Value Stream Management: Boosting Business Efficiency

Comparative Agility
3 min readDec 20, 2023

This article was inspired by the Value Stream Management podcast episode with Steve Pereira & Simon Hilton.

In a recent podcast on Comparative Agility, we hosted the CEO of Visible Value Stream Consulting — Steve Pereira. Together we dived into the world of value stream management, exploring how it enhances customer results in businesses.

There’s a common mix-up between value stream management and value stream mapping. The distinction is crucial: value stream management encompasses a wider scope, involving the analysis, improvement, and overall governance of value streams within an organization, unlike the more specific focus of value stream mapping.

But what exactly are value streams? They’re the high-level processes within an organization contributing to positive customer outcomes. Steve emphasized that value stream management involves studying and implementing strategies around these activities, not getting bogged down in the minute details but focusing on the significant activities driving customer value.

Drawing parallels with lean principles, lean methodologies start with identifying value and then proceed to map the value stream. The mapping stage involves understanding the current state and the ecosystem, resembling plotting a course when exploring unknown terrain.

In essence, value stream management becomes an integral part of an organization’s DNA, fostering continuous mapping, identification of value, and effective decision-making based on this understanding.

Value stream management isn’t a one-time task but an ongoing practice. It’s not just about efficiency; it’s equally crucial to maximize effectiveness. This process focuses on eliminating waste while ensuring maximum value creation, aligning with the organization’s goals.

One crucial aspect we touched upon was waste, a significant concern within value stream management. Steve outlined various types of waste, emphasizing that these are elements not contributing to valuable customer outcomes. From unnecessary waiting time to unproductive meetings, identifying and eliminating these wastes become central to value stream management.

Value stream management serves as a bridge fostering alignment between tech and business by focusing on the core aspect: valuable customer outcomes.

Moving forward, we outlined a methodical approach starting with envisioning the destination and defining a vision that guides everyone toward the common goal. This vision acts as a cornerstone for understanding the value stream, highlighting the areas that need improvement or innovation.

Organization becomes pivotal in this journey. Steve stressed the importance of identifying key players and sponsors, mentioning the significance of cross-functional representation. This ensures a comprehensive view of the value stream, revealing constraints and opportunities otherwise overlooked.

To learn more about value stream management or engage with Steve Pereira, visit our website.

In essence, this podcast offers a practical, real-world perspective on value stream management, making it an accessible and invaluable resource for anyone looking to enhance organizational effectiveness and deliver maximum value to customers. Listen to the full episode here.