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.

D. Brown Management Profile Picture
Share

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?  




Leadership Team Communication
Open and frequent communication does not automatically build great projects or construction companies.
Average is Rare and Rarely Valuable
Study the differences between the varying levels of performance and work to close those gaps. Seeing how the average is trending can be very valuable to visualizing the trajectory, and that goes for every element on a Contractor's Scoreboard.
Selling an Efficient Project
Doubling the pretax net margin for contractors requires both effective selling AND operational excellence. The majority of of people in construction contracting businesses are operationally focused on building the work.