The flow of value is important in all organizations, but especially so in service organizations that are by the virtue of their business model more susceptible to disturbances in the flow. Why is this so?

Service organizations help their clients achieve business goals. Unlike their product-led peers, they don't rely on passive income streams based on subscription models. To maintain a steady income stream, service organizations need to continuously sell and deliver their services. Much like sharks that need to be in constant movement to keep the water flowing over their gills and prevent them from suffocating, service organizations must constantly sell and deliver their services to keep the cash flow healthy. And they need to do it most efficiently!

Managing a healthy flow of value in service organizations includes challenges not present at product organizations and stemming from the fact that service organizations don't work on their own but always for client organizations. Client organizations can stop ongoing initiatives, create completely new ones, and (depending on the collaboration level) significantly influence the technical solution and ways of working.

All these factors can significantly deteriorate the flow of value in service organizations which is why they need to closely monitor the flow and promptly remove impediments that get in the way. Work variability in service organizations is much higher than in their product-led peers with more predictable roadmaps.