November 21, 2022

Value Stream Management Nets Big Wins and Cost Savings for Market Leaders

HBR Paper Demonstrates Real-World Impact of Emerging VSM Approach

November 21, 2022 – Broadcom recently sponsored a briefing paper from Harvard Business Review Analytic Services titled, “Using Value Stream Management to Speed Digital Transformation and Eliminate Silos.” The paper explores the benefits of value stream management (VSM) and how companies are using VSM platforms to align teams, workflows, and investments in support of customer value. In the process, teams can break down the silos that stifle digital transformation and reduce inefficiencies and waste, often driving cost savings. Featuring insights from industry analysts and expert VSM practitioners, the paper reveals key lessons and strategies drawn from successful VSM initiatives.

To illustrate the business impact of VSM, the paper highlights the experiences of two organizations in vastly different industries. For The Boeing Co., one of the world’s largest aerospace companies, VSM has been part of its digital transformation journey for several years. VSM has enabled improved visibility into the product lifecycle, workstreams, metrics, and funding priorities speeding its ability to innovate and pursue digital transformation. In the process, the company reduced waste and increased efficiencies, realizing hundreds of millions in savings.

Lynda Van Vleet, portfolio management systems product manager at Boeing tells HBR: “In our first two years, we saved hundreds of millions of dollars. But that wasn’t our goal. I think a lot of organizations look at this as a way of saving money because you usually do, but if you start out looking at it as a way of creating value, that just comes along with it.”

The paper also describes the successes realized by telecom leader, Verizon. With VSM, the organization has been able to break down its historically siloed infrastructure to enable the free flow of information across teams and dramatically improve process visibility into value streams. Teams have gained deep information that’s fueled more accurate, data-driven decisions about governance and staffing. And that insight has enabled Verizon to make a cultural shift that realigns each team member from individual siloes to individual value streams.

“Just the efficiencies gained from governing and staffing were multimillion-dollar cost savings,” said Jason Newman, senior manager, systems engineering, Connected Solutions Group, strategy and operations at Verizon. “What you see is maximizing the ROI.”

VSM is taking its place as a key strategic initiative among transformational enterprises. This paper identifies the core elements and strategies for VSM success demonstrated by the exceptional results shared by the experienced VSM practitioners at Boeing and Verizon.

To learn how your organization can accelerate digital transformation, reduce costs, and boost customer value with value stream management, download the report here.

Tag(s): Value Stream Management , ValueOps , Rally , Clarity

Marla Schimke

Marla brings more than 20 years of experience in marketing leadership for both start-ups and Fortune 500 companies including CA Technologies, Microsoft and Ernst & Young. She is a thought leader who combines a unique blend of technology and marketing experience to successfully position cutting-edge solutions to B2B...

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