Value Stream Model
​A strong value stream is not just a process—it's a commitment to delivering excellence, reducing friction, and continuously creating value. The businesses that master it don’t just grow; they lead.
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In this article:
What Is the Value Stream Model?
What Is the Value Stream Model?
The Value Model defines how value is identified, structured, measured, and realized during a transformation.
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It introduces a clear distinction between:
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Foundational Value Streams and Value Stages
Canonical representations of how the organization delivers value end-to-end. -
Transformation Value Streams
Workstream-specific instances of value streams that capture current state, target state, and value delivered within the context of a transformation initiative. -
Transformation Value Stages
Workstream-specific instances of value stages that enable stage-level value definition and measurement.
Together, these constructs ensure that value is not treated as an abstract aspiration, but as a designed, traceable, and measurable outcome of transformation.
Above: Figure 2a. Value Stream Model Illustration for AlignAir
Below: Figure 2b. Value Stream Model serves as the organizing structure connecting strategic goals to actionable objectives
Why Is It Important to Develop the Value Stream Model?
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Organizations often talk about value, but struggle to answer basic questions such as:
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Where exactly is value being created or lost?
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Which parts of the value stream are in scope for transformation?
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How does stage-level improvement translate into enterprise outcomes?
Common challenges include:
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Treating value streams as static diagrams rather than active instruments
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Measuring success only at initiative completion, not progressively
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Failing to distinguish between baseline value and transformation-driven improvement
The Value Model addresses these challenges by:
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Anchoring transformation work in explicit value streams
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Enabling granular, stage-level value assessment
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Making current vs. target value visible and intentional
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Creating a direct line from stage-level change to outcome realization
This ensures that transformation efforts are continuously evaluated based on value delivered, not just progress reported.
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How To Develop the Value Stream Model
The Value Model is applied by combining foundational value definitions with workstream-specific transformation overlays.
1. Define Foundational Value Streams and Stages
At the enterprise level:
Value Streams describe how value flows from trigger to outcome.
Each value stream is composed of a sequence of Value Stages, each contributing incremental value.
These foundational definitions are stable and reusable, forming the baseline for all transformation initiatives.
2. Create Transformation Value Streams
For each workstream:
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A Transformation Value Stream is created as a workstream-specific instance of a foundational value stream.
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This instance captures:
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baseline (current) value,
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target value, and
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value delivered over time.
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Each workstream has exactly one Transformation Value Stream, while multiple workstreams may target the same foundational value stream.
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3. Instantiate Transformation Value Stages
Within a transformation value stream:
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Transformation Value Stages are created for the specific stages that are in scope for the workstream.
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Each transformation value stage:
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references its foundational value stage,
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captures current and target value, and
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serves as the anchor point for goals, experiences, processes, and capabilities.
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This allows teams to focus on only the stages that matter, rather than treating the entire value stream as uniformly impacted.
4. Align Goals and Outcomes to Value
Value stages are not transformed in isolation:
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Goals are defined at the transformation value stage level.
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Goals contribute to Outcomes, which represent the value the organization intends to realize.
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Improvements at individual stages roll up to stream-level and initiative-level value realization.
This ensures that value measurement remains consistent from the micro (stage) to the macro (outcome) level.
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Alignment and Relationships
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The Value Model provides the structural foundation that connects strategy, execution, and value realization across AlignedX.
Key relationships include:
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A Value Stream is composed of Value Stages.
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A Transformation Value Stream is a workstream-specific instance of a Value Stream.
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A Transformation Value Stream includes one or more Transformation Value Stages.
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A Transformation Value Stage is an instance of a Value Stage.
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Goals target Transformation Value Stages.
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Goals contribute to Outcomes, enabling value realization.
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Experiences, processes, capabilities, applications, and data are all aligned to Transformation Value Stages, ensuring execution is value-anchored.
Through these relationships, the Value Model acts as the central spine that aligns all other AlignedX models.
Summary
The Value Model ensures that transformation is designed around value, not activity.
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By:
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distinguishing between foundational and transformation-specific value constructs,
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enabling stage-level focus and measurement, and
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linking improvements directly to outcomes,
the model makes value explicit, traceable, and governable throughout the transformation lifecycle.
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