How Buckman's Value Stream Initiative Re-Visioned IT for Value

Executive Summary1 The full article describes how Buckman, a U.S.-based chemical manufacturer, redefined itself and its IT organization using “value” as the focal point for analysis. Buckman’s Value Stream Initiative (VSI) used a microlevel, individual view of value as assessed by customers. The VSI project carried out a comprehensive and detailed micro review of the value of all key processes. VSI enabled Buckman’s IT management team to discover the value being derived from IT activities and make necessary changes. Value stream analysis has its roots in Lean thinking (an overview of which is provided in the full report). Buckman’s management was attracted to a Lean approach because it would ensure the analysis looked across the entire organization and would specifically identify those activities that were producing value their customers would pay for, as well as those that were not producing value. Lean thinking also stresses, through a continuous improvement culture, the long-term focus Buckman hoped to achieve. The VSI project was launched in April 2007 and culminated in 2011/2012 with continuous improvement (CI) and Lean Six Sigma (LSS) activities.