How to Start – Single Value Stream
This article provides a practical starting point for organizations looking to apply Value Stream Thinking by focusing on a single value stream. You’ll learn how to move from an initial decision and sponsorship to a structured identification and setup process — including mapping, team formation, and implementation planning. The step-by-step approach outlined here helps reduce risk, supports alignment with existing initiatives, and lays the foundation for continuous improvement and future scaling.
How to Start
The starting point for applying Value Stream Thinking is a clear decision — and the sponsorship — to begin working with value streams. This may take the form of an initial pilot or a broader transformation plan targeting a department or the entire organization. Each approach has its strengths and trade-offs, depending on the goals, context, urgency, and level of risk you’re prepared to take. In many cases, transformation activities are already underway elsewhere in the organization — aligning these with the value stream initiative is both necessary and beneficial.
Identification and Setup of a Value Stream
Let’s zoom in on a single value stream. For one value stream, the journey can be divided into a series of steps. The reasoning behind this is to separate the process into two main phases: Value Stream Identification and Setup, followed by the continuous, systematic improvement (optimization) of both the value stream itself and the way it is managed. This distinction allows organizations to first establish a clear structure, and then focus on ongoing optimization and governance. See also Global vs Local Optimum.
Step 1 – Kick-off: Decision and Assignment
The accountable management team initiates a Value Stream Identification (VSI) effort and assigns initial responsibility to a VSI expert — someone with experience in facilitating VSIs and guiding teams through the process. Since many organizations don’t have this expertise internally at the outset, it is recommended to bring in an external expert to lead the first VSI efforts. This not only ensures a solid start but also creates an opportunity to build internal capability by enabling future in-house experts.
Step 2 – Charter Definition
The expert clarifies the intent and objectives with management and prepares a VSI Charter — translating their expectations into a clear and actionable foundation. Once the charter is aligned with the management team, a core team is formed — including the VSI expert — to carry out the identification process based on the agreed charter.
Step 3 – Information gathering and Option creation
Now the real work begins. The core team collects all available artifacts that describe how the product is developed and architected. A central outcome of this phase is the Value Stream Canvas, which provides a clear, concise overview of the key elements of the value stream.
As the team reviews this material—particularly while drafting an initial Value Stream Map—they begin to uncover critical issues in the current implementation. To support this mapping effort, we recommend using the Assembly Line Model, which brings both structure and clarity to the process.
Drawing on these insights, the team then explores potential future-state designs, guided by principles from Team Topologies and the broader goal of organizing around value.
Step 4 – Decision for the Future Setup
Once potential future-state options have been defined, a Decision Meeting takes place. In this meeting, the core team presents their findings on the current state and outlines possible future setups — including the problems each option addresses, along with expected benefits and potential trade-offs. The management team then either makes a decision on the proposed setup or asks the team to refine their analysis, explore alternatives, or provide additional detail before proceeding.
Step 5 – Roadmap Building
After a decision on the future setup has been made, the next step is to create an implementation roadmap. This roadmap outlines how and when the new setup will be established, and defines the key steps required to get there. The plan is then presented to the management team for review and approval.
Step 6 – Roadmap Implementation
Once the roadmap is approved, implementation begins. This includes setting up the new or existing teams, assigning the necessary roles, and defining a working model. Typically, this is guided by a chosen methodology such as Scrum, Kanban, a SAFe ART launch, Scrum@Scale, a Product Operating Model, Nexus, or others. At this point, we return to the broader topic of organizing around value — now in the context of real-world transformation and execution.
Conclusion
Starting with a single value stream is a practical entry point into Value Stream Thinking, ideally involving 50–150 people. This article outlines a step-by-step approach — from management commitment and charter creation to mapping, decision-making, and implementation. By dividing the journey into setup and ongoing improvement, organizations can build a solid foundation before scaling. Starting small also helps reduce risk and allows teams to gain valuable experience before applying the approach more broadly. Aligning existing transformation efforts and choosing fit-for-purpose delivery models ensures that value stream initiatives are not just launched, but sustained.