Levels of the Value Stream

For contractors to unlock maximum value during business development, preconstruction and project execution it is critical to understand the broader value stream of the project beyond their scope.

D. Brown Management Profile Picture
D. Brown Management
June 29, 2018 1 minute read
Share

Consider these 10 levels of granularity when looking at the construction value stream:

Critical Skills: Value Stream Levels. Seeing, Understanding, Doing, and Leading.

 

SPECIALTY CONTRACTOR

  1. Specific Trade Scope & Task (Field Installation Expertise)
  2. Functional Area of Specialty Contractor (Precon, Detailing, Prefab, etc.)
  3. Whole Specialty Contracting Business (Electrical, Mechanical, etc.)

PROJECT OWNER

  1. Construction Process (GC / CM Viewpoint)
  2. Design & Project Delivery Process
  3. Project Lifecycle (From Concept Through Initial Construction, Operation, Renovations & Decommissioning) 
  4. Corporate Facility Management (Interrelationships of Business Strategy & Multiple Project Lifecycles)

BEYOND

  1. City Planning (Redevelopment Vision, Supporting Infrastructure, etc.)
  2. Industry Trends (Example - Demographics Driving Healthcare Capacity Needs)
  3. Country & Multi-Industry Integration (Example - Growing Geographies, Integration of Housing & Healthcare)

 

What level of the value stream is your primary focus?

Deeply learn the value streams and build relationships 1 & 2 levels higher.  

What can you do to add maximum value considering the perspective from those higher levels?  

Four Levels of Integration and Optimization
Operational excellence must be a major component of every contractor’s strategy and baked into their daily behaviors. Optimizing at each of the four major layers requires different levels of thinking, technology, and time span.
Related Article
Building a Systems Development Team - Time & Money
Many software projects are over budget, late, and hard to implement. These issues generally boil down to the same root causes.
Related Article
TOOL: Model Your Business, Prioritize Improvements, and Execute
Contractor Business Model template you can customize to represent the current and future state of your business. Use this model to identify bottlenecks and constraints to your growth. Learning guide for your team based on The 4 Disciplines of Execution.
Related Article