Focus on the Value Stream
· 364 words · lean, management
Most of the AI use I have seen to date focuses on optimizing a step in a value stream: rapid prototyping, shorter implementation lead times, automated code review, writing marketing collateral, organizing a calendar, coordinating handoffs from the tracking system to the source-code repo,… The list is endless. Most items subject to this focus are individual steps, and not a full value stream.
We’re at a tipping point where focus turns away from the steps to the value stream itself. In addition to optimizing individual steps, people will use AI to examine the value stream to look for beneficial changes. Can steps be reordered, run in parallel, or eliminated altogether? Can production change-over times be reduced? Can we build quality into the process instead of testing for it later? These are all standard questions in lean management. I see three main changes coming as a result of this shift in focus.
First, disruption within businesses will increase dramatically. Changes to the value stream alter how the business operates. Roles shift. Schedules adjust. Techniques change. People need to adapt to these changes, and some resist. At the same time, the benefits of positive changes to the value stream are far greater than benefits of optimizing individual steps. In chasing improvement, businesses will need to disrupt themselves more.
Second, Lean Management will enjoy a resurgence in interest, because it already focuses on the value stream. Relying on step-wise optimization will not suffice, and business will need to adopt management practices that reflect the new focus.
Third, those businesses that succeed in creating cultures of genuine continuous improvement will win. One need look no further than Elon Musk’s companies to see this in action. They experiment rapidly. They simplify ruthlessly. They challenge every employee to improve constantly. This is Lean Management wrapped in the modern lingo of “first principles thinking” and “idiot ratio” and “the best part is no part”. Others must follow suit and apply the algorithm.
So, if you occupy a leadership role in your company, what will you do to instill such a culture? Your professional future hangs in the balance.