TOGAF® Business Architecture: Value Stream Guide

so welcome to the value stream presentation we're hoping this is a complement to the value stream guide that came out earlier this year and we're going to try and our best to bring that guides like so what is value it's you know one of those very interesting things that that articulated all the time and you know value is you know arguably in the eye of the beholder but it's an essential that we understand value when we're businesswomen from an architectural perspective because arguably value and the perception of value ends up forming the basis for a

lot of our requirements and there are a lot of frameworks out there for for delivering value but this is the one that we're trying to do right now this guy's is articulating what is a value stream right in a value stream as it as an end and collection of value Attica activities that create a result for a stakeholder whether that's a customer and end user or somebody right until Z so we are trying to understand what the result for operations right and so what there's one depicted here and this is an example we're going to

walk to in more detail as we go through but this is an example that most of us go through when you go to any kind of retail store we want to acquire a retail product right and so in this situation the customers is is the trigger for this but there's a lot of other things obviously that have to be done within the organization for us actually have the customer received the value which is the merchandise from a retail so value stream is trying to make sure that we understand value and we're trying to understand its

value from a from a stakeholder perspective right for multiple stakeholder perspectives just not just the customer but others have been within device three there are other value perspectives out there Porter has an excellent value chain which is really focused largely on a macroeconomic view of an enterprise or possibly a sub aspect of an enterprise this is the this is the original traditional Porter value chain I personally work with Alberta Health Services there's a healthcare value chain which is slightly different but it's a very macro level right so it's got a lot of similar concepts in

that it's considered to be a chain in there steps along the chain but it's looking at it from a big picture perspective versus a big stakeholder perspective similarly a value network is showing a web of relationships that are that are in a particular enterprise and that itself can show some insight and the lean value stream which has has the commonality of main is a really really important concept but its target is actually eliminating waste and even though its focuses to try and make sure that we are delivering value its primary purpose is actually trying to

eliminate waste usually from a product and time perspective right I think many of these concepts are complementary but they're not placed to say what we're here to talk about is is value stream in a value stream we're going to walk for the complete here in our in our relationship is obviously trying to create value trying to create value that a particular stakeholder receive it is triggered by a particular value stream and each stage may have one or more different stakeholders participating in it and a business process operationalizes capabilities which enable gize and so this is

tries to show you some of the relationships so when we're looking at value streams there they're an immense complement to the total your capability map right so in our last webinar we did over there that there's a capability guide available to you and that walks you through how to create a capability model or map for your organization and that's amazingly that's important that's a the prerequisite I would argue for for you to be able to sketch articulate value stream it allows you to start to say so if I need to try and change the way

that I'm operationally delivering value to my customers where are the capabilities in that value stream and are they sufficient for us to deliver the valuable work so when you're trying to either strategic planning because of a situational context change or just strategic planning to say what is what's the things we need to do next value streams are mechanism to try and say are we really focusing on and can we show that we're focusing on value right and it puts the context on how we use individuals disabilities into that value perspective right because a capability model

or not by itself doesn't necessarily show you how you're using I think a lot of people get fixed on on what the capability is supposed to be trying to do so in and of itself versus how it's being used with usually other capabilities within a particular value stage or value stream to deliver time and in the end it gives us a framework for analyzing business requirements because if we've got stakeholders and we've got the stakeholder needs or value that we're trying to deliver that ends up being a requirement right and so when we are able

to do that it gives us a mechanism to break things down into small pieces which of course is a lot of the things that we're trying to do on the capability side by putting the value context in and so if we do this properly then it means that we focus our investment in maturing the capabilities that are inhibiting our delivery of value for our signals so let's get into the mechanics creating about a stream I you know this is may seem pretty straightforward but the first thing that we want to do is is name it

right what's in a name it's really amazing how much time you can spend on a name because the name itself a lot of business areas sometimes double beyond that so we want a name that you know require retail product I think most if you can understand a good description right in a description to try and bring that a little bit alive and usually there's one triggering stakeholder sometimes there's proxies but for the most part we're going to say that there's a triggering stakeholder and we wanted to find a value that's going to be achieved within

the context of delivering methylation so that's pretty straight about Ustream stage so we're going to break the value stream down into a number of pages in my experience five seems to be the kind of magic number sometimes it goes to seven sometimes it's down to three but five seems to be an interesting common number of galleries pages right so we're going to try and describe each stage and then the stakeholders who are receiving value or contributing to creation of value within that space and that's probably the most important upgrade have we identified all of the

stakeholders that are that are part of this particular stage we know hopefully what caused you come into that stage and we know and we want to describe when we know we're done that particular stage and one of the things about a particular values through stages that we may decide that it says if the value criteria for one of the stakeholders isn't being met then we might exit not just the stage but we might actually exit the value stream off entirely right and then we want to get down into random or detail right so what what

