Lesson 5: The Service Value Chain

Deliver and support value chain activity

Ensures that services are delivered and supported according to agreed specifications and stakeholders' expectations

7. How do we keep the momentum going?

If the improvement has delivered the expected value, the focus of the initiative should shift to marketing these successes and reinforcing any new methods introduced Evaluate new improvement ideas from the Improvement Register

Agile Manifesto (2001\)

Individuals and interactions over processes and tools Working software over comprehensive documentation Customer collaboration over contract negotiation Responding to change over following a plan

4. How do we get there?

Now that the start and end points of the improvement journey have been defined, a specific route can be agreed Compile the project plan for the improvement and appoint stakeholders

Service Value Chain Activities

Plan Improve Engage Design and transition Obtain/build Deliver and support

Engage value chain activity

Provides a good understanding of stakeholder needs, transparency, and continual engagement and good relationships with all stakeholders.

SMART principle

Specific, Measurable, Attainable, Realistic, Timely

5. Take Action

The plan for the improvement is acted upon. Should continually focus on measuring progress towards the vision and management risks, as well as ensuring visibility and overall awareness to the initiative to all stakeholders

Deliver and Support (Service Value Chain)

The purpose of deliver and support value chain activity is to ensure that services are delivered and supported according to agreed specifications and stakeholders' expectations

Design and Transition (Service Value Chain)

The purpose of design and transition value chain activity is to ensure that products and services continually meet stakeholder expectations for quality, cost, and time to market

Engage (Service Value Chain)

The purpose of engage value chain activity is to provide a good understanding of stakeholder needs, transparency, and continual engagement and good relationships with stakeholders

Improve (Service Value Chain)

The purpose of improve value chain activity is to ensure continual improvement of products, services, and practices across all value chain activities and the 4 dimensions of service management

Obtain and Build (Service Value Chain)

The purpose of the obtain and build value chain activity is to ensure that service components are available when they are needed, and that they meet agreed specifications

Plan (Service Value Chain)

The purpose of the plan value chain activity is to ensure a shared understanding of vision, current status, and improvement direction for all 4 dimensions of service management, and all products and services throughout the organization

2. Where are we now?

The success of an improvement initiative depends on a clear and accurate understanding of the starting point and the impact of the initiative An improvement can be thought of as a journey from Point A to Point B, and this step clearly defines what Point A looks like Current State Assessment: assessment of existing services, including users' perceptions of value received, people's competencies and skills, the processes and procedures involved, and the capabilities of available technological solutions

Theory of Contraints (TOC)

The weakest link in the value chain determines the flow and throughput of the system

1. What is vision?

This provides context for all subsequent decisions and links individual actions to the organizations vision for the future. Each improvement initiative should support the organizations goals and objectives

6. Did we get there?

This step involves checking the destination of the journey, to be sure that the desired point has been reached. A retrospection on how the plan was implemented Lessons learned for future improvement initiatives

3. Where do we want to be?

This step outlines what Point B, the target state for the next step of the journey, should look like Should define 1 or more prioritized actions Improvement opportunities can be identified and prioritize from the gap analysis, and improvement objectives can be set, along with critical success factors (CSF) and key performance indicators (KPI)

Continual Improvement Model

A high-level guide to support improvement initiatives using a cyclical seven steps framework

Value Stream Mapping

A lean practice that examines the stream, quantifies its waste, and in so doing, identifies its weakest link.

Objective Measurement

Accurate understanding of issues associated with the current state and, once initiative is implemented, enable proper measurement of the level of improvement achieved by comparison with the initial state.

Service Value Chain (SVC)

All incoming and outgoing interactions with parties external are performed via engage All new resources are obtained through obtain/build Planning on all levels is performed via plan Improvements on all levels are initiated and managed via improve

Improve value chain activity

Ensure continual improvement of products, services, and practices across all value chain activities and the four dimensions of service management

Plan value chain activity

Ensures a shared understanding of the vision, current status, and improvement direction for all four dimensions of service management, and all products and services throughout the organization.

Design and transition value chain activity

Ensures that products and services continually meet stakeholder expectations for quality, costs, and time to market.

Obtain/build value chain activity

Ensures that service components are available when and where they are needed, and that they meet agreed specifications.