What is Value Stream Manager?

An individual with clear responsibility for the success of a value stream. The value stream can be defined at the product or business level (including product development), or at the plant or operations level (from raw materials to delivery).

The value stream manager is the architect of the value stream, identifying value as defined by the customer and leading the effort to achieve an ever leaner flow.

The value stream manager focuses the organization on aligning activities and resources toward value creation, even though none of the resources (financial, human, assets, etc.) actually "belong" to him or her. Thus, value stream management distinguishes between responsibility, the role of the value stream manager, and authority, the role of each department that controls the resources. The role of the functional areas is to provide the resources needed to achieve the value stream vision, as defined by the value stream manager. This manager leads through influence rather than through mandate and can therefore be equally effective in a traditional functional organization or a matrix organization, avoiding the common error of matrix organizations, which is the loss of accountability and of effectiveness in decision making.

The archetype of the value stream manager role is the Toyota chief engineer, who has few subordinates and resources under his or her direct control.