METHOD

Business Value Flow Mapping

Origin and purpose

This method was created by value(x) as a simple way to visualise flows between the multiple value elements that are a focus for your business. This method assumes these value elements have already been identified, potentially through the development of a Business Value Exchange Ledger™. 

A Value Flow Map for your business can illustrate the following:

  • which value elements are the input into, or raw material for, creating another form of value
  • which value element may be dependent on a chain of other value elements
  • how value created at ‘the end of the line’ (i.e. Terminal value), like a form of financial value (e.g. PROFIT), can have many other forms of less visible value elements that are instrumental in informing or instantiating its creation.
With this knowledge you can make wise business decisions about where and how you invest resources (i.e. time, effort, energy, attention) in cultivating value in any part of the map. You will easily see the up-stream and down-stream implications of your decisions and be able to scope and/or risk the activities you do in value creation.
 

This method was created by Helen Palmer, creator and founder of value(x) approach and hub. It was first used in her own business to make sense of the related elements and value and help make choices about where to priortise attention.

Example of a Value Flow Map

Here is an example of an Business Value Flow Map for a small knowledge-work business.

A sample of a Business Value Flow Map for a Business called Questo as at March 2019 showing 11 value elements that have been defined and presented in individual boxes with arrows between boxes illustrating the direction of flow.

Method steps

1. Gather all the business value elements you selected as your focus. There is an assumption that you have selected value elements constrained to a time period, for example, 3 months or 12 months — that aligns with your strategic planning cycle.

2. Prepare a description for each of the value elements. This description should be in words that are relevant to your business and to the particular time/situation you are defining this particular form of value. In the image above you can get a taste of what this might be. Write on a sticky note and append to each value element card.

3. On a large flat surface, organise the value element cards in relation to each other. Be sure to allow some space between each of the cards to add sticky notes on which you can draw arrows, to show the flows in/out for each value element. (Hint: Use small rectangular shaped sticky notes for these. Or you could even use arrow-shaped sticky notes!)

4. Play around with the layout of the value elements. Be open to insights and fresh perspectives that may emerge. There is no right or wrong answer — it only has to make sense to the business owners in this initial form. (It’s another matter about if, and how, you want to communicate this Value Flow Map to other business stakeholders.)

5. Determine a tangible measure for key value elements. Key value elements are typically those at the end of the line (i.e. terminal) of a chain of value elements. The measure is a way for you to know ‘how much’ of a particular value element you seek. Write these on sticky notes and append to your map. (Hint: Use a different colour sticky note than your definition.)

6. Take a photograph to capture your ‘rough’ Value Flow Map. If it makes sense to do so, then transfer the information to a nice digital form as illustrated in the image above.

7. Add this artefact to your collection of strategic planning documentation.

8. Option: Share your Value Flow Map with key stakeholders to develop a shared understanding of the upstream/downstream flows of value creation in your business, and discuss the implications for future business activity and priorities.

9. Translate your insights and the details into a strategic plan. We recommend the Business Motivation Model method for creating such an artefact.

Tip

Do the activity above over the space of a few days, especially if doing it with people who are not familiar with the approach.

Why? It can take some time to get your head into this type of thinking — so accommodate that level of initial sense-making. It’s also good to literally sleep-on-it so your brain can process the input and make new connections. Then you can come back with fresh eyes, and even fresh perspectives about what to add, remove or refine.

Advanced option

Your Business Value Flow Map could be extended to represent a consolidated view that includes marketplace value elements and workscape value elements. Some colour coding can be useful when creating a digital consolidated version to better show which stakeholder groups’ value is represented in the map.

Creative Commons License

This content by RHX Group — product owner of value(x) — is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License. We acknowledge and respect the original work and property of the Object Management Group.