Value Stream Marketing :: Lean Sales and Marketing thru Service Design Thinking

Archive for Value Stream Marketing

Mar

Cohesiveness of People and Process drives Profit

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Next weeks Business901 podcast is Vivian Hairston Blade. Vivian is the Founder, President & CEO of Experts in Growth Leadership Consulting, LLC (EiGL Consulting, LLC) based in Louisville, KY. EiGL Consulting focus their energies on helping develop an effective strategy to create customer value. Through a combination of coaching and training, they help you put that strategy into place through change management strategies that create committed leadership and organizational discipline.

I gave the Vivian the perfect opportunity to promote herself in the podcast and instead she continued coaching and adding value:

Joe: What are your plans going forward?

Vivian: Well, our plan is to continue to build on this idea of people and process and that cohesiveness between the two that help companies drive growth. As you look at the environment, the marketplace, the economy, and how it changes and how it will change in the future and how we’ll need to still continue to be conservative in so many ways especially when it comes to money and finances and investments, to realize that people investment is important, that operational process investment is important as it relates to customer focus and serving customer needs.

Helping companies realize that without that connection and that understanding of why you exist and how to operationally serve the why you exist, what your value is in this customer relationship, without this you won’t have a business for very long.

You know, it’s unfortunate that we see so many of these companies in today’s economy who have been icons in the American industry, your Kodak and your Hostess, Hewlett Packard, so many, even Netflix recently who decided to change both their service and their pricing policy and lost millions of customers. They made a 360 degree turn. And, just in the Wall Street Journal in the past few days there was an article about how they are beginning to now recover their customers.

But, without that skill of listening that we just talked about a minute ago, you haven’t a clue what the impact is going to be when you make some of those changes, or do you even really care it’s almost too late? So, we’re helping companies to have a good ear to the ground on that customer connection and building an environment where employees can thrive toward reaching their career goals and helping the company to achieve it’s goals.

A Collaborative approach to Value Stream Mapping

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Value Stream Mapping has been a practice that was first introduced in the book Learning to See: Value Stream Mapping to Add Value and Eliminate MUDA by Mike Rother and John Shook. This groundbreaking workbook, which has introduced the value-stream mapping tool to thousands of people around the world, breaks down the important concepts of value-stream mapping into an easily grasped format. Dan Jones and Jim Womack followed that book with Seeing the Whole Value Stream which took the mapping methodology through an improvement process that converted the traditional value stream of isolated operations to a broader view of the entire value stream.

Recently the co-authors, Womack and Jones in response to feedback asking for examples in other sectors and questions about how to understand supply chain costs more accurately, have added five essays to the book for this new edition. These essays demonstrate how real companies have taken on the challenge of improving their extended value streams working in collaboration with their suppliers and customers.

The new essays for the book are:

Spreading value-stream thinking from manufacturers to final customers through service providers—extending the wiper example.
Applying extended value-stream thinking to retail—a look at the Tesco story.
Learning to use value-stream thinking collaboratively with suppliers and customers.
Product costing in value-stream analysis.
Seeing and configuring the global value stream.

The one particular essay that stood out to me was Learning to use value-stream thinking collaboratively with suppliers and customers. The objective of this effort was to garner their suppliers and customer in a true collaborative effort to create value. It was the first time any of these five companies had ever viewed a shared value stream. They started with a few modest objectives for improvement. However, it turned into much more than an improvement effort but rather a deeper type of organizational relationship. The reason they cited was that they learned how to communicate with each other. You can view the experience: Video of Matthew Lovejoy’s presentation on the Acme Alliance story.

This story exemplifies the power of collaboration and what can be developed from it. Collaboration in a Value Stream Mapping exercise can be a difficult process. You open your doors to all the skeletons you have in the closet for both vendors and customers to see. Most people are surprised by the reactions. It is typically not one of disgust or insecurity but rather a helping hand is extended and many times consideration that certain requirements may not even be needed.

The spirit of this venture serves a valuable insight that co-producing, co-creation and open innovation is not as far-fetched as it may seem. A single Value Stream Mapping process led to four years of increasing engagement. I wonder what would happen is they shorten that iteration a bit?

P.S. If your 1^st edition of the book looks like mine, it’s time for the 2^nd edition anyway.

Start with Journey Mapping vs Value Stream Mapping

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Value Stream Mapping is a process most consider an exercise for finding and removing waste. It is a foundational Lean Tool that typically gets introduced early in a Lean Transformation. A Systems2win Excel template is depicted below:

In Sales and Marketing you will utilize a Value Stream Mapping process on a project by project basis but it is typically limited to an internal process. It is a difficult correlation for customer facing experiences. The preferred method of mapping the customer experience is through a journey map. I prefer two styles, one a basic Excel Template that is very similar to a typical Swim Lane chart commonly used in Lean.

From Smart Cities – A guide to using Customer Journey Mapping

Another is circular method demonstrated by the Lego Wheel. Lego uses tool called a ‘customer experience wheel’ to map an existing experience. “We understand what is and what is not important to the customer in that experience and then we design a ‘wow’ experience to improve it.” Though I like the wheel better I have not found a program that could make it easy for me to draw and distribute.

The advantage of creating this map utilizing the Excel template is that you can easily add notes and drill down further down into a process by adding columns and rows. Drawing in Excel is rather easy once you understand how, Become Proficient Drawing with Excel in 30 minutes!and remember you can do MATH, CHARTS and everything else you already know about Excel. If you want more information on how to create a journey map below is an excellent slide show describing the process. If you want to learn more about Value stream Mapping, drawing in Excel or Swim Lanes, I would recommend downloading the trail templates at Systems2win.com.

The Journey Mapping Guidance Cabinet Office[1]

View more presentations from Gerald Power

A good post on discussing some of the pros and cons of different types of Journey Maps can be found at Visualizing the customer experience using customer experience journey maps. You may also want to consider viewing the Lean Marketing Game presentation. It is based on extending the journey map through out your organization.