are the specific value items or requirements that a particular stakeholder house so what is what is a value item that is better than the incremental value that is achieved within that particular value stream stage so we've got value streams we got value stream stage and now comes the real fun part we've got our capability put map or model on the bottom here and we've got four stages in this one all right so as we doing review five and memory level four and so now we want to take what business capabilities are required to map to

enable a particular value stage and this is probably this is the biggest part of the whole thing the rest of it was really great but now we have to pay so what business capabilities enables now in our example here this is a very high-level example in our organization where we have a value moratoria capability model that's trending towards 300 capabilities capabilities right so it's going to become very interesting to knock these pages so you're going to have going to have to be able to map through the individual stages and have to decide when you might

want to break value streams apart a little bit to see where a particular value stream stage a particular value stream might might cause a stakeholder to trigger a different value stream so that's going to be an interesting way to think about how you might try to get to lower levels of granularity but not getting to the point that you're going below the capability level that's going to be cut here lip we're going to map in each of these stages to a particular shadow business capabilities that enabled us so when you're creating a value stream or

must be a clearly defined triggering table you have to have obviously otherwise why are you doing right we recommend that you start by looking at mostly your external stakeholders and so a number of times is easy to try and start with the internal ones because you probably know more about those and it's maybe a little bit easier and we have given example in the diet for an HR of higher employee value stream but the more you can focus on customer centric or usually external sometimes it's governance but mostly customer base I think the better off

you are at leveraging the value case because it always makes sure that internal stakeholder value concerns are in the context of a other customer right and so when you start to add on value streams what if one of the things that we typically find is that people have created capabilities in their business capabilities that are actually valued ages for value streams pages they're not a cute adorable right and so one of the things that we really have an interesting test once you've got your capability catalog set up is that we're going to be able to

go back to say no no no no that's really a value stream page it's not actually a business capability and so that can end up simplifying your your capability not for your organization and so there are also not components of capabilities right so components of a capability are protesters organization or people tools and information right so you're getting to the point that a value stream or value streams gauge is down to that level of detail you've gone to target and I think that the power of the value value stream is is keeping it at that

high level right so you got to try and keep things as concise as possible we're not trying to do we're trying to do enough to help or the analysis so that we can start to understand where we may have a capability gap or maybe where we think where we've actually got capabilities that aren't actually contributing value to a particular value stream where we might want to be in them right so that's enough that's an interesting aspect as a litmus test to say are my business capabilities they're actually generating tangible value for people a number of

number of times I find that we go with implied requirements meaning that somebody imagines what somebody else's values and then when we get out to the end of the analysis we actually find that that that's not real that's not true so keep it concise so we can do the gun so that's a really read that walkthrough on how to create a value of the mechanics of creating a value stream what we're going to go through now and I am handed over to Brian but he can actually bring it to life of some actual scenarios so

that you can concede a value stream technique in action all right so real quickly this is Brian little I work or 80 on I am the I was the American on the team so you can imagine while we were developing this guide last fall I took a lot of jokes for Malekith even on our on our election cycle and how that works in the United States I'd explain to them that it wasn't the process and how it was applied to the department eval you being achieved for the American public and stakeholders so not sure if

I ever and then some of that I to get down to business here I want to take you through the examples or scenarios that we provided in the guide to apply the methods and principles that Alec just walk through so building on that acquire retail product value stream that was used in the introduction now I want to show how that event is defined and it shows those components of ice cream so you see across the top it doesn't show it on the slide but again the triggering stakeholder this externalize during triggering stakeholder is the retail

shoppers and so even though some of the stages you see there across walk with value models can be in common with an internal side string going to through the focus of sales and marketing something where your you want to sell products these pages as you know TM table are defined from the context of providing value to the retail shopper they're the trigger you stage must in some way deliver value to that retail shopper or it doesn't really belong in this value stream so the element we need to be defined you see across the top of

stage the description that stage of Alexander participating stakeholders in that particular stage entrance extra criteria and what's the value I can come you have that student exchange so play as you look there that those definitions and then you go across to the right side and focus on without me being delivered you can see that what we what we try to do is be clear even though advertise channels for example might sound like something that's internally focused a retail shop or can't find your offerings and your products which may be the one they want unless there's

some way to to be able to access that without the retail channel available for the customer but merchandise then they get more product options than they would otherwise enable reflection haptic they are interested in choose to buy something from you whether it's at a storefront or online on a web page they're able to locate the exact desired product quantity and the price they want then of course process pavement and then to let the merchandise which is what they care about the end they get the product into their hands given that it was the right product

so it needs the step through the defining stage be clear about the stakeholders key stakeholders that are involved with delivering that value to the retail shop and then what value that yet with that next slide please now as Alex said we were also tempted to go straight to an internal value stream that it is easier in your company in your business to focus on an internal a stream this retail of recruit employee with the triggering stakeholder being the hiring manager that needs personnel it's easier to think about because we tend to focus on our internal

processes our internal organization information our systems but the this is an internal value stream that is focused on that hiring manager and getting employee in the door but it is not the same as those processes those systems of information is it the love of what is really delivering value and then after you've mapped it capabilities which we will show next and show you mapping this value stream to business capability as an example then and only then are you getting down to where you communicate how you implement that in the company to process information systems technology

