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Value Stream Management Explained

Key Points

  • Value stream management (VSM) is a holistic approach that treats every step from a business idea to the customer—development, testing, analysis, and delivery—as a single, continuously managed flow.
  • A typical value stream includes idea intake, prioritization, development (often with design and build phases), and extensive testing, while also handling bugs and unplanned incidents alongside planned work.
  • By visualizing this flow, teams can spot where work piles up—commonly in testing—allowing them to balance capacity, limit work‑in‑progress, and add buffers as needed.
  • Development and delivery managers use VSM insights to assign tasks realistically (e.g., one task per developer), prioritize fixes, and optimize the overall throughput of the software delivery pipeline.

Full Transcript

# Value Stream Management Explained **Source:** [https://www.youtube.com/watch?v=Yto8nUeki-s](https://www.youtube.com/watch?v=Yto8nUeki-s) **Duration:** 00:09:14 ## Summary - Value stream management (VSM) is a holistic approach that treats every step from a business idea to the customer—development, testing, analysis, and delivery—as a single, continuously managed flow. - A typical value stream includes idea intake, prioritization, development (often with design and build phases), and extensive testing, while also handling bugs and unplanned incidents alongside planned work. - By visualizing this flow, teams can spot where work piles up—commonly in testing—allowing them to balance capacity, limit work‑in‑progress, and add buffers as needed. - Development and delivery managers use VSM insights to assign tasks realistically (e.g., one task per developer), prioritize fixes, and optimize the overall throughput of the software delivery pipeline. ## Sections - [00:00:00](https://www.youtube.com/watch?v=Yto8nUeki-s&t=0s) **Value Stream Management Primer** - Eric Minich outlines a holistic approach to managing the entire software delivery flow—from idea prioritization through development, build, and testing—to optimize the end‑to‑end value stream. ## Full Transcript
0:00hi I'm Eric Minich with IBM cloud and is 0:04good idea going around the DevOps 0:06community right now 0:07value stream management it's a big topic 0:10I want to explain it get you that primer 0:13so you understand what everyone's 0:14talking about fundamentally we know that 0:18in software delivery we're trying to get 0:21good new ideas from the business out to 0:23our customers the value stream 0:25management is focused on the idea that 0:27everything that happens from idea to 0:31customer is important it needs to be 0:34managed in a holistic manner so rather 0:36than managing our developers separately 0:39from our testers and our business 0:41analysts etc we want to optimize the 0:44flow across all of those groups so let's 0:48start by putting it together an example 0:49flow an example value stream and then 0:52we'll see how this works so if we have 0:55an idea that's coming in we might need 1:00to prioritize that against other work 1:04right and then once work we has been 1:08decided to be dealt with we're gonna 1:12develop it alright we're gonna hand it 1:14to our developers will code it up maybe 1:17there's a design cycle in here then you 1:21know maybe we've got a process where we 1:25do Bilt's right and we'll build it then 1:32maybe we've got some test environments 1:34so we run a whole bunch of tests against 1:36it I'm just gonna group all of that 1:37together here as test right so we've got 1:43ideas most groups I talked to you have 1:47more ideas waiting to be prioritized 1:51then they've got time to do maybe we've 1:55got some handful of developers and so 1:57we've got some number that are coming in 2:01hopefully we don't have too many waiting 2:03to be built almost always we have a lot 2:06of things under test right now 2:08so there's a lot of things being tested 2:11I've been on the happy path 2:13of ideas probably also have bugs coming 2:18into so you know we've got a prioritize 2:24which bugs to fix which incidents to 2:26deal with we've got some of those in 2:29here we've got fixes being tested as 2:31well so we've got some mix of planned 2:34and unplanned work and we could draw a 2:38flowchart here to say that work kind of 2:40flows like this for us in this really 2:44simple example okay so this is my value 2:47stream I have two sets of inputs one 2:50straight path grossly oversimplified but 2:54now I can see some things right I can 2:58see things tend to not pile up and build 3:01they do pile up in tests this is about 3:04as much capacity as I have for 3:06development now I want to start 3:10optimizing this and there's a lot of 3:12places we go our attentions likely to go 3:15to testing if I'm a developer a 3:18development manager right now 3:19and I'm looking at this and I see oh 3:21we've got seven things we're working on 3:24that might be great but if I only have 3:26four developers on this squad I might 3:30say well that's more than one each that 3:34seems a little odd I