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Card 15 of 18 Flow and portfolio ●●○ Working knowledge

Operational and development value streams

SAFe distinguishes two. An operational value stream is the sequence of activities needed to deliver a product or service to a customer. A development value stream is the sequence needed to convert a business hypothesis into a digitally-enabled solution. ARTs are organised around development value streams.

Why it is like this

The business runs on the operational stream; the organisation that builds and improves it is a different sequence with different people. Keeping them separate is what stops "organise around value" collapsing into "organise around the org chart".

Not to be confused with

Two names for the same thing. Identifying operational value streams comes first — you find the development streams that support them — and getting the direction backwards produces trains shaped like the existing departments.

In practice

A bank's operational value stream is "apply for a mortgage". The development value stream is the people and systems that improve the mortgage platform. The ART sits on the second.

Source: SAFe Glossary (Scaled Agile, Inc.) — Operational Value Streams (OVS), Development Value Streams. Read on .

SAFe® and Scaled Agile Framework® are registered trade marks of Scaled Agile, Inc. ytyk.org is not affiliated with, endorsed by or licensed by Scaled Agile, Inc. These cards are independent commentary written in our own words; no SAFe text, graphic or Big Picture is reproduced here.

Predict Check yourself

An enterprise defines its ARTs by existing department — front end, back end, data. What has it most likely skipped?

  1. Identifying operational value streams first, and deriving the development value streams that support them — ARTs organised by function reproduce the silos they were meant to remove.
  2. Nothing — ARTs are conventionally organised by technical capability.
  3. The portfolio configuration, which is required before ARTs can be defined.
  4. Nothing, provided each department has fewer than 125 people.
Show the answer

Identifying operational value streams first, and deriving the development value streams that support them — ARTs organised by function reproduce the silos they were meant to remove.

Component teams wearing train names is the most expensive mistake in a SAFe rollout, because the structure outlives the programme that created it.