Value Stream Management
Value Stream Management is the practice of visualising, managing, and optimising the end-to-end flow of value — from idea to customer outcome.
It helps organisations align teams around customer value, reduce waste, and continuously improve delivery performance across systems, tools, and people.
Level 1 – Initial (Ad Hoc)
Work flows are invisible, fragmented, or siloed.
There is little understanding of how value flows across the organisation, or where delays and waste occur.
- Teams operate in functional silos (e.g. dev, test, ops) without shared outcomes
- No visibility of work in progress, handoffs, or customer value
- Business value is rarely defined or tracked
- Delivery issues are diagnosed reactively
- Metrics focus on activity, not outcomes (e.g. hours logged, velocity)
Level 2 – Managed (Emerging Practice)
Some value flow is mapped, typically at a team or project level.
The organisation begins to identify friction points, bottlenecks, or sources of rework.
- Teams conduct retrospectives or postmortems to uncover delivery delays
- Visual boards or Kanban tools expose part of the flow
- Handoffs are identified, but not well coordinated
- Work is tracked more consistently, but often through disconnected systems
- Some awareness emerges of flow efficiency and customer impact
Level 3 – Defined (Standardised)
Value streams are defined and visualised across multiple stages of delivery.
Teams use common language and tooling to manage flow, dependencies, and outcomes.
- Value streams are mapped from idea to production
- Lead time, flow efficiency, and WIP are measured and monitored
- Teams align work with customer value or strategic outcomes
- Waste (e.g. rework, delays, handoffs) is identified and addressed
- Coordination happens across teams and functions through shared flow practices
Level 4 – Quantitatively Managed (Measured & Controlled)
Value stream performance is monitored and improved systematically.
Metrics drive decisions about optimisation, resource allocation, and investment.
- Tools capture flow metrics (e.g. Flow Time, Flow Load, Flow Efficiency)
- Delivery performance is linked to business outcomes (e.g. revenue impact, satisfaction)
- Bottlenecks and constraints are addressed continuously
- Teams use value stream insights to rebalance work (e.g. tech debt vs features)
- Feedback loops validate that delivered work produces the intended value
Level 5 – Optimising (Continuous Improvement)
Value streams are self-improving systems, enabled by automation, feedback, and shared purpose.
The organisation delivers value predictably and adapts dynamically to change.
- Cross-functional teams are organised around value delivery, not functions
- Value stream insights drive strategic prioritisation and investment
- Systems adapt dynamically to demand, capacity, and risk
- Continuous discovery and experimentation refine value definitions
- Flow of value becomes a competitive advantage