so forth so let's step back recruit employee ID manager triggers they need four boys you see the stages defining the position communicating that position assess responses interested parties interview the candidates and then onboard the employ so again you see the definition for each of the stages down the left you see the specific key participating stakeholders in that stage entrance criteria criteria and then the value of the value items in this case or so about that trigger you stakeholder what is the value to the hiring manager through the end of the day just wants to end

up with the right employee to do the right work for the company so time and expense stage on search for candidates efficient interview process making sure to select the best qualified employee and then of course at the end of the gayatri they want to end up a productive workforce meeting the business commitments and so forth so now we're going to use this value stream as we example the map to business capabilities so Brian please there's a there's a question in the chat window on why in the retail shopper why the retail shopper was not a

stakeholder in every single stage a question so what you didn't see on that slide is if you look in the guide you will see above the value stream model that small tables that tell accuses the example making clear that eternity stakeholder for the whole value stream is the retail shopper and they're the ones you're measuring value to in the in the whole sequence so the practice don't see any to repeat them in each stage where that stage is who the key stakeholders that are making that stage deliver that value the value must be measured in

context is explicit providing to the retail shopper without small table Gemma comes above the biased remodel a thank you so continuing the recruit employee by you stream you now see underneath into those Davies a set of business capabilities in this case you see them down to a level to capability program management HR management the level one then you see one or more specific level two T's called out in that context and so these business capabilities are literally sorta Klee aligned with that stage because it is program and human resource matching done in the program management

capability that is enabling that define position stage advisor now in this example these are not all of the capabilities that you would have in your company but would necessarily be involved with communicating divisions interviewing candidates and so on so the purposes of clarity and brevity we really match what we should want to show out is very key business keeping core ones that are critical to that stage until you see a change in complexity from defined position there's only a limited set of capabilities here necessary for your company to be able to enable that stage of

defining the position and producing value to the hiring manager last stage onboard employee think it's much more complex because the decision has been made to bring the employee in now your company has to have a lot more capabilities to provide the ability to onboard employ it's not just Human Resources and the payroll it's also getting them assets it's where they going to sit in the facilitations dealing with security or background checks it's managing the information about that employee and what systems they should have access to and so forth so it gets a lot more complex

therefore you would expect to see a lot more business capabilities mapped at that level it can be clear these are not processes these are not how you've implemented in current day or on a future State those capabilities to enable that value stream stage next slide please so now with a mapping of business capabilities to the stages we can start doing heat mapping this is when you really get to something actionable where you can really start making decisions and improving the ability of your company to deliver the intended values because what we're showing here is green

of course for the level 2 capabilities where we're saying my company has all the capabilities and needs in those level 1 level 2 people to enable that stage yellow meaning that there's some I have some difficulties in policy management but she just was not on the previous slide let me go ahead and explain that so that policy management on the lower left that is shown as yellow because there are risk in my company understanding how we disseminate policy to the hiring managers so they know some of the rules and constraints are on hiring employees the

reason that policy management capability was not on the previous version is because when we got to the heat mapping we then realized that there was a missing capability mapped to that position because there are issues with disseminating policy over on the right we see some red elements in the heat map because we have some problems with how well we're tracking the onboarding in human resources as we onboard the employee we have employee information management and some difficulties with making that cohesive on the lower right and so those are the big gaps that the company needs

to go address and do something different shouldn't evil be on board employee stage they so next slide page all right so all sorts of conclusion and then hand it back to you Alec what we hope to show here today is devices are important business architectures that means they are distinct from the operational level of your business processes information the systems and so forth they provide a means to measure value to specific stakeholders you of course will have external value streams focused on the customer and perhaps on your shareholders if you are a publicly traded company

you will have internal value streams that deliver value that making more effective make you more profitable grow your company and so forth but those are the stages of moving that value through not how you've implemented it through your organizational mouth through your processes through your information systems so forth so you can provide a rich related counterpoint to business capabilities it's dependent of the great power is in combining value streams the stages with mapped business capabilities doing the heat mapping and then being able to clearly show at a higher more effective level where you need to

improve the capabilities to improve a key value stream and deliver better value to those stakeholders and there are tool sets a model most critical paths of how your company delivers value how long would you like to close yes thank you no the back to what we said at the beginning this is a business the value streams are complement to capabilities and so fundamentally to if you're going to look at using capabilities as a way business capabilities as a way to describe your enterprise then a value stream is that the value stages is a very good

complement to try and make sure that we're aligning the capabilities that we've decided that we need to enable an operational lines of business in a way that they actually deliver value to the stakeholders largely our customer stakeholders but all stakeholders for dinner and it's important to consider that there's many ways to try and visualize value and then and there's going to be some overlap but this is is again back to using capabilities as a way to support your planning process to say do I have the necessary capabilities do I have too many and are they

mature enough to do the things that I need to do