DENVER, October 16, 2022 - The Value Stream Management Consortium has released its latest annual report, The State of Value Stream Management 2023. This year’s report provides insights into how VSM adoption is increasing and how these practices drive higher levels of organizational performance.
Key findings in this year's report include:
- A 15% increase in the practice of continuous value measurement
- Teams are twice as likely to have connected their value streams in 2023 than in 2022
- Connecting value streams means teams are 4 times as likely to have a lead time of less than one hour
- Elite performers are twice as likely to be using a VSMP as low or medium-performers
- Elite and high performers are 20% more likely to measure value outcomes often or always than low or medium performers
- Elite and high performers are 3-4x more likely to align people to value streams than low performers
“The third year of a report is critical to seeing whether hypothesized trends actually exist and it's been very rewarding to see such a profusion of indicators that many more organizations are actively adopting value stream management,” said Helen Beal, CEO and Chair of the Value Stream Management Consortium. “Not only that, but the data shows over and over how these practices drive higher levels of organizational performance. Having just heard from this year's practitioner speakers at Flowtopia from BECU, Deutsche Telekom, Netflix, Parchment, Shutterstock, Telstra, and Unum how they are moving the needle in their own organizations, it's not a surprise, but it helps us as a community to collectively understand why these ways of working are so critical to us creating a more successful, sustainable and scalable future using value streams. This is how we can help to promulgate the practices for everyone's benefit, customer and business alike.”
About the State of Value Stream Management Report 2023
This year’s research focuses on Leading with Value and reports in four sections:
- Planning for Value Delivery
- Delivering Value
- Measuring Value
- Leading with Value
“One of the paramount signs that VSM is starting to move past the early adopters is the increasing percentage of organizations reporting that they are changing their organizational structure," said Ted Sapountzis, VSMC Board Member and Group Vice President, Product and Customer Marketing at Planview (a VSMC Founder Member). "After years of experimentation, organizations are now starting to truly adopt the principles of VSM and do the work required to fully reap the benefits.”
The report highlights how VSM adoption is increasing with advancements across the VSM implementation roadmap, an increase in the practice of creating value hypotheses, more organizations organizing around value streams, more people aligning to value streams, and increased adoption of Value Stream Management Platforms (VSMPs).
“High-performing organizations have cracked the code of efficiency by focusing intently on their lead and cycle times," said Dalibor Siroky, VSMC Board Member, CEO at Plutora (a VSMC Founding Member). "These metrics are more than just numbers; they represent an organization's ability to rapidly respond to market demands, to innovate, and deliver value to customers. We've seen firsthand how a focus on these key metrics can drive transformative change, enhancing agility and keeping organizations ahead of the competition. This efficiency directly translates to better customer satisfaction, higher revenue, and a competitive edge in the market.”
The research uncovered that higher performance organizations are more likely to be organizing around value streams, creating value hypotheses and doing this earlier in the product life cycle, focused on customer-centricity, accelerating flow, measuring the actual value realized by their work, and using a Value Stream Management Platform (VSMP).
“VSMPs are helping break down traditional barriers of bespoke sets of data that only tell a portion of the story," said Jeff Moloughney, VSMC Board Member, CSM at Digital.ai (VSMC Founder Member). "We see more enterprises consolidate both tools and data to process and collect data across stages of software delivery lifecycle. As customers mature, we see a rise in presenting data to personas, like an application owner, in a more holistic fashion and we see an increase in customers' desire to apply machine learning methods to these broader data sets to better manage trade-off decisions, and become more predictive in their decision making.”
About the Value Stream Management Consortium
The Value Stream Management Consortium is the world’s leading organization creating, curating, and collaborating on research about the frameworks and principles of Value Stream Management. The VSMC delivers guidance around leveraging the best of Lean, Agile, DevOps, Systems Thinking, and beyond combined with world-class technical solutions, integrations, and automation to accelerate the performance of organizations across the globe.
