What it is for: Value chain analysis is a strategy method that breaks a service into the activities that create value for users, from intake to aftercare. You leave with a clear chain of primary and support activities, each with its contribution, cost driver and dependencies, plus two or three evidenced opportunities with owners.
Who it helps: Leaders and operations teams looking for where to cut cost, improve a service, or decide what to keep in-house or outsource.
When to use it
You need to cut cost or improve a service and want to know where to look first.
You are deciding which activities to keep in-house, share or outsource.
Leaders want to understand where the organisation is genuinely strong compared with others.
How to use it
Name the value users get at the end of the chain.
List the primary activities left to right, then add support activities underneath.
Note what each activity contributes and what drives its cost.
Mark single points of failure on one person, system or supplier.
Find high-cost, low-value or fragile activities and choose two or three to explore.
Tip: Use verbs for activities, such as check documents, so people describe work rather than departments.
Credits and sources: Original Tiremesù worksheet and wording. Method credit: Michael E. Porter. Further reading: Harvard Business School, Institute for Strategy and Competitiveness https://www.isc.hbs.edu/strategy/business-strategy/Pages/the-value-chain.aspx
Full guide and film:https://www.tiremesu.com/guides/value-chain-analysis
