ABSTRACT

Having talked about flow, the need to link the inbound supply chain with the outbound distribution channels, and the critical nature of identifying how the customer defines value-and then going about meeting that definition-it is time to organize the company around making all of these lofty ideas reality. That means restructuring the whole place into value streams: knocking down all of the functional silo walls, with no more departments based on what kind of work people do. Everyone has to do the same kind of work-create value for customers. Functional departments never were a particularly good idea, and they most certainly are not an effective way of getting much of anything done that a customer sees as helpful.