Value Stream Funding
Value Stream Funding is the process of assigning budgets to identified value streams within a product, based on an understanding of strategic priorities.
Goal
The primary goal is to align funding with the product's strategic priorities, ensuring that critical value streams are given the focused attention they require, while less critical streams are managed more efficiently.
Context
Products often consist of multiple value streams, each representing a distinct area of business functionality. But not all value streams are equal in terms of strategic importance or complexity. By funding value streams based on their relative strategic importance, Product Teams can influence the product's direction and focus resources where they are most needed.
Factors for Allocation
| Factor | Description | Impact on Allocation |
|---|---|---|
| Strategic Importance | The relative importance of the value stream to the product's strategic goals and objectives. | Higher strategic importance streams require higher funding to ensure focused attention and resources whereas other value streams may only require part time attention. |
| Complexity of the Value Stream | The level of complexity within the value stream, including technical challenges, market volatility, and regulatory requirements. | More complex value streams need more funding given the need for focused attention and specialised skills. |
| Budget and Resource Constraints | The availability of budget and resources to support the development and maintenance of the value stream. | Allocation decisions must consider the financial and resource constraints of the product, ensuring that value streams are allocated within the available means. |
Inputs
| Artifact | Description |
|---|---|
| Product Strategy | The high-level strategic goals and objectives of the product, including where to play and how to win. |
| Bounded Value Streams | A detailed map of identified value streams from the Event Storming workshop, providing insight into the scope and requirements of each stream. |
| Product Budget | The financial resources allocated to the product, including budget constraints and funding availability. |
Outputs
| Artifact | Description | Benefits |
|---|---|---|
| Value Stream Budgets | The allocation of financial resources to each value stream, based on strategic importance and resource requirements. | Ensures that value streams are funded appropriately to meet strategic goals and objectives. |
Anti-patterns
- Overloading Teams: Allocating too many value streams to a single team, leading to burnout and reduced quality.
- Misalignment with Strategy: Allocating value streams without consideration for the organisation's strategic priorities, risking misdirected efforts.