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?  




Levels of Design / Development / Detail - Beyond just Design
Contractors can improve business results by applying many of the same processes and vocabulary to their business that the industry is applying to projects. Consider how the different Levels of Detail (LOD) could be applied to your planning processes.
Key Drivers of Value
Valuation is a very critical factor during ownership transitions because it has to be a number that fairly represents the value of the business for the outgoing owners while providing a solid return for the buyers.
Talent - Sustainably Integrating the 4 Priorities
When assessing the strategic importance of investing in your talent acquisition and development processes at the field leadership level it is important to understand the depth of the talent shortage over time.