to uncover improvement opportunities across the entire value stream of the organization, not just within a discrete area.
Customer Focus
Strategic Level
Holistic View
Waste Detection
Metrics
VSM Workshop -‐ Slideshare 18
Waste Detection
In almost all business processes there is waste. A VSM workshop exposes waste in a process, and provides the visibility and the opportunity to eliminate it.
Customer Focus
Strategic Level
Holistic View
Waste Detection
Metrics
VSM Workshop -‐ Slideshare 19
Metric Analysis
Often there isn’t an awareness of the current performance of a process. The VSM workshop quantifies the current state and sets targets for improvements.
Customer Focus
Strategic Level
Holistic View
Waste Detection
Metrics
VSM Workshop -‐ Slideshare 20
Preparing for a Value Stream Mapping Workshop
VSM Workshop -‐ Slideshare 21
Prerequisites for VSM Success
Identify an experienced VSM workshop facilitator(internal or external).
VSM Workshop -‐ Slideshare 22
Prerequisites for VSM Success
Identify the organization’s Value Streams, also known as
core business processes.
VSM Workshop -‐ Slideshare 23
Prerequisites for VSM Success
Prioritize your Value Streams based on customer impact and organizational strategy.
Then pick the one that most meets the organization’s needs.
VSM Workshop -‐ Slideshare 24
Prerequisites for VSM Success
Establish an executive sponsor or champion who can commit to the VSM workshop and provide the leadership necessary to
implement the future state.
VSM Workshop -‐ Slideshare 25
Prerequisites for VSM Success
Empower the team to make important changes
that will transform the organization and meet strategic needs.
VSM Workshop -‐ Slideshare 26
Executing aValue Stream Mapping Workshop
VSM Workshop -‐ Slideshare 27
Step 1: Mandate
Develop a workshop mandate, or charter, which includes: • Scope• Problem Statement• Objectives• Metrics
VSM Workshop -‐ Slideshare 28
Step 2: Agenda
Produce a detailed agenda (typically over 2 or 3 days, 8 hours per day)
and a logistical plan.
VSM Workshop -‐ Slideshare 29
Step 3: Kick-‐Off Meeting
Hold a kick-‐off meeting with the executive sponsor to review the workshop mandate, logistics, recommended training (depending on organizational maturity), and pre-‐work assignments to get a
head start on capturing current-‐state processes.
VSM Workshop -‐ Slideshare 30
Step 4: Final Preparations
Final preparations include holding a Q&A session (if required before the workshop) and setting up the space with
post-‐it notes, flip chart paper, and whiteboards.
VSM Workshop -‐ Slideshare 31
Step 5: Facilitation
Day One: Map out the current state.
VSM Workshop -‐ Slideshare 32
Step 5: Facilitation
Day One: Map out the current state.
Day Two: Brainstorm and map the future state.
VSM Workshop -‐ Slideshare 33
Step 5: Facilitation
Day One: Map out the current state.
Day Two: Brainstorm and map the future state.
Day Two & Three: Identify the improvement opportunities, assign owners, and estimate overall implementation time for each improvement.
VSM Workshop -‐ Slideshare 34
Step 5: Facilitation
Day One: Map out the current state.
Day Two: Brainstorm and map the future state.
Day Two & Three: Identify the improvement opportunities, assign owners, and estimate overall implementation time for each improvement.
TIP: Produce a daily briefing for executive management.
VSM Workshop -‐ Slideshare 35
Step 6: Governance
Establish governance and a review cadence to realize the improvement plan.
VSM Workshop -‐ Slideshare 36
Deliverables
VSM Workshop -‐ Slideshare 37
VSM Output
The deliverables from a VSM workshop are designed to bring about change:
VSM Workshop -‐ Slideshare 38
VSM Output
The deliverables from a VSM workshop are designed to bring about change:
– Process map of the Current State
VSM Workshop -‐ Slideshare 39
VSM Output
The deliverables from a VSM workshop are designed to bring about change:
– Process map of the Current State
– Process map of the Future State, with improvements highlighted
VSM Workshop -‐ Slideshare 40
VSM Output
The deliverables from a VSM workshop are designed to bring about change:
– Process map of the Current State
– Process map of the Future State, with improvements highlighted
– Performance metrics (current and future)
VSM Workshop -‐ Slideshare 41
VSM Output
The deliverables from a VSM workshop are designed to bring about change:
– Process map of the Current State
– Process map of the Future State, with improvements highlighted
– Performance metrics (current and future)
– Transformation plan to achieve the Future State
VSM Workshop -‐ Slideshare 42
Outcomes
VSM Workshop -‐ Slideshare 43
VSM: So What?
A well-‐executed VSM workshop with a committed champion can be a game changer
for your organization.
VSM Workshop -‐ Slideshare 44
VSM: So What?
A well-‐executed VSM workshop with a committed champion can be a game changer
for your organization.
The outcomes may include: reduced lead time and waste, improved customer service and product quality, and increased
employee engagement.
VSM Workshop -‐ Slideshare 45
VSM: So What?
Your IT organization is in a unique position to initiate a VSM workshop, given its involvement in business requirements
gathering and cross-‐functional projects.
VSM Workshop -‐ Slideshare 46
VSM: So What?
Your IT organization is in a unique position to initiate a VSM workshop, given its involvement in business requirements
gathering and cross-‐functional projects.
If IT builds the capability to plan and execute VSM workshops to enable business transformation, the department can
move up the value chain within the broader organization.
VSM Workshop -‐ Slideshare 47
Andy Nemtzow: linkedin.com/in/anemtzow
James Healey: linkedin.com/in/jamescundarihealey
Abraic helps improve business processes & outcomesfor IT organizations.
VSM Workshop -‐ Slideshare 48
Learn more: abraic.com/blog
Abraic helps improve business processes & outcomesfor IT organizations.