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?  




Coaching and "GPS Feedback"
Contracting is a business where operational excellence is a major factor in winning. Project success which we all know is very different than “winning” the project depends on thousands of details over many months executed well.
Field Productivity - The Improvement Pyramid
An improvement of a few minutes per day to actual installation time compounded monthly is worth about $800K per year for a $25M contractor. What is it worth to you? Improvements to field productivity can be viewed as 4 major stages of a pyramid
Growth and Opportunity
Contractors that are growing profitably, have great reputations with their customers, and have a good culture are able to attract and retain the best talent even with the talent shortages the construction industry will face in the next 10+ years.