Executive Value Streams
WHAT IS EXECUTIVE VALUE STREAMS?
Value Stream Mapping is a visualization of the processes in the organization that create Value. There are multiple processes that are kicked-off at every Maturity Level of the organization. The art of the Executive Team to build a sustainable business is in creating a framework that is easy to understand, has reinforced sustainability and is easy to explain to new team members.
There are three distincts Values streams that exist at the Executive Level:
- Acquisition (or building) Stream
- Initiative Creation Stream
- Change management Stream
The Acquisition and Change Management Streams are the two parts of the Value Creation Stream of every consolidator and the Initiative Stream is the Central Board of the organization that helps to create and approve Ideas and to circulate all the initiatives across multiple teams.
Value Creation Stream: In a classic consolidation, value is created by two methods: Arbitrage and Margin Expansion. This should be represented and visualized. A simple Value Stream can look like this:
Once the value stream is created, the Definition of Ready (DoR) and Definition of Done (DoD) should be defined. Transition Policies should be created and should be explicit and available to all. Capacity limitations should be developed and followed by all.
The second board at the Executive Level and visible to all is the Initiative Creation Value Stream. It is a visual representation of all the initiatives that were kicked off and is a central visual board that is reviewed during an All Hands Agility Meeting. All new Business Cases are explained by the business case owner when kicked off and when completed. This process breaks down the silo effect of every large organization. A simple Initiative Creation Board can look like this:
Once the Value Stream is created, the Definition of Ready (DoR) and Definition of Done (DoD) should be defined. Transition Policies should be created and should be explicit and available to all. Capacity limitations should be developed and followed by all.
POTENTIAL RISK
Lack of clear visualization of the Value Stream has a snowball effect. Without a central process of creating Value and Initiative Execution, multiple processes are kicked off but never completed. Most of the time, multiple processes are kicked off at the hospitals without understanding their capacity and no metrics are applied to the processes that were kicked off. As a result, organization is slowed down after acquiring 30-50 hospitals and is paralyzed by chaos.
Connected Processes
- Investor Management process
- Prospect Hospitals Pipeline
- M&A Process
- Culture/People Integration
- HR Process/Onboarding
- Knowledge Accumulation
- Core Processes Implementation
- Strategic Filter
- Prioritization (WSJF)
- Pre- and Post-Acquisition Assessments
- Training
- Quarterly Goals/Rock Planning
- Implementation of VCP Processes
- Capacity Reservation Process
- Change Management
- Data-Driven Change Management
- Data-Driven VCP Initiative Process
BURNOUT PREVENTION
Value Stream Mapping is the best way to begin a well-defined change management process. Informing the entire organization about what is being developed and what is going to be implemented at each hospital down the road creates a feeling of ownership, buy-in and empowerment. The values instilled in the Strategic Filter are aligned with the organization and work is managed to its capacity. These triggers are avoided by having visualization of all Executive team initiatives: Lack of control, value conflict, work overload, and breakdown of the community.
DE-NOVO AND FRANCHISE
Both de-novo and franchise models require proper Value Stream Mapping. The only difference is that these organizations begin their process with market research and building while Acquisitions begins with prospecting and buying.