New Maturity Model Offers a Roadmap for Value Stream Management

Traversing unknown territory can be overwhelming, especially without a reliable road map. However, that’s where many teams find themselves as they move to employ Value Stream Management (VSM). These teams are putting VSM principles into practice for the first time. So how do they know they’re moving in the right direction? How do they identify the near-term steps that will enable them to make the most rapid progress? How will they know what success looks like, and when they have established the maturity required to reap the benefits they seek?

While every team's VSM journey is unique, essential steps are required for all groups. Broadcom has worked with numerous organizations, helping teams maximize VSM's potential. Based on this experience, we recently developed a VSM maturity model. This model is a way to share key learnings and provide a roadmap that empowers teams in diverse organizations to wield VSM strategies with maximum impact.

This model is now detailed in a new white paper, The Value Stream Management Maturity Model, Navigating Progress and Achieving Excellence. In the sections below, we’ll look at each maturity model level, and outline some of the critical characteristics of organizations operating at that tier.

Level 1: Foundational

At this phase, teams deliver products and services more traditionally rather than managing end-to-end value streams. Many at this level have embarked on digital transformation initiatives to improve efficiency and agility. However, these efforts have yet to be conducted in an organized or integrated, cross-team fashion. Without a clear understanding of value streams, teams can only work to make piecemeal improvements.

Generally speaking, teams work in silos, and there’s a lack of alignment and cooperation between various leaders. There are few data insights at this level. Decisions are typically driven by anecdotal information or opinion, which leads to increased risks, dependencies, and inefficiencies.

Level 2: Value stream aware

At this level, an understanding of the organization’s value streams is emerging. Teams have started to identify and map their value streams. Pilot initiatives have been kicked off, and new processes and feedback loops are being tested.

Teams have also started collecting additional data to track customer value, such as Net Promoter Scores and customer adoption metrics. However, at this phase these metrics aren’t fully utilized to guide process improvements. Although inefficiencies, dependencies, and risks remain, the causes of these issues are becoming better understood, and plans are being created to mitigate them.

Level 3: Collaborative

At this level, there is a strong focus on alignment and collaboration across entire value streams. Teams are making concerted efforts to reduce inefficiencies and improve overall performance, which is starting to yield dividends. 
Organizations at this level have established consistent practices and guardrails, which help to streamline operations. Teams have effectively broken down the silos that had persisted between business and technology groups, which is helping fuel improved collaboration and alignment.

Level 4: Data-Driven

Organizations that have reached this level have achieved a high degree of data maturity throughout all value streams. This level is also characterized by a strong emphasis on data-driven decision-making. Teams use data to fuel ongoing improvements and optimize overall performance.

Business and technology teams are working with consistent data and dashboards, which enables an even higher degree of collaboration. Data flows between tools, which helps streamline processes and improve overall efficiency. Given these capabilities, teams move from the reliance on quarterly status reports and other techniques of the past and start to leverage real-time dashboards that keep all stakeholders consistently apprised.

Level 5: Full transparency and flow

Organizations at this level excel in VSM, realizing significant efficiency, visibility, and alignment gains. This level is characterized by a culture of continuous improvement, which means the benefits realized are just the beginning.
Teams across these organizations have achieved complete visibility and transparency in their operations. Work is always visible, from ideation through to post-release customer feedback. Through this data-driven approach, leaders can make better decisions faster and earlier in the development and delivery lifecycle.

Ultimately, meaningful conversations and decisions are all driven by data rather than subjective opinion or guesswork. Further, data and decision-making are distributed, meaning teams are better informed and empowered to act on their insights. On an ongoing basis, individuals suggest better ways of working, and teams view experimentation and innovation as a natural part of their responsibilities and workflows.

Conclusion

With an understanding of the five levels of VSM maturity, teams can begin to gain insights into their current state and which steps are required to advance to the next stage. To learn more, access the full white paper, The Value Stream Management Maturity Model, Navigating Progress and Achieving Excellence.

In addition, to better understand how organizations across industries and regions are faring in their VSM journeys, Broadcom recently commissioned a survey. Conducted by Dimensional Research, this survey polled 500 IT and business leaders, asking a range of questions to gauge their relative levels of maturity. To learn about the results, access our Global Report on Value Stream Management Maturity, Key Findings and Analysis. This report offers a compelling look at the key findings from this research. The report details some of the key stumbling blocks teams encounter and reveals the top tactics and strategies enabling organizations to make rapid advancements.