
It is very tempting to push through a change, without sufficiently understanding what is actually going on and why it is causing a problem. Value Stream Mapping (VSM) becomes indispensable as it provides a clear, measurable, end-to-end visualization of the work required to fulfill a customer’s demand. It transforms abstract processes into a measurable flow, helping IT organizations move faster and deliver greater value.
In the digital era, IT is no longer just a support function; it is the engine of the business. To keep that engine running at peak efficiency, organizations must relentlessly focus on optimizing how they deliver services.
What is a Value Stream?
A Value Stream is a specific set of sequential and interconnected steps that an organization takes to co-create value with a customer. It begins with a demand (e.g., a new feature request, a reported incident) and ends with the delivery of value (e.g., a deployed service, a resolved incident).
The power of VSM lies in its focus on the actual entire journey, which often cuts across multiple practices (like Incident Management, Change Enablement, and Software Development) and multiple teams.
The Problem: The Hidden Waste in IT
Without VSM, most organizations only see the final outcome or have an aspirational view of how work is done. Without documenting the actual work done, they miss the “black holes” of time where work stalls, gets blocked, or is otherwise inefficient. This is considered as non-value-adding time, or waste, and is the primary target of VSM. In IT, this waste often manifests as:
- Waiting: Tickets sitting in queues, waiting for approvals, or waiting for an environment.
- Handoffs: Excessive transfers of work between teams, often resulting in loss of context.
- Rework: Errors, bugs, or defects that force work to cycle back through previous steps.
- Over-processing: Using tools or processes that are more complex than the task requires.
VSM makes this hidden waste visible and quantifiable.
The 5 Steps to Create a Value Stream Map
A VSM exercise is a collaborative, cross-functional endeavor. Follow these steps for an effective mapping session:
1. Define the Scope (The ‘Why’ and ‘What’)
- Select a Stream: Choose a high-impact value stream that is critical to customer value (e.g., “Request-to-Fulfill” for a standard laptop order, or “Detect-to-Resolve” for a P1 Incident).
- Define Boundaries: Specify the clear Demand that starts the stream and the specific Value (outcome) that ends it.
2. Map the “Current State” (Go and See!)
- Gather the people who do the work (not just the managers).
- Map the flow as it actually happens, walking the process rather than relying on documented procedures.
- For every step, capture vital metrics in a data box:
- Process Time (PT): Actual time spent working on the task.
- Lead Time (LT): Total time the work is at that step (including waiting).
- First Pass Yield (FPY): The percentage of times the work passes correctly to the next step without rework.
3. Analyze and Identify Waste
- Calculate the Process Efficiency Ratio (). A low ratio (e.g., 5%) indicates huge amounts of waiting.
- Circle all the bottlenecks, handoffs, manual steps, and low FPY rates. These are the immediate targets for improvement.
4. Design the “Future State”
- Forget the limitations of the current organization and design an ideal, efficient flow.
- Use the ITIL Guiding Principles: Start where you are (but don’t be constrained by it), Optimize and automate (to eliminate manual handoffs), and Think and work holistically (by promoting collaboration).
- The Future State map is the target vision, with greatly reduced Lead Time and eliminated waste.
5. Plan and Execute the Transformation
- Develop an action plan to move from the Current State to the Future State.
- Implement changes iteratively, using practices like Continual Improvement to track progress and validate results against the new Future State metrics.
VSM and the ITIL 4 Service Value Chain (SVC)
Using the example of ITIL 4, where a value stream is essentially a path through the six activities of the SVC: Plan, Engage, Design & Transition, Obtain/Build, Deliver & Support, and Improve.
A common value stream like “Resolve an Incident” will weave through these activities:
- Engage: User logs the incident (Demand).
- Deliver & Support: Service Desk triages and investigates (PT/LT captured here).
- Obtain/Build: If a fix requires a patch, this activity is engaged.
- Deliver & Support: Incident is resolved and closed (Value).
By mapping this path, you clearly see how different ITIL practices contribute to the final value, ensuring Focus on Value is maintained at every step.
Conclusion
Value Stream Mapping is the lens through which IT organizations can achieve true operational excellence. It is a powerful tool for visual clarity, shared understanding, and focused action. By making the flow of value visible, you empower your teams to tackle bottlenecks, eliminate waste, and ultimately, deliver better, faster, and more reliable services to the business. Start mapping your most critical value streams today and watch your IT efficiency soar!
Sources
- AXELOS. (2019). ITIL Foundation, ITIL 4 Edition. (The official ITIL 4 core guidance emphasizes the concept of value streams as paths through the Service Value Chain).
- AXELOS. ITIL 4: Create, Deliver and Support (CDS). (This publication provides detailed guidance on value stream mapping within the context of the Service Value Chain).
- Womack, J. P., & Jones, D. T. (2003). Lean Thinking: Banish Waste and Create Wealth in Your Corporation. (While manufacturing-focused, this foundational text outlines the principles of Lean and VSM that are adapted for IT).
- Atlassian. What Is Value Stream Mapping? (A key industry resource discussing VSM best practices and its application in IT/DevOps).
- Lean Enterprise Institute (LEI). (VSM originates from this core Lean methodology).




