《Integrating The Lean Enterprise》valueandstakeholders

Value and Enterprise Stakeholders Prof. Deborah Nightingale September 16, 2002 1· D. Nightingale·②2002 Massachusetts Institute of Technology

1 - D. Nightingale - © 2002 Massachusetts Institute of Technology Value and Enterprise Stakeholders Prof. Deborah Nightingale September 16, 2002

Learning objectives Value creation framework Enterprise stakeholders Stakeholder value metrics 2·D. Nightingale·②2002 Massachusetts Institute of Technology

2 - D. Nightingale - © 2002 Massachusetts Institute of Technology Learning Objectives ƒ Value creation framework ƒ Enterprise stakeholders ƒ Stakeholder value metrics

Creating value How various Find Develop and Execute stakeholders find Stakeholder Agree to the on the particular worth, util ility, Value Approach Promise benefit or reward in Value Value Value exchange for their respective Identification Proposition Delivery contributions to the enterprise ynamIc Source: Murman et al., Lean Enterprise Value, Palgrave 2002 and Iterative 3-D. Nightingale-@2002 Massachusetts Institute of Technology

3 - D. Nightingale - © 2002 Massachusetts Institute of Technology Creating Value Value Proposition Proposition Find Stakeholder Value Develop and Agree to the Approach Execute on the Promise Dynamic and Iterative Value Identification Identification Value Delivery Delivery * Source: Murman et al., Lean Enterprise Value, Palgrave 2002 “How various stakeholders find particular worth, utility, benefit, or reward in exchange for their respective contributions to the enterprise.”*

Identifying value Identify stakeholders What part of the program or process adds value for each stakeholder? Determine each stakeholder value What kinds of exchanges are required to provide this value? Establish stakeholder expectations and contributions Find stakeholder value 4-D. Nightingale-@2002 Massachusetts Institute of Technology

4 - D. Nightingale - © 2002 Massachusetts Institute of Technology Find stakeholder value Identifying Value ƒ Identify stakeholders ƒ What part of the program or process adds value for each stakeholder? ƒ Determine each stakeholder value ƒ What kinds of exchanges are required to provide this value? ƒ Establish stakeholder expectations and contributions

Creating a Value Proposition Align stakeholders around the program value stream Structure the enterprise value stream Each stakeholder will contribute their efforts or resources to the value stream in those ways from which they can derive value Establish clear communication of balanced expectations with all stakeholders Develop and agree to the approach 5-D. Nightingale-@2002 Massachusetts Institute of Technology

5 - D. Nightingale - © 2002 Massachusetts Institute of Technology Creating a Value Proposition Develop and agree to the approach ƒ Align stakeholders around the program value stream ƒ Structure the enterprise value stream ƒ Each stakeholder will contribute their efforts or resources to the value stream in those ways from which they can derive value ƒ Establish clear communication of balanced expectations with all stakeholders

Deliver value to all stakeholders Add value at each step along the value steam in accordance with the value proposition EXecute the value stream using lean principles Gather information and data to continue to improve enterprise processes Execute on the promise 6-D. Nightingale-@2002 Massachusetts Institute of Technology

6 - D. Nightingale - © 2002 Massachusetts Institute of Technology Deliver Value to All Stakeholders ƒ Add value at each step along the value steam in accordance with the value proposition ƒ Execute the value stream using lean principles ƒ Gather information and data to continue to improve enterprise processes Execute on the promise

Value Creation is Dynamic and Iterative Real world is not static Changes in stakeholder values Changes in who are the stakeholders 7-D. Nightingale-@2002 Massachusetts Institute of Technology

7 - D. Nightingale - © 2002 Massachusetts Institute of Technology Value Creation is Dynamic and Iterative ƒ Real world is not static ƒ Changes in stakeholder values ƒ Changes in who are the stakeholders

A Value Creation framework Value phases Value Value Value Enterprises Identification Proposition Delivery Most lean principles Program and practices have been focused here Corporate Opportunities Government National International 8-D. Nightingale-@2002 Massachusetts Institute of Technology

8 - D. Nightingale - © 2002 Massachusetts Institute of Technology A Value Creation Framework Value Identification Value Proposition Value Delivery Value Phases Program Corporate Government National International Enterprises Most lean principles and practices have been focused here Opportunities

Enterprise Stakeholders Customers/ End Users Employees Shareholders Multi- Partners Program Enterprise Corporate Leadership Business Unit Suppliers Societ 9-D. Nightingale-@2002 Massachusetts Institute of Technology

9 - D. Nightingale - © 2002 Massachusetts Institute of Technology Corporate Leadership Employees Multi￾Program Enterprise Business Unit Customers/ End Users Shareholders Society Unions Partners Suppliers Enterprise Stakeholders

Customer view Value as we define it is delivered in a timely fashion, even in anticipation of our needs Our satisfaction appears to be the focus of all our suppliers activities We are invited to get involved early in the design process Our supplier understands our need for low life-cycle cost and superb quality OUTCOMES >More customers >Greater market share 10-D. Nightingale@ 2002 Massachusetts Institute of Technology

10 - D. Nightingale - © 2002 Massachusetts Institute of Technology Customer View ƒ Value as we define it is delivered in a timely fashion, even in anticipation of our needs ƒ Our satisfaction appears to be the focus of all our supplier’s activities ƒ We are invited to get involved early in the design process ƒ Our supplier understands our need for low life-cycle cost and superb quality OUTCOMES: ¾More customers ¾Greater market share