Evolving the value stream network
As organizations evolve, they increasingly seek a comprehensive understanding of their operational dynamics and how to influence them. Combining the axes of Customer Proximity and Performance Focus allows leaders to pinpoint each value stream’s position relative to its visibility to customers and its performance, as illustrated in Figure 7.10.
For example, value streams such as mobile banking are visible to customers and require metrics that are focused on customer satisfaction such as net promoter score (NPS) and customer engagement. These are the front-facing elements of the business where innovation and responsiveness to customer needs are paramount.
Figure 7.10 – Balancing efficiency and innovation performance focus
Conversely, back-office processes such as billing are invisible to customers and reside in the efficiency range of performance focus. These activities are measured against standards of...