Map and Measure your way to Performance (Flow Engineering) - Steve Pereira (Talk Outline)
A Craft 2025 (Budapest) talk by Steve Pereira — two decades improving flow of work; roles across tech support, IT management, build/release engineering, and founding CTO of an enterprise SaaS; lead consultant at Visible (value-stream consulting), board adviser to the Value Stream Management Consortium, chair of the OASIS Value Stream Management Interoperability technical committee, co-founder of the Flow Collective, and (since 2017) developer of flow engineering. Thesis: productivity isn’t the point — getting the right things done is; most organizations are distracted by shiny objects (AI mentioned “in the triple digits” today) and micro-optimize off the constraint, spending big for zero bottom-line impact. Flow engineering fixes the how of work via a sequence of mapping activities that turn noise into signal and produce a data-backed roadmap. Aimed at current and aspiring leaders. Structure: the proposition → the $20M story → constraints/AI → value streams & VSM → the five maps → where to apply it → Q&A.
1. The Proposition of Flow Engineering
1.1 The right things, not just more things
- Being more productive while “running in the wrong direction” just creates waste — more distance between you and the goal.
- We’re constantly distracted by shiny objects; we want signal, not noise — actionable insights that hit the bottom line.
1.2 It’s about how we work
- The biggest difference usually isn’t the latest tool/technology or what we work on, but how we work — often lots of low-hanging fruit.
- Flow engineering aims squarely at that how.
2. The $20M Artifact-Deployment Story
- Early in his consulting career (before he’d even named it “flow engineering” — “just a catchy title”), doing value stream mapping.
- A large org called him in to help make the case for automating artifact deployment — they already had a tool target and needed to convince leadership.
- Measuring a typical flow through their value stream revealed two other opportunities with 10× and 100× the impact — artifact deployment was not their biggest bottleneck.
- The automation would have cost ~$20 million (rolled out across teams), taken 18 months plus training — impact on actual lead time: zero, no noticeable difference.
- Lesson: as leaders pitching leaders/teams, show measurable results quickly; choose measurable low-hanging fruit over a tool that “may pay off in the future” with massive investment. Go with the data.
3. Constraints and Where AI Actually Helps
3.1 Off-constraint effort is wasted
- Your constraint usually isn’t “we can’t create more code” — adding a code-gen bot just piles work up at the existing constraint.
- Metaphor: breaking one dam only floods a reservoir with another dam — no throughput gain, just clogging.
- This applies anywhere that isn’t your constraint: even more effective testing doesn’t help if the constraint upstream means there’s less to test.
3.2 Address the hot spots
- Target the choke points that meaningfully limit throughput — what the org, bosses, and customers care about.
- Big piles of work = customers waiting, work aging, no feedback → risk and waste to avoid.
4. Value Streams and the Visibility Problem
4.1 What a value stream is
- Delivering value often means traversing the entire org chart — divisions, approvals, up/down/across — all “in the way” of getting an idea to production and getting feedback.
- That end-to-end path is the value stream; in many orgs it isn’t even a defined/shared term.
4.2 Siloed visibility → micro-optimization
- We can’t see the whole value stream, so we micro-optimize — the same mistake as adding AI off the constraint: won’t help, may hurt.
- Leaders should tighten the connection between what they think will happen and what actually happens, and be able to hypothesize/demonstrate/sell results with data and better illustrations.
5. Value Stream Mapping
5.1 What VSM is
- Represent the entire flow of activity, then measure it to collect data that tells a story about performance.
- The map enables a productive conversation — point at things, shift focus, weigh opportunities against each other.
5.2 Focal points
- You can’t improve everything at once — dividing focus means getting nothing done.
- The map gives focal points to prioritize against a goal (quality, throughput, time-to-feedback) — “let’s focus on bottleneck one,” or divide and conquer with a hypothesis about the improvement.
5.3 Bridging business and tech
- A shared map + numbers lets business and tech agree/disagree on data and representation but agree on where to focus — business understands capacity/bad upstream requirements/broken test environments; tech understands strategy/aggressive targets/throughput.
- A single focal point saves time and stops people talking past each other.
6. The Flow Engineering Sequence (Five Maps)
A sequence from identifying value to enabling flow by designing a future state; each map builds on the previous. You can skip to flow roadmapping if you already know what to do, but Pereira suggests starting from the outcome map. Roles: the value stream, a key sponsor (someone who can say yes/give budget), a facilitator (ideally not part of the value stream, to arbitrate politics/feelings), and representation across the value stream (who build the picture and feel ownership). Target: each workshop ~90 minutes.
6.1 Map 1 — Outcome mapping
- Discovery of the current state: pains, goals, context — acknowledge concerns or people disengage.
- Affinity map the raw material (noise → signal), then distill a target outcome for the next ~3 months.
- Cadence: do it, deliver, monitor ~3 months, reassess. “Do it once and see how it goes”; going zero to one is meaningful.
- Get the working group bought in (“what’s in this for you?” — people may benefit only indirectly), then surface obstacles and next steps.
- You don’t have to use outcome mapping (some use impact mapping), but set a clear target before starting.
6.2 Map 2 — Value stream mapping
- Finding value streams: you have one anywhere you deliver value today — work backwards from how value reaches the customer.
- Examples everywhere: platform development, hiring new employees — any value-delivering process is a value stream.
- Trace backwards through the activities, then add data — commonly cycle time and wait time.
- Data fidelity matters less than relative value: if most activities take hours and one takes weeks, precision on the hours is insignificant — outliers don’t need precision. In software orgs going zero-to-one, “there’s opportunities all over the place.”
