Value streams: concepts and mapping

The six value chain activities are generic. They describe what any service organization does, but not how a particular piece of work flows from demand to value. Value streams fill that gap. A value stream is a series of steps an organization undertakes to create and deliver products and services to consumers. This lesson explains what value streams are, how they relate to the value chain and to processes, and how to map one step by step using measures such as lead time, process time, percent complete and accurate, and flow efficiency.

What a value stream is

A value stream starts with a trigger (usually a type of demand or opportunity) and ends with value realized by a consumer. In between, it passes through a sequence of steps, each of which uses one or more value chain activities and draws on practices. A value stream is specific: "restore a failed customer-facing service", "onboard a new employee" and "release a new mobile app feature" are three different value streams, each with its own steps, timings and participants.

Value streams make the abstract value chain concrete. They show how work actually flows, where it waits, who touches it and how long it takes. Because they cross teams and departments, they also expose the handoffs and silos that the system model aims to reduce.

Value streams and processes

Processes and value streams are related but not the same. A process is a set of interrelated or interacting activities that transforms inputs into outputs. Processes usually describe how a specific piece of work is done, often within one practice: how to log an incident, how to assess a change. A value stream describes the end-to-end flow from demand to value and may use many processes from many practices along the way. One step in a value stream may be performed by a whole process; one process may support several value streams.

Core and enabling value streams

Published ITIL (Version 5) course outlines describe value streams as core or enabling. A core value stream delivers value directly to consumers: fulfilling a customer order, restoring a service, delivering a new feature. An enabling value stream supports the core streams: recruiting and training staff, onboarding a supplier, refreshing infrastructure. Even in ITIL 4 terms the distinction is useful, because it helps organizations see which flows the customer experiences directly and which support them behind the scenes.

Why map value streams?

Value stream mapping is a technique borrowed from Lean manufacturing and widely used in service management. A map shows each step of a value stream, who performs it, how long it takes and how long work waits between steps. The purpose is to see the whole flow, find delays and waste, and design improvements. Maps often surprise the people who work in the stream, because each person sees only their own steps.

Key measures

Several measures appear on most value stream maps. Lead time is the elapsed time from the trigger to delivery of value. Process time (sometimes called touch time or value-adding time) is the time someone is actually working on the item. Waiting time is lead time minus process time. Percent complete and accurate (%C&A) is the share of items a step receives that it can use without correction, clarification or rework. Flow efficiency is process time divided by lead time.

The rolled percent complete and accurate is the product of the %C&A of each step. It shows the share of items that pass through the whole stream without any rework. Even when each step looks reasonable, the rolled figure can be low.

Mapping step by step

Mapping a value stream follows a straightforward sequence. First, choose the value stream and define its trigger and its end point. Second, walk the stream with the people who do the work, recording each step. Third, measure process time, waiting time and %C&A at each step, using real data where possible. Fourth, calculate totals: lead time, process time, flow efficiency and rolled %C&A. Fifth, identify the biggest delays and sources of rework. Lesson 9 covers the final step: designing the improved future state.

Reading the map

The numbers from the onboarding example are typical. Flow efficiency below 10 % is common in service organizations, because work spends most of its time waiting in queues, for approvals or for handoffs. The rolled %C&A shows that rework is also common: more than half of new hires experience some correction along the way, such as a missing access right or a wrongly configured laptop.

When reading a map, look for the longest waits, the lowest %C&A values, steps that add no value from the consumer's viewpoint, and places where work loops back. Each is a candidate for improvement. The first step with low %C&A deserves particular attention, because errors introduced early cause rework at every later step.

Value streams and the value chain

Each step of a value stream can be labelled with the value chain activity it represents. In the onboarding example, the HR request is engage; approval and account creation draw on deliver and support (service request fulfilment); laptop preparation is obtain/build; day-one setup is deliver and support, with engage for the new employee's experience. Labelling steps this way shows how the generic activities combine in a specific flow and helps identify which practices and teams contribute.

Value streams for incident restoration

Not every value stream is about new things. Restoring a failed service is one of the most important core value streams in any organization. Mapping it often reveals long waits for the right specialist, missing knowledge and poor communication with users. Measures such as mean time to restore service are lead-time measures for this value stream.

Practical tips for mapping

Map the stream as it actually works today, not as the procedure says it should. Involve people from every step; each knows something the others do not. Use real data from ticketing systems where possible, but check it against observation, because recorded times may not reflect reality. Keep the first map simple: five to twelve steps is usually enough. And agree in advance what the map is for, so it leads to improvement rather than blame.