probably only want 3:36to be assigning one task at a time to 3:39people and then maybe I've got you know 3:41some buffer here of work that's ready to 3:43be worked on am i assigning too early 3:47and I need to add that buffer or what so 3:50this was an example that a team I worked 3:53with had and they looked at this and the 3:57reason was they actually had developers 3:58were only working on one thing at a time 4:00but they were also including things here 4:03that were waiting on code review and so 4:07their real process was actually come 4:11down to code review and then do a merge 4:16into build right so it wasn't that right 4:18it's like this and when they did that 4:21you know couple issues would come off if 4:25we had five developers you 4:27they'd be pending down here now where 4:30this got more interesting is you also 4:33want a time how long everything sits 4:35here all right so maybe on average it 4:38takes eight weeks for something from 4:41when it's an idea stage until it gets 4:43worked on it's in development for one 4:47week it might be you know one day to get 4:54built testing might be six weeks and in 4:59this group this code review they looked 5:03at it and it was a week and the moment 5:08they surfaced that the whole development 5:11team started yelling at each other 5:14because the senior developers were like 5:17look I I get a lot of code reviews I 5:20need to do it takes a while to get to 5:22them all the junior developers like 5:23you're always ignoring us you're not 5:25getting this done so this is like 5:27tension within the development team that 5:28was surfaced when we said hey it's not 5:30just the senior developers hate one 5:33junior developer it's not just you 5:35everybody's waiting and what they ended 5:37up doing is they found ways to have all 5:39the developers to code reviews for each 5:41other and they were able to eliminate 5:44this from one week to under 24 hours 5:48right so maybe one day and that's nice 5:51because right there in that moment you 5:54were able to alleviate a lot of strain 5:57on the development team and speed 5:59overall time to market by about a week 6:01right from a week to a day that's pretty 6:03good now at a more macro level you're 6:08probably focusing on the six weeks of 6:11testing right because you've written 6:13code you have something useful it's 6:15getting bogged down here you're gonna 6:17look under the covers here to see what 6:19the issues are is it setting up test 6:22environments is it a lot of manual 6:25testing is it a change review process 6:28that's hanging off after testing similar 6:32to how code review is after development 6:34that that's not captured here you want 6:36to get under the covers understand that 6:38and really zoom in on these big 6:40slow areas the eight weeks that things 6:43are on average waiting before 6:45development starts that might be that we 6:48don't have enough developers all right 6:50and then if we open that up we'd be able 6:52to handle more but we'd also need to 6:55take a hard look at the test team to 6:57make sure that they could keep up with 6:58more changes coming in it looks like 7:01they probably can't so we've got a team 7:05that's delivering relatively slowly so 7:09from when they say yes I'm gonna start 7:10working on this it was basically six 7:14seven weeks to deliver it a lot of that 7:18time in testing so we'd focus here we 7:21would look at you know if the business 7:23wanted more maybe we need to add some 7:24developers but it's not going to be free 7:27and then only once all that was dealt 7:31with do we come back and say okay a 7:34prioritization the things are waiting in 7:36the queue a long time before they work 7:38with kind of work out how does that look 7:42for really high priority items are they 7:45also taking eight weeks or the high 7:48priority items able to be seen triage 7:51and gotten to development really quickly 7:53and so that you know they're they're 7:56getting out the door to our customer 7:59this is the idea of value stream 8:01management that we want to look at this 8:04as holistically as possible understand 8:06our flow so that we can improve we're 8:10gonna do some key metrics here we're 8:12going to be looking at the overall 8:15throughput the volume of change that's 8:18going out the door 8:20ideally we understand the value of that 8:23we're also going to be looking at the 8:28probably the cycle time so from when we 8:31start development until it gets to our 8:32client alright the seven weeks as well 8:36as the overall average lead time from 8:40when we have the idea out to it getting 8:43to our customer so the seven weeks plus 8:46eight weeks 15 weeks to do that so 8:49that's the key idea of value stream 8:50management let's look at this let's 8:52measure it let's understand it 8:54and if we need to move people around to 8:57relieve our big bottleneck let's go do 8:59that so I hope this was a good 9:01introduction to value stream management 9:03thank you if you have questions please 9:06drop us a line and if you want to see 9:08more videos like this in the future be 9:11sure to LIKE and subscribe