Levels of the Value Stream

For contractors to unlock maximum value during business development, preconstruction and project execution it is critical to understand the broader value stream of the project beyond their scope.

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Consider these 10 levels of granularity when looking at the construction value stream:

Critical Skills: Value Stream Levels. Seeing, Understanding, Doing, and Leading.

 


SPECIALTY CONTRACTOR

  1. Specific Trade Scope & Task (Field Installation Expertise)
  2. Functional Area of Specialty Contractor (Precon, Detailing, Prefab, etc.)
  3. Whole Specialty Contracting Business (Electrical, Mechanical, etc.)

PROJECT OWNER

  1. Construction Process (GC / CM Viewpoint)
  2. Design & Project Delivery Process
  3. Project Lifecycle (From Concept Through Initial Construction, Operation, Renovations & Decommissioning) 
  4. Corporate Facility Management (Interrelationships of Business Strategy & Multiple Project Lifecycles)

BEYOND

  1. City Planning (Redevelopment Vision, Supporting Infrastructure, etc.)
  2. Industry Trends (Example - Demographics Driving Healthcare Capacity Needs)
  3. Country & Multi-Industry Integration (Example - Growing Geographies, Integration of Housing & Healthcare)

 


What level of the value stream is your primary focus?

Deeply learn the value streams and build relationships 1 & 2 levels higher.  

What can you do to add maximum value considering the perspective from those higher levels?  




Issue 2 of 9: Culture
Construction Ownership Transition Issue 2 of 9: Is the Culture Truly Ready for Succession? Why does it matter to the employees what happens with succession? How does that impact value?
Headcount, Management Structure, and Systems
Your management structure and systems must be able to support your forecasted 2-month peak headcount, including the ramp-up to that peak.
Racing, Equipment, Heart Rates, and Contractor Growth
The fastest marathon runner used shoes costing $300 and is 2X as fast as an intermediate runner. The fastest 100-mile bicycle time is about 2.5X faster than the fastest marathon runner, going nearly 4X as far. Contractor and career growth is similar.