August 12, 2024
Author: Heather Spring
Broadcom has announced the findings of new research conducted by Dimensional Research that offers a detailed analysis of the current state of Value Stream Management (VSM) maturity. The results of the survey can be found in our Global Report on Value Stream Management Maturity.
Based on Broadcom's recently released VSM Maturity Model, the survey found that, although most respondents actively engage with VSM to some degree, only a few are at the highest maturity level. The study also identifies improvement opportunities in the areas of efficiency, alignment, and visibility.
Achieving the highest level of VSM maturity is key to organizational success because VSM is a strategy that guides digital transformation, enabling companies to improve performance and satisfy customers.
Broadcom’s VSM Maturity Model
Broadcom's VSM Maturity Model provides explanation, context, and specific data so that companies have effective guideposts that help accelerate and streamline their progress beyond Level one, the Foundational Level at which value streams are not being managed consciously, teams work in silos, and there is little alignment and few data insights to support decisions.
Level 2: Value Stream Aware
This level is characterized by a growing understanding of the organization’s value streams and the need for continuous improvement. Teams have started to employ VSM concepts, but these efforts may be in the early phases.
Level 3: Collaborative and Visible
On this level, companies emphasize alignment and collaboration throughout entire value streams, with an increasing focus on reducing inefficiencies and improving overall performance.
Level 4: Data-Driven
Characterized by a strong emphasis on data-driven decision-making and a high level of data maturity throughout all value streams, teams on this level are focused on using data to fuel ongoing improvements and optimize overall performance. Teams are also ditching quarterly status reports for real-time dashboards.
Level 5: Full Transparency and Flow
Overall, this level is characterized by a culture of continuous improvement. Teams have achieved full visibility and transparency in their operations. Across the organization, individuals are constantly suggesting better ways of working, leading to significant ROI.
Key VSM Maturity Model Research Results
When examined against the four levels of the VSM maturity model, the survey shows that more than half (60%) of respondents are still in the early phases of adoption:
- 13% in planning
- 25% with a pilot project
- 23% running VSM on a single product
Only about 2% use VSM on all products, representing the top tiers of VSM maturity.
Of the results, Jean-Louis Vignaud, Head of ValueOps, Agile Operations Division, Broadcom, stated, “While organizations acknowledge the significance of VSM, a substantial portion find themselves in the early phases of adoption. This survey indicates a growing interest in ongoing performance improvements and aspiration for holistic, enterprise-wide visibility, alignment and efficiency to increase customer value.”
Other key findings of the survey include:
Visibility is lacking
More than two-thirds say their visibility isn’t what it could or should be.
- 42% indicate their visibility as “OK”
- 21% characterize their visibility as either poor or a complete “black hole”
Excel spreadsheets are the most used tool
Half of respondents rely on Excel spreadsheets to manage VSM initiatives.
Teams still lack product focus
- 88.4%, have permanent teams assigned
- Only 3.2% of respondents say these permanent teams are solely aligned around a single product
Few have real-time insights
Over two-thirds (69%) of respondents share VSM metrics quarterly or monthly. Only 9% indicate this data is being made available continuously, a key characteristic of the most mature implementations.
Lack of metrics and alignment
Surprisingly, 11% of companies don’t give employees business metrics by which they can achieve or measure products. 63% indicated they have metrics, but these metrics are not mapped to individual product performance.
Decision-making remains centralized
85% of decisions are either made at the leadership level or need leadership approval before teams can implement their decisions. Only 5.8% say decisions are made and implemented at the team level, a hallmark of many of the most advanced VSM implementations.
Survey Methodology
Executives, as well as IT and business leaders at enterprise companies representing all industries, were invited to participate in a survey on their company’s VSM and digital transformation initiatives covering objectives, challenges, and solutions. A total of 501 qualified participants completed the survey.
Leveraging Research to Boost VSM Maturity
By reviewing the latest research on VSM Maturity, organizations can see where they fit into the picture. Finding out where other companies have succeeded or missed the mark will help your company find issues with the way you approach value stream management and work toward increasing your own level of maturity.
One way to progress on your journey toward VSM Maturity is through Broadcom ValueOps, a leading VSM platform that enables companies to visualize and analyze end-to-end value streams.
About Broadcom
Broadcom Inc. (NASDAQ: AVGO) is a global technology leader that designs, develops, and supplies a broad range of semiconductor and infrastructure software solutions. Broadcom’s category-leading product portfolio serves critical markets, including data center, networking, enterprise software, broadband, wireless, storage, and industrial. Our solutions include data center networking and storage, enterprise, mainframe, and cyber security software focused on automation, monitoring and security, smartphone components, telecoms, and factory automation. For more information, go to www.broadcom.com
Learn how value stream management helps reduce costs and boost customer value. Get your copy of the research paper here.