However, because software development and delivery is complex in large organizations, it can be difficult to map the value stream from end-to-end. In contrast, the software work in the release pipeline strives to be predictable and mechanistic, with minimal output variation and no rework. Thinking in value streams helps zoom out of the details and take a macro look at business processes in order to identify strategic ways to improve them. This backbone, referred to as the Integration Model, defines the routes that business value can flow through the value stream network. Flow Metrics abstract away details like team structure, technical architecture, and tool implementations. Value stream management platforms make this navigable through business intelligence features that allow teams to focus on the most important metrics and track them in real-time. In theory, and when effectively applied, these core elements drive efficiency, high-quality software and faster release cycles. Value stream management aims to remove waste from value streams by identifying both necessary and unnecessary non-value-adding work. The goal of practicing value stream management in software delivery is to increase the rate the flow items make it through the value stream. Test environment managers constantly receive booking requests for specifically configured environments. The business demands better software, delivered faster, with zero tolerance for outages or security breaches. Project to Product. Furthermore, the Integration Model also provides the tool network with the elasticity to expand and contract, to evolve and change, to absorb newly acquired networks, experiment with the latest tools, and gradually wean off old ones. Project to Product. It all comes down to the people. The complete view of the value stream captures every aspect of the software delivery process. Value Stream Mapping. IT Revolution, p. 9). Value stream management enables teams to be truly data-driven. Research shows that multitaskers can experience a 40% drop in productivity. Value stream management solutions are capable of collecting and compiling all those data points and drawing a map of how value flows through your teams. Thats why the Value Stream Flow Metrics break work down into two functional and two nonfunctional categories. The ability to join and abstract the data from the individual tools into one integrated set of Flow Metrics. The first step is changing the mindset of your organization to see software development activities as closely linked to business goals. They either cant measure anything, and so cant identify how to improve, or they simply cant align software development and delivery efforts with business strategy. A key first step here is collecting important measurements and metrics. This elevates software delivery into a state of continuous compliance as everyone involved will automatically adhere to the governance requirements defined in the value stream management platform. Homegrown Flow Metrics can take years to produce, for the sheer effort of culling, normalizing, selecting and visualizing the right data. There are only so many work items that your developers can work on at any given time. If you are a CEO or run a business unit, you know that software can make or break your performance and ability to stay ahead. Optimizing the value streams (including their associated products or services) that teams are working with also means an organization can realize value outcomes as early as possible. If youre after end-to-end Flow Metrics, there is no choice but to mine the ground truth from the enterprise tool networks where the work is done and knit the data together. Itssystematic approach to measuring and improving flow helps organizations shorten time-to-market, increase throughput, improve product quality and optimize for business outcomes. According to the Flow Framework, value stream networks require an information backbone that connects the tools and orchestrates near real-time data synchronization between them. Executives need to champion practices that align development and IT so that innovative ideas can be executed smoothly through software while delivering value. Work moves back and forth between contributors as it progresses through each phase, morphing, changing, and converging in a highly creative process. Based on an analysis of 308 value stream networks of the Global 2000, as well as hundreds of conversations with their IT leaders, Tasktop has identified three inhibitors to flow that can be easily alleviated by automating workflows and traceability across tool boundaries. They visualize current and historical flow for a product in terms of business value creation and protection, and they correlate Flow Metrics with business outcomes. Instead of using their time to handle these requests and discover conflicts, value stream management platforms centralize booking requests and test environment scheduling automatically. Value Stream Mapping. Product marketing is not just learning about a product; its about knowing your audience well enough to connect the two with compelling messaging. All Rights Reserved . A CIOs performance is no longer measured by operational efficiency, rather by customer experiences, digital products and revenue generation. Similar to live traffic apps like Google Maps and Waze, you should be able to visualize and analyze the flow of value as it traverses the value stream network of tools and practitioners. Being a high performing software company is more than the tools put in place. Without looking at the entire value stream, you will have incomplete data. Naturally, with the stakes so high, there is zero tolerance for another failed transformation. These metrics build on the concept of the flow item to provide insight into what is happening within the value stream itself. Data Lake vs. Data Warehouse: Know the Difference, Continuous Security Defined and Explained: A Leaders Guide, Break down operational silos by connecting multiple processes, teams, and tools, Ensure governance is embedded into SDLC processes. It drives value stream thinking which seeks to optimize the flow of work from idea to value realization, accelerating the time to value. Above all, value stream management empowers teams to continuously improve their software delivery factories to be able to deliver more value to their customers. McGraw-Hill, p. Value stream management involves taking a look at all the steps in the software delivery process from idea to production the value stream and then identifying silos, bottlenecks, and other inefficiencies in the flow of work to the customer receiving the product. A software value stream includes every activity from idea to production needed to deliver software products or services to customers. One leading U.S. insurance company spent a year and $1million to build their own Flow Time metric, only to find the investment rendered obsolete the moment they even slightly modified their toolchain. It is nearly impossible to optimize a process when there is a big misunderstanding of its mechanics. Then, if youve done it right, the full value of the effort is realized. It too aims to remove waste and reduce effort, but recognizes that the work during the design and implementation phase is very different from manufacturing: At the core is the fact that you never produce the same work twiceeach feature is different, presenting design, technical and economic choices at every step. Spending all day tracking down data points does not help create value for customers. They need efficient and reliable ways to do this because software is constantly changing and the process to adopt new IT strategies across the enterprise requires more time and focus. Again, value stream management is all about being able to better deliver value to the customers. Let me repeat that the founder of a top-10 Fortune 500 company has his eye on software development teams and the value software innovation brings to the company. If organizations applied lean manufacturing principles in product development, it would stymy innovation and prevent them from creating the delightful and compelling experiences customers demand. It also helps to improve the flow of value to the organization, while managing and monitoring the software delivery life cycle from end-to-end. Value stream management is much more than metrics. You will have to rely on proxy metrics to understand whats going on, such as story point velocity, and not be able to directly improve on whats holding you back from becoming a high performing software organization. Value stream management offers a unique view of the software delivery life cycle through the customer experience lens, to better align with business objectives and scale agile and DevOps transformations. Flow Metrics create a clear set of end-to-end value stream metrics that can be shared by both IT and business leaders. With innovation rapidly changing, the software development and delivery landscape, organizations must remember what is most important. What delivers on that potential is having a strong, customer-centric product development cycle that seamlessly brings together the efforts of product owners, release or development managers, risk and compliance teams, as well as engineering teams. Flow Metrics are constructed from the combined work of all the contributing practitioners across the value stream. measuring process, activity, and operational efficiencies that are indicative of siloed, local optimizations. 15. The easiest example of a flow item is a feature that delivers a new product capability, as customers will clearly pay for it if they need it or are delighted by it. How will you know where flow is slowing down so you can fix it? Things that may inhibit value stream management thinking from taking root and producing positive change in an organization could be a culture that is resistant to change. There are six Value Stream Flow Metrics, each looking at a different aspect of your value stream. DevOps is a start, but will only take you so far. Value Stream Management is a management technique or practice that focuses on increasing the flow of business value from customer request to customer delivery. 2022 Forbes Media LLC. At the same time, it continues to be ever more important, as it is a necessary core competency for organizations across industries, no matter their product or service. However, as teams become autonomous and use VSMPs to measure their value stream, the funding model can be shifted. ), The term value stream was born of the Lean movement to describe the material and information flow to create value. To optimize the return on investment and the ability to delight customers, each step in the value stream should be creating value in the customer-centric definition of the term. They are the leading indicators. Every CIO and VP of Software Delivery hears their department heads and managers saying they simply have too much work and too little resources.
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