VSI and optimization in complex environments
The challenge was to establish clear value streams in an organization shaped by deeply rooted hierarchical structures, domain-specific responsibilities, and project-based setups—all while coordinating thousands of employees and multiple suppliers.
Customer Background
A leading automotive manufacturer embarked on an agile transformation to improve product development efficiency across software, electronics, and mechanical components. The challenge was to establish clear value streams in an organization shaped by deeply rooted hierarchical structures, domain-specific responsibilities, and project-based setups—all while coordinating thousands of employees and multiple suppliers.
The Challenge
The company needed a structured approach to Value Stream Identification (VSI) to systematically establish Agile Release Trains (ARTs) and Solutions. However, traditional VSI methods did not align well with the complexity and scale of their product development landscape, which included multiple product variants and interdependent teams. Our role was to incrementally transform the organization into a product- and value stream-driven enterprise.
The Transformation Journey
To support the transformation, we developed a Value Stream Identification Practice Guide as part of the LACE initiative. This guide provided tailored approaches for:
- ART Identification
- Solution Identification
- Re-Identification of Value Streams
Key enablers for transformation:
- Workshops & Enablement – We conducted hands-on workshops to train local SPCs and change agents, empowering them to facilitate future VSIs.
- Scalable VSI Approach – The VSI Practice Guide was continuously enhanced based on real-world learnings and serves as an evolving reference manual for the organization.
- Value Stream Landscape Development – VSI efforts, supported by LACE and individual Value Streams, collectively built the organization’s Value Stream Landscape.
- Standardized ART Launch Process – An ART Launch Board and structured ART Launch process, managed by LACE, provided alignment and orchestration across all departments.
The Secret Sauce
Through our experience, we identified a gap in traditional Value Stream Identification and Mapping methods. Standard approaches were not optimized for large-scale product development with complex dependencies. In response, we developed a new methodology: The Assembly Line Approach – A novel way to map, organize, and optimize Value Streams in highly complex product environments. (Stay tuned for our upcoming whitepaper!)
Sustained Impact & Ongoing Change
With this structured transformation approach, the organization will be self-sufficient in managing further change:
- A Global LACE drives the transformation
- Internal change agents lead continuous improvements
- External coaching and consulting provide strategic support
Most importantly, the company now has a systematic, scalable framework to identify, organize, and optimize Value Streams—ensuring continuous agility, efficiency, and innovation in its complex product development landscape