- The current-state map is the baseline for comparing to the future state and the ROI story (“nobody gives budget for free”).
- Detail (rework, tools/artifacts, roles) has diminishing returns — you just need a focal point.
- Example: a financial institution’s two-year, $2M-per-feature release process (large batches); color-coding tells the story. Quick wins: pull sequential steps into parallel, drop steps once thought mandatory, automate the easy ones, combine meetings.
- The human payoff: a project manager of 19 years saw the process end-to-end for the first time; others met people they hand work to daily for the first time.
- The multiplier: mapping several value streams reveals common issues — fix a shared platform (e.g., artifact deployment) and you “raise the tide for all those boats.” You don’t have to map everything to improve everything.
6.3 Map 3 — Dependency mapping
- Dig deeper into what actually contributes to the constraint / makes the hot spot problematic.
- Rule: only dig where there’s gold — find a nugget, look for the vein, but don’t strip-mine the whole environment (keeps it fast).
6.4 Map 4 — Future state mapping
- Design a better system of work — highlight everything you could do to improve performance (ideas, actions, experiments).
6.5 Map 5 — Flow roadmap
- Surfaced opportunity you don’t act on is waste — worse than nothing (people get excited, nothing happens; cf. the retro that ends “we’ll try better next time” with no action).
- Prioritize at the nexus of easy-to-do and very valuable; plot on a now/next/later roadmap.
- What’s different: don’t just list things to do — define how you’ll know you’re headed the right direction, measures of progress, owners, and who tees up the next thing (no need for later’s metrics yet).
- The narrative: “here’s what we wanted, where we started, what we noticed, what we decided to address, how/when, and how we’ll measure it” — an executive brief that won’t bounce off a leader; explicitly “about getting you promoted and making you look good.”
- Ownership is essential — someone drives it “over the finish line.”
7. Recap and Where to Apply It
7.1 The end-to-end loop
- Start with what we want (a target → buy-in, participation, and a closeable loop) → what’s stopping us → why it’s in the way → how to address it → what getting there looks like.
7.2 “Process” isn’t the enemy
- People are allergic to “process” because “our processes suck” — the path to better processes is to make them valuable, not to avoid the word.
- Applies to partnerships, acquisitions, new ventures, entering new countries, even planning conference travel — but focus only on the high-value things (releasing products, what’s holding you back).
7.3 How to pick a starting point
- Where you feel friction / things take longer than they should.
- Where people are unclear / get stuck / waste time wandering the org for the right person or calendar slot.
- Where you’re missing value — doing things that don’t matter, or getting criticized for things you think are valuable.
7.4 Concrete opportunities
- Where to invest in AI — don’t decide without first knowing where you’re constrained; apply tools where lead time bogs down / people struggle.
- Dependencies — heard weekly; mitigate, don’t just “manage” (people wrongly treat them as things to “grin and bear”).
- Career/impact — highlight throughput, quality, fewer production fires, less rework, fewer sev-1 incidents.
- Aligning business and tech — the classic.
- Any system that isn’t working — e.g., PI planning: are we getting more value than the cost? Map it to have a better conversation.
8. Q&A
8.1 Q1 — Value streams around products vs. capability-focused design; how to support engineering without being product-specific?
- Products/services are what customers buy; capabilities are what make them compelling.
- Speak your organization’s language (ITIL/TOGAF/classical IT orgs talk capabilities) — “yes, and”: trace a path from building/delivering/operating capabilities out to why you get paid (how capabilities are produced, distributed, and made available).
8.2 Q2 — VSM vs. Theory of Constraints?
- He runs a very loose interpretation of TOC; the science behind TOC is powerful, but flow engineering just wants an actionable focal point — which may not be the system’s true global constraint.
- Reality: your sphere of influence/control is smaller than the whole system, so VSM can be a subset leveraging TOC, not fully interdependent with it.
8.3 Q3 — Complex adaptive systems can’t define a future state — how handle that?
- Not defining a definitive future state doesn’t stop us envisioning an improvement.
- “Future state” here means a better design of the way we work, not “state” in the network/complexity/systems-thinking sense — not ultimate optimization, just better than today.
8.4 Q4 — How to get good-enough data with bad/scattered data and unreliable “it depends” answers?
- Use typical / best-case / worst-case, pull data where you have it, and only care about precision where the data has value — you don’t need perfect data everywhere.
- People already know where the friction is — the strongest signal.
- The value of collecting perspectives isn’t perfect data — it’s highlighting that everyone has different ideas of how long things take (i.e., variation), which is a signal you want to drive down toward predictability.
- Highlighting high variation isn’t a problem — “we can go from a mess to better.” Don’t let a mess stop you starting.
People & References Cited
- Steve Pereira — speaker; flow engineering creator; Visible; Value Stream Management Consortium; OASIS VSM Interoperability TC; Flow Collective.
- Nigel — an audience member Pereira jokingly credits with the anonymous Slido questions.
- Book/course: Flow Engineering (book, with a newly released course and an audiobook).
- Concepts/tools: value stream mapping, value streams, Theory of Constraints, constraints/bottlenecks/choke points, cycle time & wait time, outcome mapping, impact mapping, dependency mapping, future-state mapping, flow roadmap (now/next/later), affinity mapping, DORA-style flow metrics, PI planning, ITIL/TOGAF (capabilities language), signal vs. noise.
Video: https://www.youtube.com/watch?v=11Dc-PKhnuc — Transcript via yt-transcript.sh; outline generated from the transcript.