Value Stream Analysis

A framework for optimizing business operations by analyzing value streams through the customer's perspective, based on Sam Ovens' experience restructuring his company.

Core Principles of Lean Thinking

• Optimize business based on how customers experience value
• Analyze three key resource flows:
  • Headcount allocation
  • Money flows/capital deployment
  • Time/attention/energy investment

Implementation Framework

• Analyze value streams by asking:

  • How many people are contributing directly to customer value?
  • Where is capital being allocated vs where customers experience value?
  • Is time/energy focused on customer-facing activities?

• Evaluate all activities through customer value lens:

  • Do customers find this valuable?
  • Are resources being spent on things customers don't value?
  • Can activities be restructured to increase customer value?

Real World Application Example (Consulting.com)

• Initial State:

  • $36M revenue but only $5M profit
  • 50 people on team
  • $2M monthly ad spend
  • Heavy focus on advertising vs product

• Problems Identified:

  • Most resources focused on ads which customers didn't value
  • Too much headcount not contributing direct customer value
  • Capital inefficiently deployed on non-value adding activities

• Solution:

  • Shifted to organic content (customers found valuable)
  • Restructured team to be customer-facing
  • Focused leadership time on customer problems vs advertising
  • Made team members directly contribute to customer value through support/account management

Key Outcomes

• More efficient resource allocation
• Higher profitability
• Better alignment with customer needs
• Sustainable business model focused on value creation

The framework emphasizes analyzing and optimizing all business activities through the lens of customer-experienced value rather than internal metrics alone.