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
D. Brown Management
June 29, 2018 1 minute read
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?  

Construction Craft vs Management Training
Contractors who can effectively develop management talent will dominate during the next decade. We can learn a lot of lessons from how we develop craft labor versus how we develop a Superintendent or Project Manager or any other manager.
Related Article
Accounting and Finance (Similarities, Differences, and Integration)
For a growing contractor, understanding the differences between accounting and finance is often a challenge. The two functions are related but very different.
Related Article
Retirement Onboarding - Legacy
As the owner of a construction business, you must consider what you want your legacy to be in retirement and beyond.
Related Article