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How Value Stream Management and Product Operating Models Complement Each Other

  • Value Stream Management (VSM) was introduced to the organization in late 2020, leading to insights and lessons that refined their approach.
  • The evolution to VSM 1.5 involved a logical approach to redefining Value Streams, aligning teams, focusing on metrics, and documenting outcomes in Jira.
  • The integration of Product Operating Model (POM) principles alongside VSM led to the foundation for operational maturity and continuous improvement.
  • POM and VSM, though different on the surface, share a common spirit and offer a holistic view when combined.
  • Research shows elite-performing organizations prioritize business outcomes over output metrics and are embracing outcome-driven practices and flow efficiency.
  • VSM 1.5 evolved into a model harmonizing Product Operating Model's clarity with Value Stream Management's operational discipline.
  • There is recognition of areas for further evolution and improvement in the journey towards outcome-driven, operationally efficient operations.
  • The real transformation lies in intentionally combining both Product Operating Model and Value Stream Management for better business outcomes.
  • The focus is on achieving lasting, meaningful change through the alignment of structure, flow, and outcomes in the operating model.
  • The future of software delivery involves harmonizing process and structure to deliver improved, faster, and smarter results.

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